Role of Industrial Relations in Workers Productivity

Industrial Relations is a sign of congenial relations. When good understanding

prevails between employee and management each party "tries to serve the other to
the best of their ability. Employee tries to improve productivity when grievances
and conflicts are resolved in an amicable manner. In this case study we try to
examine how IR affects on workers’ productivity.
Introduction
It is commonly held that the field of industrial relations deals with the people at
work place. In industries, collaboration of men having diverse interests often leads
to tensions and conflicts. Each interest group tries to maximize its share from the
enterprise. Their orientation towards work is also bound to be different from
another. Establishment and maintenance of harmonious relations between
employee and management is a pre-requisite for the organization's performance.
When good understanding prevails between them, each party tries to serve the
other to the best of their ability. Employee tries to improve productivity. In a
realistic sense, complete harmony can be elusive. Trade unions, to safeguard their
interests, would try to register protest in an organized way. In the absence of sound
industrial relations in an organization, it is reasonable to expect employees to face
many serious disputes. Employment conditions in industry are not regulated
merely by employees and employers, though both have a major role in it. State
intervention in the regulation of employee- management relations has been on the
increase and therefore, the role-played by the state and its interaction with
employers and employees legitimately forms part of industrial relations.
Need & Significance
The most important benefit of industrial relations i$ that this ensures continuity of
production and also the resources can be fully utilized, resulting in the maximum
possible production. It reduces the industrial disputes. Strikes, lockouts, and
grievances are some of the reflections of industrial unrest which do not spring up
in an atmosphere of industrial peace. Good industrial relations improve the morale
of the employees leading to enhancement in productivity. Wastages of men,
materials and machines are reduced to the minimum. Do industrial relations
influence organizational performance? Literature has explored the industrial
relations impact on organizational performance, especially on the productivity
dimension of performance. More recent studies state that performance is
determined by IR practices. This study examines the impact of industrial relations
strategies on organizational productivity and performance.
Employee relations can make or break your business. Happy employees are more
productive and put more effort into their work. They do their best to meet your
expectations and help the company grow. A positive relationship between
managers and their teams leads to higher employee engagement and motivation.
This translates into more revenue and satisfied customers. Yet, many companies
ignore employee relations and focus on numbers. More than half of all
organizations worldwide have a hard time retaining their most valuable workers.
The cost of replacing a skilled employee can reach 400 percent of their annual
salary. Improving employee relations will result in higher retention rates and
reduced turnover.

Increased Productivity
Employees who have a positive relationship with their colleagues and managers
work smarter and more efficiently. They are more likely to put forth their best
efforts and get involved in the company's projects. This leads to higher
productivity and performance, which helps your organization grow.

Higher Retention Rates

More than one-quarter of employees are in a high-retention-risk category. Many of
them possess critical skills and could help your company thrive. Replacing them
can be costly. The best things you can do is to avoid losing them in the first place.
People are less likely to leave a company that recognizes and rewards their skills.
As a business owner or manager, it's your responsibility to create an engaging
work environment where employees feel valued.

Enhanced Motivation
Increased morale and motivation is one of the primary benefits of good employee
relations. Disengaged employees cost organizations a whopping $300 billion in
lost productivity each year. Companies with engaged workers, on the other hand,
experience up to 43-percent higher productivity. Make sure your staff feels
appreciated and empowered. Let them know that their opinion is valued. Provide
personalized feedback and express interest in their work. You also need to provide
your employees with the technology they need to work better and faster.

Less Absenteeism
Workplace stress and conflicts are often the driving factors behind employee
absenteeism. Up to 48 percent of Americans experience abusive behavior at work.
Over 25 percent of bullying cases are not investigated. If your employees are
constantly missing work, try to determine the cause. Ask about their relationship
with other team members. Investigate any harassment charges and encourage your
staff to report such cases. Assure your employees that you care about their safety
and well-being.
 Managing Industrial Relations changes, Industrial Relations and
Workers’ Productivity

To improve the working conditions in industries and also to safeguard the interest
of the workers and to put a check on amassment of wealth by industrialists, in
early fifties Nationalization of industries galore started. This has resulted in public
sector undertakings, with improved industrial relations. Now after half a century
the myth of socialistic pattern public sector mode is having a shift to privatization
which has become a global necessity also. Need for cordial relation became
necessary
1. To have workers whole hearted co-operation in our modernization endeavors
2. More transparency is required everywhere and this helps in better collective
bargaining
3. This will not only facilitate enhancement in production but also improve
productivity
4. The net outcome of increasing efficiency and profit will go to industrialists as
well as to workers.

P.M and H.R.M – Industrial Relations

Companies have started to improve their personal management, instead of
personal management, concept of human relations management has taken over this
aspect. This has created new ways to improve relation.
1. This enables to consider work force as a part of management and proper
motivation and career planning etc are attended to properly
2. By developing team spirit ‗give and take‘ policy is pumped in, the
memorandum of understanding M.B.O approach which fixes the thing at proper
perspective is gaining momentum by improving relations
3. The above approach and flattened hierarchical set up, improves the
communication and no room is given for suspicion misunderstanding.
4. Since there is spelt out‘career growth this helps to improve efficiency of
workers for mutual benefit.
5. H.R.M is giving more scope for proper union activities resulting in better
negotiations and meaningful settlements.
H.R.M replacing personal management has made lot of changes in personal
relationships and personal handling the Industrial Relations changes are visible as
follows.
1. The rules regulations etc are now days so tailored to suit the workers they are
seen with a humanitarian approach. The old pattern, I don‘t know what you will do
is changed, a co-operative attitude is taken now, this has resulted in a jump in
Industrial Relations.
2. The laid out procedures are contracted as per need of the hour – The focus is to
get the things done not to stick to reties and get stuck up.
3. The superintendence pattern is shifted and a guidance pattern is adopted by
managers hence workers feel homely and as a team.
4. The managers facilitate the works under the transformed leadership – not the
old transfixed position.
5. Team work is facilitated Go and do it‘ is changed into let us go and do it‘
6. Higher thrust is given for the development of workers, skill improvement;
management development career growth planning etc has improved the industrial
relations.

Industrial Relations Changes has brought lot of changes in

A. Management, entrepreneurs, employees because of necessity and
compelling circumstances.
B. In the trade unions
C. In the workers themselves
D. Attitude of the government, politicians
E. Judiciary also
This can be discussed as follows:
A. Management, entrepreneurs, employees because of necessity and
compelling circumstances.
1. Management has changed Human Relations Management policies.
2. Employers have formed their effective associations to tackle not only their
workers but also to compete
3. Linkage with international business organizations, participation in world trade
suggesting requisite changes in commercial laws etc. has become the order of the
day.
4. Linkage with international labour organization they can, up to date, the
information to see their suggestions and improve workers conditions.
5. ASSO CHAM chamber of commerce etc. have emerged as confederation of
Indian Industries.
B. Status of Trade unions: After independence of our country more and more
industries were coming, trade unions were becoming stronger. In private sectors
trade unions were masters they could to strong arms tactics at the same time some
industrialists could suffocate the unions with their ‗gangs ‘Things were extreme
union leaders were in the pocket of industrialists.
4. When nationalization of industries started, more public sectors came in to being
public sector bureaucrats cannot purchase or give pressure on union leaders like
private management hence they have to take other steps to keep the relations
better. Hence industrial relations had to be attended to keep industries running
smoothly.
5. With Nationalization spree trade unions affiliated themselves to political parties
more vigorously; rather unions became a pawn in the hands of politician. Real
union leaders lost their faces. Masked politicians became the string pullers in
industrial affairs
C. Change and Workers
1. Workers have started making hay while the sun shines those joined unions
which are powerful, not unions which are principled.
2. Might is right those who can get us more will be our leader, theirs is our union.
3. Interests of management, justifiable demands etc gone with the winds the net
result employers dilemma and lack of their enthusiasm.
4. Gamut of industrial social security Acts came into being only keeping in mind
the interest of industrial workers without any thought about the industry or the
employers.
D. Attitude of government and politician
1. Politicians were jubilant while there was nationalization since they can hold the
reins
2. The profit loss of P.S.U was linked with government money, which is
unlimited, as such politician and government machineries were comfortable
industrial relations got a boom.
3. Back bone less management was seen in most of the industries, workers’ wages
enhanced, without increasing their responsibility or accountably.
4. Almost after half a century after independence when the euphoria of
independence waned – there was a sudden stop on nationalization, reversal started.
5. More privatization disinvestments started, this has created strain or industrial
relations.
6. Amalgamation, merger, takeover, N.R.1. Companies, Foreign Companies
invasion, started with full speed, workers baffled, unions got submerged, global
competition necessity was felt by one all as such industrial relations was at
balance.
7. The new pattern of employment in information Technology, computer world-
the word workers disappeared hence unions become out of questions. If persons
are posted as supervisors and managers straight away – they are not coming under
workmen Act. The new employment set up of the country has money and comfort
as such the relations of employers employee is cordial.
8. Industries which were having workers saw the competitive world and both
employer employee appreciated the necessity for good relations – to compete with
others. This has become a golden relation ‘period.
E. Change in Judiciary
1. Judicial Activism was pronounced, judges were free to decide for the country‘s
welfare
2. A slight shift was perceptible in some place where employers action was
justified.
3. Through there were frequent brushings between judiciary and parliament, by
and large development of the nation got a boom.
Industrial relations and productivity ―Industrial relations are that part of
management which is concerned with the man power of the enterprise whether
ordinary, skilled workers or manager‖ Betrel smith. Good industrial relations
provides congenial atmosphere where workers can think of their job management
thinks of their welfare and goal of the company the workers also are concentrating
to achieve the goal of company. Welfare of the company where both manager and
worker works becomes foremost there by all derive their benefit. Motivated
workers moral become high the team spirit participative management profit
sharing scheme etc. leaves the worker satisfied A Satisfied workers is a most
productive worker. Thus good 1.R achieves better productivity increasing
production is one thing, but increasing productivity is another thing. The
achievement of greater productivity can be had by good industrial relations only.
1. Productivity can be of manpower, finance, marketing and workers’ productivity
man power productivity can be had by efficient development of work force, right
man, the right place at the right time, for right type of job.
2. A deployment which equates full load to a perfect worker his optimum capacity
is brought out. He can bring out his optimum only when he is fully satisfied his
psychology is in good condition. Improvement of industrial psychology is done by
good relations only.
3. Finance productivity is deployment of finance for just and best output. The
receipt of finance at low interest and payout should fetch high interest payment to
workers also. If payment to workers are just and incentive oriented, stimulating,
competitive, workers interest is aroused – results in higher production and more
return on the money invested as finance, Hence this besides creating mutual
confidence develops a team spirit and better relations.
4. Marketing productivity, for the efforts taken expenditure incurred by marketing
department if sales are high it may be called a productive marketing philosophy
more marketing can be achieved if cost of production is less. Cost of production
will be low if workers are a satisfied lot, if wastage is avoided, if best quality is
produced, if disciplined production takes place with in stipulated time at the
stipulated cost and quality. This is easily achieved if morale of work force if high
is they are motivated.
5. Workers productivity with increased sense of responsibility which comes of
best team and cooperative spirit, we will produce, shows togetherness, best
relation between employer and employee. Besides satisfied employment results in
less absenteeism and reduced turnover absence of both automatically increase
production and productivity.

Productivity implies development of an attitude of mind and a constant urge to

find better, cheaper, quicker easier and safe ways of doing a job manufacturing an
article and providing a service‖ – V.K.R. Menon. Normally productivity is ratio of
output / Input as per international labour organization. ―The ratio between output
and on of the factors of input (men, material, money, talent etc) is generally known
as productivity of the factor concerned so far we explained this greatest output
with smallest input productivity is to be calculated from the quantity of produce
vis-q-vis the resources utilized (make best out of the things available) for that
production. Productivity is necessary for all type of enterprises government quasi
government or private sector etc. Not mere production will elevate us we are to
compete with the world, hence effective production improvement and productivity
alone can raise us national productivity level should be hoisted up, economic
growth will be stable only with rising productivity and industrial goal is centered
around good industrial relations when productivity goes up economic growth
shoots up, the industrial climate remains cordial and congenial to production
development activities economic use of raw materials avoiding wastages giving
optimum thrust by industrial workers reduces the cost of production the benefit of
which goes to customers and society at large with more sales and profit
automatically the workers’ wages and benefits becomes better developing
countries like us should give more thrust on productivity and attempts are made to
link bonus with productivity a golden rule‘ if it comes to adoption legally. In a
way increase in productivity expenditure on sees that Industrial Relations is stable
input is reduced capital investment also may be reduced hence general economy
improves with heightened productivity we see-
1. Industrial workers touch their peak of efficiency
2. Wasteful expenditure, wastages are systematically reduced.
3. Total cost is reduced
4. Automatically the quality improves by fine tuning by dedicated, motivated
workers.
5. Workers emoluments are increasing and get share in the increasing profits.
6. Industrial environment becomes healthy for expansion diversification and more
employment industrial relations and productivity are influenced by
7. The competitive market and dynamics of change necessities required. Globally
has pushed us to resort to automation introduction of new and modern technology,
mechanization, computerization etc. all those are aimed to improve not only
production, but productivity also which can be achieved only by improved relation
with workers.
8. Up gradation of employees by proper training development programs etc. only
will bring them at par to match with technology change etc as envisaged earlier
simultaneously, they are to be motivated there should be morale boosting which
will improve the relations and go to improve productivity.
9. A capable H.R.M management should be there to cope up with the aspirations
of new set of workers under new technology the managers should be talented to
deal and convert the workers in to a useful team to achieve common goal.
10. From its side, the government rules, regulations sops, etc should be compatible
with the industrial needs. They should aid the improvement in productivity, such
as pressure for a bonus which is productivity linked etc putting more responsibility
on workers in industrial production. This will improve employer’s relations which
is also a part of industrial relations
Following actions of management may affect labour relations.
I) un balanced management of men material by supervising managers here
workers may be displeased and lower their efficiency
II) Untrained low caliber management, cannot cope with modernization
resulting in fall out and cannot contribute to improve productivity or
industrial relations.
III) Failure to make scientific management to evolve systems and boost
productivity.
IV) In competency at all three levels of management to bolster production or
productivity. The productivity can be increased along with better industrial
relations and allied activities like.
1. Adoption of supply chain management to get best raw materials where
maximum utilization becomes possible
2. Giving better environment to workers and improved working conditions
environment should remove boredom or monotony and create zeal and dynamism.
3. Updated machines with full scale mechanization will reduce cost of production
4. The work force should be correctly selected properly trained and fully loaded.
This should be followed by training for updating.
5. Proper rewards, either monetary or non-monetary should be arranged; incentive
plans mutually agreeable should be framed and adhered to for moral boosting.
6. Grievance Procedures should be implemented to nip the grievance in the loud
‘stage to avoid conflict, dispute etc.
7. Quality circles‘ should be formed along with workers to take care of quality
products wastage avoidance etc, which will improve productivity, but above two
quality control and wastage control, can be there if relations are good thus
interlinking has become a perpetual need.

Summary
Strong employee relations have a positive impact on the company's growth and
revenue. People who feel motivated and engaged in the workplace do an excellent
job in their assigned roles, resulting in better products, greater customer
satisfaction and increased sales.

Employees are a company's most valuable asset. The success of your business
depends on their work. If your staff is motivated and engaged, they will stay with
your company longer and strive to meet your expectations. The advantages of
good employee relations cannot be overstated so take the steps needed to reward
and motivate your team.