Industrial Relations Importance

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IMPORTANCE OF INDISTRIAL RELATIONS Success of any industry depends on the efficiency and goodwill of the employees and mostly on the harmonious employer - employee relationship, as they form the heart and soul of every industrial concern. Good industrial relations are necessary for the economic development of a country and for establishing and maintaining true industrial democracy (Ramachandraiah.C,V. K. Bawa,2000).With the harmonious industrial relations, any industry can accomplish its vision and mission. The importance of industrial relations is as follows. Ceaseless production: In any organization, if the resources are fully utilized by maintaining supportive employee-employer relations it may result in the maximum possible production…show more content…
Due to liberalization of trade and deregulation of financial markets the governments have a little control over the flow of capital which facilitated the movement of businesses across the borders. It showed an impact on several organizations and forced them to take innovative steps in order to improve the operational efficiency through introducing quality management system. Thus many organizations have begun strengthening their businesses through mergers and acquisitions to expand their free markets around the world. This increase in the international economic interdependence showed lot of impact on the concept of traditional industrial relations in several broad ways especially in India. Globalization thus showed its impact both directly and indirectly on the industrial relations systems and its actors by disturbing the relation between "capital" and "labour" in each country. Capital is significantly movable in an open international environment while labour remains relatively fixed placing "labour" at a relative disadvantage. Globalization brought development in various enterprises changing the course of industrialization affecting employment relations and industrial relations at all levels viz., regional, national and international levels. In addition to the effects of globalization, India is facing more population growth and labour surplus intimidating the sustainability of performance, productivity, economic growth and international

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