Effective Industrial relations means Industrial peace necessary for better and higher production, hence, healthy Industrial Relations is the key to progress of individuals, management, Industry and Nation.
Importance of Industrial Reations are as follows:
a. It is the most important benefit of industrial relations. b. It ensures continuity of production. c. It provides continuous employment to all. d. Optimum use of available resources in order to gain maximum possible production. e. Continuous flow of income for all.
Reduction in Industrial Dispute
a. Cordial Industrial relations helps in reducing industrial disputes, disputes are reflections of the failure of basic motivation in order secure satisfaction among employees. Some reflections of industrial unrest includes strikes, lockouts, gheraos and grievances. b. It promotes industrial peace with cordial industrial relations, disputes can be settled through co-operation.
High morale - Industrial relation improves the morale of employees
a. Employee feels that he is co-owner of the profits of industry. b. High morale induces employees to work with high energy as they feel that their interest co-ordinates with organizational interest. c. In order to maintain good Industrial relations employer need to realize and share equally the profits of industry generously with employees d. Unity of thought and action against workers and management is main achievement of industrial peace. e. Effective industrial relations boosts morale of workers which leads to positive effect in production
a. Effective Industrial Relations brings mental revolution among employees which bring complete overhaul in the outlook of employees. b. Employees, employer and government need to work out a new relationship in consonance with spirit of true democracy where each thinks of themselves as partners in industry. c. Industrial peace ultimately lies in transformed outlook.
Economic growth and Development
It promotes economic growth and development, effective industrial relations lead to increase efficiency and higher productivity, which ultimately results in economic development.
Discourages unfair practices
Cordial industrial relations discourages unfair practices on part of both management and unions. Industrial relations leads to formation of machineries in order to solve problems confronted by management, employees and unions through mutual understanding and negotiations to which both parties are bound, this results in banning of unfair labour practices.
Enactment of statutory provisions
Industrial relations enables essential use of certain labour laws in order to protect and promote the welfare of employees and safeguards interests of all parties against unfair means means or practices.