Importance Of Industrial Relations

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workers’ and employers’ organisation, capital structure, compensation of he labour-force and a study of market forces- all at the economic level.” The above definition reveals that industrial relations arise out of employer-employee interaction in modern industries which are regulated by the Government in varying degrees. “The concept of industrial relations has been extended to denote the relations of the State with employers, workers and their organisations. The subject, therefore, includes individuals relations and joint consultation between employers and workpeople at their workplace; collective relations between employers and their organisations and trade unions and the part played by the State in regulating these relations.” Labour …show more content…

Maintenance of industrial peace and avoidance of industrial strife.
3. Promotion of industrial democracy.
1. Promotion of healthy labour-management relations- The promotion of healthy labour management relations requires the following:
a. Existence of strong, well organised, democratic and responsible trade unions and associations of the employers in the industry. These organisations enhance job security of employees, help in increased workers’ participation in decision making and give labour a dignified role in the society. These associations also tend to create vantage grounds for negotiations, consultations and discussions on a mutual basis which ultimately lead to good labour-management relations.
b. Spirit of collective bargaining- The very feeling of collective bargaining recognises equality of status between the two opposing and conflicting groups and prepares grounds in an atmosphere of trust and goodwill, for discussion, consultations and negotiations on matters of common interest to both industry and labour.
c. Labour Welfare- Welfare work-whether statutory or non-statutory-provided by the State, trade unions and the employers do create, maintain and improve healthy labour-management relations and try to achieve peace in the …show more content…

Promotion of industrial democracy- Industrial Democracy connotes that the labour should receive the right to be associated with the running of the industry. For achieving this objective, following techniques are usually adopted:
a. Establishment of the Shop Councils and Joint Management Councils at the shop floor and the plant levels. The councils endeavour to improve the working and living conditions of the employees improve productivity, to encourage suggestions from employees, assist in the administration of the laws and agreements, serve as a channel of communication between management and employees and create in the employees a sense of participation in the decision making and a sense of belonging to the industry.
b. Recognition of Human Rights in Industry. This implies that “labour is no more an article or commodity of commerce” which can be purchased and disposed of according to the sweet whims and caprices of the employers. The workers are to be treated as human beings, given a sense of self-respect and better understanding of their role in the organisation and their urge for self-expression is to be satisfied. The recognition of labour as human beings and the treatment of labour on human grounds provide the basic pre-requisites for achieving industrial

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