Industrial relations, also called “Labour-management relations” or “Employer-employee relations“, represent the relationships in an industrial organization between the employer and employees as between employees and employees. Poor industrial relations cause industrial disputes which reduces the productivity of the concern. The employee also suffers by way of loss of wages and salaries. The society also suffers due to higher prices and a shortage of goods and services. Healthy industrial relations depend on Employer, Employee, Government, trade union, and society.
Healthy industrial relations have the following advantages
- Increases production, minimizing strikes, lockouts, go-slows, etc.
- Reduces grievances, minimizes industrial disputes, and promotes coordination.
- Improves the morale of the employees and improves productivity.
- It leads to a better understanding of views between employers and employees.
- Minimizes wastage on all fronts i.e. wastage of all factors of production.
- Results in more excellent production and sound quality at lower cost thereby enhancing the competitive strength of the enterprises.
- Provide incentives for the management to introduce new programs related to labor welfare training and worker development.