Definition and concept of industrial relations:

Industrial Relations or Labour relations, is an expression

used not only for relationships between employers and
Trade Unions, but also for those involving Government
with the aim of defining policies, facing labour problems.
As Industrial Relations definition we can accept the
concept of the outfit of:
1) Rules for employment management;
2) Methods defining those rules;
3) Typology of actors (both employers and workers
organisations and representatives, but also State and
institutional bodies);
4) Interaction processes between these entities.
Many authors have quoted various definitions of Industrial
Relations. Some of the oft quoted definitions

• “The term Industrial relations explains the relationship

between employees and management which stem directly
or indirectly from union-employer relationship”– V.
Agnihotri.
• “Industrial relations are broadly concerned with
bargaining between employers and trade union on wages
and other terms of employment. The day-to-day relations
within a plant also constitute one of the important elements
and impinge on the broader aspects of industrial relations”
– C.B Kumar
• “Industrial relation is an art of living together for the
purpose of production” – J.Henry
• “The subject of industrial relations deal with certain
regulated and institutionalized relationship in industry” –
Allan Flanders.
• “The field of industrial relations include the study of
workers and their trade unions, management, employers’
association and state institutions concerned with the
regulation of employment” – H.A Clegg

Nature of industrial Relations:

Industrial relations are concerned with the organisation and

practice of multi-pronged relationship between the workers
and the union in an industrial enterprise. Such relationships
may be either in organised form or unorganised plants.

Industrial relation do not function in a vacuum but multi-

dimensional in nature and are conditioned with three
determinants (i) Institutional factors (ii) Economic factors
(iii) Technological Factors.

(i) Under institutional factors are included items such

as state policy, labour laws, voluntary codes,
collective agreements, labourers’ unions and
employers’ organisation, social institution like the
community, caste, joint family, creed, system of
beliefs, etc, attitudes of work, systems of power
status, relative nearness to the centers of power;
motivation and influence and industrial relations.
(ii) Under economic factors are included economic
organisation (socialist, capitalist, communist,
individual ownership, company ownership,
 government ownership) power of labour and
employers, the nature and composition of the labour
force and the sources of supply and demand in the
labour market.
(iii) Under technological factors come the techniques of
production, modernization and rationalisation
schemes, capital structures etc.

The development of industrial relations is not due to any

one single factor but rather been largely determined by the
conditions existing at the eve of the industrial revolution in
the Western Europe, and the social economic and political
situation available in different locations. The changes
which took place, since earlier days, did not follow a
uniform pattern in different countries but they reflected
such economic and social forces which ad long times
shaped the principle and practices of the industrial relations
in the western countries. From the earliest phase of
industrialization from which the workers formerly working
with their own tools entered into power driven factories,
owned by owners: to minimization of breakdown due to
industrial conflicts of later state and further to industrial
peace and hence to human relations approach to raise
productivity in an democracy based on labour partnerships
not only for sharing the profits but of managerial decisions
themselves has been a long journey indeed.

Scope of industrial Relations:

The concept of industrial relation has a very wide meaning

and connotation. It means that the employer-employee
relationship confines itself to the relationship that emerges
out of the day-to-day association of the management and
the labour. In its wider sense, industrial relations include
the relationship between employers in the course of running
an industry and may project it to spheres which may
transgress to the areas of quality control, Marketing, price
fixation and disposition of profits among others.

An industry is a social world in miniature. Associations of

various persons, workmen, supervisory staff, management
and employer in industry create industrial relationships.
This affects the economic, social and political life of the
whole community. Thus, industrial life creates a series of
social relationship which regulate the relations and working
of not only workmen and management but also of
community and industry.

Industrial relations are inherent in an industrial life:

a) labour relations: Relations between union-
management(Also called Labour-management
relations)
b) Employer-employee relations: relations between
Management and employee
c) Group Relations: Relations between various groups of
workmen
d) Community or public relations: Relations between
industry and society.

Objectives of Industrial Relations:

Industrial Relations are a bonding between the employee
and employer. It also adds many other relations which are
chain of previous relations. So the motto of any industry
should be sustaining good relationships between the
employer and employee.

Primary objective should be to bring about good and

healthy relationship between two partners in the industry.
As per Kirkaldy “The state of industrial relations in a
country is intimately connected with the form of its
political government and the objectives of an industrial
organisation may change from economic to political ends”

Labour management committees have recognised certain

fundamental principles as objectives of social policy in
governing industrial relation:

• Good labour management relations depend on

employers and trade unions being able to deal with their
mutual problems freely, independently and responsibly.
• The trade unions and employers and their organisation
are desirous of resolving their problems through collective
bargaining though in resolving such matters the assistance
of appropriate government agencies may be necessary in
public interest, collective bargaining, therefore is the corner
stone of the good relations and hence the legislative
framework of industrial relations should aid the maximum
use of their process mutual accommodation.
• The workers and employers organisation should be
desirous of associating with the government agencies in
consideration of the general public, social and economic
measures affecting employers and workers relations.