Wednesday, February 8, 2012

Industrial Relations


Definition:

Industrial Relations (IR) is concerned with the relationship between management and workers and the role of regulatory mechanism in resolving any industrial dispute.
IR Covers the following areas:
·         Collective Bargaining
·         Role of Management, Unions and Government
·         Machinery for resolution of industrial dispute
·         Industrial grievance and disciplinary policy and practice
·         Labour Legislation
·         Industrial relations training

Approaches to Industrial Relations:

There are three various approaches to Industrial Relations. These are:
1.       Unitary
2.       Pluralistic
3.       Marxist

Unitary

Unitary approach believes in mutual cooperation and teamwork where conflicts are results of poor management and of temporary nature. Following are the characteristics of unitary approach:

·         IR is grounded in mutual cooperation, individual treatment, team work and shared goals.
·         Work conflict is seen as temporary aberration, resulting from poor management
·         Union cooperate with the management
·         Management’s right to manage is accepted
·         Assumption behind this approach is that everyone benefits when the focus is on common interest and promotion of harmony
·         Conflict in the form of strikes is not only regarded as necessary but destructive
·         Emphasis on reactive IR strategy, seek direct negotiation with employees

Pluralistic

Pluralistic approach perceives organization as coalitions of competing interests, where management’s role is to mediate amongst the different interest group. Characteristics of Pluralistic approach are:

·         Trade Unions are legitimate representatives of employee’s interest
·         Legitimacy of management’s authority is not automatically accepted
·         Conflict is understood as inimitable and as conducive for innovation and growth
·         Employees join union to protect their interests and influence decision making by management
·         Strong union is necessary
·       Assumption behind this approach is that industrial conflict in inimitable and it needs to be contained within the social mechanism of collective bargaining, conciliation and arbitration

Marxist:

Marxist approach takes pluralistic approach to another level. Like pluralistic approach it also believes that conflict is inimitable but unlike pluralistic approach it sees conflict as a product of capitalist society. Characteristics of Marxist approach are:
·         Conflicts are inimitable and are products of capitalist society

·         It focuses on the type of society in which an organization functions
·         Conflict arises because of the division in the society between those who use resources and those who have only labour to offer
·         Conflict is equated with political and social unrest
·         Trade unions are seen as labour reaction to exploitation by capital and a weapon to bring about a revolutionary social change