Why Industrial Relation is Important For the Organization?


Industrial relations is the direct outcome of the relationship between employers and employees. It includes individual and collective relationships. Here the word individual relationship depicts the relation between employer and the employee at the individual level. While the word collective relationship means a relationship between employer association (such as SO Champ, CII) and Trade Unions. The three players in Industrial relations are Employers, Employees, and the State. Any organization needs to have a proper balance and good relationship between these three parts then only they can run their business effectively and efficiently. Is it possible for organizations to reach each individual personally and improve their satisfaction level?


The answer is 'no'. That is the reason why every organization has its own Trade Unions which represents it's employees and negotiates on terms and conditions, the process of negotiation between employers or it's representative associations and employees or it's Trade Unions is known as Collective bargaining. The government also acts as an employer for eg. Government is the employer in the case of the railway department as to when it hires employees for functions of its department but when it provides services to the public it's their duty. The next question is why Industrial relations is important? What is the use of Industrial relations? Industrial relations is a complex and multidimensional concept. If employees work effectively and increase in productivity will ultimately help in achieving organizational goals. So when the employees will work to the fullest? Officiously when they are satisfied with the organization. So, Industrial Relation helps in managing the relationship and to satisfy the employees to the fullest. It also laid down rules and regulations which maintain peace and harmony in the organization.





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