Industrial and Organizational PSychology focuses on improving productivity in the workplace and creating the best possible working environment for employees. 6. In today’s context, contemporary IR strategy needs to be proactive due to factors like pressure to enhance productivity, high degree of attrition, downsizing, increasing presence of women employees, competitiveness, etc. The employer in his turn must realise that the gains of industry are not for him along but they should be shared equally and generously with his workers. Managers expect workers to observe codes of discipline, not to join illegal strikes, not to indulge in damage to company’s property, not to assault supervisors or peers, and not to come inebriated to the workplace. To help management both in the formulation of informed labour relations policies and in their translation into action. They lead to wastage, class hatred, embitter mutual relations and inflict damages on the progress of the nation. It increases the place of workers in the society and their ego is satisfied. Importance of Industrial Relations – With the Need for Industrial Peace, Importance of Industrial Relations – Reduction in, Industrial Disputes, Uninterrupted Production, High Morale, Mental Revolution and Reduced Wastage, Important Points from which the Importance of Good Industrial Relations can be Judged, Essays, Research Papers and Articles on Business Management, Importance of Personnel Management in Solving Industrial Problems, Industrial Relations: Meaning, Objectives, Need, Importance and Functions, Advantages and Disadvantages of Franchising, Importance of Industrial Relations: Increased Production, Uninterrupted Production, Improves Morale and a Few Others, Importance of Industrial Relations – Reduction in Industrial Disputes, Uninterrupted Production, High Morale, Mental Revolution and Reduced Wastage, Importance of Industrial Relations – 7 Important Points from which the Importance of Good Industrial Relations can be Judged. From all these we can conclude that good industrial relations certainly boost up the production and improves the quality and quantity both. This benefits the both. Good industrial relations are necessary for the following reasons: 1. On the other hand, workers must recognise employer’s authority. Unions gain more strength and vitality. Complete harmony between labour and capital may be a dream but quite a considerable amount of unrest and discontent among workers can be removed through efficient handling of industrial relations. The most important benefit of industrial relations is that this ensures continuity of production. The resources are fully utilised, resulting in the maximum possible production. State acts as regulator, facilitator in shaping IRs pattern in industry. It is historical fact that countries with strong industrial sector have showed more economic growth and development industrial sector have shows improvement in national income and promoted … From the analysis of Dale Yoder’s opinion it is revealed that, the employees work in industry as per terms and conditions of employment and in the process of working in collaborative system both, management and employees develop relations with each other and this relationship as a whole is industrial relations. The recognition of the human factor in production as the supreme one puts a premium on the importance of industrial relations. Maintenance of discipline ensures orderliness, effectiveness, and economy in the use of resources. Game theory, also known as interactive decision theory, consists of a finite amount of players (the competition) and a limited amount of decisions they can make. The main reason why the organization theory is considered very important in this age of globalization and the modern age of running businesses, simply lies on the fact that organization theory is application-based and that this tool is very practical when it comes to achieving organizational goals. IR can now safely be defined as a coin having two faces- cooperation and conflict. As a result, doubts and suspicions are clarified to the full understanding of each other. The importance of communication in an organization can be summarized as follows: Communication promotes motivation by informing and clarifying the employees about the task to be done, the manner they are performing the task, and how to improve their performance if it is not up to the mark. Thus, IR ensures the continuity of production. In short, the term, ‘industrial relations’ means the relations between employees and management arising out of day to day work in industry. It has been rightly emphasised that “in the heat of the daily conflict, workers and em­ployers are apt to forget that they are only two limbs of the body politic and that there is always a third partner, in fact, the most dominant part­ner, namely, the community at large, to be reck­oned with”. It has also been recognised that management without labour would be sterile and labour without management would be disorganised, ill-equipped and ineffective. Hence, one of the major objectives of industrial relations is to change the traditional and contradictory views of labour and management towards each other, so that they may develop mutual understanding and cooperation and both may work in the best interests of enterprise. Good IR helps to run an industry effectively and successfully. Importance of organizational behavior: It is very important to study organizational behavior because it provides an understanding of why people behave as they do in organizations.In any organization, the importance of organizational behavior has tremendous necessities. A close watch will reveal that it becomes a vital concern for the com­munity also. The concept of union is no longer confined to the relationship between shop floor level worker and management due to increasing unionization of other classes of employees. The relationship may be positive, negative or mixed. In other words, personnel manager jump into fire-fighting when industrial conflict erupts. These dynamics require more different IR strategy than the conventional one. I would like to apply in my workplace everything I learned about theories and concepts. Human Resource Management, Industrial Relations, Importance of Industrial Relations. Industrial psychologists can use their knowledge of human psychology and organizational relationships to help companies implement new policies that promote a better work environment. The degree, to which these activities are effectively managed, is an indicator of the safety culture of the organization. This relationship undergoes change from thesis to antithesis and then to synthesis. For example, at the Alwar plant of Eicher Tractors, productivity went up from 32 per cent between 1994 and 1996 to 38 per cent in 1997. There has been an acute necessity in India, especially during the post-independence period, to industrialize her economy in order to tackle the multifarious socio-economic problems. To boost the discipline and morale of workers. In a climate of good industrial relations, every party works for the solidarity of workers’ movement. 5. Content Guidelines 2. This involves a study of the State, the legal system, and the workers’ and employer’s organizations at the institutional level; and of the patterns of industrial organization (including management), capital structure (including technology), compensation of the labour force and study of market forces all at the economic level”. Disclaimer 9. While its most often referred to as industrial-organizational psychology, other names for this field include IO Psychology, Work Psychology, Business Psychology, and Occupational Psychology. Under the mechanism of IR, both employees and managers discuss the matter and consult each other before initiating any actions. For example, new businesses may use industrial psychologists to help them devise strategies to identify which employee characteristics are needed to fill a particular job. Uninterrupted Production 4. Rao, Sundaram Fasteners (A TVS group company which begged the prestigious GM award for the fourth successive year in 1999 as a quality supplier of radiator caps) is well known for zero breakdowns, zero accidents and zero defects. With the attainment of independence and with the launching of planning era, serious and earnest efforts have been made towards rapid economic development of India. Unemployment compels workers – particularly illiterate and unskilled – to accept jobs, inhuman working conditions and niggardly wages, notwithstanding. Organization is a groupof people who workinterdependently towardssome purpose 3. ii. To help government in making laws forbidding unfair practices of unions and employers. Adaptation to Changes 5. It analyzes determinants of firm and market organization and behavior on a continuum between competiti… Basically IR stems from employment relation. Good industrial relations are maintained on the basis of cooperation and recognition of each other. If an organization lacks good Industrial Relationsthen it will not be possible for you to achieve its objectives and targets successfully. Effective Administration 6. Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. Hence, one of the main goals of the Five Year Plans in India has been rapid industrialization and more employment in secondary and tertiary industries. Prohibited Content 3. In the words of Pandit Jawaharlal Nehru, “The alternative (to industrialization) is to remain in a backward, under­developed, poverty-stricken and a weak country. 3. The concept of industrial relations has assumed more significance nowadays than in the past. Industrial democracy means the government mandated worker participation at various levels of the organisation with regard to decisions that affect workers. They increase labour efficiency also. Spector notes that the area of industrial and organizational (I/O) psychology started during the period of psychology (Spector, 2012). There has been an acute necessity in India especially during the post-independence period, to industrialise her economy in order to tackle the multifarious socio-economic problems. There has been a phenomenal growth in employment, wages, benefits, working conditions, status of the worker, educational facilities etc. The Importance Of Organizational Performance And Human Resource Management. Frequent industrial conflicts not only affect the management and labour but also tend to impoverish the community as a whole. Industrial relations usually imply good and positive relations between the employees and employers. Hence, one of the main goals of the Five Year Plans in India has been rapid industrialisation and more employment in secondary and tertiary industries. To ensure industrial peace and avoid laobur unrest like strikes, gheraos, demonstrations, slogan shouting, work stoppages etc. All these necessitate the maintenance of harmonious industrial relations so as to maintain higher productivity to fulfill the goals of the Five Year Plans in India. This area within industrial and organizational psychology takes a close look at employees and their relationship to a given work environment. They affect production and national income in an adverse manner. There is a set procedure for handling any act of indiscipline or indiscretion on the part of an employee, and if the management satisfies the procedure, it is justified in taking action or even dismissing the employee from service. Perhaps the most important reason why industrial employers need to institute worker safety policies is that these policies and practices prevent accidents that can injure or kill workers. The importance of a strong employer relation within organizations is highly essential and it is also the key to ultimate success within an organization. IR benefits workers in several ways. These mechanisms enable the workers to give their best to the organization. As and when workers create the problem of indiscipline, IR provides mangers with a system to handle with employee indiscipline in the organisation. The subject, therefore, includes individual relations and joint consultation between employers and workers at their places of work, collective relations between employers and trade unions; and the part played by the State in regulating these relations”. With few exceptions, industrial organization had little effect on the busi-ness policy concept of strategy, and business policy The recognition of the human factor in production as the supreme one puts a premium on the importance of industrial relations. Company did not lose even a single day due to strike. Thus industrial unrest can be avoided. Content Filtration 6. Terms of Service 7. This means, continuous employment for all from manager to workers. It is also viewed that one of the essential steps for building up an economically free and self-sustaining India is, large- scale industrialisation at a rapid and steady growth. Importance of Organizational Psychology in Human Resource Management. Peace in industry is a powerful factor for good international relations. It motivates the workers to contribute their best towards attainment of organisational objectives. Content Guidelines 2. An increase in the morale of workers reduces per unit cost of production too. Several types of human needs (physical, mental, and social) can be satisfied through good Industrial Relations. Industrial friction may inflict lasting injury on the workers. The production of engine cylinders has gone up from 29, 390 (in 1995-96) to 32, 501 (in 1996-97).This increase has been possible because of peaceful industrial relations. Further, profile of workers have changed from uneducated to educated ones; from semi-skilled to skilled; from technical to executives in industrial sector more particularly in knowledge-based sector. It normally lasts for a period of 3 months. All the three factors are very much required for the smooth and better economic development of a country. To encourage collective bargaining as a means of self-regulation. Thereby, industrial relations assume relevance in this context. IR protects the rights of managers too. To help establish and maintain true industrial democracy which is a prerequisite for the establishment of a socialist society. Satisfied workers are less inclined towards entering into conflict with the management on issues like low wages, long work hours, and unhealthy work environment. Moreover IR strategy used to be reactive in the past. This has been possible only through fast industrial development which, in its turn, depends on industrial peace. A student is supposed to be attached to a company or organization that offers services that are related to the student’s course of study. Hence it is broader in meaning and wider in scope. It also results in increased efficiency of workers. Benefits of Specialization 2. Understanding and emphasizing the importance of industrial safety can prevent severe worker injuries and deaths. With few exceptions, industrial organization had little effect on the busi-ness policy concept of strategy, and business policy Applications of Industrial-organizational Psychology Research Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. As such the main objective of industrial relations is to establish good and harmonious labour management relations which promote mutual understanding, mutual confidence and resolve the mutual differences. Uploader Agreement. Optimum Utilization of Resources 4. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. Eicher Tractors, Alwar represents one such case. 1. The First Five Year Plan has clearly demonstrated the fact that, an economy organised for planned production and distribution, aiming at the realisation of social justice and the welfare of masses can function effectively only in an atmosphere of industrial peace. 4. Image Guidelines 5. Methods of psychology are applied to issues of critical relevance to business, including, 4. i. In the opinion of V. B. Singh, “Industrial relations are an integral aspect of social relations arising out of employer-employee interaction in modern industries which are regulated by State in varying degrees, in conjunction with organized social forces and influenced by the existing institutions. Elements such as job satisfaction, performance and evaluation methods are measured. The importance of IR can be imbued with multiplicity of justifications. Employees feel that they are part of the organization and their contribution will improve productivity of the organization. All of these activities can result in a business that is better for workers and more profitable. This has many long-term benefits for the employer, such as avoiding surcharges and lawsuits, remaining productive, retaining skilled workers and … We can’t even retain our freedom without industrial growth”. Optimum Utilization of Resources 4. From a historical standpoint, industrial psychology was introduced during World War I. Unions divert their activities from fighting and belligerence to increasing the size of the distribution-cake and to make their members more informed (Workers’ education) on vital issues concerning them. Privacy Policy 9. Organizational Behavior helps us to study human being and their complex nature in organizations by identifying the … The importance of the human factor in an industrial organisation is beyond question. Employee safety and OSHA standards are considered, as are employee training and hiring techniques. A healthy industrial relation is essential for smooth functioning and success of the organization. Mental Revolution 7. It also provides a procedure to resolve workers’ grievances relating to work. Without organizations, the goals of the human services field would be impossible to fulfill. It may affect their careers. Established businesses may contract with psychologists to remedy a specific problem, such as high turnover, or to help their employees navigate a major transiti… vi. Thus we can say that industrial relations have far-reaching impact on the production. The main object of industrial relation is a complete mental revolution of workers and employees. This increase is attributed to the peaceful IR in the plant. Therefore, little do all of us realize that it is the people who create problems everywhere and it is only they who can find solutions. conclude that the momentous change in both organisational structure and work processes - involving greatly increased labour-management cooperation - in the last 25 years has been driven not by union pressure tactics or favorable legal forces Effective Utilization of Resources 6. We can’t even retain our freedom without industrial growth.”. Plagiarism Prevention 4. India has been… in the midst of an ambitious and critically important effort to raise the living standards of her people by an integrated… industrial and economic development plan. Everyone in an organization, from an employee who is involved in just entering data to the employee working at higher level uses the information for specific purposes. Improved employee morale, industrial peace, recognition of employee’s interest and reconciliation of employer’s and employee objectives and interest increased production with minimum wastage of resources. To help in the economic progress of a country. The two go together or can be merged together as one. 4 Importance of Industrial Relations: The following industrial relations 4 importance below are; Increased Productivity: With amicable industrial relations both the workers and managers continue to work on their respective position and contribute towards the overall productivity of the firm. Clarity in Working Relationships 3. Industrial relations are the key for increased productivity in industrial establishments. It is a dynamic and developing socio-economic process. The industrial peace lies ultimately in a transformed outlook on the part of both. Industrial relations are human relations in industry. Reduced industrial dispute, industrial unrest, strike, lock outs can be avoided through good industrial relation. Clarity in Working Relationships 3. The importance of the human factor in an industrial organisation is beyond question. Good industrial relations bring industrial peace, which is turn tends to increase production. Investing in industrial hygiene now can save valuable resources and money in provincial healthcare costs later down the road, according to a recent article on Pub Med Central Canada. Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. Promotion of Industrial Harmony – Industrial democracy is practised by various workers’ participation schemes like collective bargaining, works committee, quality circle, functional committee, board of directors scheme, joint consultation and employee stock option plans. Nurturing Industrial Peace – Both employer and employees sit across the table and thrash out issues of difference. Different authors and experts have expressed their views on the concept of industrial relations. Good industrial relation helps in effective utilization of man, money and material. So, there is the impact of industrial relations not only on the economy of a country but also on its society and culture. 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. The importance of good industrial relations can be judged from the following points: (f) Controls industrial disputes and maintains industrial peace. The majority of economists studying industrial organization (or industrial economics) and strategic management researchers have, over the years, mostly viewed each other with suspicion-if they knew each other existed. Image Guidelines 4. The mission of the International Labour Organization (ILO) is to promote social justice and internationally recognized human and labour rights, based on the founding principle that social justice is essential to universal and lasting peace. This means, continuous employment for all employees who contribute to production process, ie., from chief executive officer to floor workers to pantry boy. 3. They consider the negotiation process as an educational opportunity, a chance both to learn and to teach. Industrial relations usually imply good and positive relations between the employees and employers. The importance of IR can be imbued with multiplicity of justifications. When the entire world is striving for material well-being and when the nations of the world are moving in a planned way for industrial development; industrial relations are naturally drawing more and more attention. FreeDigitalPhotos.net - Image: FreeDigitalPhotos.net The World of Psychology The world of … The Importance of Organizations to Human Services. John T Dunlop (1958) has expressed his views on the concept of industrial relations as the relations between three actors-employer, employees and government. Good industrial relation brings about realization among the employees that gain to the organization will not only benefit the employer but will benefit them as well. Disclaimer 8. Development of Personnel 7. Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. The most important benefit of industrial relations is that this ensures continuity of production. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognised. Symposium presented at the 27th Annual Conference of the Society for Industrial and Organizational Psychology, San Diego, CA. iv. It is also viewed that one of the essential steps for building up an economically free and self-sustaining India is, large- scale industrialization at a rapid and steady growth. One study rates the company among the 20 most competitive companies in the Asia. Industrial and organizational psychologists are oftentimes brought in to help achieve these goals. 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