Everything you need to know about the objectives of industrial relations. Industrial relation aims at maintaining healthy, harmonious and cordial relationship between the employees and management and amongst the employees.
A good industrial relation contributes towards improvement in production and smooth functioning of the organisation.
According to the International Labour Organization (ILO), “Industrial Relations deal with either the relationship between the state and employers and workers organizations or the relation between the occupational organizations themselves.”
The concept of industrial relations has been extended to denote the relations of the state with employers, workers, and their organizations.
Some of the objectives of industrial relations are:-
1. Uninterrupted Production and Increased Productivity 2. Less/Zero Conflict 3. Industrial Peace and Harmony 4. Contented and Committed Workforce 5. Dynamic Workforce
6. Management of Organizational Complexity 7. Developing Trade Unions 8. Cordial Human Relations 9. Educating Workers 10. Promoting Trust, Creativity and Cooperativeness and a Few Others.
Objectives of Industrial Relations: Less/Zero Conflict, Dynamic Workforce, Educating Workers and a Few Others
Objectives of Industrial Relations
Industrial relations have traditionally been a “fire-fighting” function in our country. The industrial relations man comes into full play only after the crisis erupts. This is so much the case that some industrial relations men are actually known to have stoked the fire to reinforce their own relevance to the organization.”… the MD of a large corporation remarking that his personnel manager was so much of a fire-fighter that he felt uneasy when there was no fight,” so goes the perception about industrial relations.
The concept of Industrial Relations indicates the relationship between employees and management in the day-to-day working of industry. But the concept has a wide meaning. When taken in the wider sense, industrial relations are a set of functional interdependence involving historical, economic, social, psychological, demographic, technological, occupational, political, and legal variables.
According to Dale Yoder, Industrial Relations as a “whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of an industry”.
According to the International Labour Organization (ILO), “Industrial Relations deal with either the relationship between the state and employers and workers organizations or the relation between the occupational organizations themselves.” The concept of industrial relations has been extended to denote the relations of the state with employers, workers, and their organizations.
The subject, therefore, includes individual relations and joint consultations between employers and work people at their work place, collective relations between employers and their organizations and trade unions and part played by the state in regulating these relations.
Thus, broadly, the term “Industrial Relations” is used to denote the collective relationship between management, employees and government in any industrial or non-industrial organization. So individual relationships of workers with their management are excluded from the scope of industrial relations and form part of personnel management.
This implies that the scenario relating to industrial relations is a mixed one. Sparks between enlightened managers and motivated work-force co-exist with large-scale violence leading to destruction and closures. But the scenario must change. Unionization, job security, protective legislation, and other shibboleths are losing their relevance. The catch words now relevant are productivity, competitiveness, downsizing, job-hopping, and union-free plants.
Industrial peace and harmonious relations between employers and employees is one of the basic objective of industrial relations.
The other objectives are:
1. To develop and progress of Industry through democratic fashion.
2. To safe-guard the interests of both workers and management.
3. To help in establishing and maintaining industrial democracy.
4. To provide an environment of cooperation and coordination.
5. To eliminate unfair labour practices
6. To control discipline and raise morale of employees.
7. To raise the economic status of employees.
Objectives of Industrial Relations – 10 Important Objectives of Industrial Relations
Industrial relation aims at maintaining healthy, harmonious and cordial relationship between the employees and management and amongst the employees. A good industrial relation contributes towards improvement in production and smooth functioning of the organisation.
The objectives of industrial relations are as follows:
1. To safeguard the interest of employees and management by securing the highest level of mutual understanding and cooperation. The objective is to attain the organizational objective of high productivity and profitability by securing employees interest.
2. To avoid industrial conflict and develop harmonious and cordial relations between the employees and management and amongst the employees within the industry, which are an essential to improve productivity of workers and the industrial progress.
3. To raise organizational productivity.
4. To eliminate or minimize the industrial unrest and dispute by providing reasonable wages, improved living and working conditions and fringe benefits.
5. To establish industrial peace.
6. To reduce employee turnover and absenteeism.
7. To establish and promote industrial democracy by encouraging employee participation in the sharing of profits and of management and decision making.
8. To improve bargaining capacity of the workers by enabling them to solve their problems through mutual negotiations and consultation with the management.
9. To socialise industrial activity by involving the government participation as an employer.
10. To avoid government interference in the matters of relationship between workers and management.
Objectives of Industrial Relations – 12 Objectives
First objective of industrial relations is to develop good working environment so that better understanding can develop between labour and management.
The other objectives are:
(a) To develop sense of cooperation.
(b) To develop sense of commitment and belongingness.
(c) To safeguard the interests of labour and management both.
(d) To maintain industrial peace by controlling disputes.
(e) To improve the living standard of workers.
(f) To increase the production and productivity both.
(g) To establish the industrial democracy through workers participation in management.
(h) To support the development of trade unions.
(i) To rationalize the industry by making the state in self a major employer.
(j) To eliminate strikes, lockout and gears to possible extent by payment of fair wages and fringe benefits and by provisions of better living and working conditions.
(k) To institute control on the loss making factories or where it is necessary to regulate production the public interest at large.
(l) To contribute in the national economy development.
Objectives of Industrial Relations – 10 Other Objectives of IRs: Uninterrupted Production and Increased Productivity, Less/Zero Conflict, Dynamic Workforce and a Few Others
The main objective of industrial relations is to create congenial, conducive climate, healthy environment, enabling organizational culture so that individual goals, team goals and organizational goals are achieved.
The other objectives of IRs are discussed herein below:
Objective # 1. Uninterrupted Production and Increased Productivity:
The objective of IRs is to keep the production process/ services running so that target of production / services set by organization is attained and also to increase productivity to enable the organization to grow and develop.
Objective # 2. Less/Zero Conflict:
If, better industrial relation is established both management and workers develop mutual understanding and put in best efforts to resolve disputes through bilateral discussion, negotiation. So, conflicts are minimized if, not reduced to zero.
Objective # 3. Industrial Peace and Harmony:
The sound industrial relations bring industrial peace and harmony while unsound industrial relations create situation/ climate of disharmony, industrial unrest and conflict.
Objective # 4. Contented and Committed Workforce:
The objective of industrial relations is to create a contented and committed workforce by way of increasing their wages, providing fringe benefits, social security measures, opportunities to develop, grow etc. This is done through establishment of healthy industrial relations.
Objective # 5. Dynamic Workforce:
Sound industrial relations create a dynamic workforce to get acquainted with the changing scenario, to know the organization needs, demands, place in the competitive race and to help the organization to survive, grow and develop. IR policies, procedures are framed to give emphasis on workers’ involvement, participation in decision making process, to develop competencies through training, education, counselling.
Objective # 6. Management of Organizational Complexity:
In view of liberalization, privatization and globalization (LPC) organization has to face a tough competition as multinational companies (MNCs), transnational companies (TNCs) occupy a place in the market. For producing quality product and also variety of products different sophisticated machines, devices with complicated operation processes are installed, which need workforce to accept changes, update knowledge, skill.
Sound industrial relations through developing human relations, understanding, mutual confidence and enriching knowledge, imparting training to enhance the level of competence and skill, manage the organizational complexities.
Objective # 7. Developing Trade Unions:
If union leaders, active members are educated, aware of changing environment, position of the organization where rank and file work and also rights, duties and responsibilities of the workers, most of the workers’ problems are solved by themselves. So, it is one of the objectives of IRs is to educate trade union people and to support and develop them to act as real trade unions for the right cause of the workers and for growth and development of the workers and the organization as well.
Objective # 8. Cordial Human Relations:
One of the objectives of IRs is to promote employer employee relations i.e. human relations through effective interaction and communication process. Organization philosophy, climate, management approach, style of functioning facilitate to develop mutual understanding, mutual faith between boss and subordinates.
Objective # 9. Educating Workers:
Because of illiteracy, ignorance workers are unable to judge the specific situation, issues and give consent or agree to take recourse to action which is unjustified, unwarranted and uncalled for. IRs’ objective is to educate the workforce, to develop their skill, ability to perceive the situation rightly, to make them aware of their strength and weaknesses so that they can negotiate their grievances, issues, problems with their boss and can resolve them.
Objective # 10. Promoting Trust, Creativity and Cooperativeness:
Sound industrial relations create a conducive and congenial climate in organization which promotes trust, creativity and cooperativeness amongst the workers.
Under such organizational milieu, workers develop a feeling of ‘belongingness’, ‘we-ness’, ‘together-ness’ which drive them to undertake any job for making things happen. Workers become loyal, committed, particular about their job role, and make no/less wastes, accident. Labour turnover rate, absenteeism rate are reduced.
Objectives of Industrial Relations – With Scope and Significance of Industrial Relations
The main objectives of IR are as follows:
1. To avoid misunderstanding, confusion and conflict between the management and workers and promote mutual trust and faith between the two
2. To improve productivity, output and profitability of the organisation
3. To avoid strikes and lockouts
4. To associate workers in the decision-making process and promote industrial democracy
5. To protect and promote the interest of all the stakeholders.
Scope of IR:
1. Individual relations – concerning discipline and grievance of individuals.
2. Collective relations – concerning trade unions, collective bargaining, functioning of joint committees such as house allotment committee and prevention and settlement of industrial disputes.
3. Role of state, that is, role played by the government in terms of labour legislation, labour reforms, rules, regulations and so on.
4. industrial aspects, that is, role played by the international organisation of employers and workers or bodies like the ILO.
Significance of IR:
Neither the management nor the workers’ unions can function in isolation. Hence, a fruitful cooperation between the two is inevitable, otherwise the entire process of production will be paralysed and not only the organisations will suffer but also the community and the government will be adversely affected.
Good IR promote industrial peace, mutual trust and faith between the management and the workers of an organisation; boost morale of the workers; infuse confidence; give boost to output; help in improving productivity; and protect and promote interest of all concerned, hence the utility of harmonious IR.
Objectives of Industrial Relations – With the Areas Covered by Industrial Relations
‘Industrial Relations’ is concerned with the relationship between Management and workers and role of regulatory mechanism in resolving any industrial disputes.
A formal definition in Michael Armstrong’s words is –
“IR is concerned with systems, rules and procedures used by unions and employers to determine the reward for efforts and other conditions of employment to protect the interest of the employed and their employees and to regulate the way in which employers treat their employees.”
Specifically, Industrial Relations cover the following areas:
i. Collective Bargaining.
ii. Role of Management, Unions and Government.
iii. Mechanism for regulation of Industrial Disputes.
iv. Industrial grievance, discipline policy and practices.
v. Labour legislation.
Objectives:
1. To protect the interest of labour and management.
2. To deter industrial unrest.
3. To raise industrial productivity.
4. To reduce high labour turnover.
5. To increase workers’ participation in management.
6. To provide reasonable wages, better living conditions and other fringe benefits.
7. To bring industrial units under Government control.
Objectives of Industrial Relations
The fundamental objective of industrial relations is to maintain sound relations between employees and employers. The other objectives can be drawn from this objective.
They are:
I. Improve the economic status of workers
II. Minimize industrial conflicts
III. Give opportunity to workers to have a say in decision making
IV. Settle issues through negotiations and joint consultation
V. Encourage and develop trade unions to enhance the collective strength of workers
VI. Maintain peaceful and harmonious relations that pave the way for industrial democracy
VII. Accept and get along with the laws of the land aimed at protecting the rights of both employer and employee.
Objectives of Industrial Relations – 4 Categories of Objectives according to Kirkaldy
In addition to their primary objective of bringing about good and healthy relations between employers and employees, industrial relations are designed:
a. To safeguard the interests of labour and of management by securing the highest level of mutual understanding and goodwill among all those sections in the industry which participate in the process of production;
b. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country;
c. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequent absenteeism;
d. To establish and nurse the growth of an Industrial Democracy based on labour partnership in the sharing of profits and of managerial decisions, so that an individual’s personality may grow to its fall stature for the benefit of the industry and of the country as well;
e. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, and fringe benefits;
f. To establish government control of such plants and units as are running at a loss or in which production has to be regulated in the public interest.
The State endeavours to correct, through good and harmonious industrial relations, an imbalanced, disordered and maladjusted social order with a view to reshaping complex social relationships following technological advances. It also controls and disciplines both employees and employers, and adjusts their conflicting interests; it protects some and restrains others, and tries to evolve a healthy social order.
In other words, the objectives of industrial relations are to facilitate production; to safeguard the rights and interests of both labour and management by enlisting the cooperation of both; to achieve a sound, harmonious and mutual beneficial relationship between employers and employees.
According to Kirkaldy, “industrial relations in a country are intimately connected with the form of its political government; and the objectives of an industrial organisation may change from economic to political ends.”
He divides the objectives of industrial relations into four categories:
a. Improvement in the economic conditions of workers in the existing state of industrial management and political government;
b. Control exercised by the state over industrial undertakings with a view to regulating production and promoting harmonious industrial relations;
c. Socialisation or rationalisation of industries by making the state itself a major employer; and
d. Vesting of a proprietary interest of the workers in the industries in which they are employed.
If political objectives are likely to contribute to disunity in the trade union movement, it would be necessary to provide better and more effective safeguards and exercise greater restraint in order to avoid such a situation.
Objectives of Industrial Relations
The primary objective of industrial relations is to maintain congenial relations between employees and employer.
The other objectives are:
(i) To promote and develop congenial labour management relations;
(ii) To enhance the economic status of the worker by improving wages, benefits and by helping the worker in evolving sound budget;
(iii) To regulate the production by minimising industrial conflicts through state control;
(iv) To socialise industries by making the government as an employer;
(v) To provide an opportunity to the workers to have a say in the management and decision making;
(vi) To improve workers’ strength with a view to solve their problems through mutual negotiations and consultation with the management;
(vii) To encourage and develop trade unions in order to improve the workers’ strength;
(viii) To avoid industrial conflict and their consequences; and
(ix) To extend and maintain industrial democracy.
Objectives of Industrial Relations – 12 Important Objectives of Industrial Relations
(i) To promote mutual understanding and goodwill among employees and management.
(ii) To raise the productivity of labour and organization as a whole.
(iii) To establish and maintain industrial democracy through workers’ participation in management, collective bargaining, etc.
(iv) To minimise all forms of industrial conflict for example, strikes, lockouts, gheraos, etc.
(v) To promote smooth and healthy labour management relations.
(vi) To promote mutual cooperation between the employers and the employees.
(vii) To integrate the interests of labour and management.
(viii) To minimise absenteeism and labour turnover.
(ix) To promote the welfare of the workers.
(x) To encourage and develop strong trade unions.
(xi) To bring about government control over plants and units running into losses.
(xii) To ensure that the government endeavour to bridge the gap between the unbalanced, disordered and maladjusted social order.
Objectives of Industrial Relations
The need for employer-employee relations, particularly operatives and management arises because of the following reasons:
1. Traditionally, labour and management have perceived that their interests in the organization differ and these interests are mutually exclusive.
2. There are no mutually agreed yardsticks to measure how far the interests of both these groups are being met by the organization. Therefore, both the groups claim rationality in putting forward their demands for meeting out their objectives.
3. When both the groups meet to settle their differences over some issues affecting their interests, they bring with them some carry-overs from the past besides their mistrust and suspicion for each other.
In the light of the above, we find that some kind of system must be developed to bring harmonious relationship between the employers and employees. However, many times such an attempt may not be adequate.
Therefore, the organization is required to develop an effective industrial relations system for bringing harmonious relationship between operatives and management.
In particular, good industrial relations system helps in achieving the following objectives:
1. To establish harmonious relationship between operatives and management by providing safeguard to their respective interests and developing understanding and goodwill between them.
2. To avoid industrial conflicts and to develop mutuality among the interests of these parties.
3. To raise productivity in the organization and to curb employee turnover and absenteeism.
4. To avoid government’s interference in the working of the relationship between employees and employers as the State is empowered to intervene in the working of any organization if the conflict between employees and management goes out of proportion.
Objectives of Industrial Relations – With Changing Nature of Industrial Relations
The International Labour Organisation (ILO), defines industrial relations as, “the relationship between the State and the employer and the employers and workers”.
Earlier, it was assumed that industrial relations was about the management-worker relationship. However, rapid changes in the business environment, technological developments and intense competition changed the concept of industrial relations.
Industrial relations have now come to include:
i. Individual relations and joint consultations between employers and workers
ii. Collective relations between employers and their organisations, and trade unions. The role of State Governments in regulating industrial relations.
Objectives:
1. Facilitate production and productivity;
2. Safeguard the rights and interests of both labour and management by enlisting their cooperation through collective bargaining.
3. Achieve a sound, harmonious, and mutually beneficial labour management relations.
4. Avoid unhealthy atmosphere in the industry, especially work, stoppages, go slows, gheraos, strikes, lockouts.
5. Establish and maintain industrial democracy.
6. The state endeavour to correct, through effective industrial relations, an imbalanced, disordered and maladjusted social and economic order with a view to reshaping the complex socioeconomic relationships following technological and economic progress. It also controls and disciplines the parties concerned and adjusts their conflicting interests. In this process, it protects some and restrains others, depending upon the situation.
7. Kirkaldy observes the industrial relations in a country are intimately connected with the form of its political government. He divides the objectives of industrial relations into four categories.
Kirkaldy divides the objectives of industrial relations into four categories:
1. Improvement in the economic conditions of workers in the existing state of industrial management and political government;
2. Control exercised by the state over industrial undertakings with a view to regulating production and promoting harmonious industrial relations;
3. Socialization or rationalisation of industries by making the state itself a major employer; and
4. Vesting of a proprietary interest of the workers in the industries in which they are employed.
Objectives of Industrial Relations – 13 Objectives According to Kirkaldy
The primary objective of industrial relations is to maintain congenial relations between employees and employer.
Kirkaldy (1947) put forward certain objectives of Industrial Relations:
(i) Striving for improvement in the economic condition of the workers.
(ii) Achievement of harmonious industrial relations through State control.
(iii) Vesting of industrial power in the hands of the State for authentic and socialistic rationalization of industries.
(iv) Vesting proprietary rights and interests of the workers to ensure equality and balance of power.
The other objectives are:
(i) To promote and develop congenial labour management relations;
(ii) To enhance the economic status of the worker by improving wages, benefits, and by helping the worker in evolving sound budget;
(iii) To regulate the production by minimizing industrial conflicts through state control;
(iv) To socialize industries by making the government as an employer.
(v) To provide an opportunity to the workers to have a say in the management and decision-making
(vi) To improve workers’ strength with a view to solve their problems through mutual negotiations and consultation with the management;
(vii) To encourage and develop trade unions in order to improve the workers’ strength;
(viii) To avoid industrial conflict and their consequences; and
(ix) To extend and maintain industrial democracy.