Workmen Vs. Management Workmen Vs. Management Employees Employees • Workmen: Workmen: Employees who are Employees who are hired for skilled or unskilled hired for skilled or unskilled ‘Manual’ or ‘Clerical’ work ‘Manual’ or ‘Clerical’ work • Management employees: Management employees: Employees Employees who are hired for management who are hired for management and supervisory work (Planning, and supervisory work (Planning, organizing, managing, leading) organizing, managing, leading)
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Workmen Vs. Management Workmen Vs. Management EmployeesEmployees• Workmen:Workmen: Employees who are hired Employees who are hired
for skilled or unskilled ‘Manual’ or for skilled or unskilled ‘Manual’ or ‘Clerical’ work‘Clerical’ work
• Management employees:Management employees: Employees Employees who are hired for management and who are hired for management and supervisory work (Planning, supervisory work (Planning, organizing, managing, leading) organizing, managing, leading)
MEANING OF INDUSTRIAL MEANING OF INDUSTRIAL RELATIONSRELATIONS
The field of Industrial The field of Industrial Relations (also called labour Relations (also called labour
relations) looks at the relations) looks at the relationship betweenrelationship between
ManagementManagement andand WorkersWorkers,, particularly groups of workers particularly groups of workers
represented by arepresented by a UnionUnion11
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Human Resource Human Resource ManagementManagement
The Human Resource department obtains, develops, utilizes, evaluates, maintains and retains the right number and type of workforce for the organization
Human Resource Human Resource ManagementManagement
• Right number and type of people: Job Right number and type of people: Job EvaluationEvaluation
• Maintain: Compensation (salary and Maintain: Compensation (salary and benefits)benefits)
• Retain: Good Company environment, Retain: Good Company environment, employee welfare, Company culture, employee welfare, Company culture, discipline and compliance with labour discipline and compliance with labour lawslaws
Note: These two functions in respect of Note: These two functions in respect of ‘Workmen’ come under Industrial ‘Workmen’ come under Industrial RelationsRelations
Factors in analysing I.RFactors in analysing I.R
1.1. Levels of labour relationsLevels of labour relationsa. Shop floor levela. Shop floor levelb. Regional levelb. Regional levelc. National levelc. National level
2.2. Ability to adapt to change Ability to adapt to change 3.3. Legislation and regulationLegislation and regulation
• The organization is perceived as an integral and The organization is perceived as an integral and harmonious whole with the idea of “one happy harmonious whole with the idea of “one happy family”. family”.
• Management and other members of the staff Management and other members of the staff share a common purpose emphasizing mutual share a common purpose emphasizing mutual cooperation. cooperation.
• It demands loyalty of all employees. It demands loyalty of all employees. • Trade Unions are considered as unnecessaryTrade Unions are considered as unnecessary• Conflict is perceived as disruptive and the result Conflict is perceived as disruptive and the result
of agitators, interpersonal friction and of agitators, interpersonal friction and communication breakdown.communication breakdown.
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Pluralistic PerspectivePluralistic Perspective
• Organization is perceived as being made up of powerful and Organization is perceived as being made up of powerful and divergent sub-groupsdivergent sub-groups
• Each sub-group has its own legitimate loyaltiesEach sub-group has its own legitimate loyalties• Each sub-group has its own objectives and leadersEach sub-group has its own objectives and leaders• The two prominent sub-groups are “Management” and The two prominent sub-groups are “Management” and
“Trade Unions”.“Trade Unions”.• The role of Management leans less towards enforcing or The role of Management leans less towards enforcing or
controlling and more towards persuasion and co-ordinationcontrolling and more towards persuasion and co-ordination• Trade Unions are considered as legitimate representatives Trade Unions are considered as legitimate representatives
of employeesof employees• Conflict is dealt by collective bargainingConflict is dealt by collective bargaining• Collective bargaining is not considered a bad thing. If Collective bargaining is not considered a bad thing. If
managed properly, it can result in positive change. managed properly, it can result in positive change. 55
Marxist PerspectiveMarxist Perspective
• There is a fundamental division of interest There is a fundamental division of interest between capital and labourbetween capital and labour
• This perspective sees inequalities of power and This perspective sees inequalities of power and economic wealth as the root of capitalist economic wealth as the root of capitalist economic systemeconomic system
• Conflict is seen as inevitable and trade unions are Conflict is seen as inevitable and trade unions are a natural response of workers to their exploitation a natural response of workers to their exploitation by capitalistby capitalist
• The Marxist view is that joint management and The Marxist view is that joint management and regulation would enhance management position regulation would enhance management position
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Conflict Between IR and Conflict Between IR and HRMHRM• Key Differences between HRM and IRKey Differences between HRM and IR
1.1. IRIR is collectivist and pluralist in outlook, dealing with is collectivist and pluralist in outlook, dealing with relations between employers and Unions and between relations between employers and Unions and between them and the state. The outcomes are standardized rules them and the state. The outcomes are standardized rules and procedures. Some of the central features of IR are and procedures. Some of the central features of IR are freedom of association, collective bargaining, right to strike freedom of association, collective bargaining, right to strike & lockout and resolution of conflict through trade unions& lockout and resolution of conflict through trade unions
HRMHRM does not encompass the third party (The state). It is does not encompass the third party (The state). It is bipartite but individual focussed. This is evident from the bipartite but individual focussed. This is evident from the key HRM subjects such as recruitment and selection, key HRM subjects such as recruitment and selection, appraisal, training and development, motivation and appraisal, training and development, motivation and retention of staff through rewards. retention of staff through rewards.
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• Key differences between HRM and IRKey differences between HRM and IR 2.2. IRIR consists of a large component of rules set by the consists of a large component of rules set by the
state through laws, by the parties through state through laws, by the parties through negotiated agreements or by courts and tribunalsnegotiated agreements or by courts and tribunals
HRMHRM deals less with rules and more with policies deals less with rules and more with policies and practices designed to maximize and practices designed to maximize organizational integration, employee organizational integration, employee commitment, flexibility and quality of work. commitment, flexibility and quality of work. Collective bargaining and Industrial relations Collective bargaining and Industrial relations have a very minor role in the HRM modelhave a very minor role in the HRM model
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• Key differences between HRM and IRKey differences between HRM and IR
3.3. IRIR is focussed on resolving conflicts between two is focussed on resolving conflicts between two parties or between one of them and the state, parties or between one of them and the state, through negotiations and collective bargaining.through negotiations and collective bargaining.
HRMHRM is designed to maximize employee is designed to maximize employee commitment and quality of work. HRM believes in commitment and quality of work. HRM believes in Managing people for common interest of the Managing people for common interest of the organization. HRM focuses on good management organization. HRM focuses on good management rather than external rules and collective rather than external rules and collective bargaining.bargaining.
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• Key differences between HRM and IRKey differences between HRM and IR
4.4. HRMHRM believes in individual employee relationship believes in individual employee relationship IRIR involves Unions rather than individuals directly. involves Unions rather than individuals directly.
5. In 5. In IRIR the pay is based on cost of living and collective bargaining the pay is based on cost of living and collective bargaining HRMHRM seeks to introduce a performance element into pay. seeks to introduce a performance element into pay.
6. 6. IRIR is considered as a specialist’s function and does not involve line is considered as a specialist’s function and does not involve line managers managers
HRMHRM also involves line managers in HRM role. also involves line managers in HRM role.
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• Key differences between HRM and IRKey differences between HRM and IR
7. 7. IRIR focuses on loyalty and allegiance towards trade unions focuses on loyalty and allegiance towards trade unions HRMHRM focuses on commitment to the goals and values of the focuses on commitment to the goals and values of the organizationorganization
8. Emergence of new categories of employees has increased 8. Emergence of new categories of employees has increased the distinction between IR and HRM. the distinction between IR and HRM. IRIR deals with all parties deals with all parties as a collective body whereas as a collective body whereas HRMHRM deals with different deals with different categories of workers in accordance with their knowledge categories of workers in accordance with their knowledge and capabilityand capability
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Summary of incompatibility Summary of incompatibility between IR and HRMbetween IR and HRM• IRIR considers the mass: considers the mass: HRMHRM considers the individual considers the individual• In In IRIR, pay is determined by bargaining: , pay is determined by bargaining: HRMHRM
introduces the performance factor in determining the introduces the performance factor in determining the paypay
• IRIR seeks to resolve conflicts through negotiations or seeks to resolve conflicts through negotiations or through legislation: through legislation: HRMHRM seeks to match seeks to match organizational goals with employees’ individual goalsorganizational goals with employees’ individual goals
• In In IRIR, communication with employees is through , communication with employees is through Unions: In Unions: In HRMHRM it is not necessarily so it is not necessarily so
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• IRIR has traditionally promoted has traditionally promoted standardization (rules & regulations):standardization (rules & regulations): HRMHRM is more concerned with flexibilityis more concerned with flexibility
• Training, development and motivation are Training, development and motivation are central issues ofcentral issues of HRMHRM: Conflict resolution : Conflict resolution and collective bargaining are the central and collective bargaining are the central issues ofissues of IRIR
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Harmonizing HR and IRHarmonizing HR and IR
Preconditions to harmonize HR and IRPreconditions to harmonize HR and IR• Change in attitude of Management and workersChange in attitude of Management and workers• Acknowledgement of the fact that there is a link Acknowledgement of the fact that there is a link
between growth of the enterprise and growth of the between growth of the enterprise and growth of the employeesemployees
• Recognition that employer and employee interests Recognition that employer and employee interests are not only divergent but also common e.g. are not only divergent but also common e.g. productivity is an important issue to bothproductivity is an important issue to both
• Both HRM and IR should be prepared to Both HRM and IR should be prepared to accommodate each other. At present, IR views HRM accommodate each other. At present, IR views HRM as its rivalas its rival
