Industrial Management (ETMS-311)

(UNIT-1)
Industrial Relations & Labour Legislation:
Definition & Main Aspect:
Management is systematized body of knowledge and the researchers uses scientific techniques
to collect and analyse data about human cause and effect relationship.
Importance of Management:

Accomplishment of Goals.
Effective utilization of resources
Sound organization
Providing vision and foresight
Help and motivates employees in achieving personal objectives.
Development of society and nation.
Industrial Relation
The term industrial relation compromises of two terms : Industry & Relations
industry refers to any productive activity in which an individual (or a gp. Of individual) is
(are ) enganged.
By Relation we mean the relationship that exist between the Employer and his
Workmen.
Industrial Relation: Is the relationship which exists between employers and employees or
is the relationship between management and employees or among employees and their
organization
that
characterizes
and
grows
out
of
employment.
It
is
most
important
that
this
relationship
is
good.
Industrial relations are a combination of
Co-operation
Collaboration
Conflicts
between workers and management
Reasons of conflicts: management and workers

Have different orientations and perceptions

There are no mutually accepted norms to guide their behavior

Both are affected with same carry over effect from the past on the negotiation table
Acc. To Casselman's Labour Dictionary,

industrial relations denote the relations between employer and employees in the industry. In
a broad sense the term also includes the relations between the various unions, between the
state, and the unions as well as those between the employers and the state
The concept is now extended to relations of the state with employers and workers.
Major parties of IR are workers and management.
Both parties have common interest in industry. State interfere for regulations of labourmanagement relations.
Objectives of IR:

To enhance economic status of worker

To avoid industrial conflicts and their consequences

To extend & maintain industrial democracy

To provide an opportunity to the worker to have a say in the management decision

making.

To regulate production by minimizing conflicts

To provide forum to the worker to solve to solve their problems through mutual
negotiations and consultations with management.

To encourage and develop trade union in order to develop workers collective strength.
Industrial Disputes & Strikes
Industrial disputes are conflicts, disorder or unrest arising between workers and
employers on any ground. Such disputes finally result in strikes, lockouts and mass
refusal of employees to work in the organization until the dispute is resolved. So it can
be concluded that Industrial Disputes harm both parties employees and employers and
are always against the interest of both employees and the employers.
Definitions of Industrial Disputes
As per Patterson: Industrial strife constituent militant and organized protest against
existing industrial conditions, they are symptoms of industrial unrest in the same way
that boils are symptoms of disorder of body.
For a dispute to become Industrial Dispute there must be a dispute difference between:
1. Employers and employees
2. Employers and workmen
3. Workmen and workmen
It is connected with the employment or terms of employment or with the conditions of labour.
Forms of Industrial Dispute: The outcome of industrial dispute is locking out from the
employer side and workers may resort to strike, Gherao, picketing etc.

1. Strike: - Strike is quitting work by a group of workers for getting their demands
accepted by the employer. It is a powerful tool used by the trade unions to pressurize the
management to accept their demands. Various types of strikes are
Economic Strike: - Strike in concern with economic reason like wages bonus or
working conditions.
Sympathetic Strike: - Strike to support the other group of workers on strike within
the organization or for the sympathy to union workers on strike in other industries.
General Strike: - Strike of all the unions in a region or workers of a particular
industry for the common demands of the workers concerned.
Sit down Strike: - When workers stop doing the work but also do not leave the
place of work. It is also known as tool down or pen down strike
Slow Down strike: - When workers remain on their jobs but slow down the output
of their work.
2. Lock Out: - Lockout is the step taken by the employer to put pressure on workers.
Employer close down the workplace until the workers agree to continue the work on
the terms and conditions as given by the employer
3. Gherao: - Gherao is the action taken by workers under which they restrict the employer
to leave the work premises or residence. The person concerned is put away in a ring made
of human beings i.e. workers. Gheraos are also being adopted by educational and others
institutions. It is an illegal act according to the Law.
4. Picketing: - When workers are not allowed to report for the work by deputing some
men at the factory gates. If picketing does not involve any violence it is perfectly legal. It is
done to bring into the notice of public that there is dispute between workers and
management.
The term industrial unrest is used to describe activities undertaken by the labour and other
working people when they feel grievances and protest against pay or conditions of their
employment. Industrial unrest can also be defined as the total range of behaviours and attitudes
that express opposition and divergent orientations between industrial owners and managers, on
the one hand, and working people and their organisations on the other.
Industrial unrest is caused by a clash between employers and employees. Generally, the
causes of industrial conflict fall into categories such as working conditions, wage demands, work
practices, political disputes and social concerns.
Industrial Relations Machinery:
Cordial industrial relations and lasting industrial peace require that the causes of industrial
disputes should be eliminated. In other words, preventive steps should be taken so that
industrial disputes do not occur. But if preventive machinery fails then the Government should

activate the industrial Settlement machinery because non-settlement of disputes proves to be

harmful not only for the workers, but also the management and the society as a whole.
Prevention of industrial disputes: The preventive machinery has been set up with a view to
creating harmonious relations between labour and management so that disputes do not arise. It
comprises the following measures:
a) Schemes of workers participation in management such as works committees, joint
management councils and shop councils and joint councils.
b) Collective bargaining.
c) Tripartite bodies
d) Code of discipline.
e) Standing orders.
Settelment of Industrial Disputes (JUDICIAL MACHINERY):
Preventive measures seek to create an environment where industrial disputes do not arise.
Should they, however, arise, every effort is required to be made to settle them as early as
possible so that they do not lead to work stoppage. The machinery for the settlement of
industrial disputes has been provided under the Industrial Disputes Act, 1947. This machinery
comprises:
(a) Conciliation,
(b) Arbitration
(c) Adjudication
Collective Bargaining
scope of collective bargaining agreements now covers issues such as wages, bonus, overtime,
paid holidays, paid sick leave, safety wear, production norms, hours of work, performance
appraisal, workers participation in management, hiring, firing of job evaluation norms and
modernization. The scope of collective bargaining varies from organization to organization and
industry to industry depending upon existence of strong and matured union and its leadership
trust and confidence between union and management, past history and present status of
organization with respect to negotiation and their implementation.
Features of Collective Bargaining
Randle observes: A tree is known by its fruit. Collective bargaining may best be known by its
characteristics.
The main characteristics of collective bargaining are:
1. It is a group action as opposed to individual action and is initiated through the representatives
of workers. On the management side are its delegates at the bargaining table; on the side of
workers is their trade union, which may represent local plant, the industry membership or
nation-wide membership.

2. It is flexible and mobile, and not fixed or static. It has fluidity and ample scope for a
compromise, for a mutual give-and-take before the final agreement is reached or the final
settlement is arrived at.
3. It is a bipartite process. The employers and the employees are the only parties involved in the
bargaining process. There is no third party intervention. The conditions of employment are
regulated by those directly concerned.
4. It is a continuous process which provides a mechanism for continuing and organised
relationships between management and trade unions. The heart of collective bargaining is the
process for a continuing joint consideration and adjustment of plant problems.
5. It is industrial democracy at work. Industrial democracy is the governance of labour with the
consent of the governed workers. The principle of arbitrary unilateralism has given way to that of
self government in industry. Collective bargaining is not a mere signing of an agreement
granting seniority, vacations and wage increases.
6. Collective bargaining is not competitive process but is essentially a complementary
process, i.e. each party needs something that the other party has, namely, labour can make
a greater productive effort and management has the capacity to pay for the effort and to
organize and guide it for achieving its objectives.
Labour legislation:
The term `labour legislation is used to cover all the laws which have been enacted to deal with
employment and non-employment wages, working conditions, industrial relations, social
security and welfare of persons employed in industries.
Hours of work (adult) not to exceed 48 hours in a week or 9 hours in a day.

Relaxation: Where an adult worker is engaged in urgent repairs.

Payment of Overtime wages for overstay at workplace @ twice the ordinary rate of
wages.
** Provision relating to hours of work not applicable to supervisory staff.
Weekly Holiday: No work for more than 10 days without a day of rest.
Intervals of rest: half an hour for 5 hours of work
No child (who has not attained the age of 15 years) be permitted to work.
Prohibition of employment of Women: No woman shall be employed in any factory for
more than 9 hours in any day or between 7 pm and 6 am.
Factories Act now allows women to work night shifts PROVIDED adequate safeguards in the
factory as regards occupational safety and health, equal opportunity for women workers,
adequate protection of their dignity, honor and safety and their transportation from the factory
premises to the nearest point of their residence" are made.
Workers Participation in Management :
Like other behavioural terms, WPM means different things to different people depending upon
their objectives and expectations. Thus, WPM is an elastic concept. For example, for
management it is a joint consultation prior to decision making, for workers it means codetermination, for trade unions It is the harbinger of a new order of social relationship and a new

set of power equation within organisations, while for government it is an association of labour
with management without the final authority or responsibility in decision making.

The following are the main characteristics of WPM:

1. Participation implies practices which increase the scope for employees share of influence in
decision-making process with the assumption of responsibility.
2. Participation presupposes willing acceptance of responsibility by workers.
3. Workers participate in management not as individuals but as a group through their
representatives.
4. Workers participation in management differs from collective bargaining in the sense that
while the former is based on mutual trust, information sharing and mutual problem solving; the
latter is essentially based on power play, pressure tactics, and negotiations.
5. The basic rationale tor workers participation in management is that workers invest their
Iabour and their fates to their place of work. Thus, they contribute to the outcomes of
organization. Hence, they have a legitimate right to share in decision-making activities of
organisation.
Objectives:
The objectives of WPM are closely netted to the ration-able for WPM. Accordingly, the
objectives of WPM vary from country to country depending on their levels of socio-economic
development political philosophies, industrial relations scenes, and attitude of the working class.
To quote, the objective of WPM is to co-determine at the various levels of enterprises in
Germany, assign the final to workers over all matters relating to an undertaking in Yugoslavia,
promote good communication and understanding between labour and management on the
issues of business administration and production in Japan, and enable work-force to influence
the working of industries in China, for example.
In India the objective of the government in advocating for workers participation in management,
as stated in the Industrial Policy Resolution 1956, is a part of its overall endeavour to create a
socialist society, wherein the sharing of a part of the managerial powers by workers is
considered necessary
International Labour Organisation (ILO).

International Labour Organisation (ILO) is the most important organisation in the world level and
it has been working for the benefit of the workers throughout the world. It was established in the
year 1919. It is a tripartiate body consisting of representatives of the Government, Employer,
workers. It functions in a democratic way by taking interest for the protection of working class
throughout the world.
The principle aim of the I.L.O is the welfare of labour as reaffirmed by the Philadelphia
Conference of 1944 under the Philadelphia Declaration, on which the I.L.O. is based.
(a) Labour is not a commodity;
(b) Freedom of expression and of association are essential to sustained progress;
(c) Poverty anywhere constitutes danger to prosperity everywhere;
(d) The war against want requires to be carried on with unrelenting vigour within each nation,
and by continuous and concerted international effort in which the representatives of workers and
employers, employing equal status with those of governments, join with them in free discussion
and democratic decision with a view to the promotion of the common welfare.
Objectives of the I.L.O
Full employment and the revising of standards of living,
The employment of workers in the occupation in which they can have the satisfaction of
giving the fullest measure of their skill and make their contribution to the common well
being,
The provision, as means to the attainment of this end, and under adequate guarantees
for all concerned, of facilities for training and the transfer of labour, including migration
for employment and settlement.
Policies in regard to wages and earning forms and other conditions of work. Calculate to
ensure a just share of the fruits of progress to all, and a minimum living wage to all
employed and in need of protection.
The effective recognition of the right of collective bargaining, the co-operation of
management and labour in the continuous improvement of productive efficiency and the
collaboration of workers and employers in social and economic measures,
The extension of social security measures to provide a basic income to all in need of
such protection and comprehensive medical care,
Adequate protection for the life and health of workers in all occupations,
Provision for child welfare and maternity protection.
The important and main functions of the I.L.O are the following to achieve its objectives .
(1) To establish International Labour Standards.
(2) To collect and distribute information on labour and industrial conditions, and
(3) To provide technical assistance.