What Is The Importance Of Industrial Relations

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Introduction In this era of globalization, there is significant change in new age competitive world. The only way is through the learning & adapting with environment change within an organization in order to be able survived among rivalries. As different parties have different ideologies and self-interests, disputes often happen around the organization and cooperation is needed from each party in order to attain the common benefits and thus pursuit to broader goals (Parasuraman, 2004). This process of bargaining and cooperation relationships among different parties is occurred within a system called industrial relations (IR). As briefly describe, a success IR system can resolve disputes by retain what is appropriate in dynamic environment and…show more content…
The contributions of industrial relations toward the organization including reduce company wastage, reduce the occurrence of disputes, and achieve organizational goals (Importance of Industrial Relations, n.d.). First, IR reduces company wastages. IR helps to maintain the cooperation and recognition between employer and employees. Thus, both parties reach a consensus in common interests and sharing benefits. Thus, the production flow will not be interrupted and the resources can be fully utilized. Eventually, this will maximize the production without wastages. Besides that, IR assists organization to avoid or reduce industrial disputes. This goal can be achieved through collective bargaining. Collective bargaining is the written agreement between trade union and an employer about terms and conditions of work and employment of the union members (Parasuraman, 2004). In the process of collective bargaining, the dialogue and communication from both sides will reflect the fundamental human urges or motivations that contribute to satisfaction (Importance of Industrial Relations, n.d.). As a result, the understanding of each other fosters cooperation and reduces disputes
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