Importance of industrial relations
Importance of industrial relations

IMPORTANCE OF INDUSTRIAL RELATIONS Advantages of industrial relations:
Since time immemorial, Industrial relations has being one of the most delicate and complex problems of modern industrial society. The inability to cooperate labor and harmonious relationships has proved industrial progress to be impossible. Hence, the need to understand the importance of industrial relations in HRM is also covered in this article. However to create and maintain good relations employees who in this case are labor and employers who in this case are management is an interest of all stakeholders.


The relationship between management and Employees which comes the direct or indirect union and employers relationship best explains the term industrial relations. Basically, industrial relations can be defined as the relationship between employees and management. It is imperative to note that the Importance of industrial relations shows this relationship branches directly or indirectly from the union-employer relationship.

Importance of Industrial Relations in HRM

Good industrial relations in human resource management, helps to ensure good effective utilization of man, regarded as an important resource, money and avoiding wastage of raw material. Industrial relations brings about improved employee morale among the employees, industrial peace in the economy and between the stakeholders, recognition of employee’s interest to boost production and reconciliation of employer’s and employee, through mediation, arbitration and negotiations also by allowing industrial action.

This can be simplified by stating that industrial relations are the relationships between employees and employers within the organizational setting.

This field of industrial relations mostly looks at or explains the relationship between two particular groups. These are management and workers. To be specific these are workers who are represented by unions. In other words, industrial relations are existing interactions between management, workers, the government, and the mediators of these interactions which are institutions and associations.


The term industrial relations has both a wide and narrow outlook. Originally, industrial relations are usually broadly defined. This is because they try to include the relationships and interactions between employers and employees. According to this view industrial relations cover all perspectives of the employment relationship, human resource management, employee relations, and union-management (or labor) relations.

However, now this has become more specific and restricted. Industrial relations can be defined in a more scholarly manner as the study and practice of collective bargaining, trade unionism, and labor-management relations. And human resource management is a separate and largely distinct field. It deals with nonunion employment relationships and the personnel practices and policies of employers.


Importance of Industrial Relations

Advantages of industrial relations and importance of industrial relations in HRM is to promote Democracy in place of work, Economic growth and development, Boosts employee morale, Accountability and optimum use of scare resources, Avoids conflicts between management and unions, prompts depiction of sound labor legislation and initiates an environment for change.

Another importance of industrial relations in HRM referred to as importance of employee relations in HRM decision making and place of work or organization. It ensures continuity of production is the number one benefit of industrial relations.

Answer Summary: The most important benefit of industrial relations is to ensure there is uninterrupted production and good work relations between the employee and employer. Good industrial relations help reduce industrial disputes, industrial unrest, negotiations, strike, and lockouts. Industrial relations are very necessary for the smooth running of the organization.


By continuity of production, it means continuous employment from manager to workers. However, there is an uninterrupted flow of income and the resources are fully utilized. This results in the maximum possible production.

Good industrial relations mostly guarantee increased efficiency which leads to prosperity, reduced turnover, and other tangible benefits to the organization. The following is a summary of the significance of industrial relations:

What is the importance of IR?


1. Promotes democracy:


Industrial relations mean using collective bargaining to settle problems faced by workers. This collective bargaining is usually achieved through mutual cooperation and mutual agreement amongst all the affected parties i.e., democracy, management, and employee unions. This helps an organization establish industrial democracy. Therefore, it motivates the workers to contribute their best to the growth and prosperity of the organization.


2. Economic growth and development:


Industrial relations can improve economic growth and development. This refers to the economic conditions of workers in the existing state of industrial management and political government. With the well-known fact that Good industrial relations lead to increased efficiency and hence higher productivity and income. It is also imperative to note that this also results in the economic development of the country.


3. Boosts employee morale


It is important to note that Good industrial relations which are built-in mutual cooperation and a commonly agreed approach motivate one to contribute one’s best, result in higher productivity and hence income, give more job satisfaction and help improve the morale of the workers which is an importance of industrial relations in HRM.


4. Accountability and optimum use of scarce resources:


Industrial relations which are Good and harmonious create a sense of belongingness and group-cohesiveness among workers, and also a congenial environment resulting in less industrial unrest, grievances, and disputes. This will ensure optimum use of resources, both human and materials, eliminating all types of wastage.


5. Avoids conflicts between management and unions:


Industrial relations result in reduced conflicts between unions and management. This is because industrial relations involve setting up machinery to solve problems confronted by management and employees through a mutual agreement that binds both these parties. This results in avoiding any unfair practices that could lead to major conflicts between employers and trade unions.


6. It prompts the depiction of sound labor legislation:


Industrial relations necessitate the passing of certain labor laws to protect and promote the welfare of labor and safeguard the interests of all the parties against unfair means or practices.


7. Initiates an environment for change:


Good industrial relations help in the improvement of cooperation, teamwork, performance, and productivity and hence in taking full advantage of modern inventions, innovations, and other scientific and technological advances. It helps the workforce to adjust themselves to change easily and quickly.

Why is it important that industrial relations form part of the HR department?

The organizations massively benefits from Industrial Relations in that it provides good work relations, safe environment for workers, and acts as a voice in terms of employee, employer negotiations.  A safe working environment promotes employee and employer satisfaction, which in turn really is necessary for improved production that helps maintain high employment rates which reflects well on the government, country policies and directly positively influences issues such as poverty and unemployment.

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