Principles of Employment RelationshipsIndustrial relations refer to the relationships that exist between managers and employees in all spheres of economic activity. The term was originally defined as the interactions and relationships between employers and employees (Salamon, 2001). It covered all aspects of employment relations that include employee relations, human resource management, and labour relations. Accordingly, it focuses on the study and practice of trade unionism, collective bargaining, and labour management relations unlike human resource management which deals with nonunion employment relationships. The industrial relations include relationships between employees, the relationships between employees and their employer, the relationships that employees and employers have to the organization while promoting their respective interests, and the processes through which these relationships are expressed such as employees’ participation in decision making, collective bargaining and grievance and conflict management.
The progress and success of the organization depend on its industrial relation. First, industrial relations ensure there is uninterrupted production. They ensure there is a continuous employment, for both managers and workers, organizational resources are fully utilized for maximization of production, uninterrupted income flow for all and that the smooth running of the industry also benefits other industries (Sappey et al, 2009).
Secondly, good industrial relations reduce industrial disputes. More often, industrial unrest is reflected in organizations in form of strikes, go-slow tactics, lockouts and grievances organizations. The disputes arise due to failure of securing adequate satisfaction or basic human urges. The problems can only be cured by good industrial relations through the promotion of cooperation, and thus, increasing production. Thirdly, good industrial relations increase the employee morale. Increased production is realized when the employees have a feeling that their interest is common to that of employers.
Both the employer and the employees should recognize that they co-owners of the gains of the industry hence they should share them equally and generously (Edwards, 2007). Good industrial relations enhance complete unity of thoughts and actions for the achievement of industrial peace, and thus, satisfying the workers ego by increasing their place in the society. This naturally increases the production due to mighty cooperative efforts. Fourthly, industrial relations aim for a complete revolution of the employees (Sappey et al, 2009). It creates industrial peace that lies ultimately on a transformed outlook of both the managers and workers.
Through leadership in various ranks of the organization, both parties are able to establish a new relationship that is in consonance with the spirit of true democracy. They should take one another as partners in the industry and be able to recognize the role of each party. The recognition of respective role of each party positively impacts on the production of the organization. Finally, the maintenance of good industrial relationships based on recognition and cooperation of each other reduce wastage of material, human resource, and machine and thus protecting the national interest of achieving high productivity (Salamon, 2001).
It is also evident that good industrial relations increase efficiency of the workers by promoting their morale and maintaining a harmonious relationship between the mangers and workers. Industrial relations system refers to a conceptual framework for studying industrial relations (Dunlop, 1984). It involves an interactional process between employees and organizations at the workplace and, more broadly, in establishing the terms and conditions of employment.
Inputs such as capital, human labor and managerial skills from the environment are combined through various processes like legislation or collective bargaining to produce certain outcomes that include job satisfaction, high productivity and wage rates. Industrial relations can be best understood by identifying its main components and examining how they interact with one another so as to produce certain outcomes.