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. Industrial attachment or internship is an essential part of a student’s academic programme. The industrial organization model allows firms to get a better gauge on a competitor's actions with the use of game theory. Importance of Industries in Development | Essay on Industrialization Importance of Industries in Development – Industrial sector is of great Importance of Industries in Development of a country.It is a proven fact that a country with strong industrial sector have shown more economic growth, had improved national income and promoted living standard of people. Thus good industrial relation plays a vital role in establishing industrial peace, industrial discipline and industrial democracy. 3. Improves Morale 5. 6. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. Adaptation to Changes 5. vi. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognised. Without organizations, the goals of the human services field would be impossible to fulfill. Report a Violation, Industrial Relations: Objectives and Participants in Industrial Relations, Industrial Relations: Meaning, Objectives and Participants, Most Popular Approaches to Industrial Relation. Unions gain more strength and vitality. The two go together or can be merged together as one. The concept of industrial relations has assumed more significance nowadays than in the past. Content Filtrations 6. Before uploading and sharing your knowledge on this site, please read the following pages: 1. Copyright 10. Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. Privacy Policy 9. Industrial relations should be so maintained that it would contribute to increased productivity. IR can now safely be defined as a coin having two faces- cooperation and conflict. Disclaimer 8. On the other hand, workers must recognise employer’s authority. iii. Human services is a vast sector that includes a broad range of disciplines, knowledge and skills focused toward enhancing human well … In a climate of good industrial relations, every party works for the solidarity of workers’ movement. Armstrong has defined IR as “IR is concerned with the systems and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers and to regulate the ways in which employers treat the employees”. International Labour Organization has stressed upon the relations between state, employers’ organizations and workers’ organization or the relationship between occupational organizations. The importance of industrial relations can be studied under the following heads:-. Good industrial relations increase the morale of the workers and motivate the workers to work more. It also results in increased efficiency of workers. Benefits to Workers – Harmonious industrial relations climate ensures implementation of welfare measures, better service terms, better physical environment, implementation of social security schemes, higher wages, optimum work load, bonus, fringe benefits, etc. The most important benefit of industrial relations is that this ensures continuity of production. 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). Improved employee morale, industrial peace, recognition of employee’s interest and reconciliation of employer’s and employee objectives and interest increased production with minimum wastage of resources. The importance of IR can be imbued with multiplicity of justifications. 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. 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. Employers give unions their rightful recognition and encourage them to participate in all decisions. To help government in making laws forbidding unfair practices of unions and employers. Industrial relations contrib­ute to world peace. From a historical standpoint, industrial psychology was introduced during World War I. conclude that the momentous change in both organisational structure and work processes - involving greatly increased labour-management cooperation - in the last 25 years has been driven not by union pressure tactics or favorable legal forces 4 Importance of Industrial Relations: The following industrial relations 4 importance below are; Increased Productivity: With amicable industrial relations both the workers and managers continue to work on their respective position and contribute towards the overall productivity of the firm. The goal is to identify and solve problems, increase employee satisfaction, and improve workplace dynamics. They lead to wastage, class hatred, embitter mutual relations and inflict damages on the progress of the nation. Their significance may be discussed as under: Good industrial relations reduce the industrial disputes. ADVERTISEMENTS: Points that highlights the importance of organizing in an organization are: 1. with the growth and spread of industry. The importance of a strong employer relation within organizations is highly essential and it is also the key to ultimate success within an organization. Everyone in an organization, from an employee who is involved in just entering data to the employee working at higher level uses the information for specific purposes. FreeDigitalPhotos.net - Image: FreeDigitalPhotos.net The World of Psychology The world of … Industrial relations is the relation between manage­ment and employees. This makes the workers work with zeal, energy and efficiency. IR benefits workers in several ways. Moreover IR strategy used to be reactive in the past. Industrial relations seek to protect the rights of managers too. The first Industrial Revolution happened in the eighteenth century with the mass introduction of steam engines into industry, the second was the rise of science and mass production in the nineteenth century, and the third was the rise of digital technology in the late twentieth century. Collective bargaining is the effective mechanism of shaping the pattern of industrial relations. The importance of IR can be understood from the following justification: 1. Good Industrial relationship removes dissatisfaction among the workers. In a conflict between the workers and the em­ployer, it is not the fact that only one of the par­ties suffer, usually the workers. Good industrial relations bring industrial peace, which is turn tends to increase production. The resources are fully utilised, resulting in the maximum possible production. The importance of good industrial relations can be judged from the following points: (f) Controls industrial disputes and maintains industrial peace. Industrial disputes disrupt the flow of production; bring strikes, gheraoes and lockouts, organized demonstration, picketing, etc. 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. 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. It normally lasts for a period of 3 months. Housekeeping and cleanliness at the workplace are closely linked to the industrial safety. Encyclopedia Britannica defined IR more elaborately as “The concept of industrial relation has been extended to denote the relations of the State with employers, workers and other organizations. Industrial psychologists can use their knowledge of human psychology and organizational relationships to help companies implement new policies that promote a better work environment. Organising helps in the smooth functioning of a business in accordance with the dynamic […] Since HR alone cannot efficiently handle employees’ well being, this makes industrial-organizational psychology a key subject in the organization. Good IR helps to run an industry effectively and successfully. A student is supposed to be attached to a company or organization that offers services that are related to the student’s course of study. Content Guidelines 2. Reduction in Industrial Disputes 3. The employer in his turn must realise that the gains of industry are not for him along but they should be shared equally and generously with his workers. A close watch will reveal that it becomes a vital concern for the com­munity also. Reduced Wastage. Sound and Harmonious Industrial Relationis essential for the smooth running of an organization. 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”. For example, it protects workers against unethical practices on the part of management to exploit workers by putting them under inhuman working conditions and niggardly wages. 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. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. Clarity in Working Relationships 3. 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. The problem of an increase in productivity is essentially the problem of maintaining good industrial relations. As and when workers create the problem of indiscipline, IR provides mangers with a system to handle with employee indiscipline in the organisation. Nurturing Industrial Peace – Both employer and employees sit across the table and thrash out issues of difference. As a result, doubts and suspicions are clarified to the full understanding of each other. 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. Thus, IR paves way for smooth relation between the traditional warring groups. It may affect their careers. Adequate financial and non-financial benefits, provision of employee participation in sharing of profits and of management and decision making, improved bargaining capacity through mutual negotiations and consultation with the management provides satisfaction to the workers. 3. ii. Some important definitions of IR are presented below: According to Dale Yoder, “IR is a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment processes of Industry”. Benefits of Specialization 2. Industrial relations have moral dimensions too. Dictionary meaning of industrial relations is the relations between management and employees in industrial concerns. TOS 7. The concepts we learned in Industrial Organizational Psychology in industrial organizational psychology apply to different aspects of employment and management in the workplace. 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 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. In this way, IR helps create a peaceful environment in the organisation. Symposium presented at the 27th Annual Conference of the Society for Industrial and Organizational Psychology, San Diego, CA. ; 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. Rao, Sundaram Fasteners (A TVS group company which begged the prestigious GM award for the fourth successive year in 1999 as a quality supplier of radiator caps) is well known for zero breakdowns, zero accidents and zero defects. Industrial democracy means the government mandated worker participation at various levels of the organisation with regard to decisions that affect workers. Employee safety and OSHA standards are considered, as are employee training and hiring techniques. The investment in and the scope of industries in India have been growing plan after plan. Report a Violation 11. This changing process becomes a continuous feature in industrial system and makes IR concept a dynamic and evolving one. For example, new businesses may use industrial psychologists to help them devise strategies to identify which employee characteristics are needed to fill a particular job. Changing economic scenario, technological advances, organization mission, strategic approach, trade unions’ role contribute a lot to influence IRs pattern. 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. Basically IR stems from employment relation. Role of organizational psychology in HR management 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. The degree, to which these activities are effectively managed, is an indicator of the safety culture of the organization. Account Disable 12. The most important benefit of industrial relations is that it ensures uninterrupted production. To ensure industrial peace and avoid laobur unrest like strikes, gheraos, demonstrations, slogan shouting, work stoppages etc. Industrial relations are the key for increased productivity in industrial establishments. 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”. From all these we can conclude that good industrial relations certainly boost up the production and improves the quality and quantity both. As such the main objective of industrial relations is to establish good and harmonious labour management relations which promote mutual understanding, mutual confidence and resolve the mutual differences. One of its objectives is to protect workers’ interests and to improve their economic conditions. Image Guidelines 4. Maintenance of discipline ensures orderliness, effectiveness, and economy in the use of resources. Industrial relations are human relations in industry. Increased Production 2. Industrial and organizational psychologists are oftentimes brought in to help achieve these goals. Applications of Industrial-organizational Psychology Research Industrial organizational psychology is the scientific study of the work place. Effective Administration 6. To help establish and maintain true industrial democracy which is a prerequisite for the establishment of a socialist society. Clarity in Working Relationships 3. These mechanisms enable the workers to give their best to the organization. The healthy industrial relations are key to the progress and success. Understanding and emphasizing the importance of industrial safety can prevent severe worker injuries and deaths. 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 … They consider the negotiation process as an educational opportunity, a chance both to learn and to teach. As S. C. Kuchhal rightly put it, “the larger the range they cover and the more fundamental the commodities or services they are associated with, the more marked is their influence and damage”. With few exceptions, industrial organization had little effect on the busi-ness policy concept of strategy, and business policy Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Prohibited Content 3. It increases the place of workers in the society and their ego is satisfied. Industrial Psychology is important in: 1. The relationship may be positive, negative or mixed. Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. Privacy Policy 8. Interacting between management and workers and between worker and worker are regular features in industry and these constitute industrial relations. 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. To encourage collective bargaining as a means of self-regulation. 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. Terms of Service 7. Industrial peace must be maintained at any cost to ensure better performance in industry. It is also viewed that one of the essential steps for building up an economically free and self-sustaining India is, large- scale industrialization at a rapid and steady growth. The production of engine cylinders has gone up from 29, 390 (in 1995-96) to 32, 501 (in 1996-97).This increase has been possible because of peaceful industrial relations. Thereby, industrial relations assume relevance in this context. In any corporate business industry, or a public or government enterprise, one common and most important resource any professional deals with is the human resource. Thus, the relationship starting with cooperation soon changes into conflict and after its resolution again changes into cooperation. vii. Expansion and Growth. Benefits to Management – Management gets benefit from strikeless environment, introduction of change, higher productivity, minimum absenteeism and turnover, disciplined work force, free flow of communication, higher profit and health maximization, high employee morale, etc. It is unethical on the part of any management to take advantage of the helplessness of workers and exploit them. Importance of Industrial Relations – With 6 Reasons Why Good Industrial Relations are Necessary. Complete harmony between labour and capital may be a dream but quite a considerable amount of unrest and discontent among workers can be removed through efficient handling of industrial relations. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. Industrial and Organizational PSychology focuses on improving productivity in the workplace and creating the best possible working environment for employees. Dale Yoder views industrial relations, ‘as a whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of an industry’. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Means of IRs are HR/IR policies, procedures, rules, regulations, legislations etc. The main reason why the organization theory is considered very important in this age of globalization and the modern age of running businesses, simply lies on the fact that organization theory is application-based and that this tool is very practical when it comes to achieving organizational goals. Recommend this journal Email your librarian or administrator to recommend adding this journal to your organisation's collection. Several types of human needs (physical, mental, and social) can be satisfied through good Industrial Relations. 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. Under the mechanism of IR, both employees and managers discuss the matter and consult each other before initiating any actions. 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. Importance of Organizational Psychology in Human Resource Management. 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. 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. Elements such as job satisfaction, performance and evaluation methods are measured. Uninterrupted Production 4. Unemployment compels workers – particularly illiterate and unskilled – to accept jobs, inhuman working conditions and niggardly wages, notwithstanding. Industrial relations usually imply good and positive relations between the employees and employers. The most important benefit of industrial relations is that this ensures continuity of production. It will naturally have impact on production because they recognise the interest of each other. Benefits of Specialization 2. 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. It motivates the workers to contribute their best towards attainment of organisational objectives. The importance of industrial relation is as follows: Healthy cordial relationship between the work force and the employer and management and amongst the workers within the workplace improves the workers’ productivity and efficiency. A healthy industrial relation is essential for smooth functioning and success of the organization. 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. Industrial unrests and conflicts foment class-hatred, embitter mutual relations, and put a hurdle in the development of the society and the nation. It is a dynamic and developing socio-economic process. In other words, personnel manager jump into fire-fighting when industrial conflict erupts. These all bring job satisfaction to the workers and they all put positive effective on the production. Initially, I/O psychology focused on industrial activities, especially business management and human resource, rather than organizational aspects of improving workplace environments. It also means insubordination and non-cooperation. Satisfied workers are less inclined towards entering into conflict with the management on issues like low wages, long work hours, and unhealthy work environment. Sound Industrial Relationboosts the morale of employees. There is no inter-union rivalry. This benefits the both. April 9, 2019. All the three factors are very much required for the smooth and better economic development of a country. It helps in achieving the targets, goals, and objectives of the organization. viii. Prohibited Content 3. Industrial relations are the key for increased productivity in industrial establishments. There is uninterrupted flow of income for all. Thus, IR ensures the continuity of production. There has been a phenomenal growth in employment, wages, benefits, working conditions, status of the worker, educational facilities etc. It is mainly the joint consultations, that pave the way for industrial democracy and cement relationship between workers and management. In this plant, productivity went up from 32 per cent to 38 per cent between 1994 and 1997. The most important benefit of industrial relations is that this ensures continuity of production. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labour. Industrial relations are human relations in industry. We find union of bank officers, pilots, engineers and so on. John T Dunlop (1958) has expressed his views on the concept of industrial relations as the relations between three actors-employer, employees and government. 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. Frederick W. Taylor: Taylor was a mechanical engineer who published an influential book on improving industrial efficiency. The good IR help run an industry effectively and successfully, i.e., the desideratum of the day. Optimum Utilization of Resources 4. They also clog the progress the nation. Human Resource Management, Industrial Relations, Importance of Industrial Relations. It has also been recognised that management without labour would be sterile and labour without management would be disorganised, ill-equipped and ineffective. Importance of Industrial Relations – With the Need for Industrial Peace, Importance of Industrial Relations – Reduction in, Industrial Disputes, Uninterrupted Production, High Morale, Mental Revolution and Reduced Wastage, Important Points from which the Importance of Good Industrial Relations can be Judged, Essays, Research Papers and Articles on Business Management, Importance of Personnel Management in Solving Industrial Problems, Industrial Relations: Meaning, Objectives, Need, Importance and Functions, Advantages and Disadvantages of Franchising, Importance of Industrial Relations: Increased Production, Uninterrupted Production, Improves Morale and a Few Others, Importance of Industrial Relations – Reduction in Industrial Disputes, Uninterrupted Production, High Morale, Mental Revolution and Reduced Wastage, Importance of Industrial Relations – 7 Important Points from which the Importance of Good Industrial Relations can be Judged. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. Effective Communication is important for the development of an organization. Different authors and experts have expressed their views on the concept of industrial relations. 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. In the words of Pandit Jawaharlal Nehru, “The alternative (to industrialization) is to remain in a backward, under­developed, poverty-stricken and a weak country. 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. 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