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Industrial Relations (IR): Importance, Types and Needs (With Examples)

Updated on: February 5, 2020 Leave a Comment

Industrial relations has its roots in the Industrial Revolutions, Which created the modern employment relationship by spawning free labor markets and large-scale industrial organizations with thousands of wage workers.

Industrial Relations: The Definitive Guide (For 2018) - Googlesir
Industrial Relations

Industrial relations has its roots in the Industrial Revolutions, Which created the modern employment relationship by spawning free labor markets and large-scale industrial organizations with thousands of wage workers.

Industrial relations refer to “relations between employee associations and trade unions.”

Good Industrial relation reduces the possibility of strikes.

Therefore industrial organizations set up industrial relations department which concerts itself with the settlement of industrial disputes.

Hence, the industrial relation is that part of management winch is concerned with the manpower of the enterprise- whether machine, operator, skilled worker or manager.

Industrial relations have been used to refer to multilateral relations between employees, employers, and govt.

Related: 15 Tips for Starting a Small Business (You Don’t Know).

It is obvious from the above description that the field of industrial relation includes the study of workers and their trade unions, management employers association and the state institution concerned with the regulation of employment.

Page Contents

  • Types of Industrial Relations
  • Need for Industrial Relations
  • Importance of Industrial Relations
    • 1. Uninterrupted Production
    • 2. Reduction in Industrial Disputes
    • 3. High Moral
    • 4. Mental Revolution
    • 5. Reduced Wastage

Types of Industrial Relations

Following are the three types of industrial relations:

  1. Ethical
  2. Science building
  3. Problem-solving face

1. In the ethical face, Industrial Relations content strong nominative principles about workers and the employment relationship, especially the rejection of treating labour as a commodity in favor of seeing workers As human beings in democratic communities and tired to Human Rights.

Related: 9 Advanced Strategies for Building Maximum Customer Satisfaction.

2. In the Science building face, Industrial relations is part of the Social Sciences, and it seeks to understand the employment relationship and its Institutions through high-quality rigorous research.

3. In the problem-solving face, Industrial relations to design policies and institutions to help the employment relationship work better.

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Need for Industrial Relations

Sound and Harmonious Industrial Relation is essential for the smooth running of an organization.

If an organization lacks good Industrial Relations then it will not be possible for you to achieve its objectives and targets successfully.

Several types of human needs (physical, mental, and social) can be satisfied through good Industrial Relations.

Sound Industrial Relation boosts the morale of employees.

It helps in achieving the targets, goals, and objectives of the organization. Good Industrial Relations relations enable the smooth running of an organization.

It helps better coordination between employees and employers. It contributes to the increase in output and productivity of the organization.

Good Industrial Relations facilitate industrial peace and industrial prosperity.

Related: 12 Characteristics of a Creative Organization (Explanation).

It helps in promoting new industrial organizations in the country thereby increasing employment opportunities.

Good industrial relations facilitate consumers to get quality goods at cheap rates.

Importance of Industrial Relations

Healthy industrial relation is key to progress and success.

Following are the importance of healthy industrial relations:

1. Uninterrupted Production

The most important benefit of IR is that this ensures continuity of production.

This means, continuous employment for all from managers to workers.

2. Reduction in Industrial Disputes

Good Industrial Relations reduce industrial disputes which helps to promote cooperation and increasing production.

3. High Moral

Good IR improves the morale of the employees.

Related: 14 Importance of Study Consumer Behaviour (Explained).

4. Mental Revolution

The main object of IR is a complete mental revolution of workers and employees.

The industrial space lies ultimately in a transformed outlook on the part of both.

5. Reduced Wastage

Good industrial relations are maintained on the basis of cooperation and coordination of each other.

It will help increase production. Wastage of men, material, and machines is reduced to the minimum and thus national interest is protected.

Thus, now you know the Industrial Relations types importance.

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