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Traditionally, IR is  a pluralistic in outlook and covers not only the relations between employer and employee but also the relations between employer and unions and between them and the state. However, in the last two decades IR as become more specific to the study and practice of Trade unionism, Collective bargaining, Labour Management relations. Human Resource Development is seen as a separate, largely distinct field that deals with non-union employment relationships and the personal practices and policies of employers.   Organizations especially those who are in manufacturing have to ensure that both IR and HR are treated as critical and over lapping component of their Human Resource Strategy

Has IR was merely seen as adherence to labour laws and helping organisations stay compliant?   The  evolution of large and medium industries,  employing thousands of employees in multi-product, multi-plant, multinational settings, unions continue to play vital role in matters of productivity, quality, industrial peace and harmony through the innovative IR programes.  IR  is  undergoing needed changes to re-gain its position, by  opening its avenues to other social disciplines  including organizational behaviour and psychology, industrial sociology, with consequent attention to team work and new forms of work organization.  Large corporations    are coming forward to involve unions in HRM initiatives. Workplace cooperation mechanisms are more effective, as unions are consulted.

Industrial Relations will ensure that an organization as sound relationship with all its constituents (Management, Workers and Unions), Other industries, Government and Society at large. The effectiveness of IR is measured from the peaceful Atmosphere and harmonious culture that prevails in an organisations there by Zero production loss is reported and to ensure peace and harmony in the Organization.


·         Negotiation  Bargaining
·         Settlement
·         Liaisoning and Public Relations
·         Compliance with Legislations
·         Draft Rules and Orders
·         Design & Implement IR Programmes.
·         Establish Role Clarity
·         Grievances Handling
·         Absenteeism

The following table details of IR will reflect the focus areas, business contributions, and performance & non-performance indicators.


Strategic Level

Standing Orders
Rights & Duties

Functional Level

Negotiations and Bargaining
Business Contribution
No manday lost due to labour Unrest.

Work Place Level
Performance Indicator
Settlement and Harmony
Non-Performance Indicator
Misconduct / Conflict

The IR programme in an organization should be such that it should be able to achieve objectives through the process. The success of IR solely depends upon its credibility shown through a transparent approach and its genuine desire in seeking common ground with the constituents like the management, workers, trade unions, society, government, etc.,.   Collaborative and Participative approach only can take IR programme in an organization to successful exposures.

Common values and principles are to be laid out before any bargaining or negotiations.
Very often, bargaining and negotiations fail since there is no basis, values and principles.
The background and guiding/leading criteria for all negotiations and bargaining should be a business goals / Objectives.  For examples, the following may not be negotiated or bargained:

Ø  Bonus  :  as there is a legislation governing bonus
Ø  Out put of a machine :  as it is specified along with the machine design / specifications.
Ø  Promotion : most competent persons needs to be promoted.




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