A Handbook of Commerce and Management
ISBN: 978-93-93166-72-2
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Managing Industrial Relations For Enhancing Industrial Development

 Ms. Natasha
Assistant Professor
Dept. of Commerce
DU Govt. Degree College
 Tehri Garhwal, Uttarakhand, India 
Dr. Rajpal Singh Rawat
Assistant Professor
Dept. of Commerce
DU Govt. Degree College
Tehri Garhwal, Uttarakhand, India

DOI:10.5281/zenodo.10490274
Chapter ID: 18353
This is an open-access book section/chapter distributed under the terms of the Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Introduction 

In many organizations, employees know more about their work than their managers. This reality should force organizations that still cling to the old, top-down style of managing to recognize that many employees today are very capable of managing themselves. When we try to define management, our first thought is usually of a manager who occupies a role and who has authority over people. But in the case of knowledge workers, who manage themselves, management is seen as a process, one which can engage everyone. Thus, when we define management as a role, we restrict it to something that refers to managers only. Such a definition is not only a limiting one, it is one that does not account for the way in which work and responsibility has changed. Industrial-age organizations were formal hierarchies that assigned specific roles to employees. The focus on roles put all power in the hands of managers who governed employees by planning,organizing, and controlling their work.This is essentially what made management a top-down and restricting function. Today we talk of “managing one’s boss”, and of having relationships with strategic partners, suppliers, and customers. But, if partners can manage their relationships with each other, then management cannot be a one-sided controlling activity.And, if you can manage your boss, management is not restricted to the use of authority to control the people who report to you.Management is much more than what managers simply do to get work done through employees.Today, we can manage ourselves, our time and many activities that don't require one to have formal managerial role or even to manage people.This is why today, the function of management, as distinct from the role of the manager, has become everyone's business.

The truth is that the role of the “manager” in the organisations is wide in building a smooth relationship between the employees and the work. Manager help the organisations in better industrial relations with the employees, investors, shareholders, consumers, government, etc. while transformational changes or in routine life cycle of the organisations. Industrial relations constitute one of the most delicate and complex problems of the modern industrial society that is characterized by rapid change, industrial unrest and conflicting ideologies in the national and international spheres. It is a dynamic concept that depends upon the pattern of the society, economic system and political set-up of a country and changes with the changing economic and social order. It is an art of living together for the purpose of production, productive efficiency, human well-being, and industrial progress. It comprises of a network of institutions, such as trade unionism, collective bargaining, employers, the law, and the state, which are bound together by a set of common values and aspirations. Knowledge of such institutions is important if we are to understand everyday industrial relations phenomena. Management as we know it is not totally without its supporters, but even some of its champions are helping to sustain its industrial-era image.

Role of the manager in industrial relations

The Manager’s involvement in the system of industrial relations varies from organisation to organisation, but normally he or she is required to provide seven identifiable functions, thus:

1. To keep abreast of industrial law (legislation and precedents) and to advise managers about their responsibilities for example, to observe requirements in respect of employing disabled persons, not to discriminate, not to disclose ‘spent’ convictions of employees, to observe codes of practice etc. in relation to discipline and redundancy, and similarly to determine organisational policies (in conjunction with other managers) relevant to legal and moral requirements.

2.  To conduct (or assist in the conduct) of either local negotiations (within the plant) or similarly to act as the employer's representative in national negotiations. This could be as a critic or adviser in respect of trade etc. association policies or as a member of a trade association negotiating team. Agreements could be in respect of substantive or procedural matters. Even if not directly involved the personal manager will advise other managers and administrators of the outcome of negotiations.

3.  To ensure that agreements reached are interpreted so as to make sense to those who must operate them at the appropriate level within the organization (this can involve a lot of new learning at supervisory level and new pay procedures and new recording requirements in administration and even the teaching of new employment concepts -like stagger systems of work- at management level).

4.  To monitor the observance of agreements and to produce policies that ensure that agreements are followed within the organization. An example would be the policy to be followed on the appointment of a new but experienced recruit in relation to the offered salary where there is a choice of increments to be given for experience, ability or qualification.

5.  To correct the situations which go wrong?‘Face’ is of some importance in some organizations and operating at ‘remote’ staff level personnel managers can correct industrial relations errors made at local level without occasioning any loss of dignity (face) at the working level. ‘Human resource management’ and the obscurity of its reasoning can be blamed for matters which go wrong at the plant level and for unwelcome changes, variations of comfortable ‘arrangements and practices, and unpopular interpretations of agreement.

6.  To provide the impetus (and often devise the machinery) for the introduction of joint consultation and worker participation in decision-making in the organization. Formal agreement in respect of working conditions and behavior could never cover every situation likely to arise. Moreover, the more demanding the task (in terms of the mental contribution by the worker to its completion) the more highly educated the workers need to be and the more they will want to be consulted about and involved in the details of work-life. Matters like the rules for a flexitime system or for determining the correction of absenteeism and the contents of jobs are three examples of the sort of matters that may be solely decided by the management in some organizations but a matter for joint consultation (not negotiation) in others with a more 21st-century outlook and philosophy. Human resource management is very involved in promoting and originating ideas in this field.

7.  To provide statistics and information about workforce numbers, costs,skills, etc. as relevant to negotiations (i.e., the cost of pay rises or compromise proposals, effect on differentials and possible recruitment/retention consequences of this or whether agreement needs to be known instantly); to maintain personnel records of training, experience, achievements, qualifications, awards and possibly pension and other records;to produce data of interest to management in respect of personnel matters like absentee figures and cost, statistics of sickness absence, cost of welfare and other employee services, statements about development in policies by other organizations, ideas for innovations, to advise upon or operate directly, grievance, redundancy, disciplinary and other procedures.

 Industrial relations as a challenge for industrial manager.

1.  Labour is a subject in the concurrent list of the Indian constitution where bothcentre and state can amend and frame the labour laws. As a result, labour law varies from state to state and thus it becomes difficult for industrial relations managers to follow the laws strictly.

2.  In this cutthroat competition, dependence on contract labours is increasing at a phenomenal rate. There are not that many amendments in the Contract Labor (Regulation and Abolition) Act 1970, which could really cover all the dynamism of contract labour issues. As a result, industrial relation managers are found with albatross around their necks.

3. The roles of the unions are defined, but their responsibilities are not mentioned.

4.  A ‘protected workman’ is defined, but there are no such provisions for factory managers.

5. Productivity and flexibility are not mentioned anywhere in the Industrial Dispute Act 1948, so it becomes difficult to retrench any worker or take any steps against him even though he is not working as for expectations.

6.  The formation of trade unions is a fundamental right in India.

7.  There are a lot of misconceptions regarding the ‘collective bargaining’ issue if it is a fundamental right or not.

8. Difference in wages of regular employees and contract labour's is a major issue of concern and is one of the main causes for several disputes because many times it has been seen that there is no difference in the nature of the job between regular employee and contract labour.

 So, in race of earning profit many organizations have introduced the concept of contract labour in practice, which is the most critical issue as far as the applicability of labour laws are concerned. Many cases either it is BHEL worker's Association, Haridwar versus Union of India or Gammon India limited versus Union of India, one can find the difference in opinions regarding implementation of labour laws. Every judgement has its own opinion towards the applicability of labour laws. Not only contract labour issues, an industrial relation manager has to be very cautious while dealing with issues regarding trade unions, collective bargaining, compensations and different issues in factory.

Conclusion

Thus, it is evident that good industrial relations are the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at the work. An economy organized for plant production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between manager and labour. Manager and the industrial relations are the important elements in the organizations in today's era. If any organization ignores or not give focus on the development of the industrial relation that organizations can't survive for a long period.