Industrial relations

INDUSTRIAL RELATIONS
SADIA HASNAIN
IBS -G

Factors Affecting Industrial Relations
• Institutional Factors
• Economic Factors
• Social Factors
• Technological Factors
• Psychological Factors
• Political Factors
• Enterprise-Related Factors
• Global Factors

1. INSTITUTIONAL FACTORS
State Policy: These are the rules that the state goes by, which are set by the government
of the country.
Labour Laws: These are the laws regulating labour in India. Labour law or employment
law mediates the relationship between workers(employees), employers, trade unions and
government.
Voluntary Codes: Specific standards of conduct for an industry including how to deal
with the workers and other individuals.
Collective Bargaining Agreements: These agreements allow organized group of workers
and management to negotiate wages.
Labour Unions: Also known as trade unions, is an organization whose membership
consists of workers and union leaders , united to protect and promote their common
interest.
 Employer’s Federation Of India (EFI,1933): An association of autonomous
organizations of industry and was set up with the purpose of protecting, promoting the
interests of employers in the area of Industrial relations, labour problems.

2. ECONOMIC FACTORS
Economics forces are the factors that help to determine the competitiveness of the
environment in which the industry operates.
The economic factors include the level of unemployment in an industry , the government
changes taking place.
 Socialist, capitalist and communist type of ownership: In socialist,there is public and
private ownership, in capitalist-there is private ownership and in communist there is
public ownership.
Company: Domestic,MNC,government.
Level of Unemployment: It means the percentage of total workforce who are
unemployed and are looking for a paid job.
Economic Cycle: It also refers to as the business cycle which includes various phases:
Boom, Slowdown, Recession, Recovery.

3. SOCIAL FACTORS
 It includes items like social groups (caste or joint family).
Social Values and norms: These explain the way in which social processes operate in a
given society.
 Social status: High or low.
 Influenced industrial relations in the early stages of industrialization gave rise to
relationship as master and servant , haves and havenots , high and low caste.

4. TECHNOLOGICAL FACTORS
It includes:
Work Methods.
Type of Technology used.
Rate of technological change.
Research & Development Activities ability to cope with emerging trends.
“ The technological factors influence the patterns of Industrial relations and have a
direct influence on employment status, wage level, collective bargaining process in an
organization”

5. PSYCHOLOGICAL FACTORS
Psychological factors include the following:
 Owner’s attitude.
Perception of workforce.
Worker’s attitude towards their work and their level of productivity.
Worker’s motivation level.
Dissatisfaction and boredom resulting from man-machine interface.
“ The various psychological problems resulting from work have an impact on the
worker’s job and personal life which directly or indirectly influences industrial
relation system of an enterprise”

6. POLITICAL FACTORS
• It includes:
Political institutions/system: It is a system that ensures the maintaining of order and
rationality in the society.
Attitude of government.
Political philosophy: It refers to the study of topics such as politics, justice ,law, property
rights, and enforcement of a legal code by authority.
Most of the trade unions are controlled by political parties, so industrial relations are
largely shaped by the gravity of involvement of political parties in trade union
activities.

7. ENTERPRISE-RELATED FACTORS
 It includes the issues like style of management prevailing in the enterprise.
Organizational climate which refers to the business environment in which a business is
operating.
 Extent of competition.
Adaptability to change and various human resource management policies.

8. GLOBAL FACTORS
The various issues included are :
International Relations: It refers to the study of relationships among countries.
Global Conflicts.
Economic and trading policies.
International trade agreements and relations.
Role of International Labour Organization: It has a significant role to play in bringing
companies , trade unions and government together to bring about improvements to
working conditions.

Industrial relations

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Industrial relations