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. 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. Industrial relations contrib­ute to world peace. Where a worker’s behavior deviates from expected lines, it is the management’s prerogative to take action. 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. On the other hand, lack of discipline means waste, accidents, and confusion. 4. 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. Investing in industrial hygiene now can save valuable resources and money in provincial healthcare costs later down the road, according to a recent article on Pub Med Central Canada. 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. Organization is a groupof people who workinterdependently towardssome purpose 3. 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. Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. Thus, IR paves way for smooth relation between the traditional warring groups. One study rates the company among the 20 most competitive companies in the Asia. The per-employee productivity is comparable to the best in the world. 3. The most important benefit of industrial relations is that this ensures continuity of production. 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”. The concepts we learned in Industrial Organizational Psychology in industrial organizational psychology apply to different aspects of employment and management in the workplace. 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. Industrial relations usually imply good and positive relations between the employees and employers. 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. Industrial disputes disrupt the flow of production; bring strikes, gheraoes and lockouts, organized demonstration, picketing, etc. Content Filtrations 6. 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 … 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. 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. viii. Good industrial relations improve the morale of the employees. 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”. Different authors and experts have expressed their views on the concept of industrial relations. Before publishing your articles on this site, please read the following pages: 1. Effective Communication is important for the development of an organization. There has been a phenomenal growth in employment, wages, benefits, working conditions, status of the worker, educational facilities etc. Housekeeping and cleanliness at the workplace are closely linked to the industrial safety. Spector notes that the area of industrial and organizational (I/O) psychology started during the period of psychology (Spector, 2012). It does not require much prudence to realise that in industry the human factor is most important; everywhere in production, man is needed, no matter how sophisticated machinery have been installed. It is realised that the concrete co­operation between labour and management is highly essential to fulfill the individual, organisation and national goals. Good industrial relations are maintained on the basis of cooperation and recognition of each other. 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. It will naturally have impact on production because they recognise the interest of each other. Industrial relations are human relations in industry. Changing economic scenario, technological advances, organization mission, strategic approach, trade unions’ role contribute a lot to influence IRs pattern. 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. The recognition of the human factor in production as the supreme one puts a premium on the importance of industrial relations. Good industrial relations increase the morale of the workers and motivate the workers to work more. In this way, IR helps create a peaceful environment in the organisation. Doubts, if any, in the minds of either party are removed. The good IR help run an industry effectively and successfully, i.e., the desideratum of the day. The relationship may be positive, negative or mixed. Industrial relations are human relations in industry. Industrial relations are the key for increased productivity in industrial establishments. The increase in industrial labour led to the formation and development of trade unions and various social groups. Privacy Policy 9. Understanding and emphasizing the importance of industrial safety can prevent severe worker injuries and deaths. As reported by V.S.P. 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. Clarity in Working Relationships 3. Collective bargaining is the effective mechanism of shaping the pattern of industrial relations. Benefits of Specialization 2. 3. 4. From a historical standpoint, industrial psychology was introduced during World War I. Mental Revolution 7. Every worker feels that he is a co-owner of the gains of industry. Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. The degree, to which these activities are effectively managed, is an indicator of the safety culture of the organization. The concept of industrial relations has assumed more significance nowadays than in the past. The most important benefit of industrial relations is that this ensures continuity of production. Game theory, also known as interactive decision theory, consists of a finite amount of players (the competition) and a limited amount of decisions they can make. ; Hugo Münsterberg: Munsterberg was an applied psychologist who wrote an early text on how psychology could be used for industrial, occupational, and organizational purposes.His work had an important impact on the early development of the field. 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. Organising helps in the smooth functioning of a business in accordance with the dynamic […] Employees feel that they are part of the organization and their contribution will improve productivity of the organization. Good industrial relation helps in reducing the industrial disputes. 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. FreeDigitalPhotos.net - Image: FreeDigitalPhotos.net The World of Psychology The world of … With the attainment of independence and with the launching of planning era, serious and earnest efforts have been made towards rapid economic development of India. The importance of good industrial relations can be judged from the following points: (f) Controls industrial disputes and maintains industrial peace. Management has to deal with them not only as individuals but also as members of organized social group having human dignity and self-respect. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. Good IR helps to run an industry effectively and successfully. Prohibited Content 3. Human Resource Management, Industrial Relations, Importance of Industrial Relations. 2. Elements such as job satisfaction, performance and evaluation methods are measured. Industrial relations seek to protect the rights of managers too. It is unethical on the part of any management to take advantage of the helplessness of workers and exploit them. There is no inter-union rivalry. Economists and other academics who study industrial organization seek to … Hence, one of the main goals of the Five Year Plans in India has been rapid industrialization and more employment in secondary and tertiary industries. In this plant, productivity went up from 32 per cent to 38 per cent between 1994 and 1997. An increase in the morale of workers reduces per unit cost of production too. The good IR help run an industry effectively and successfully, i.e., the desideratum of the day. 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. Viewing every problem seriously and resorting to manipulative style of industrial relations which emphasize the need to keep labour in check by floating stooge unions, buying up union leaders, and striking clandestine deals with powerful politicians do no good to managers or to the organizations they represent. v. The relationship is based on economic, non-economic issues arising out of terms and conditions of employment as also practices not covered under the terms. They affect production and national income in an adverse manner. Thus, the relationship starting with cooperation soon changes into conflict and after its resolution again changes into cooperation. This ensures smooth running of the organization and continuous production. Industrial relations should be so maintained that it would contribute to increased productivity. The Importance Of Organizational Performance And Human Resource Management. With the active involved preparation,the student learns about the industrial demands, skill set and work ethics. Their major aim is to make the workplace a desirable place for all and sundry. The importance of industrial relations can be studied under the following heads:-. 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. Report a Violation 11. This area within industrial and organizational psychology takes a close look at employees and their relationship to a given work environment. We may have clear idea about industrial relations from the following: i. Increased Production 2. With few exceptions, industrial organization had little effect on the busi-ness policy concept of strategy, and business policy Account Disable 12. The most important benefit of industrial relations is that it ensures uninterrupted production. Their significance may be discussed as under: Good industrial relations reduce the industrial disputes. From all these we can conclude that good industrial relations certainly boost up the production and improves the quality and quantity both. Benefits of Specialization 2. With few exceptions, industrial organization had little effect on the busi-ness policy concept of strategy, and business policy We can’t even retain our freedom without industrial growth”. Industrial relations have moral dimensions too. Content Guidelines 2. This increase is attributed to the peaceful IR in the plant. 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. Peace in industry is a powerful factor for good international relations. Industrial democracy means the government mandated worker participation at various levels of the organisation with regard to decisions that affect workers. To help management both in the formulation of informed labour relations policies and in their translation into action. Good industrial relations are necessary for the following reasons: 1. Experiences indicate that good industrial relations serve as the key for increased productivity in industrial organisations. So, the importance of industrial relations in industry is self-evident and does not need any elucidation. Industrial and Organizational PSychology focuses on improving productivity in the workplace and creating the best possible working environment for employees. To help establish and maintain true industrial democracy which is a prerequisite for the establishment of a socialist society. In short, the term, ‘industrial relations’ means the relations between employees and management arising out of day to day work in industry. They affect production and national income in an adverse manner. Basically IR stems from employment relation. Dictionary meaning of industrial relations is the relations between management and employees in industrial concerns. That means, nature of relationship established amongst the parties in the industry. INTRODUCTION – INDUSTRIAL ORGANIZATION ECONOMICS THEORY AND PURCHASING DECISION MAKING In the recent decade the importance of strategic supply management has gained considerably more attention as a strategic function, due to a competitive global business environment (Krause, Pagell & Curkovic, 2001, p. 498). This has many long-term benefits for the employer, such as avoiding surcharges and lawsuits, remaining productive, retaining skilled workers and … 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. Human services is a vast sector that includes a broad range of disciplines, knowledge and skills focused toward enhancing human well … Points that highlights the importance of organizing in an organization are: 1. 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”. Industrial relations are human relations in industry. Disclaimer 8. Thus we can say that industrial relations have far-reaching impact on the production. 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. IR can now safely be defined as a coin having two faces- cooperation and conflict. 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. In other words, complete unity of thought and action is the main achievement of industrial peace. The Importance of Organizations to Human Services. Families of workers are likely to suffer which must have repercussion on the society as a whole. This has been possible only through fast industrial development which, in its turn, depends on industrial peace. The importance of the human factor in an industrial organisation is beyond question. 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