•Employee relations consist of all those areas of human

resource management that involve relationships with

employees-directly or through collective agreements where
trade unions are recognised
•Relationship will be concerned with the agreement of terms and
conditions of employment and with issues arising from
employment.

•Employee relations practices include formal processes,

procedures and channels ofcommunication
i. Industrial Relation is that part of
management which is concerned with the
manpower of the enterprise – whether
machine operator, skilled worker ormanager.
BETHEL, SMITH & GROUP

ii.Industrial Relation is a relation between

employer and employees, employees and
employees and employees and trade unions.
- Industrial dispute Act1947
Employee Relation is a much broad concept. It is one of the most
important function of the management that is take care by HR
department. ER department takes care of employee grievances,
employee recognition, and boosting the morale of employees to
make the working environment more healthy, live and at the
same time fulfills the management’s expectations and maintain
the work culture and ethics.
 Employer
&
Employee
Relationship

Relations
within
organization

Employee
Employee
&
Relations among
Employer
themselves
Relationship
• Institutional factor
• Economic factors
• Technological factors
• Psychological factors
• Political and legalfactors
• Global factors

March 12, 2012

•HR policies and practices
•Organizational climate and culture and value
systems
• Adaptability to change
• Codes of conduct
• Collective bargaining agreements
• Labour unions
• Employers’ organizations/ federations
•Type of ownership: public or private limited,
Whether domestic or MNC, Govt. or private sector
•Nature and composition of the workforce
•The source of labour
•Labour market status
•Disparity of wages between groups
• Level of unemployment
•Work methods
•Type of technology
• Rate of technology change
•Ability of organizations and people to cope with
change

• Since these factors have a direct influence

on employment status, wage level,
collective
bargaining process in an organisation.
•Owners’ attitude
•Perception of the workforce
•Workers’ attitude towards work
•Their motivation, interest, dissatisfaction and
boredom leading from man-machine interface.

•These have a great impact on job and

personal life factors and hence indirectly
impact IR
• Prevalent Political philosophy
• Attitude of government
• The ruling party/ ies ideology
• Labour laws and The legal framework for IR
• Changes in the above framework
• Role of political factions in TUs
• Role of ILO

• International relations

• Newer formats of business

• History of industrialrelation
• Economic satisfaction of workers
• Social and psychologicalsatisfaction
• Off-the-job conditions
• Enlightened trade unions
• Negotiating skills and attitude ofmanagement
and workers
• Public policy and legislation
• Better education
• Nature ofindustry
• Monetary benefits
• Safety &security
• Grievance handling
• Recognition & appreciation
• Scope for advancement
• Style ofmanagement
• Participation in decisionmaking
March 12, 2012
So a well planned Employee Relations is a key to

success for healthy environment, balanced relation

where employer & employee both are completely

satisfied and finally to avoid all the conflicts at work

place to get desired results to reached the

organizational goals.