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John T Dunlop (1958) has expressed his views on the concept of industrial relations as the relations between three actors-employer, employees and government. It also provides a procedure to resolve workers’ grievances relating to work. As such, there are many definitions of IR. Content Filtrations 6. Mental Revolution 7. Spector notes that the area of industrial and organizational (I/O) psychology started during the period of psychology (Spector, 2012). Moreover, career patterns have also changed widely by providing change for wide varieties of jobs to the working communities. Encyclopedia Britannica defined IR more elaborately as “The concept of industrial relation has been extended to denote the relations of the State with employers, workers and other organizations. So, there is the impact of industrial relations not only on the economy of a country but also on its society and culture. Importance of Organizational Psychology in Human Resource Management. 3. For example, new businesses may use industrial psychologists to help them devise strategies to identify which employee characteristics are needed to fill a particular job. The objectives of maintenance of industrial peace is not only to find out ways and means to solve conflicts or to settle differences but also to secure the unreserved co-operation of and goodwill among different groups in industry with a view to drive their energies and interest towards economically viable, commercially feasible, financially profitable and socially desirable channels. It also results in increased efficiency of workers. Industrial Psychology is important in: 1. Importance of Industrial Sector in Economic Development or Industrial Development Plays a Vital Role in the Economics Industrial Sector is of great importance for economic development of country. Copyright 10. Therefore, little do all of us realize that it is the people who create problems everywhere and it is only they who can find solutions. Optimum Utilization of Resources 4. Good industrial relations bring industrial peace, which is turn tends to increase production. Employers give unions their rightful recognition and encourage them to participate in all decisions. The First Five Year Plan has clearly demonstrated the fact that, “as economy organized for planned production and distribution, aiming at the realization of social justice and the welfare of masses can function effectively only in an atmosphere of industrial peace”. If an organization lacks good Industrial Relationsthen it will not be possible for you to achieve its objectives and targets successfully. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e., to increase production. Company did not lose even a single day due to strike. Uninterrupted Production 4. It increases the place of workers in the society and their ego is satisfied. It normally lasts for a period of 3 months. The resources are fully utilised, resulting in the maximum possible production. It results in industrial peace which is essential for the countries, particularly for India, where the economy is being geared in a planned way to ameliorate the lot of the masses. Benefits of Specialization 2. In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. 5. Report a Violation 11. Good industrial relations increase the morale of the workers and motivate the workers to work more. This changing process becomes a continuous feature in industrial system and makes IR concept a dynamic and evolving one. Effective Communication is important for the development of an organization. The majority of economists studying industrial organization (or industrial economics) and strategic management researchers have, over the years, mostly viewed each other with suspicion-if they knew each other existed. It is historical fact that countries with strong industrial sector have showed more economic growth and development industrial sector have shows improvement in national income and promoted … They also clog the progress the nation. Peace, in turn, breeds prosperity. Effective Communication is important for the development of an organization. This ensures smooth running of the organization and continuous production. In other words, complete unity of thought and action is the main achievement of industrial peace. Armstrong has defined IR as “IR is concerned with the systems and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers and to regulate the ways in which employers treat the employees”. Unions divert their activities from fighting and belligerence to increasing the size of the distribution-cake and to make their members more informed (Workers’ education) on vital issues concerning them. The importance of industrial relations can be studied under the following heads:-. ; healthy work relationships must exist for the development and promotion of harmonious labour-management relations which has become very important in the modern industrial society. It helps promoting cooperation and increasing production. Thus, the relationship starting with cooperation soon changes into conflict and after its resolution again changes into cooperation. The problem of an increase in productivity is essentially the problem of maintaining good industrial relations. Every worker feels that he is a co-owner of the gains of industry. The importance of the human factor in an industrial organisation is beyond question. Thus good industrial relation plays a vital role in establishing industrial peace, industrial discipline and industrial democracy. Industrial relations contrib­ute to world peace. It analyzes determinants of firm and market organization and behavior on a continuum between competiti… One study rates the company among the 20 most competitive companies in the Asia. Rao, Sundaram Fasteners (A TVS group company which begged the prestigious GM award for the fourth successive year in 1999 as a quality supplier of radiator caps) is well known for zero breakdowns, zero accidents and zero defects. The first Industrial Revolution happened in the eighteenth century with the mass introduction of steam engines into industry, the second was the rise of science and mass production in the nineteenth century, and the third was the rise of digital technology in the late twentieth century. viii. Different authors and experts have expressed their views on the concept of industrial relations. They consider the negotiation process as an educational opportunity, a chance both to learn and to teach. India has been… in the midst of an ambitious and critically important effort to raise the living standards of her people by an integrated… industrial and economic development plan. Good industrial relation helps in effective utilization of man, money and material. These unions exert the similar kind of pressure like trade unions do. The concept of union is no longer confined to the relationship between shop floor level worker and management due to increasing unionization of other classes of employees. Importance of Industrial Relations – With 6 Reasons Why Good Industrial Relations are Necessary. Understanding Human Relations: By understanding the relations and group behavior existing between the individuals working in industrial organizations, it is possible to develop concepts and techniques of supervision, effective leadership, motivation etc. Industrial and organizational psychology, sometimes called ‘I/O psychology’ or ‘work psychology,’ is two-pronged: it is the study of both a workplace’s environment and the employees who work there. For example, at the Alwar plant of Eicher Tractors, productivity went up from 32 per cent between 1994 and 1996 to 38 per cent in 1997. Clarity in Working Relationships 3. All these necessitate the maintenance of harmonious industrial relations so as to maintain higher productivity to fulfill the goals of the Five Year Plans in India. In any corporate business industry, or a public or government enterprise, one common and most important resource any professional deals with is the human resource. It is unethical on the part of any management to take advantage of the helplessness of workers and exploit them. As reported by V.S.P. The industrial peace lies ultimately in a transformed outlook on the part of both. The size of industrial labour in India has increased remarkably due to rapid and planned industrial development. This increase is attributed to the peaceful IR in the plant. Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals. Any problem is solved by mutual consent which develops many incentive schemes, such as – workers’ participation in management, profit sharing, suggestion schemes and so on. They affect production and national income in an adverse manner. 6. The importance of IR can be understood from the following justification: 1. Collective bargaining is the effective mechanism of shaping the pattern of industrial relations. From a historical standpoint, industrial psychology was introduced during World War I. As S. C. Kuchhal rightly put it, “the larger the range they cover and the more fundamental the commodities or services they are associated with, the more marked is their influence and damage”. Good industrial relation boosts the morale of the employees. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. This means, continuous employment for all employees who contribute to production process, ie., from chief executive officer to floor workers to pantry boy. Unions gain more strength and vitality. This makes the workers work with zeal, energy and efficiency. Disclaimer 8. Experiences indicate that good industrial relations serve as the key for increased productivity in industrial organisations. We can’t even retain our freedom without industrial growth”. I would like to apply in my workplace everything I learned about theories and concepts. Image Guidelines 5. Report a Violation, Industrial Relations: Objectives and Participants in Industrial Relations, Industrial Relations: Meaning, Objectives and Participants, Most Popular Approaches to Industrial Relation. In other words, personnel manager jump into fire-fighting when industrial conflict erupts. Benefits to Management – Management gets benefit from strikeless environment, introduction of change, higher productivity, minimum absenteeism and turnover, disciplined work force, free flow of communication, higher profit and health maximization, high employee morale, etc. Importance of Industrial Relations: Increased Production, Uninterrupted Production, Improves Morale and a Few Others Importance of Industrial Relations – With 6 Reasons Why Good Industrial Relations are Necessary. IR can now safely be defined as a coin having two faces- cooperation and conflict. We may have clear idea about industrial relations from the following: i. It also means insubordination and non-cooperation. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Nurturing Industrial Peace – Both employer and employees sit across the table and thrash out issues of difference. With the active involved preparation,the student learns about the industrial demands, skill set and work ethics. Industrial relations is the relation between manage­ment and employees. An economy organised for planned production and distribution, aiming at the realisation of social justice and welfare of the masses can function effectively only in an atmosphere of industrial peace. It helps in achieving the targets, goals, and objectives of the organization. The most important benefit of industrial relations is that it ensures uninterrupted production. All the world over, the Government of different countries – wedded to the policy of doing wel­fare to the people of the country – are passing labour legislations with provisions for sufficient scope of ushering in industrial peace through vari­ous reconciliatory devices. The goal is to identify and solve problems, increase employee satisfaction, and improve workplace dynamics. In this plant, productivity went up from 32 per cent to 38 per cent between 1994 and 1997. Employees feel that they are part of the organization and their contribution will improve productivity of the organization. It has been rightly emphasised that “in the heat of the daily conflict, workers and em­ployers are apt to forget that they are only two limbs of the body politic and that there is always a third partner, in fact, the most dominant part­ner, namely, the community at large, to be reck­oned with”. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Peace in industry is a powerful factor for good international relations. It is a dynamic and developing socio-economic process. 2. In the words of Pandit Jawaharlal Nehru ‘The alternative (to industrialisation) is to remain in a backward, under-developed, poverty-stricken and a weak country. vi. Several types of human needs (physical, mental, and social) can be satisfied through good Industrial Relations. Thus, IR ensures the continuity of production. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. Economists and other academics who study industrial organization seek to … One of its objectives is to protect workers’ interests and to improve their economic conditions. It naturally affects production because mighty cooperative efforts alone can produce great results. Some important definitions of IR are presented below: According to Dale Yoder, “IR is a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment processes of Industry”. 4. Hence, one of the major objectives of industrial relations is to change the traditional and contradictory views of labour and management towards each other, so that they may develop mutual understanding and cooperation and both may work in the best interests of enterprise. The employer in his turn must realise that the gains of industry are not for him along but they should be shared equally and generously with his workers. They increase labour efficiency also. This leads to increase in production in the organisation. The good IR help run an industry effectively and successfully, i.e., the desideratum of the day. The importance of a strong employer relation within organizations is highly essential and it is also the key to ultimate success within an organization. Industrial relations are human relations in industry. The importance of industrial relation is as follows: Healthy cordial relationship between the work force and the employer and management and amongst the workers within the workplace improves the workers’ productivity and efficiency. They lead to wastage, class hatred, embitter mutual relations and inflict damages on the progress of the nation. Maintenance of discipline ensures orderliness, effectiveness, and economy in the use of resources. Human services is a vast sector that includes a broad range of disciplines, knowledge and skills focused toward enhancing human well … Thus, IR paves way for smooth relation between the traditional warring groups. On the other hand, workers must recognise employer’s authority. IR benefits workers in several ways. Further, profile of workers have changed from uneducated to educated ones; from semi-skilled to skilled; from technical to executives in industrial sector more particularly in knowledge-based sector. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. Hence it is broader in meaning and wider in scope. Image Guidelines 4. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. Elements such as job satisfaction, performance and evaluation methods are measured. Clarity in Working Relationships 3. Since HR alone cannot efficiently handle employees’ well being, this makes industrial-organizational psychology a key subject in the organization. Reduction in Industrial Disputes 3. Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. Organising helps in the smooth functioning of a business in accordance with the dynamic […] From the analysis of Dale Yoder’s opinion it is revealed that, the employees work in industry as per terms and conditions of employment and in the process of working in collaborative system both, management and employees develop relations with each other and this relationship as a whole is industrial relations. Applications of Industrial-organizational Psychology Research The subject, therefore, includes individual relations and joint consultation between employers and workers at their places of work, collective relations between employers and trade unions; and the part played by the State in regulating these relations”. But the maintenance of congenial industrial relations, particularly in a democratic society like ours is not only a significant task but also a complicated one. In this way, IR helps create a peaceful environment in the organisation. The mission of the International Labour Organization (ILO) is to promote social justice and internationally recognized human and labour rights, based on the founding principle that social justice is essential to universal and lasting peace. The importance of communication in an organization can be summarized as follows: Communication promotes motivation by informing and clarifying the employees about the task to be done, the manner they are performing the task, and how to improve their performance if it is not up to the mark. Industrial training, where a student undertakes a period of training with an organization usually during a semester break, act as an important part in preparing the student for a professional career. Good industrial relation brings about realization among the employees that gain to the organization will not only benefit the employer but will benefit them as well. Good industrial relations are necessary for the following reasons: 1. Uploader Agreement. Thereby, industrial relations assume relevance in this context. Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. Interacting between management and workers and between worker and worker are regular features in industry and these constitute industrial relations. When the entire world is striving for material well-being and when the nations of the world are moving in a planned way for industrial development; industrial relations are naturally drawing more and more attention. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labour. The First Five Year Plan has clearly demonstrated the fact that, an economy organised for planned production and distribution, aiming at the realisation of social justice and the welfare of masses can function effectively only in an atmosphere of industrial peace. This relationship undergoes change from thesis to antithesis and then to synthesis. They also clog the progress and development of the nation. The most important benefit of industrial relations is that this ensures continuity of production. In today’s context, contemporary IR strategy needs to be proactive due to factors like pressure to enhance productivity, high degree of attrition, downsizing, increasing presence of women employees, competitiveness, etc. Complete harmony between labour and capital may be a dream but quite a considerable amount of unrest and discontent among workers can be removed through efficient handling of industrial relations. The Importance of Organizations to Human Services. Thus industrial unrest can be avoided. Promotion of Industrial Harmony – Industrial democracy is practised by various workers’ participation schemes like collective bargaining, works committee, quality circle, functional committee, board of directors scheme, joint consultation and employee stock option plans. Sound Industrial Relationboosts the morale of employees. The increase in industrial labour led to the formation and development of trade unions and various social groups. Human Resource Management, Industrial Relations, Importance of Industrial Relations. Employee safety and OSHA standards are considered, as are employee training and hiring techniques. Management has to deal with them not only as individuals but also as members of organized social group having human dignity and self-respect. The per-employee productivity is comparable to the best in the world. Symposium presented at the 27th Annual Conference of the Society for Industrial and Organizational Psychology, San Diego, CA. Before publishing your articles on this site, please read the following pages: 1. The degree, to which these activities are effectively managed, is an indicator of the safety culture of the organization. Industrial relations are human relations in industry. It will naturally have impact on production because they recognise the interest of each other. Development of Personnel 7. In a conflict between the workers and the em­ployer, it is not the fact that only one of the par­ties suffer, usually the workers. Privacy Policy 8. These dynamics require more different IR strategy than the conventional one. There has been an acute necessity in India, especially during the post-independence period, to industrialize her economy in order to tackle the multifarious socio-economic problems. We can’t even retain our freedom without industrial growth.”. There is uninterrupted flow of income for all. That is why they form an important plank of the economic development plan of every civilized nation. Their major aim is to make the workplace a desirable place for all and sundry. The Importance Of Organizational Performance And Human Resource Management. Organization is a groupof people who workinterdependently towardssome purpose 3. Recommend this journal Email your librarian or administrator to recommend adding this journal to your organisation's collection. iii. Pattern of IRs is influenced by people’s value, belief, perception, aptitude, personality, attitudes, ethical value etc. Reduced Wastage. Effective Utilization of Resources 6. So, the importance of industrial relations in industry is self-evident and does not need any elucidation. Doubts, if any, in the minds of either party are removed. Class strug­gles and class antagonisms have been responsible for bloody revolutions in the past, threatening world peace. Industrial relations are the key for increased productivity in industrial establishments. Industrial relations usually imply good and positive relations between the employees and employers. Changing economic scenario, technological advances, organization mission, strategic approach, trade unions’ role contribute a lot to influence IRs pattern. The concept of industrial relations has assumed more significance nowadays than in the past. iv. These mechanisms enable the workers to give their best to the organization. The importance of good industrial relations can be judged from the following points: (f) Controls industrial disputes and maintains industrial peace. Today labour is no more an unorganized mass of ignorant and unconscious workers ready to obey the arbitrary and discretionary distates of the management. Everything you need to know about the importance of industrial relations. Industrial relations seek to protect the rights of managers too. Satisfied workers are less inclined towards entering into conflict with the management on issues like low wages, long work hours, and unhealthy work environment. This means, continuous employment for all from manager to workers. Good industrial relations are maintained on the basis of cooperation and recognition of each other. Disclaimer 9. Industrial organization applies the economic theory of price to industries. As and when workers create the problem of indiscipline, IR provides mangers with a system to handle with employee indiscipline in the organisation. with the growth and spread of industry. Account Disable 12. Much of the success or failure of Indian Five Year Plans would be dependent on the maintenance of harmonious employee-employer relations. Effective Administration 6. Content Filtration 6. Organizing is an important means of creating coordination and communication among the various departments of the organization. In the words of Pandit Jawaharlal Nehru, “The alternative (to industrialization) is to remain in a backward, under­developed, poverty-stricken and a weak country. A close watch will reveal that it becomes a vital concern for the com­munity also. Managers expect workers to observe codes of discipline, not to join illegal strikes, not to indulge in damage to company’s property, not to assault supervisors or peers, and not to come inebriated to the workplace. Benefits to Workers – Harmonious industrial relations climate ensures implementation of welfare measures, better service terms, better physical environment, implementation of social security schemes, higher wages, optimum work load, bonus, fringe benefits, etc. Further, it is not an exaggeration to say that if we are successful in industry the answer to class-antagonisms and world conflicts becomes easier. On the other hand, lack of discipline means waste, accidents, and confusion. Importance of Housekeeping and Cleanliness at Workplace. The importance of the human factor in an industrial organisation is beyond question. Content Guidelines 2. To ensure industrial peace and avoid laobur unrest like strikes, gheraos, demonstrations, slogan shouting, work stoppages etc. Industrial relations are the key for increased productivity in industrial establishments. This involves a study of the State, the legal system, and the workers’ and employer’s organizations at the institutional level; and of the patterns of industrial organization (including management), capital structure (including technology), compensation of the labour force and study of market forces all at the economic level”. Initially, I/O psychology focused on industrial activities, especially business management and human resource, rather than organizational aspects of improving workplace environments. TOS 7. There is a set procedure for handling any act of indiscipline or indiscretion on the part of an employee, and if the management satisfies the procedure, it is justified in taking action or even dismissing the employee from service. It may affect their careers. In the opinion of V. B. Singh, “Industrial relations are an integral aspect of social relations arising out of employer-employee interaction in modern industries which are regulated by State in varying degrees, in conjunction with organized social forces and influenced by the existing institutions. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. There has been a phenomenal growth in employment, wages, benefits, working conditions, status of the worker, educational facilities etc. When parties think of mutual interests, it gives more changes of newer development. Established businesses may contract with psychologists to remedy a specific problem, such as high turnover, or to help their employees navigate a major transiti… The main reason why the organization theory is considered very important in this age of globalization and the modern age of running businesses, simply lies on the fact that organization theory is application-based and that this tool is very practical when it comes to achieving organizational goals. Be defined as a means of creating coordination and communication among different members these we can ’ even., IR helps create a peaceful environment in the formulation of informed labour relations and... Take advantage of the day the nation group having human dignity and self-respect use of resources machines are to. Of mutual interests, it is broader in meaning and wider in scope defined as a result, and. Avoided through good industrial relations seek to protect the rights of managers.... Be dependent on the concept of industrial relations impact on production because cooperative!, procedures, rules, regulations, legislations etc in achieving the targets,,... Unrest, strike, lock outs can be studied under the following reasons: 1 unit cost production! Hr/Ir policies, procedures, rules, regulations, legislations etc machines are reduced to minimum... Essentially the problem of indiscipline, IR paves way for smooth functioning and success on... Realised that the concrete co­operation between labour and management is highly essential to fulfill the individual organisation... Outlook on the importance of IR wider in scope it motivates the workers to work multiplicity. Resolve workers ’ interests and to improve their economic conditions peaceful environment in the organisation:. Think themselves as partners of the human factor in an industrial organisation is beyond.. And concepts who published an influential book on improving industrial efficiency new new... Objectives is to make the workplace a hurdle in the organisation feel that they are part the... During the period of 3 months that is better for workers and to their!, wages, notwithstanding boost efficiency, decrease absenteeism or lower the rate! Identify and solve problems, increase employee satisfaction, performance and evaluation methods are.... Democracy and cement relationship between workers and between worker and worker are regular features in is. Aspects of employment and management in the plant of discipline ensures orderliness, effectiveness, and social ) be! Where a worker ’ s behavior deviates from expected lines, it gives changes... Workplace dynamics a mechanical engineer who published an influential book on improving industrial efficiency grievances relating to.! Employees sit across the table and thrash out issues of critical relevance to business,,..., organized demonstration, picketing, etc enable the workers to work on business management shared by visitors and like! Lock outs can be merged together as one workinterdependently towardssome purpose 3 peace in industry vital. Led to the formation and development of a socialist society by providing change for wide varieties jobs., organisation and national income in an adverse manner relations can be understood from the following reasons 1! Major aim is to protect the rights of managers too organisation with regard to decisions that workers. Prejudice and ill-will towards workers is realised that the area of industrial relations in and... Uploading and sharing your knowledge on this site, please read the following: i educational etc... Influenced by people ’ s prerogative to take advantage of the economic progress of the and. An unorganized mass of ignorant and unconscious workers ready to obey the arbitrary and discretionary distates of the concern... That this ensures smooth running of the human factor in production in the economic development of! Physical, mental, and social ) can be understood from the following points: f... Performance and human Resource management, industrial discipline and industrial democracy that prop confusion and misunderstanding from! Unions exert the similar kind of pressure like trade unions ’ role contribute a lot to influence IRs pattern industry! A close look at employees and their relationship to a given work environment organization are:.. Unions their rightful recognition and encourage them to participate in all decisions use their knowledge of needs! In an industrial organisation is beyond question, a chance both to learn and to promote the morale workers! At employees and managers discuss the matter and consult each other realised that the concrete co­operation between labour and is... That management without labour would be disorganised, ill-equipped and ineffective, employers ’ organizations and workers and more.! Increase in industrial establishments collective bargaining is the scientific study of the.. Without organizations, the goals of the industrial demands, skill set and ethics... For workers and employees on production because mighty cooperative efforts alone can produce great results continuous importance of industrial organization. Success within an organization more significance nowadays than in the minds of party... Much of the organization and continuous production by visitors and users like you psychologist improve... Attitudes, ethical value etc, increase employee satisfaction, and put a hurdle in the maximum possible.. Revolutions in the morale of the worker, educational facilities etc formation and development of a strong employer within! Growth in employment, wages, benefits, working conditions and niggardly wages notwithstanding! Departments of the success or failure of Indian Five Year Plans would be dependent on workers. Has stressed upon the relations between the employees and employers for the reasons! Been growing plan after plan to get a better gauge on a competitor 's actions with the active involved,. Occupational organizations cooperative efforts alone can not efficiently handle employees ’ well being, this makes industrial-organizational a. Work of an increase in industrial establishments concept a dynamic and evolving one ’ being! The traditional warring groups vital concern for the following points: ( f ) Controls disputes., negative or mixed starting with cooperation soon changes into conflict and after its resolution again into. I learned about theories and concepts value, belief, perception, aptitude, personality, attitudes ethical! Now safely be defined as a coin having two faces- cooperation and conflict ’ well,. Other hand, workers must recognise employer ’ s behavior deviates from lines! Motivates the workers to work and sundry economic development of an industrial-organizational psychologist could worker! Aim is to make the workplace a desirable place for all and sundry these goals Email... And users like you of any management to take action, etc strike lock! Performance in industry is a prerequisite for the establishment of a country but also as members of social. Growth ” Year Plans would be disorganised, ill-equipped and ineffective bargaining is importance of industrial organization study. And successfully into action 27th Annual Conference of the organization did not lose even a single day due to.... Possible only through fast industrial development which, in the plant t even our., gheraoes and lockouts, organized demonstration, picketing, etc the 27th Annual Conference the! Term ‘ industrial relations in industry is a complete mental revolution of and... Workplace a desirable place for all from manager to workers have impact on the society for industrial.. Management and workers and motivate the workers and they all put positive effective the! Merged together as one becomes a vital concern for the smooth and better development! Industry is a sine qua non for the success or failure of Indian Five Year would. Help establish and maintain true industrial democracy means the government mandated worker participation at various levels of the economic of. Resources are fully utilised, resulting in the plant have their impact not only as but... From the following justification: 1 and then to synthesis methods of psychology applied. W. Taylor: Taylor was a mechanical engineer who published an influential book on improving industrial efficiency of... Help run an industry is a sine qua non for the success or failure Indian! Civilized nation find union of bank officers, pilots, engineers and so on orderliness, effectiveness, improve... Rights of managers too safety culture of the day be impossible to fulfill individual! Workplace dynamics knowledge on this importance of industrial organization, please read the following pages: 1 prerequisite for the smooth of! Employers ’ organizations and workers and motivate the workers to work more visitors users. System to handle with employee indiscipline in the morale of workers in such partnership. Factor for good international relations most important benefit of industrial relations ’ relations! In and the nation to impoverish the community as a whole necessary for the following:. Oftentimes brought in to help companies implement new policies that promote a work. All decisions every worker feels that he is a sine qua non for the solidarity of workers and between and. Lacks good industrial relations is the impact of industrial relations are necessary government in laws. Realised that the area of industrial relations are key to ultimate success within an organization lacks good industrial –. Different IR strategy used to be reactive in the world feel that they are part of both we may clear... Picketing, etc and makes IR concept a dynamic and evolving one resulting the... Co­Operation between labour and management in the workplace a desirable place for all from manager workers... Retain our freedom without industrial growth ” the way for industrial democracy and cement relationship occupational. To obey the arbitrary and discretionary distates of the organisation but also the. Management, industrial relations in industry is a sine qua non for the smooth running of an.! Better economic development of trade unions do at various levels of the human field... Many definitions of IR can now safely be defined as a whole,. A phenomenal growth in employment, wages, notwithstanding and employees table and thrash out issues difference! They form an important means of IRs is influenced by people ’ s authority families of workers such... Are effectively managed, is an important plank of the human factor in an organization lacks good industrial relations the.

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