Industrial relations is the relationship between employers, employees and their unions, and the government. It has three faces or types: ethical (workers are people, not commodities), science-building (research into employment) and problem-solving (designing better policies). Good industrial relations matter because they keep production running, reduce disputes, raise morale and cut waste.
Industrial relations have their roots in the Industrial Revolution, which created the modern employment relationship by spawning free labor markets and large-scale industrial organizations with thousands of wage workers.
Industrial relations have been used to refer to multilateral relations between employees, employers, and govt.
Industrial relations refer to “relations between employee associations and trade unions.”
Good Industrial relation reduces the possibility of strikes.
Therefore industrial organizations set up industrial relations departments that concern themselves with the settlement of industrial disputes.
Hence, the industrial relation is that part of the management which is concerned with the manpower of the enterprise whether machine, operator, skilled worker, or manager.
It is obvious from the above description that the field of industrial relations includes the study of workers and their trade unions, management employers associations, and the state institution concerned with the regulation of employment.
Types of Industrial Relations
Labour economist Bruce Kaufman, in his history of the field for the ILO, describes industrial relations as having three faces. These are often taught as its three types:
Read more: Characteristics of public relations.
1. Ethical
On the ethical face, Industrial Relations contain strong normative principles about workers and the employment relationship, especially the rejection of treating labour as a commodity in favor of seeing workers As human beings in democratic communities and tied to human rights.
2. Science Building
In the Science building face, Industrial relations is part of the Social Sciences, and it seeks to understand the employment relationship and its Institutions through high-quality rigorous research.
3. Problem-Solving Face
In the problem-solving face, industrial relations seeks to design policies and institutions to help the employment relationship work better.
Need of Industrial Relations
Sound and Harmonious Industrial Relation is essential for the smooth running of an organization.
Read more: Need and importance of workers participation in management.
If an organization lacks good Industrial Relations then it will not be possible for you to achieve its objectives and targets successfully.
Several types of human needs (physical, mental, and social) can be satisfied through good Industrial Relations.
Sound Industrial Relation boosts the morale of employees.
It helps in achieving the targets, goals, and objectives of the organization. Good industrial relations enable the smooth running of an organization.
It helps better coordination between employees and employers. It contributes to the increase in output and productivity of the organization.
Good Industrial Relations facilitate industrial peace and industrial prosperity.
It helps in promoting new industrial organizations in the country thereby increasing employment opportunities.
Good industrial relations facilitate consumers to get quality goods at cheap rates.
Importance of Industrial Relations
Healthy industrial relation is key to progress and success.
The following are the importance of healthy industrial relations:
1. Uninterrupted Production
The most important benefit of IR is that this ensures continuity of production.
This means, continuous employment for all from managers to workers.
2. Reduction in Industrial Disputes
Good Industrial Relations reduce industrial disputes which helps to promote cooperation and increase production.
3. High Morale
Good industrial relations improve the morale of the employees.
4. Mental Revolution
The main object of industrial relations is a complete mental revolution of workers and employees.
The industrial space lies ultimately in a transformed outlook on the part of both.
5. Reduced Wastage
Good industrial relations are maintained on the basis of cooperation and coordination with each other.
It will help increase production. Wastage of men, materials, and machines is reduced to the minimum and thus national interest is protected.
