Importance of Good Industrial Relations

Industrial relations refer to the professional relationships and interactions between employers and employees relationships. A good industrial relations is one in which both employers and employees are satisfied with their duties and responsibilities, and there is a healthy work relationship between the two parties.

The significance of good industrial relations in any country cannot be overemphasized. Good industrial relations are necessary for various reasons.

  • Good industrial relation helps in the economic progress of a country. The problem of an increase in productivity is essentially the problem of maintaining good industrial relations
  • Good industrial relations help in establishing and maintaining true industrial democracy, which is a prerequisite for the establishment of a socialist society
  • Good industrial relations help management both in the formulation of informed labour relations policies and their translation into action
  • Good industrial relations encourage collective bargaining as a means of self-regulation. They consider the negotiation process as an educational opportunity, a chance both to lean and to teach
  • Good industrial relations help government in making laws for bidding unfair practices of unions and employers
  • Good Industrial relations boosts the discipline and morale of workers. Maintenance of discipline ensures orderliness, effectiveness and economy in the use of resources.

Good industrial relation reflects themselves in several ways:

  • In workers movement – unions gain more strength and vitality.
  • There is no inter-union rivalry.
  • Employers give unions their rightful recognition and encourage them to participate in all decision.
  • Unions divert their activities from fighting and belligerence to increasing the size of the distribution cake and to making their members more informed, no vital issues concerning them.

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