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Industrial relations
Industrial relations is a multidisciplinary field that studies the employment relationship.

Industrial relations is increasingly being called employment relations because of the importance
of non-industrial employment relationships. Many outsiders
also equate industrial relations
to labour relations. Industrial relations studies examine various employment situations, not just
ones with a unionized workforce.
 1 Overview
 2 History
 3 Theoretical perspectives
o 3.1 Pluralist perspective
o 3.2 Unitarist perspective
o 3.3 Marxist/Radical perspective
 4 Industrial Relations Today
 5 See also
 6 Notes
 7 Further reading
Industrial relations has three faces: science building, problem solving, and ethical.
In the
science building phase, industrial relations is part of the social sciences, and it seeks to
understand the employment relationship and its institutions through high-quality, rigorous
research. In this vein, industrial relations scholarship intersects with scholarship in labor
economics, industrial sociology, labor and social history, human resource management, political
science, law, and other areas. In the problem solving phase, industrial relations seeks to design
policies and institutions to help the employment relationship work better. In the ethical phase,
industrial relations contains strong normative principles about workers and the employment
relationship, especially the rejection of treating labor as a commodity in favor of seeing workers
as human beings in democratic communities entitled to human rights. The term human relations
refers to the whole field of relationship that exists because of the necessary collaboration of men
and women in the employment process of modern industry. It is that part of management which
is concerned with the management of enterprise - whether machine operator, skilled worker, or
manager. It deals with either the relationship between the state and employers and workers
organisation or the relation between the occupational organisation themselves.
Industrial relations scholarship assumes that labor markets are not perfectly competitive and
thus, in contrast to mainstream economic theory, employers typically have greater bargaining
power than employees. Industrial relations scholarship also assumes that there are at least some
inherent conflicts of interest between employers and employees (for example, higher wages
versus higher profits) and thus, in contrast to scholarship in human resource management and
organizational behavior, conflict is seen as a natural part of the employment relationship.
Industrial relations scholars therefore frequently study the diverse institutional arrangements that
characterize and shape the employment relationship—from norms and power structures on the
shop floor, to employee voice mechanisms in the workplace, to collective bargaining
arrangements at company, regional, or national level, to various levels of public policy and labor
law regimes, to "varieties of capitalism" (such as corporatism), social democracy, and
When labor markets are seen as imperfect, and when the employment relationship includes
conflicts of interest, then one cannot rely on markets or managers to always serve workers‘
interests, and in extreme cases to prevent worker exploitation. Industrial relations scholars and
practitioners therefore support institutional interventions to improve the workings of the
employment relationship and to protect workers‘ rights. The nature of these institutional
interventions, however, differ between two camps within industrial relations.
The pluralist
camp sees the employment relationship as a mixture of shared interests and conflicts of interests
that are largely limited to the employment relationship. In the workplace, pluralists therefore
champion grievance procedures, employee voice mechanisms such as works councils and labor
unions, collective bargaining, and labor-management partnerships. In the policy arena, pluralists
advocate for minimum wage laws, occupational health and safety standards, international labor
standards, and other employment and labor laws and public policies.
These institutional
interventions are all seen as methods for balancing the employment relationship to generate not
only economic efficiency, but also employee equity and voice.
In contrast, the Marxist-inspired
critical camp sees employer-employee conflicts of interest as sharply antagonistic and deeply
embedded in the socio-political-economic system. From this perspective, the pursuit of a
balanced employment relationship gives too much weight to employers‘ interests, and instead
deep-seated structural reforms are needed to change the sharply antagonistic employment
relationship that is inherent within capitalism. Militant trade unions are thus frequently

Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by spawning free labor markets and large-scale industrial organizations
with thousands of wage workers.
As society wrestled with these massive economic and social
changes, labor problems arose. Low wages, long working hours, monotonous and dangerous
work, and abusive supervisory practices led to high employee turnover, violent strikes, and the
threat of social instability. Intellectually, industrial relations was formed at the end of the 19th
century as a middle ground between classical economics and Marxism, with Sidney Webb and
Beatrice Webb‘s Industrial Democracy (1897) being the key intellectual work. Industrial
relations thus rejected the classical econ.
Institutionally, industrial relations was founded by John R. Commons when he created the first
academic industrial relations program at the University of Wisconsin in 1920. Early financial
support for the field came from John D. Rockefeller, Jr. who supported progressive labor-
management relations in the aftermath of the bloody strike at a Rockefeller-owned coal mine in
Colorado. In Britain, another progressive industrialist, Montague Burton, endowed chairs in
industrial relations at Leeds, Cardiff and Cambridge in 1930, and the discipline was formalized
in the 1950s with the formation of the Oxford School by Allan Flanders and Hugh Clegg.

Industrial relations was formed with a strong problem-solving orientation that rejected both the
classical economists‘ laissez faire solutions to labor problems and the Marxist solution of class
revolution. It is this approach that underlies the New Deal legislation in the United States, such
as the National Labor Relations Act and the Fair Labor Standards Act.
Theoretical perspectives
Industrial relations scholars have described three major theoretical perspectives or frameworks,
that contrast in their understanding and analysis of workplace relations. The three views are
generally known as unitarism, pluralist and radical. Each offers a particular perception of
workplace relations and will therefore interpret such events as workplace conflict, the role of
unions and job regulation differently. The radical perspective is sometimes referred to as the
"conflict model", although this is somewhat ambiguous, as pluralism also tends to see conflict as
inherent in workplaces. Radical theories are strongly identified with Marxist theories, although
they are not limited to kosala
Pluralist perspective
In Pluralism, the organization is perceived as being made up of powerful and divergent sub-
groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In
particular, the two predominant sub-groups in the Pluralist perspective are the management and
trade unions.
Consequently, the role of management would lean less towards enforcing and controlling and
more toward persuasion and co-ordination. Trade unions are deemed as legitimate
representatives of employees, conflict is dealt by collective bargaining and is viewed not
necessarily as a bad thing and, if managed, could in fact be channeled towards evolution and
positive change.
Unitarist perspective
In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal
of "one happy family", where management and other members of the staff all share a common
purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach
where it demands loyalty of all employees, being predominantly managerial in its emphasis and
Consequently, trade unions are deemed as unnecessary since the loyalty between employees and
organizations are considered mutually exclusive, where there can't be two sides of industry.
Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction
and communication breakdown.
Marxist/Radical perspective
This view of industrial relations looks at the nature of the capitalist society, where there is a
fundamental division of interest between capital and labour, and sees workplace relations against
this background. This perspective sees inequalities of power and economic wealth as having their
roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and
trade unions are a natural response of workers to their exploitation by capital. Whilst there may
be periods of acquiescence, the Marxist view would be that institutions of joint regulation would
enhance rather than limit management's position as they presume the continuation of capitalism
rather than challenge it.
Industrial Relations Today
By many accounts, industrial relations today is in crisis.
In academia, its traditional positions
are threatened on one side by the dominance of mainstream economics and organizational
behavior, and on the other by postmodernism. In policy-making circles, the industrial relations
emphasis on institutional intervention is trumped by a neoliberal emphasis on the laissez faire
promotion of free markets. In practice, labor unions are declining and fewer companies have
industrial relations functions. The number of academic programs in industrial relations is
therefore shrinking, and scholars are leaving the field for other areas, especially human resource
management and organizational behavior. The importance of work, however, is stronger than
ever, and the lessons of industrial relations remain vital. The challenge for industrial relations is
to re-establish these connections with the broader academic, policy, and business worlds.
Industrial democracy
Industrial democracy is an arrangement which involves workers making decisions, sharing
responsibility and authority in the workplace. While in participative management organizational
designs workers are listened to and take part in the decision-making process, in organizations
employing industrial democracy they also have the final decisive power (they decide about
organizational design and hierarchy as well)
Although industrial democracy generally refers to the organization model in which workplaces
are run directly by the people who work in them in place of private or state ownership of the
means of production, there are also representative forms of industrial democracy. Representative
industrial democracy includes decision making structures such as the formation of committees
and consultative bodies to facilitate communication between management, unions, and staff.

Advocates often point out that industrial democracy increases productivity and service delivery
from a more fully engaged and happier workforce. Other benefits include less industrial dispute
resulting from better communication in the workplace; improved and inclusive decision making
processes resulting in qualitatively better workplace decisions, decreased stress and increased
well-being, an increase in job satisfaction, a reduction in absenteeism and an improved sense of
Main article: Co-determination
In a number of European countries, employees of a business take part in election of company
directors. In Germany, the law is known as the Mitbestimmungsgesetz of 1976. In Britain a 1977
proposal for a similar system was named the Bullock Report.
In late nineteenth century, and at the beginning of the twentieth century, industrial democracy,
along with anarcho-syndicalism and new unionism, represented one of the dominant themes in
revolutionary socialism and played a prominent role in international labour movements. The
term industrial democracy was introduced by British socialist reformers Sidney and Beatrice
Webb in their 1897 book Industrial Democracy. The Webbs used the term to refer to trade
unions and the process of collective bargaining.

While the influence of the movements promoting industrial democracy declined after the defeat
of the anarchists in the Spanish Revolution in 1939, several unions and organizations advocating
the arrangement continue to exist and are again on the rise internationally.
The Industrial Workers of the World advance an industrial unionism which would organize all
the workers, regardless of skill, gender or race, into one big union divided into a series of
departments corresponding to different industries. The industrial unions would be the embryonic
form of future post-capitalist production. Once sufficiently organized, the industrial unions
would overthrow capitalism by means of a general strike, and carry on production through
worker run enterprises without bosses or the wage system. Anarcho-syndicalist unions, like the
Confederación Nacional del Trabajo, are similar in their means and ends but organize workers
into geographically based and federated syndicates rather than industrial unions.
The New Unionism Network also promotes workplace democracy as a means to linking
production and economic democracy.

Representative industrial democracy
Modern industrial economies have adopted several aspects of industrial democracy to improve
productivity and as reformist measures against industrial disputes. Often referred to as
"teamworking", this form of industrial democracy has been practiced in Scandinavia, Germany,
The Netherlands and the UK, as well as in several Japanese companies including Toyota, as an
effective alternative to Taylorism.
The term is often used synonymously with workplace democracy, in which the traditional
master-servant model of employment gives way to a participative, power-sharing model.
Negotiation is a dialogue between two or more people or parties, intended to reach an
understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce
an agreement upon courses of action, to bargain for individual or collective advantage, to craft
outcomes to satisfy various interests of two people/parties involved in negotiation process.
Negotiation is a process where each party involved in negotiating tries to gain an advantage for
themselves by the end of the process. Negotiation is intended to aim at compromise.
Negotiation occurs in business, non-profit organizations, government branches, legal
proceedings, among nations and in personal situations such as marriage, divorce, parenting, and
everyday life. The study of the subject is called negotiation theory. Professional negotiators are
often specialized, such as union negotiators, leverage buyout negotiators, peace negotiators,
hostage negotiators, or may work under other titles, such as diplomats, legislators or brokers.
Negotiation typically manifests itself with a trained negotiator acting on behalf of a particular
organization or position. It can be compared to mediation where a neutral third party listens to
each side's arguments and attempts to help craft an agreement between the parties. It is also
related to arbitration which, as with a legal proceeding, both sides make an argument as to the
merits of their "case" and then the arbitrator decides the outcome for both parties. There are two
opposite types of negotiation: Integrative and Distributive.
Distributive Negotiation
The term distributive means; there is a giving out; or the scattering of things. By its mere nature,
there is a limit or finite amount in the thing being distributed or divided amongst the people
involved. Hence, this type of negotiation is often referred to as 'The Fixed Pie'. There is only so
much to go around, but the proportion to be distributed is limited but also variable. A distributive
negotiation usually involves people who have never had a previous interactive relationship, nor
are they likely to do so again in the near future. Simple everyday examples would be buying a
car or a house.

Integrative negotiation
The word integrative means to join several parts into a whole. Conceptually, this implies some
cooperation, or a joining of forces to achieve something together. Usually involves a higher
degree of trust and a forming of a relationship. Both parties want to walk away feeling they've
achieved something which has value by getting what each wants. Ideally, it is a twofold process.
Integrative negotiation process generally involves some form or combination of making value for
value concessions, in conjunction with creative problem solving. Generally, this form of
negotiation is looking down the road, to them forming a long term relationship to create mutual
gain. It is often described as the win-win scenario.
There are many different ways to segment negotiation to gain a greater understanding of the
essential parts. One view of negotiation involves three basic elements: process, behavior and
substance. The process refers to how the parties negotiate: the context of the negotiations, the
parties to the negotiations, the tactics used by the parties, and the sequence and stages in which
all of these play out. Behavior refers to the relationships among these parties, the communication
between them and the styles they adopt. The substance refers to what the parties negotiate over:
the agenda, the issues (positions and - more helpfully - interests), the options, and the
agreement(s) reached at the end.
Another view of negotiation comprises 4 elements: strategy, process and tools, and tactics.
Strategy comprises the top level goals - typically including relationship and the final outcome.
Processes and tools include the steps that will be followed and the roles taken in both preparing
for and negotiating with the other parties. Tactics include more detailed statements and actions
and responses to others' statements and actions. Some add to this persuasion and influence,
asserting that these have become integral to modern day negotiation success, and so should not
be omitted.
Skilled negotiators may use a variety of tactics ranging from negotiation hypnosis, to a straight
forward presentation of demands or setting of preconditions to more deceptive approaches such
as cherry picking. Intimidation and salami tactics may also play a part in swaying the outcome of
Another negotiation tactic is bad guy/good guy. Bad guy/good guy tactic is when one negotiator
acts as a bad guy by using anger and threats. The other negotiator acts as a good guy by being
considerate and understanding. The good guy blames the bad guy for all the difficulties while
trying to get concessions and agreement from the opponent.

When a party pretends to negotiate, but secretly has no intention of compromising, the negotiator
is considered to be negotiating in bad faith.

The advocate's approach
In the advocacy approach, a skilled negotiator usually serves as advocate for one party to the
negotiation and attempts to obtain the most favorable outcomes possible for that party. In this
process the negotiator attempts to determine the minimum outcome(s) the other party is (or
parties are) willing to accept, then adjusts their demands accordingly. A "successful" negotiation
in the advocacy approach is when the negotiator is able to obtain all or most of the outcomes
their party desires, but without driving the other party to permanently break off negotiations,
unless the best alternative to a negotiated agreement (BATNA) is acceptable.
Traditional negotiating is sometimes called win-lose because of the assumption of a fixed "pie",
that one person's gain results in another person's loss. This is not true, however, unless only one
issue needs to be resolved, such as a price in a simple sales negotiation.
Getting to YES was published by Roger Fisher and William Ury as part of the Harvard
negotiation project. The book's approach, referred to as Principled Negotiation, is also sometimes
called mutual gains bargaining. The Mutual Gains Approach has been effectively applied in
environmental situations (see Lawrence Susskind and Adil Najam) as well as labor relations
where the parties (such as management and a labor union) frame the negotiation as "problem
solving". If multiple issues are discussed, differences in the parties' preferences make win-win
negotiation possible. For example, in a labor negotiation, the union might prefer job security
over wage gains.
If the employers have opposite preferences, a trade is possible that is beneficial to both parties.
Such a negotiation is therefore not an adversarial zero-sum game. Principled Negotiation method
consists of four main steps: separating the people from the problem, focus on interests, not
positions, generating a variety of possibilities before deciding what to do and insisting that the
result be based on some objective standard.

There are a tremendous number of other scholars who have contributed to the field of
negotiation, including Holly Schroth and Timothy Dayonot at UC Berkeley, Gerard E. Watzke at
Tulane University, Sara Cobb at George Mason University, Len Riskin at the University of
Missouri, Howard Raiffa at Harvard, Robert McKersie and Lawrence Susskind at MIT, and Adil
Najam and Jeswald Salacuse at The Fletcher School of Law and Diplomacy.
[citation needed]
and John
D. Males.
Other negotiation styles
Shell identified five styles/responses to negotiation.
Individuals can often have strong
dispositions towards numerous styles; the style used during a negotiation depends on the context
and the interests of the other party, among other factors. In addition, styles can change over time.
1. Accommodating: Individuals who enjoy solving the other party’s problems and preserving
personal relationships. Accommodators are sensitive to the emotional states, body language,
and verbal signals of the other parties. They can, however, feel taken advantage of in situations
when the other party places little emphasis on the relationship.
2. Avoiding: Individuals who do not like to negotiate and don’t do it unless warranted. When
negotiating, avoiders tend to defer and dodge the confrontational aspects of negotiating;
however, they may be perceived as tactful and diplomatic.
3. Collaborating: Individuals who enjoy negotiations that involve solving tough problems in
creative ways. Collaborators are good at using negotiations to understand the concerns and
interests of the other parties. They can, however, create problems by transforming simple
situations into more complex ones.
4. Competing: Individuals who enjoy negotiations because they present an opportunity to win
something. Competitive negotiators have strong instincts for all aspects of negotiating and are
often strategic. Because their style can dominate the bargaining process, competitive
negotiators often neglect the importance of relationships.
5. Compromising: Individuals who are eager to close the deal by doing what is fair and equal for all
parties involved in the negotiation. Compromisers can be useful when there is limited time to
complete the deal; however, compromisers often unnecessarily rush the negotiation process
and make concessions too quickly.
Adversary or Partner?
Clearly, these two basically different ways of negotiating will require different approaches. To
ignore this can be devastating for the result, but it all too often happens. Because in the
distributive approach each negotiator is battling for the largest possible piece of the pie, it may
be quite appropriate - within certain limits - to regard the other side more as an adversary than a
partner and to take a somewhat harder line. This would however be less appropriate if the idea
were to hammer out an arrangement that is in the best interest of both sides. If both win, it's only
of secondary importance which one has the greater advantage. A good agreement is not one with
maximum gain, but optimum gain. This does not by any means suggest that we should give up
our own advantage for nothing. But a cooperative attitude will regularly pay dividends. What is
gained is not at the expense of the other, but with him.

Bad faith negotiation
Bad faith is a concept in negotiation theory whereby parties pretend to reason to reach
settlement, but have no intention to do so, for example, one political party may pretend to
negotiate, with no intention to compromise, for political effect.

Inherent bad faith model in international relations and political psychology
Bad faith in political science and political psychology refers to negotiating strategies in which
there is no real intention to reach compromise, or a model of information processing.
"inherent bad faith model" of information processing is a theory in political psychology that was
first put forth by Ole Holsti to explain the relationship between John Foster Dulles‘ beliefs and
his model of information processing.
It is the most widely studied model of one's opponent.

A state is presumed to be implacably hostile, and contra-indicators of this are ignored. They are
dismissed as propaganda ploys or signs of weakness. Examples are John Foster Dulles‘ position
regarding the Soviet Union, or Hamas's position on the state of Israel.
[10][neutrality is disputed]

Emotion in negotiation
Emotions play an important part in the negotiation process, although it is only in recent years
that their effect is being studied. Emotions have the potential to play either a positive or negative
role in negotiation. During negotiations, the decision as to whether or not to settle, rests in part
on emotional factors. Negative emotions can cause intense and even irrational behavior, and can
cause conflicts to escalate and negotiations to break down, but may be instrumental in attaining
concessions. On the other hand, positive emotions often facilitate reaching an agreement and
help to maximize joint gains, but can also be instrumental in attaining concessions. Positive and
negative discrete emotions can be strategically displayed to influence task and relational
and may play out differently across cultural boundaries.

Affect effect
Dispositional affects affect the various stages of the negotiation process: which strategies are
planned to be used, which strategies are actually chosen,
the way the other party and his or her
intentions are perceived,
their willingness to reach an agreement and the final negotiated
Positive affectivity (PA) and negative affectivity (NA) of one or more of the
negotiating sides can lead to very different outcomes.
Positive affect in negotiation
Even before the negotiation process starts, people in a positive mood have more confidence,

and higher tendencies to plan to use a cooperative strategy.
During the negotiation, negotiators
who are in a positive mood tend to enjoy the interaction more, show less contentious behavior,
use less aggressive tactics
and more cooperative strategies.
This in turn increases the
likelihood that parties will reach their instrumental goals, and enhance the ability to find
integrative gains.
Indeed, compared with negotiators with negative or natural affectivity,
negotiators with positive affectivity reached more agreements and tended to honor those
agreements more.
Those favorable outcomes are due to better decision making processes, such
as flexible thinking, creative problem solving, respect for others' perspectives, willingness to take
risks and higher confidence.
Post negotiation positive affect has beneficial consequences as
well. It increases satisfaction with achieved outcome and influences one's desire for future
The PA aroused by reaching an agreement facilitates the dyadic relationship,
which result in affective commitment that sets the stage for subsequent interactions.

PA also has its drawbacks: it distorts perception of self performance, such that performance is
judged to be relatively better than it actually is.
Thus, studies involving self reports on
achieved outcomes might be biased.
Negative affect in negotiation
Negative affect has detrimental effects on various stages in the negotiation process. Although
various negative emotions affect negotiation outcomes, by far the most researched is anger.
Angry negotiators plan to use more competitive strategies and to cooperate less, even before the
negotiation starts.
These competitive strategies are related to reduced joint outcomes. During
negotiations, anger disrupts the process by reducing the level of trust, clouding parties' judgment,
narrowing parties' focus of attention and changing their central goal from reaching agreement to
retaliating against the other side.
Angry negotiators pay less attention to opponent‘s interests
and are less accurate in judging their interests, thus achieve lower joint gains.
because anger makes negotiators more self-centered in their preferences, it increases the
likelihood that they will reject profitable offers.
Opponents who really get angry (or cry, or
otherwise lose control) are more likely to make errors: make sure they are in your favor.
does not help in achieving negotiation goals either: it reduces joint gains
and does not help to
boost personal gains, as angry negotiators do not succeed in claiming more for themselves.

Moreover, negative emotions lead to acceptance of settlements that are not in the positive utility
function but rather have a negative utility.
However, expression of negative emotions during
negotiation can sometimes be beneficial: legitimately expressed anger can be an effective way to
show one's commitment, sincerity, and needs.
Moreover, although NA reduces gains in
integrative tasks, it is a better strategy than PA in distributive tasks (such as zero-sum).
In his
work on negative affect arousal and white noise, Seidner found support for the existence of a
negative affect arousal mechanism through observations regarding the devaluation of speakers
from other ethnic origins." Negotiation may be negatively affected, in turn, by submerged
hostility toward an ethnic or gender group.

Conditions for emotion affect in negotiation
Research indicates that negotiator‘s emotions do not necessarily affect the negotiation process.
Albarracın et al. (2003) suggested that there are two conditions for emotional affect, both related
to the ability (presence of environmental or cognitive disturbances) and the motivation:
1. Identification of the affect: requires high motivation, high ability or both.
2. Determination that the affect is relevant and important for the judgment: requires that either
the motivation, the ability or both are low.
According to this model, emotions are expected to affect negotiations only when one is high and
the other is low. When both ability and motivation are low the affect will not be identified, and
when both are high the affect will be identify but discounted as irrelevant for judgment.
possible implication of this model is, for example, that the positive effects PA has on
negotiations (as described above) will be seen only when either motivation or ability are low.
The effect of the partner’s emotions
Most studies on emotion in negotiations focus on the effect of the negotiator‘s own emotions on
the process. However, what the other party feels might be just as important, as group emotions
are known to affect processes both at the group and the personal levels. When it comes to
negotiations, trust in the other party is a necessary condition for its emotion to affect,
visibility enhances the effect.
Emotions contribute to negotiation processes by signaling what
one feels and thinks and can thus prevent the other party from engaging in destructive behaviors
and to indicate what steps should be taken next: PA signals to keep in the same way, while NA
points that mental or behavioral adjustments are needed.

Partner‘s emotions can have two basic effects on negotiator‘s emotions and behavior: mimetic/
reciprocal or complementary.
For example, disappointment or sadness might lead to
compassion and more cooperation.
In a study by Butt et al. (2005) which simulated real multi-
phase negotiation, most people reacted to the partner‘s emotions in reciprocal, rather than
complementary, manner. Specific emotions were found to have different effects on the
opponent‘s feelings and strategies chosen:
 Anger caused the opponents to place lower demands and to concede more in a zero-sum
negotiation, but also to evaluate the negotiation less favorably.
It provoked both dominating
and yielding behaviors of the opponent.

 Pride led to more integrative and compromise strategies by the partner.

 Guilt or regret expressed by the negotiator led to better impression of him by the opponent,
however it also led the opponent to place higher demands.
On the other hand, personal guilt
was related to more satisfaction with what one achieved.

 Worry or disappointment left bad impression on the opponent, but led to relatively lower
demands by the opponent.

Problems with lab negotiation studies
Negotiation is a rather complex interaction. Capturing all its complexity is a very difficult task,
let alone isolating and controlling only certain aspects of it. For this reason most negotiation
studies are done under laboratory conditions, and focus only on some aspects. Although lab
studies have their advantages, they do have major drawbacks when studying emotions:
 Emotions in lab studies are usually manipulated and are therefore relatively ‘cold’ (not intense).
Although those ‘cold’ emotions might be enough to show effects, they are qualitatively different
from the ‘hot’ emotions often experienced during negotiations.

 In real life there is self-selection to which negotiation one gets into, which effects the emotional
commitment, motivation and interests. However this is not the case in lab studies.

 Lab studies tend to focus on relatively few well defined emotions. Real life scenarios provoke a
much wider scale of emotions.

 Coding the emotions has a double catch: if done by a third side, some emotions might not be
detected as the negotiator sublimates them for strategic reasons. Self report measures might
overcome this, but they are usually filled only before or after the process, and if filled during the
process might interfere with it.

Team negotiations
Due to globalization and growing business trends, negotiation in the form of teams is becoming
widely adopted. Teams can effectively collaborate to break down a complex negotiation. There
is more knowledge and wisdom dispersed in a team than in a single mind. Writing, listening, and
talking, are specific roles team members must satisfy. The capacity base of a team reduces the
amount of blunder, and increases familiarity in a negotiation.

Barriers to negotiations
 Die hard bargainers.
 Lack of trust.
 Informational vacuums and negotiator's dilemma.
 Structural impediments.
 Spoilers.
 Cultural and gender differences.
 Communication problems.
 The power of dialogue.
Methods Of Negotiation
Negotiation can be categorized in different ways. Below are just a few ways that we can look at
If we distinguish between integrative and distributive negotiations, we are saying that the parties
are looking for different things as they approach the negotiation.
Integrative negotiations
Integrative negotiations are commonly referred to as ―win-win.‖ In this type of negotiation, each
side is working towards a solution where everyone wins something. They can make tradeoffs,
look at multiple issues, and try to expand the pie rather than divide it. Integrative negotiations
foster trust and good working relationships.
Distributive negotiations
Distributive negotiations are referred to as ―win-lose.‖ One party gets what they want, and the
other party has to give something up. This can be the case when you negotiate a lease on office
space, for example. If you feel like you got a good deal and the property manager had to give
something up for you, you ―won.‖ If you feel like the property manager had the upper hand and
you got ripped off, you ―lost.‖ The parties‘ interests often seem to be opposed (although this may
not be the case once you look at things creatively), and so this type of negotiation does not lead
to lasting or positive relationships.
The inductive method involves starting on small details and working upward until a settlement is
reached. This can be the case where, for example, an employer and labor union are negotiating
the details of an employee pension and investment plan. Small details are addressed one at a
Deductive negotiations start with an agreed upon strategy. They rely on established principles
and a formula to frame the negotiation while the parties work out the details.
Mixed negotiations are the most common; they are a blend of inductive and deductive methods.

Soft and hard bargaining involves negotiating a position rather than interests. To avoid some of
the common problems associated with bargaining over positions, negotiators who take a soft
approach treat the participants as friends, seeking agreement despite great cost, and offering
concessions as a way to create or preserve a positive relationship with the other side.
A soft bargainer behaves transparently, sharing their bottom line, which can leave them
vulnerable to a hard bargainer who is competitive, hides their bottom line, and offers few
concessions, if any. In a negotiation between a soft and hard bargainer, the hard approach will
almost always come out with a much better deal.
In their book Getting to Yes, Roger Fisher, William Ury, and Bruce Patton recommend
principled negotiation, instead of hard vs. soft, because principled negotiation relies on interests
rather than positions.
Alternative Dispute Resolution
Alternative Dispute Resolution (ADR) continues to be a popular alternative to negotiation. If
negotiations stall, the result can often be a move to arbitration or litigation. However, arbitration
and litigation can be expensive and time-consuming undertakings. Either of them can result in a
solution that neither party is happy with (a ―lose-lose‖), and both processes are full of friction.
ADR is an alternative that allows the negotiating parties to utilize a formal dispute resolution
process. Using mediators or facilitation, parties work through the process together and try to
come up with a winning solution. One factor that makes ADR different is the idea that the
negotiating partners must be satisfied with the outcome. If a stalemate results with proper use of
ADR, then the negotiations can move to arbitration or litigation as a last resort.
Non-Negotiable Positions vs. Options
There are several ways that you can handle non-negotiable positions or options. As a negotiator,
you must not go to the table with an intention like, ―This is all the money we have, and so this
position is non-negotiable.‖ If you dig your heels in on such a position, there will not be much
point in negotiating at all. Similarly, if you elect to draw the line on a particular issue, you must
know your limits and the room you actually have to negotiate.
For example, perhaps you approach your boss about a raise. The boss says no because he has no
money left in the budget. Instead of giving up your idea of getting a raise (because you know that
you have already earned it), consider whether there are other things that would satisfy you, like
attending a conference, taking a course, or working fewer hours each week.
If you are prepared with your justification for the raise before you approach your boss, and you
also have a few alternatives based on your knowledge of the need for training, the availability of
a conference budget, and so on, your chances of success are much greater.
Just because someone says no to your request does not mean you have asked the only question
that is available.
A good negotiator is prepared to use several possible approaches and formulas. They often ask
questions more than they provide answers. They can assess a situation, including the expertise of
the parties involved, and adapt formulas to suit the occasion.
An employer‘s negotiator, for example, who comes to the table insisting that they have a
winning formula for this round of negotiations, will raise the defenses of the other party
instantly, even if the formula would have been ideal. At the beginning of a negotiation, it is
important to establish a formula that will be agreed upon between the parties.
It is equally important to recognize when the formula is getting in the way of making progress
because it is too rigid and needs to be tailored to the situation.
Quality management
Jump to: The term quality management has a specific meaning within many business sectors.
This specific definition, which does not aim to assure 'good quality' by the more general
definition, but rather to ensure that an organization or product is consistent, can be considered to
have four main components: quality planning, quality control, quality assurance and quality
Quality management is focused not only on product/service quality, but also the
means to achieve it. Quality management therefore uses quality assurance and control of
processes as well as products to achieve more consistent quality.

Quality management evolution
Quality management is a recent phenomenon. Advanced civilizations that supported the arts and
crafts allowed clients to choose goods meeting higher quality standards than normal goods. In
societies where arts and crafts are the responsibility of a master craftsman or artist, they would
lead their studio and train and supervise others. The importance of craftsmen diminished as mass
production and repetitive work practices were instituted. The aim was to produce large numbers
of the same goods. The first proponent in the US for this approach was Eli Whitney who
proposed (interchangeable) parts manufacture for muskets, hence producing the identical
components and creating a musket assembly line. The next step forward was promoted by
several people including Frederick Winslow Taylor a mechanical engineer who sought to
improve industrial efficiency. He is sometimes called "the father of scientific management." He
was one of the intellectual leaders of the Efficiency Movement and part of his approach laid a
further foundation for quality management, including aspects like standardization and adopting
improved practices. Henry Ford was also important in bringing process and quality management
practices into operation in his assembly lines. In Germany, Karl Friedrich Benz, often called the
inventor of the motor car, was pursuing similar assembly and production practices, although real
mass production was properly initiated in Volkswagen after World War II. From this period
onwards, North American companies focused predominantly upon production against lower cost
with increased efficiency.
Walter A. Shewhart made a major step in the evolution towards quality management by creating
a method for quality control for production, using statistical methods, first proposed in 1924.
This became the foundation for his ongoing work on statistical quality control. W. Edwards
Deming later applied statistical process control methods in the United States during World War
II, thereby successfully improving quality in the manufacture of munitions and other strategically
important products.
Quality leadership from a national perspective has changed over the past five to six decades.
After the second world war, Japan decided to make quality improvement a national imperative as
part of rebuilding their economy, and sought the help of Shewhart, Deming and Juran, amongst
others. W. Edwards Deming championed Shewhart's ideas in Japan from 1950 onwards. He is
probably best known for his management philosophy establishing quality, productivity, and
competitive position. He has formulated 14 points of attention for managers, which are a high
level abstraction of many of his deep insights. They should be interpreted by learning and
understanding the deeper insights. These 14 points include key concepts such as:
 Break down barriers between departments
 Management should learn their responsibilities, and take on leadership
 Supervision should be to help people and machines and gadgets to do a better job
 Improve constantly and forever the system of production and service
 Institute a vigorous program of education and self-improvement
In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low quality, but
over time their quality initiatives began to be successful, with Japan achieving very high levels of
quality in products from the 1970s onward. For example, Japanese cars regularly top the J.D.
Power customer satisfaction ratings. In the 1980s Deming was asked by Ford Motor Company to
start a quality initiative after they realized that they were falling behind Japanese manufacturers.
A number of highly successful quality initiatives have been invented by the Japanese (see for
example on this page: Taguchi, QFD, Toyota Production System. Many of the methods not only
provide techniques but also have associated quality culture (i.e. people factors). These methods
are now adopted by the same western countries that decades earlier derided Japanese methods.
Customers recognize that quality is an important attribute in products and services. Suppliers
recognize that quality can be an important differentiator between their own offerings and those of
competitors (quality differentiation is also called the quality gap). In the past two decades this
quality gap has been greatly reduced between competitive products and services. This is partly
due to the contracting (also called outsourcing) of manufacture to countries like India and China,
as well internationalization of trade and competition. These countries amongst many others have
raised their own standards of quality in order to meet International standards and customer
demands. The ISO 9000 series of standards are probably the best known International standards
for quality management.
There are a huge number of books available on quality management. In recent times some
themes have become more significant including quality culture, the importance of knowledge
management, and the role of leadership in promoting and achieving high quality. Disciplines like
systems thinking are bringing more holistic approaches to quality so that people, process and
products are considered together rather than independent factors in quality management.
The influence of quality thinking has spread to non-traditional applications outside of walls of
manufacturing, extending into service sectors and into areas such as sales, marketing and
customer service.

Quality management adopts a number of management principles
that can be used by top
management to guide their organizations towards improved performance. The principles include:
Customer focus
Since the organizations depend on their customers, therefore they should understand current and
future customer needs, should meet customer requirements and try to exceed the expectations of
An organization attains customer focus when all people in the organization know
both the internal and external customers and also what customer requirements must be met to
ensure that both the internal and external customers are satisfied.

Involvement of people
People at all levels of an organization are the essence of it. Their complete involvement enables
their abilities to be used for the benefit of the organization.

Process approach
The desired result can be achieved when activities and related resources are managed in an
organization as process.

System approach to management
An organization's effectiveness and efficiency in achieving its quality objectives are contributed
by identifying, understanding and managing all interrelated processes as a system.

Continual improvement
One of the permanent quality objectives of an organization should be the continual improvement
of its overall performance.

Factual approach to decision making
Effective decisions are always based on the data analysis and information.

Mutually beneficial supplier relationships
Since an organization and its suppliers are interdependent, therefore a mutually beneficial
relationship between them increases the ability of both to add value.

These eight principles form the basis for the quality management system standard ISO

Quality improvement
There are many methods for quality improvement. These cover product improvement, process
improvement and people based improvement. In the following list are methods of quality
management and techniques that incorporate and drive quality improvement:
1. ISO 9004:2008 — guidelines for performance improvement.
2. ISO 15504-4: 2005 — information technology — process assessment — Part 4:
Guidance on use for process improvement and process capability determination.
3. QFD — quality function deployment, also known as the house of quality approach.
4. Kaizen — 改善, Japanese for change for the better; the common English term is
continuous improvement.
5. Zero Defect Program — created by NEC Corporation of Japan, based upon statistical
process control and one of the inputs for the inventors of Six Sigma.
6. Six Sigma — 6σ, Six Sigma combines established methods such as statistical process
control, design of experiments and failure mode and effects analysis (FMEA) in an
overall framework.
7. PDCA — plan, do, check, act cycle for quality control purposes. (Six Sigma's DMAIC
method (define, measure, analyze, improve, control) may be viewed as a particular
implementation of this.)
8. Quality circle — a group (people oriented) approach to improvement.
9. Taguchi methods — statistical oriented methods including quality robustness, quality loss
function, and target specifications.
10. The Toyota Production System — reworked in the west into lean manufacturing.
11. Kansei Engineering — an approach that focuses on capturing customer emotional
feedback about products to drive improvement.
12. TQM — total quality management is a management strategy aimed at embedding
awareness of quality in all organizational processes. First promoted in Japan with the
Deming prize which was adopted and adapted in USA as the Malcolm Baldrige National
Quality Award and in Europe as the European Foundation for Quality Management
award (each with their own variations).
13. TRIZ — meaning "theory of inventive problem solving"
14. BPR — business process reengineering, a management approach aiming at 'clean slate'
improvements (That is, ignoring existing practices).
15. OQM — Object-oriented Quality Management, a model for quality management.

Proponents of each approach have sought to improve them as well as apply them for small,
medium and large gains. Simple one is Process Approach, which forms the basis of ISO
9001:2008 Quality Management System standard, duly driven from the 'Eight principles of
Quality managagement', process approach being one of them. Thareja
writes about the
mechanism and benefits: "The process (proficiency) may be limited in words, but not in its
applicability. While it fulfills the criteria of all-round gains: in terms of the competencies
augmented by the participants; the organisation seeks newer directions to the business success,
the individual brand image of both the people and the organisation, in turn, goes up. The
competencies which were hitherto rated as being smaller, are better recognized and now
acclaimed to be more potent and fruitful".
The more complex Quality improvement tools are
tailored for enterprise types not originally targeted. For example, Six Sigma was designed for
manufacturing but has spread to service enterprises. Each of these approaches and methods has
met with success but also with failures.
Some of the common differentiators between success and failure include commitment,
knowledge and expertise to guide improvement, scope of change/improvement desired (Big
Bang type changes tend to fail more often compared to smaller changes) and adaption to
enterprise cultures. For example, quality circles do not work well in every enterprise (and are
even discouraged by some managers), and relatively few TQM-participating enterprises have
won the national quality awards.
There have been well publicized failures of BPR, as well as Six Sigma. Enterprises therefore
need to consider carefully which quality improvement methods to adopt, and certainly should not
adopt all those listed here.
It is important not to underestimate the people factors, such as culture, in selecting a quality
improvement approach. Any improvement (change) takes time to implement, gain acceptance
and stabilize as accepted practice. Improvement must allow pauses between implementing new
changes so that the change is stabilized and assessed as a real improvement, before the next
improvement is made (hence continual improvement, not continuous improvement).
Improvements that change the culture take longer as they have to overcome greater resistance to
change. It is easier and often more effective to work within the existing cultural boundaries and
make small improvements (that is Kaizen) than to make major transformational changes. Use of
Kaizen in Japan was a major reason for the creation of Japanese industrial and economic
On the other hand, transformational change works best when an enterprise faces a crisis and
needs to make major changes in order to survive. In Japan, the land of Kaizen, Carlos Ghosn led
a transformational change at Nissan Motor Company which was in a financial and operational
crisis. Well organized quality improvement programs take all these factors into account when
selecting the quality improvement methods.
Quality standards
The International Organization for Standardization (ISO) created the Quality Management
System (QMS) standards in 1987. They were the ISO 9000:1987 series of standards comprising
ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987; which were applicable in different types of
industries, based on the type of activity or process: designing, production or service delivery.
The standards are reviewed every few years by the International Organization for
Standardization. The version in 1994 was called the ISO 9000:1994 series; consisting of the ISO
9001:1994, 9002:1994 and 9003:1994 versions.
The last major revision was in the year 2008 and the series was called ISO 9000:2000 series. The
ISO 9002 and 9003 standards were integrated into one single certifiable standard: ISO
9001:2008. After December 2003, organizations holding ISO 9002 or 9003 standards had to
complete a transition to the new standard.
ISO released a minor revision, ISO 9001:2008 on 14 October 2008. It contains no new
requirements. Many of the changes were to improve consistency in grammar, facilitating
translation of the standard into other languages for use by over 950,000 certified organisations in
the 175 countries (as at Dec 2007) that use the standard.
The ISO 9004:2009 document gives guidelines for performance improvement over and above the
basic standard (ISO 9001:2000). This standard provides a measurement framework for improved
quality management, similar to and based upon the measurement framework for process
The Quality Management System standards created by ISO are meant to certify the processes
and the system of an organization, not the product or service itself. ISO 9000 standards do not
certify the quality of the product or service.
In 2005 the International Organization for Standardization released a standard, ISO 22000, meant
for the food industry. This standard covers the values and principles of ISO 9000 and the
HACCP standards. It gives one single integrated standard for the food industry and is expected to
become more popular in the coming years in such industry.
ISO has also released standards for other industries. For example Technical Standard TS 16949
defines requirements in addition to those in ISO 9001:2008 specifically for the automotive
ISO has a number of standards that support quality management. One group describes processes
(including ISO/IEC 12207 & ISO/IEC 15288) and another describes process assessment and
improvement ISO 15504.
The Software Engineering Institute has its own process assessment and improvement methods,
called CMMi (Capability Maturity Model — integrated) and IDEAL respectively.
Quality software
The software used to track the four main components of quality management through the use of
databases and/or charting applications.
Quality terms
 Quality Improvement can be distinguished from Quality Control in that Quality
Improvement is the purposeful change of a process to improve the reliability of achieving
an outcome.
 Quality Control is the ongoing effort to maintain the integrity of a process to maintain the
reliability of achieving an outcome.
 Quality Assurance is the planned or systematic actions necessary to provide enough
confidence that a product or service will satisfy the given requirements.

there are 4 types of trade unions:-
1. craft unions-this union represents workers with a particular skill
2. industrial unions-this union represents all workers in one industries with different skills
3. general unions-this union represents workers with different skills
4. white collar unions-this union represents special skills like engineer or something

Read more:
Trade unions are formed to protect and promote the interests of their members. Their primary
function is to protect the interests of workers against discrimination and unfair labor practices.

Trade unions are formed to achieve the following objectives:
 Representation
Trade unions represent individual workers when they have a problem at work. If an employee
feels he is being unfairly treated, he can ask the union representative to help sort out the
difficulty with the manager or employer. Unions also offer their members legal representation.
Normally this is to help people get financial compensation for work-related injuries or to assist
people who have to take their employer to court.

 Negotiation
Negotiation is where union representatives, discuss with management, the issues which
affect people working in an organization. There may be a difference of opinion between
management and union members. Trade unions negotiate with the employers to find out a
solution to these differences. Pay, working hours, holidays and changes to working
practices are the sorts of issues that are negotiated. In many workplaces there is a formal
agreement between the union and the company which states that the union has the right to
negotiate with the employer. In these organizations, unions are said to be recognized for
collective bargaining purposes.

 Voice in decisions affecting workers
The economic security of employees is determined not only by the level of wages and
duration of their employment, but also by the management‘s personal policies which
include selection of employees for lay offs, retrenchment, promotion and transfer. These
policies directly affect workers. The evaluation criteria for such decisions may not be
fair. So, the intervention of unions in such decision making is a way through which
workers can have their say in the decision making to safeguard their interests.

 Member services

During the last few years, trade unions have increased the range of services they offer
their members. These include:
o Education and training - Most unions run training courses for their members on
employment rights, health and safety and other issues. Some unions also help
members who have left school with little education by offering courses on basic
skills and courses leading to professional qualifications.

o Legal assistance - As well as offering legal advice on employment issues, some
unions give help with personal matters, like housing, wills and debt.

o Financial discounts - People can get discounts on mortgages, insurance and loans
from unions.

o Welfare benefits - One of the earliest functions of trade unions was to look after
members who hit hard times. Some of the older unions offer financial help to their
members when they are sick or unemployed.
 Importance of Industrial Relations:

Industrial Relations Home » Importance Of Industrial Relations

The healthy industrial relations are key to the progress and success. Their significance may be
discussed as under –
 Uninterrupted production – The most important benefit of industrial relations is that this
ensures continuity of production. This means, continuous employment for all from manager to
workers. The resources are fully utilized, resulting in the maximum possible production. There
is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for
several other industries; to other industries if the products are intermediaries or inputs; to
exporters if these are export goods; to consumers and workers, if these are goods of mass

  Reduction in Industrial Disputes – Good industrial relations reduce the industrial
disputes. 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. 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. It helps promoting co-operation and increasing production.
  High morale – Good industrial relations improve the morale of the employees.
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. Every worker feels that he is a
co-owner of the gains of industry. The employer in his turn must realize that the gains of
industry are not for him along but they should be shared equally and generously with his
workers. In other words, complete unity of thought and action is the main achievement of
industrial peace. It increases the place of workers in the society and their ego is satisfied.
It naturally affects production because mighty co-operative efforts alone can produce
great results.
  Mental Revolution – The main object of industrial relation is a complete mental
revolution of workers and employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. 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. Both should think themselves as partners of the industry and
the role of workers in such a partnership should be recognized. On the other hand,
workers must recognize employer‘s authority. It will naturally have impact on production
because they recognize the interest of each other.
  Reduced Wastage – Good industrial relations are maintained on the basis of
cooperation and recognition of each other. It will help increase production. Wastages of
man, material and machines are reduced to the minimum and thus national interest is

Thus, it is evident that good industrial relations is the basis of higher production with
minimum cost and higher profits. It also results in increased efficiency of workers. New
and new projects may be introduced for the welfare of the workers and to promote the
morale of the people at work. An economy organized for planned production and
distribution, aiming at the realization of social justice and welfare of the massage can
function effectively only in an atmosphere of industrial peace. If the twin objectives of
rapid national development and increased social justice are to be achieved, there must be
harmonious relationship between management and labor.
The main objectives of industrial relations system are:-
 To safeguard the interest of labor and management by securing the highest level of mutual
understanding and good-will among all those sections in the industry which participate in the
process of production.
 To avoid industrial conflict or strife and develop harmonious relations, which are an essential
factor in the productivity of workers and the industrial progress of a country.
 To raise productivity to a higher level in an era of full employment by lessening the tendency
to high turnover and frequency absenteeism.

 To establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban individuals
personality may grow its full stature for the benefit of the industry and of the country as
 To eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
 To improve the economic conditions of workers in the existing state of industrial
managements and political government.
 Socialization of industries by making the state itself a major employer
 Vesting of a proprietary interest of the workers in the industries in which they are
Dunlop's Contribution To Industrial

Industrial Relations Home » Dunlop's Model

One of the significant theories of industrial labor relations was put forth by John Dunlop in
the 1950s. According to Dunlop industrial relations system consists of three agents –
management organizations, workers and formal/informal ways they are organized and
government agencies. These actors and their organizations are located within an environment –
defined in terms of technology, labor and product markets, and the distribution of power in
wider society as it impacts upon individuals and workplace. Within this environment, actors
interact with each other, negotiate and use economic/political power in process of determining
rules that constitute the output of the industrial relations system. He proposed that three
parties—employers, labor unions, and government-- are the

key actors in a modern industrial relations system. He also argued that none of these institutions
could act in an autonomous or independent fashion. Instead they were shaped, at least to some
extent, by their market, technological and political contexts.

Thus it can be said that industrial relations is a social sub system subject to three environmental
constraints- the markets, distribution of power in society and technology.

Dunlop's model identifies three key factors to be considered in conducting an analysis of the
management-labor relationship:
1. Environmental or external economic, technological, political, legal and social forces that
impact employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labor,
management, and government.
3. Rules that are derived from these interactions that govern the employment relationship.
Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of
industrial relations may be regarded as a system in the sense that each of them more or less
intimately affects each of the others so that they constitute a group of arrangements for
dealing with certain matters and are collectively responsible for certain results‖.

In effect - Industrial relations is the system which produces the rules of the workplace. Such
rules are the product of interaction between three key ―actors‖ – workers/unions, employers
and associated organizations and government

The Dunlop‘s model gives great significance to external or environmental forces. In other
words, management, labor, and the government possess a shared ideology that defines their
roles within the relationship and provides stability to the system.

Bargaining Form And Tactics

Industrial Relations Home » Bargaining Forms and Tactics

A collective bargaining process generally consists of four types of activities- distributive
bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining.
Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the
economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one
party‘s gain is another party‘s loss. This is most commonly explained in terms of a pie.
Disputants can work together to make the pie bigger, so there is enough for both of them to
have as much as they want, or they can focus on cutting the pie up, trying to get as much as
they can for themselves. In general, distributive bargaining tends to be more competitive. This
type of bargaining is also

known as conjunctive bargaining.

Integrative bargaining:
This involves negotiation of an issue on which both the parties may gain, or at least neither party
loses. For example, representatives of employer and employee sides may bargain over the better
training programme or a better job evaluation method. Here, both the parties are trying to make
more of something. In general, it tends to be more cooperative than distributive bargaining. This
type of bargaining is also known as cooperative bargaining.

Attitudinal restructuring:
This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility
between labor and management. When there is a backlog of bitterness between both the parties,
attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It
develops a bargaining environment and creates trust and cooperation among the parties.

Intra-organizational bargaining:
It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve
consensus with the workers and management. Even within the union, there may be differences
between groups. For example, skilled workers may feel that they are neglected or women
workers may feel that their interests are not looked after properly. Within the management also,
there may be differences. Trade unions maneuver to achieve consensus among the conflicting
Characterstics Of Collective Bargaining

Industrial Relations Home » Characterstics Of Collective Bargaining

 It is a group process, wherein one group, representing
the employers, and the other, representing the
employees, sit together to negotiate terms of
 Negotiations form an important aspect of the process
of collective bargaining i.e., there is considerable scope
for discussion, compromise or mutual give and take in
collective bargaining.
 Collective bargaining is a formalized process by
which employers and independent trade unions
negotiate terms and conditions of employment and the
ways in which certain employment-related issues are to
be regulated at national, organizational and workplace

 Collective bargaining is a process in the sense that it consists of a number of steps. It
begins with the presentation of the charter of demands and ends with reaching an
agreement, which would serve as the basic law governing labor management relations
over a period of time in an enterprise. Moreover, it is flexible process and not fixed or
static. Mutual trust and understanding serve as the by products of harmonious relations
between the two parties.

 It a bipartite process. This means there are always two parties involved in the process of
collective bargaining. The negotiations generally take place between the employees and
the management. It is a form of participation.

 Collective bargaining is a complementary process i.e. each party needs something that the
other party has; labor can increase productivity and management can pay better for their

 Collective bargaining tends to improve the relations between workers and the union on
the one hand and the employer on the other.

 Collective Bargaining is continuous process. It enables industrial democracy to be
effective. It uses cooperation and consensus for settling disputes rather than conflict and

 Collective bargaining takes into account day to day changes, policies, potentialities,
capacities and interests.

 It is a political activity frequently undertaken by professional negotiators.
Collective Bargaining Process

Industrial Relations Home » Collective Bargaining Process

Collective bargaining generally includes negotiations between the two parties (employees‘
representatives and employer‘s representatives). Collective bargaining consists of negotiations
between an employer and a group of employees that determine the conditions of employment.
Often employees are represented in the bargaining by a union or other labor organization. The
result of collective bargaining procedure is called the collective bargaining agreement (CBA).
Collective agreements may be in the form of procedural agreements or substantive agreements.
Procedural agreements deal with the relationship between workers and management and the
procedures to be adopted for resolving individual or group disputes.

This will normally include procedures in respect of individual grievances, disputes and
discipline. Frequently, procedural agreements are put into the company rule book which provides
information on the overall terms and conditions of employment and codes of behavior. A
substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus
arrangements, holiday entitlements, hours of work, etc. In many companies, agreements have a
fixed time scale and a collective bargaining process will review the procedural agreement when
negotiations take place on pay and conditions of employment.

The collective bargaining process comprises of five core steps:
1. Prepare: This phase involves composition of a negotiation team. The negotiation team
should consist of representatives of both the parties with adequate knowledge and skills
for negotiation. In this phase both the employer‘s representatives and the union examine
their own situation in order to develop the issues that they believe will be most important.
The first thing to be done is to determine whether there is actually any reason to negotiate
at all. A correct understanding of the main issues to be covered and intimate knowledge
of operations, working conditions, production norms and other relevant conditions is

2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A
process well begun is half done and this is no less true in case of collective bargaining.
An environment of mutual trust and understanding is also created so that the collective
bargaining agreement would be reached.

3. Propose: This phase involves the initial opening statements and the possible options that
exist to resolve them. In a word, this phase could be described as ‗brainstorming‘. The
exchange of messages takes place and opinion of both the parties is sought.

4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage
comprises the time when ‗what ifs‘ and ‗supposals‘ are set forth and the drafting of
agreements take place.

5. Settlement: Once the parties are through with the bargaining process, a consensual
agreement is reached upon wherein both the parties agree to a common decision
regarding the problem or the issue. This stage is described as consisting of effective joint
implementation of the agreement through shared visions, strategic planning and
negotiated change.

Importance Of Collective Bargaining

Industrial Relations Home » Importance of Collective Bargaining

Collective bargaining includes not only negotiations between the employers and unions but
also includes the process of resolving labor-management conflicts. Thus, collective bargaining
is, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a
method of introducing civil rights in the industry, that is, the management should be conducted
by rules rather than arbitrary decision making. It establishes rules which define and restrict the
traditional authority exercised by the management.

Importance to employees
 Collective bargaining develops a sense of self respect and responsibility among the

 It increases the strength of the workforce, thereby, increasing their bargaining capacity as
a group.
 Collective bargaining increases the morale and productivity of employees.

 It restricts management‘s freedom for arbitrary action against the employees. Moreover,
unilateral actions by the employer are also discouraged.

 Effective collective bargaining machinery strengthens the trade unions movement.

 The workers feel motivated as they can approach the management on various matters and
bargain for higher benefits.

 It helps in securing a prompt and fair settlement of grievances. It provides a flexible
means for the adjustment of wages and employment conditions to economic and
technological changes in the industry, as a result of which the chances for conflicts are

Importance to employers
1. It becomes easier for the management to resolve issues at the bargaining level rather than
taking up complaints of individual workers.

2. Collective bargaining tends to promote a sense of job security among employees and
thereby tends to reduce the cost of labor turnover to management.

3. Collective bargaining opens up the channel of communication between the workers and
the management and increases worker participation in decision making.

4. Collective bargaining plays a vital role in settling and preventing industrial disputes.
Importance to society
1. Collective bargaining leads to industrial peace in the country

2. It results in establishment of a harmonious industrial climate which supports which helps
the pace of a nation‘s efforts towards economic and social development since the
obstacles to such a development can be reduced considerably.

3. The discrimination and exploitation of workers is constantly being checked.

4. It provides a method or the regulation of the conditions of employment of those who are
directly concerned about them.
5.Levels of Collective Bargaining

Industrial Relations Home » Levels Of Collective Bargaining

Collective bargaining operates at three levels:

1. National level
2. Sector or industry level
3. Company/enterprise level

Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between
union confederations, central employer associations and government agencies. It aims at
providing a floor for lower-level bargaining on the terms of employment, often taking into
account macroeconomic goals.

Sectoral bargaining, which aims at the standardization of the terms of employment in one
industry, includes a range of
7. bargaining patterns. Bargaining may be either broadly or narrowly defined in terms of the
industrial activities covered and may be either split up according to territorial subunits or
conducted nationally.


The third bargaining level involves the company and/or establishment. As a
supplementary type of bargaining, it emphasizes the point that bargaining levels need not
be mutually exclusive.
Functions Of Trade Unions

Industrial Relations Home » Functions of Trade unions

Trade unions perform a number of functions in order to achieve the objectives. These
functions can be broadly classified into three categories:

(i) Militant functions,
(ii) Fraternal functions

Militant Functions

One set of activities performed by trade unions leads to the betterment of the position of their
members in relation to their employment. The aim of such activities is to ensure adequate
wages, secure better conditions of work and employment, get better treatment from employers,
etc. When the unions fail to accomplish these aims by the method of

collective bargaining and negotiations, they adopt an approach and put up a fight with the
management in the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these functions of
the trade unions are known as militant or fighting functions. Thus, the militant functions of trade
unions can be summed up as:
 To achieve higher wages and better working conditions

 To raise the status of workers as a part of industry

 To protect labors against victimization and injustice
Fraternal Functions

Another set of activities performed by trade unions aims at rendering help to its members in
times of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation
and promote friendly industrial relations and diffuse education and culture among their members.
They take up welfare measures for improving the morale of workers and generate self confidence
among them. They also arrange for legal assistance to its members, if necessary. Besides, these,
they undertake many welfare measures for their members, e.g., school for the education of
children, library, reading-rooms, in-door and out-door games, and other recreational facilities.
Some trade unions even undertake publication of some magazine or journal. These activities,
which may be called fraternal functions, depend on the availability of funds, which the unions
raise by subscription from members and donations from outsiders, and also on their competent
and enlightened leadership. Thus, the fraternal functions of trade unions can be summed up as:
 To take up welfare measures for improving the morale of workers

 To generate self confidence among workers

 To encourage sincerity and discipline among workers

 To provide opportunities for promotion and growth

 To protect women workers against discrimination
Importance Of Trade Unions

Industrial Relations Home » Importance Of Trade Unions

The existence of a strong and recognized trade union is a pre-requisite to industrial peace.
Decisions taken through the process of collective bargaining and negotiations between
employer and unions are more influential. Trade unions play an important role and are helpful
in effective communication between the workers and the management. They provide the advice
and support to ensure that the differences of opinion do not turn into major conflicts. The
central function of a trade union is to represent people at work. But they also have a wider role
in protecting their interests. They also play an important educational role, organizing courses
for their members on a wide range of matters. Seeking a healthy and safe working environment
is also prominent feature of

union activity.

Trade unions help in accelerated pace of economic development in many ways as follows:
 by helping in the recruitment and selection of workers.

 by inculcating discipline among the workforce

 by enabling settlement of industrial disputes in a rational manner

 by helping social adjustments. Workers have to adjust themselves to the new working
conditions, the new rules and policies. Workers coming from different backgrounds may
become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.
Trade unions are a part of society and as such, have to take into consideration the national
integration as well. Some important social responsibilities of trade unions include:
 promoting and maintaining national integration by reducing the number of industrial

 incorporating a sense of corporate social responsibility in workers

 achieving industrial peace
Trade Unionism In India

Industrial Relations Home » Trade Unionism In India

The trade unionism in India developed quite slowly as compared to the western nations. Indian trade
union movement can be divided into three phases.

The first phase (1850 to1900)
During this phase the inception of trade unions took place. During this period, the working and living
conditions of the labor were poor and their working hours were long. Capitalists were only interested
in their productivity and profitability. In addition, the wages were also low and general economic
conditions were poor in industries. In order to regulate the working hours and other service conditions
of the Indian textile laborers, the Indian Factories Act was enacted in 1881. As a result, employment of
child labor was prohibited.

The growth of trade union movement was slow in this phase and later on the Indian Factory Act of 1881
was amended in 1891. Many strikes took place in the two decades following 1880 in all industrial cities.
These strikes taught workers to understand the power of united action even though there was no union
in real terms. Small associations like Bombay Mill-Hands Association came up by this time.

The second phase (1900 to 1946)
This phase was characterized by the development of organized trade unions and political movements of
the working class. Between 1918 and 1923, many unions came into existence in the country. At
Ahmedabad, under the guidance of Mahatma Gandhi, occupational unions like spinners’ unions and
weavers’ unions were formed. A strike was launched by these unions under the leadership of Mahatma
Gandhi who turned it into a satyagrah. These unions federated into industrial union known as Textile
Labor Association in 1920.In 1920, the First National Trade union organization (The All India Trade Union
Congress (AITUC)) was established. Many of the leaders of this organization were leaders of the national
Movement. In 1926, Trade union law came up with the efforts of Mr. N N Joshi that became operative
from 1927. During 1928, All India Trade Union Federation (AITUF) was formed.

The third phase began with the emergence of independent India (in 1947). The partition of country
affected the trade union movement particularly Bengal and Punjab. By 1949, four central trade union
organizations were functioning in the country:
1. The All India Trade Union Congress,

2. The Indian National Trade Union Congress,

3. The Hindu Mazdoor Sangh, and

4. The United Trade Union Congress
The working class movement was also politicized along the lines of political parties. For instance Indian
national trade Union Congress (INTUC) is the trade union arm of the Congress Party. The AITUC is the
trade union arm of the Communist Party of India. Besides workers, white-collar employees, supervisors
and managers are also organized by the trade unions, as for example in the Banking, Insurance and
Petroleum industries.

Trade unions in India
The Indian workforce consists of 430 million workers, growing 2% annually. The Indian labor markets
consist of three sectors:
1. The rural workers, who constitute about 60 per cent of the workforce.

2. Organized sector, which employs 8 per cent of workforce, and

3. The urban informal sector (which includes the growing software industry and other services, not
included in the formal sector) which constitutes the rest 32 per cent of the workforce.

At present there are twelve Central Trade Union Organizations in India:
1. All India Trade Union Congress (AITUC)

2. Bharatiya Mazdoor Sangh (BMS)

3. Centre of Indian Trade Unions (CITU)

4. Hind Mazdoor Kisan Panchayat (HMKP)

5. Hind Mazdoor Sabha (HMS)

6. Indian Federation of Free Trade Unions (IFFTU)

7. Indian National Trade Union Congress (INTUC)

8. National Front of Indian Trade Unions (NFITU)

9. National Labor Organization (NLO)

10. Trade Unions Co-ordination Centre (TUCC)

11. United Trade Union Congress (UTUC) and

12. United Trade Union Congress - Lenin Sarani (UTUC - LS)
Effective Discipline

Industrial Relations Home » Effective Discipline

Discipline is the key to success. Theodore Roosevelt has said
“With self-discipline almost everything is possible”. Self
discipline makes employee realize what is required at work.
Discipline can be positively related to performance. It is the
bridge between goals and accomplishments. Effective
discipline should be aimed at the behavior, and not at the
employee personality. This is because the reason for
discipline is to improve performance rather than punishing
the employee.

Factors necessary for effective disciplinary system include:
1. Training of supervisors is necessary: Supervisors and mangers need to be trained on when and
how discipline should be used. It is necessary to provide training on counseling skills as these
skills are used while dealing with problem employees. Moreover, discipline decisions taken by
trained supervisors are considered fair by both employees and managers.

2. Centralization of discipline: Centralized means that the discipline decisions should be uniform
throughout the organization. The greater the uniformity, higher will be the effectiveness of
discipline procedure.

3. Impersonal discipline: Discipline should be handled impersonally. Managers should try to
minimize the ill feelings arising out of the decisions by judging the offensive behavior and not by
judging the person. Managers should limit their emotional involvement in the disciplinary

4. Review discipline decisions: The disciplinary decisions must be reviewed before being
implemented. This will ensure uniformity and fairness of the system and will minimize the
arbitrariness of the disciplinary system.

5. Notification of conduct that may result in discipline: Actions that lead to misconduct can be
listed and documented so the employees are aware of such actions. This will unable them to
claim that they have not been notified, in advance, regarding the same.

6. Information regarding penalties: The employer should define the penalties and other actions
like warnings, reprimands, discharge and dismissal well in advance. All these action plans must
be communicated to the employees.

7. Discipline shall be progressive: Discipline system should be progressive in nature. In a
progressive discipline approach the severity of actions to modify behavior increases with every
step as the employee continues to show improper behavior. The advantage of this approach is
that employees can’t take it for granted.

8. Documentation: Effective discipline requires accurate, written record keeping and written
notification to the employees. Thus less chance will be left for the employee to say the he “did
not know” about the policy.

9. Discipline should be fair: The disciplinary decision should be fair enough for the employee. Both
over-penalization and under-penalization are considered to be unfair for the problem employee.
Moreover, an internal fairness is to be maintained, that is, two employees who have committed
the same offense should be equally punished.

10. Discipline shall be flexible and consistent: The manager administering discipline must consider
the effect of actions taken by other managers and of other actions taken in the past. Consistent
discipline helps to set limits and informs people about what they can and cannot do.
Inconsistent discipline leads to confusion and uncertainty.

11. Disciplinary action should be prompt: The effective discipline should be immediate. The longer
time lag between the misconduct offense and the disciplinary action will result in ineffectiveness
of the discipline.
Grievance Procedure

Industrial Relations Home » Grievance Procedure

Grievance procedure is a formal communication between an employee and the management
designed for the settlement of a grievance. The grievance procedures differ from organization to

1. Open door policy
2. Step-ladder policy

Open door policy: Under this policy, the aggrieved employee is free to meet the top executives of the
organization and get his grievances redressed. Such a policy works well only in small organizations.
However, in bigger organizations, top management executives are usually busy with other concerned
matters of the company. Moreover, it is believed that open door

policy is suitable for executives; operational employees may feel shy to go to top management.

Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step procedure for
getting his grievance redressed. In this procedure, whenever an employee is confronted with a
grievance, he presents his problem to his immediate supervisor. If the employee is not satisfied with
superior’s decision, then he discusses his grievance with the departmental head. The departmental head
discusses the problem with joint grievance committees to find a solution. However, if the committee
also fails to redress the grievance, then it may be referred to chief executive. If the chief executive also
fails to redress the grievance, then such a grievance is referred to voluntary arbitration where the award
of arbitrator is binding on both the parties.


The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established
grievance procedure for the country which would be acceptable to unions as well as to management. In
the 16th session of Indian Labor Conference, a model for grievance procedure was drawn up. This model
helps in creation of grievance machinery. According to it, workers’ representatives are to be elected for
a department or their union is to nominate them. Management has to specify the persons in each
department who are to be approached first and the departmental heads who are supposed to be
approached in the second step. The Model Grievance Procedure specifies the details of all the steps that
are to be followed while redressing grievances. These steps are:

STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a
representative of management. He has to give his answer within 48 hours.

STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee can take
his grievance to head of the department, who has to give his decision within 3 days.

STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he can take
the grievance to Grievance Committee. The Grievance Committee makes its recommendations to the
manager within 7 days in the form of a report. The final decision of the management on the report of
Grievance Committee must be communicated to the aggrieved employee within three days of the
receipt of report. An appeal for revision of final decision can be made by the worker if he is not satisfied
with it. The management must communicate its decision to the worker within 7 days.

STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary arbitration.

Causes Of Industrial Disputes

Industrial Relations Home » Causes Of Industrial Disputes

The causes of industrial disputes can be broadly classified
into two categories: economic and non-economic causes.
The economic causes will include issues relating to
compensation like wages, bonus, allowances, and conditions
for work, working hours, leave and holidays without pay,
unjust layoffs and retrenchments. The non economic factors
will include victimization of workers, ill treatment by staff
members, sympathetic strikes, political factors, indiscipline
 Wages and allowances: Since the cost of living index is
increasing, workers generally bargain for higher wages to
meet the rising cost of living index and to increase their
standards of living. In 2002, 21.4% of disputes were caused
by demand
of higher wages and allowances. This percentage was 20.4% during 2003 and during 2004 increased up
to 26.2%. In 2005, wages and allowances accounted for 21.8% of disputes.
 Personnel and retrenchment: The personnel and retrenchment have also been an important factor
which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1% while
those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a similar trend
could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4% and 0.6% of
disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the disputes were caused
by personnel, and only 0.4% were caused by retrenchment.
 Indiscipline and violence: From the given table, it is evident that the number of disputes caused by
indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of
indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of disputes
were caused due to indiscipline respectively. During the year 2003, indiscipline accounted for the
highest percentage (36.9%) of the total time-loss of all disputes, followed by cause-groups wage and
allowance and personnel with 20.4% and11.2% respectively. A similar trend was observed in 2004 where
indiscipline accounted for 40.4% of disputes.
 Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes were
because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005 respectively.
 Leave and working hours: Leaves and working hours have not been so important causes of industrial
disputes. During 2002, 0.5% of the disputes were because of leave and hours of work while this
percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were because of leaves and
working hours.
 Miscellaneous: The miscellaneous factors include

- Inter/Intra Union Rivalry
- Charter of Demands
- Work Load
- Standing orders/rules/service conditions/safety measures
- Non-implementation of agreements and awards etc.

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