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ASIAN SCHOOL OF MANAGEMENT, PUNE

Subject
Industrial Relational

Assignment No. 1

ANSWER ANY TWO QUESTIONS.

Q.no (1): Explain the basic concept of industrial relations with reference to the indian
scenario with suitable examples?

Q.no. (2): Discuss the different approaches to IR? Explain at least three of the above
approaches with concrete examples?

Q.no. (3): Evaluate the various stages of growth in the field of industrial relation with
examples?

Q.no. (4): Write notes on any three:


A. Collective bargaining.
B. Voluntary arbitration.
C. Protected workmen.
D. Code of displine.

Submitted to:-
Prof. Sinha

Submitted by:-
Pradeep Giri
Batch B
Roll No.17

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Q.no. (2): Discuss the different approaches to IR? Explain at least three of the
above approaches with concrete examples?

1. PSYCHOLOGICAL APPROACH:
The problems of IR are deeply rooted in the perception & attitude of the focal
participants. A study was conducted by mason harie with regard to the behaviour of
two different groups, namely as the ‘’union leaders ‘’ & the ‘’ executives’’ through tat.
The result of said study is indicated as under:
1. The general impression about a person is radically different when he is seen as
the representative of management from that a person as the representative of labour.
2. The management & the labour see each other as less appreciably of other’s
position.
3. The management & the labour see each other as less dependable.
4. The management & the labour see each other as deficient in thinking regarding
emotional characteristics & interpersonal relations.
The variance of perception of parties is largely due to their individual perception,
leading industrial strife & conflict.

2. SOCIOLOGICAL APPROACH:
The individual differences in attitudes & behaviour creates problems of conflict &
competition among the members of an industrial society.
The sociological factors like, value system, customs, norms, symbols, attitude &
perception of both labour & management that affects ir in different ways.

3. HUMAN RELATIONS APPROACH:


This is one of the most delicate & tricky one in the field of HRM.
Their handling is radically different from that of physical, material & financial
resources because these are not inanimate or passive but composed of pulsating
human beings having their own emotions, perception, attitude & personality
dimension.
These characteristics make them complex individuals & when they interact with
others, either individually or in groups, their complexities further multiplies.
For instance, if a manager using autocratic style in managing the work-force, this
would lead to dissatisfaction & hatred among people, whereas in democratic style,
the desired ob could be cultivated, if employees needs & wants are satisfied.

4. SOCIO-ETHICAL APPROACH:
This approach focusses on the ehical ramifications of IR in our society, in terms of
sharing their moral responsibility in contributing to the said task through mutual
cooperation & understanding of each other’s problems.
The following are the observations of the study group of NCL.
1. An important aspect of ir in industry is the extent to which labour &
management accept the way of life & the value system of modern technology
& develop a code of ethics & a management philosophy for IR.
2. A better appreciation of management problems by the labour can lead to
employees acceptance of management’s proposed solutions.
3. where worker’s & their employer’s belong to the same cultural era, in order to
appreciate the modern Mgt. techniques of recruitment & selection.
4. The works committees should be designed to promote measures of securing &

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5. The functioning of JMC’s are usually overlapping with the works committee &
other related forums of joint participation.
6. The capacity to pay should be subordinated to need-based pay system.
7. The extent to which such extra costs can be passed to the cusumers by way
of increased prices of products.

5. GANDHIAN APPROACH:
It is based on his fundamental principles of truth & non-violence & non-possession.
Ganhiji advocated that for resolving disputes the following rules should be observed:
1. The worker’s should seek redressal of reasonable demands only through
collective action.
2. Use non-violent methods for resolving conflicts.
3. The worker’s should avoid strikes as far as possible in industries of essential
services.
4. The worker’s should avoid formation of unions in philanthropic
organisations.
5. Strikes should be resorted to only as a last resort after all the legitimate
measures have failed.
6. Voluntary arbitration should be resorted.

6. SYSTEM APPROACH:
John Dunlop had developed a system approach to ir.
it focusss on paticipants in the process, the environmental factors & the output.

SYSTEMS APPROACH.

ENVIRONMENTAL PARTICIPANTS IN OUTPUTS.


FORCES. THE SYSTEM

MARKET RESTRAINT.
TECHNOLOGY. POWER UNION-MANAGEMENT
DISTRIBUTION IN GOVERNMENT RULES OF THE
SOCIETY. WORK-PLACE.

SYSTEM MODEL.

Q.No.(4): write notes on any three:

A. Collective bargaining.

Collective bargaining is process of joint decision making and basically represents a


democratic way of life in industry. It is the process of negotiation between firm’s and
workers’ representatives for the purpose of establishing mutually agreeable conditions of
employment. It is a technique adopted by two parties to reach an understanding acceptable
to both through the process of discussion and negotiation.
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ILO has defined collective bargaining as, negotiation about working conditions and terms of
employment between an employer and a group of employees or one or more employee,
organization with a view to reaching an agreement wherein the terms serve as a code of
defining the rights and obligations of each party in their employment/industrial relations
with one another.

Collective bargaining involves discussions and negotiations between two groups as to the
terms and conditions of employment. It is called ‘collective’ because both the employer and
the employee act as a group rather than as individuals. It is known as ‘bargaining’ because
the method of reaching an agreement involves proposals and counter proposals, offers and
counter offers and other negotiations.

Thus collective bargaining:

• is a collective process in which representatives of both the management and


employees participate.

• is a continuous process which aims at establishing stable relationships between the


parties involved.

• not only involves the bargaining agreement, but also involves the implementation of
such an agreement.

• attempts in achieving discipline in the industry

• is a flexible approach, as the parties involved have to adopt a flexible attitude


towards negotiations.

B. Voluntary arbitration.

Voluntary arbitration implies that the two contending parties, unable to compose their
differences by themselves or with the help of the mediator or conciliator, agree to submit
the conflict/dispute between them to be resolved by an impartial authority, whose decision
they are ready to accept. In others words, under voluntary arbitration, the parties to the
dispute can and do themselves refer voluntarily any dispute to arbitration before it is
referred for adjudication. This type of reference is known as a “voluntary reference”, for the
parities volunteer themselves to come to a settlement through an arbitration machinery.

The essential element in voluntary arbitration is:

-the voluntary submission of dispute to an arbitrator;


- the subsequent attendance of witness and investigations;
-The enforcement f an award may not be necessary and binding because there is no
compulsion.
But generally, the acceptance of an arbitration implies the acceptance of its award-be it
favorable or unfavorable; and
-voluntary arbitration may be specially needed for disputes arising under agreements.

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Compulsory arbitration, on the other hand, is one where the parties are required to
arbitrate without any willingness on their part. When one of he parties to an industrial
dispute feels aggrieved by an act of the other, it may apply to the appropriate government to
refer the dispute to an adjudication machinery. Such reference of a dispute is known as
'compulsory' or 'involuntary' reference, because reference in such circumstances does not
depend on the sweet will of both the contending parties or any party to the dispute. It is
entirely the discretion based substantially upon objective text of the appropriate
Government on the question of existing or apprehending industrial dispute in a particular
establishment.

Under compulsory arbitration, the parties are forced to arbitration by the State when:
(i) the parties fail to arrive at a settlement by voluntary method.
(ii) when there is a national emergency which requires that wheels of production should not
be obstructed by frequent work-stoppages.
(iii) the country is passing through grave economic crisis.
(iv) there is a grave public dissatisfaction with the existing industrial relations.
(v) when industries of strategic importance are involved.
(vi) parties are ill balanced, i.e, where the unions are weak, ill-organised, and powerless and
the means of production are in the hands of the capitalists who are well-organised and more
powerful.
(vii) where public interest and the working conditions are desired to be safeguarded that
regulated by the state. Compulsory arbitration leaves no scope for strikes and lock-outs and
thus deprives both the parties of their very important and fundamental rights.

Voluntary Arbitration is a binding, adversarial dispute resolution process in which the


disputing parties choose one or more arbitrators to hear their dispute and to render a final
decision or award after an expedited hearing

Voluntary arbitration implies that the two contending parties, unable to compromise their
differences by themselves or with the help of mediator or conciliator, agree to submit the
conflict/ dispute to an impartial authority, whose decisions they are ready to accept. In
other words, under voluntary arbitration the parties to the dispute can and do they refer
voluntarily and dispute to arbitration before it is referred for adjudication. This type of
reference is known as “voluntary reference”, for the parties themselves volunteer to come to
a settlement though an arbitration machinery.

Essential elements in voluntary arbitration :

§ The voluntary submission of dispute to an arbitrator.


§ The subsequent attendance of witnesses and investigations.
§ The enforcement of an award may not be necessary and binding because there is no
compulsion.
§ Voluntary arbitration may be specially needed for disputes arising under agreements.

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D. Code of displine.

To maintain harmonious relations and promote industrial peace, a Code of


Discipline has been laid down which applies to both public and private sector
enterprises. It specifies various obligations for the management and the workers
with the objective of promoting cooperation between their representatives.

The basic objectives of Code of Discipline are to:


• Maintain peace and order in industry.
• Promote constructive criticism at all levels of management and employment.
• Avoid work stoppage in industry
• Secure the settlement of disputes and grievances by a mutually agreed procedure
• Avoiding litigations
• Facilitate a free growth of trade unions
• Eliminate all forms of coercion, intimidation and violations of rules and regulations
governing industrial relations.

The Code is based on the following principles:


• There should be no strike or lockout without prior notice.
• No unilateral action should be taken in connection with any industrial matter.
• Employees should follow go slow tactics
• No deliberate damage should be caused to a plant or property
• Acts of violations, intimidation and coercion should not be resorted

• The existing machinery for the settlement of disputes should be utilized.


• Actions that disturb cordial relationships should be avoided.
To ensure better discipline in industry, management and unions agree on not
indulging into various actions. These actions can b summarized as follows:

Management and Union(s) agree


• That no unilateral action should be taken in connection with any industrial matter
and that should be settled at appropriate level
• That the existing machinery for settlement of disputes should be utilized with the
utmost efficiency
• That there should be no strike or lock-out without prior notice
• That neither party will have recourse to coercion, intimidation, victimization or go
–slow tactics
• That they will avoid litigation, sit-down and stay-in strikes and lock-outs
• That they will promote constructive co-operation between their representatives at
all levels and as between workers themselves
• that they will establish upon a mutually agreed grievance procedure which will
ensure a speedy and full investigation leading to settlement;
• that they will abide by various stages in the grievance procedure and take no
arbitrary action which would by-pass this procedure; and

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Management Agrees
• not to increase work-loads unless agreed upon or settled otherwise
• not to support or encourage any unfair labor practice such as discrimination and
victimization of any employee
• to take prompt action for settlement of grievances and implementation of
settlements, awards, decision and orders
• to take appropriate disciplinary action against its officers and members in cases
where enquiries reveal that they were responsible for precipitate action by workers
leading to indiscipline

Union agrees
• not to engage in any form of physical duress
• not to permit demonstrations which are not peaceful
• that their members will not engage or cause other employees to engage in any
union activity during working hours
• to discourage unfair labor practices such as negligence of duty, damage to property
and insubordination
to take prompt action to implement awards, agreements, settlements and decisions

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