Concept of Industrial Relations in Organisation

Industrial Relation

In people, normal life relation is very important the same is with industry also. The understanding between employees and management in an industrial organization is commonly called industrial relations. Basically, Industrial relation means employment relation. It has a wide meaning & scope. I.R. is a dynamic and developing socio-economic process.

Definition

According to Dale Yoder,” IR is a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment processes of industry”.

Scope of I.R

  1. Labor Relations relation between the labor union and management.

2. Employer-employee relations i.e relations between management and employees.

3. The role of various parties viz. employers, employees, and state in maintaining IR.

4. Promotion & development of healthy labor.

  Importance of IR

Importance of IR

i) To Enhance industrial peace

Under this, both employees and managers discuss the matter and consult each other before taking any action.

ii) To promote industrial Democracy

means the government mandates worker participation at various levels of the organization with regard to decisions that affect workers.

iii) Benefit to workers 

IR benefits workers in several ways. It protects workers against ethically wrong practices on the part of management to exploit workers by putting them under inhuman conditions. It also helps workers to resolve grievances related to work.

4. Benefit to Management

IR protects the rights of the manager when problems are been created by workers. It provides managers with a system to handle employees’ indiscipline in the organization.

5 Improve Productivity

It is a fact that good industrial relation is key for increased productivity in an organization like zero breakdowns, zero accidents, and zero defects. The company did not lose even a single day due to strike

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