Sunday, December 12, 2021

Why is it important that industrial relations as aspect of the HRM?

       Industrial relations are how the employer (management) and the employee (workers/unions) feel and behave towards each other or how they interact with each other. Industrial relations could be harmonious, cooperative, or conflictive acts with each other. 


Figure 01: Industrial Relations (Source: MBA Skool Team, 2013)

Organizational level Industrial Relations - That is, what is your policy on managing people? How the organization handles key HR areas (Recruitment and Selection, Compensation Management, Performance Appraisal, Employee Relations, employees welfare ) of HRM and its direct impact on the quality of IR s of the organization.

key objectives of good IR

Improve cordial  relations between  employers and employees.

Minimizing  of Industrial  disputes.

Reduce employment  cost.

To help employees develop.

To determine  terms and conditions  of employment.

To eliminate  or minimize  the number of strikes, lockouts.

To find ways to prevent or minimize and resolve conflict. 

"Industrial relations are meant to ensure mutual trust and good relationships between the employers and their employees and other associated bodies. These are meant for the betterment of the employers and the employees. It is also beneficial for the growth of the industry and economy as a whole" (Bhasin, 2021).

Factors affecting Industrial  Relations

The nature of the organization.

Location  of the organization.

Working conditions.

Period  of service  and duration of working  hours.

The span, complexion and purpose of the jobs.

The package  of remuneration  offered.

Professionalism  of the management.

Degree of technology  adopted.

The extent of control  and restraint exercised by employer and employee  on each other.


"Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management)" (Arora, 2014).

By adopting healthy HR practices by getting employee involvement, participation and contact as much as possible.

Corporate  policy  on HR.

Continuous  review of HR practices.

Establish  a strong and productive HR division.

Employee  feedback  programs.

To have welfare  committees.

Introduce grievance handling procedure.

Improve  dialogue between  employees  and employers.

Give due recognition  to trade unions and trade union.

Focus  on key result  areas . Link IR to key result  areas  of HRM.

Figure 02: Contrast between HRM Vs IR (Source: Lai, 2019)


Figure 03: Industrial Relations (Source: Simple Learning Tips, 2019)


Conclusion

Harmonious industrial relations are Imperative for the productivity of an organization. industrial relations affect not only the interests of the two parties but also the entire community. In other words, the avoidance of industrial conflict through a healthy industrial relations system should be the basic function of HRM in any successful organization.


References           

Arora, M., 2014. Linkedin. [Online]
Available at: https://www.linkedin.com/pulse/20140807122102-245737269-industrial-relations-hrm-ihrm
[Accessed 12 December 2021].

Bhasin, H., 2021. Marketing91. [Online]
Available at: https://www.marketing91.com/industrial-relations/
[Accessed 12 December 2021].

Lai, d.T., 2019. HRnews.my. [Online] Available at: http://hrnews.my/2019/09/12/industrial-relations-vs-human-resource-management-the-difference/ [Accessed 11 December 2021].

MBA Skool Team, 2013. Mba skool. [online] Available athttps://www.mbaskool.com/business-articles/human-resource/5917-industrial-relations-post-globalisation.html [Accessed 12 December 2021].

Simple learning Tips, 2019. You tube. [Online] Available at: https://www.youtube.com/watch?v=lTjYFxwprf4 [Accessed 12 December 2021].

Tony, L. D., 2019. HRnews.my. [Online]
Available at: athttp://hrnews.my/2019/09/12/industrial-relations-vs-human-resource-management-the-difference/
[Accessed 12 December 2021].



8 comments:

  1. One of the most delicate and difficult issues confronting modern industrial civilization is industrial relations. Without labor collaboration and amicable relationships, industrial advancement is impossible. As a result, it is in everyone's best interests to foster and sustain positive relationships between both parties.

    ReplyDelete
  2. Agreed with above and article is evident for the important of the HRM to manage the human resource to increase the performance of the organization to achieve the long term and short term objectives.

    ReplyDelete
  3. Industrial relation is very imuch important in HR functions since each organization providing services or manufacturing has depend on one to another so sharing better practices and effective syatems could by done through better industrial relationship

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  4. Reduced industrial dispute, industrial unrest, strike, lock outs can be avoided through good industrial relation. This ensures smooth running of the organization and continuous production.

    ReplyDelete
  5. Agree with the above article and well-maintained industrial relations will keep organizations' performance high.

    ReplyDelete
  6. You have picked up a very interesting topic. Through a good relationship between two parties, any challenging situation can be handled empathetically and effectively, rather getting into any conflicting situations. Therefore, it is essential to main a good industrial relation, which ultimately help achieve organisational objectives as a team. Thank you so much for sharing this.

    ReplyDelete
  7. Good  industrial relations result in higher efficiency and thereby prosperity, lower turnover, and other practical benefits for the organization.

    ReplyDelete
  8. Proper management of human resources definitely would bring success for a company's performance and delegating each tasks as per their skills would ensure a sound end product

    ReplyDelete

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