Nature of Industrial Relations


}Industrial relations do not function in a vacuum and are conditioned with three determinants:

  •   Institutional Factors
  •   Economic Factors
  •   Technological Factors
}Institutional Factors

¢ Economic Factors-
                                   Include economic organization (socialist, capitalist, communist, individual ownership, govt ownership), power of labor and employers, the nature and composition of the labor force and the sources of supply and demand in the labor market.

¢ Technological Factors
          The development of industrial relations is not due to any one single factor but rather been largely determined by the conditions existing at the eve of the industrial revolution in the Western Europe and the social, economic and political situations available in different locations.

¢ From the earliest phase of industrialization from which the workers formerly working with their own tools entered into power driven factories, owned by owners; to minimization of breakdown due to industrial conflicts of later state and further to industrial peace and hence to human relations approach to raise productivity in a democracy based on labor partnerships not only for sharing the profits but of managerial decisions themselves has been a long journey indeed. 
- Include state policy, labor laws, voluntary codes, collective agreements, laborers’ unions and employers’ organization, social institution like the community, caste, joint family, creed, system of beliefs etc, attitude of work, systems of power status, relative nearness to the centers of power; motivation and influence and industrial relations.
- Include the techniques of production, modernization and rationalization schemes, capital structures etc.