Concept of Labor Relations
Traditionally, labor relation was considered as a relationship between employees and employers. Labor relations can refer broadly to any dealings between management and workers about employment conditions. But these days, this has become a burning issue consisting of the relationship between workers, employers and social environment of the organization. It is a dynamic socio-economic process that makes a social dialogue possible among employees, employers and the organizational social environment. The primary focus of it should be on grievance handling, industrial dispute, and interpretation labor laws, etc. It provides a context in which organizational rules and regulations are framed so that organizational roles assigned to members are performed. Most commonly, however, a labor relation refers to dealings between management and a workforce that is already unionized or has the potential to become unionized.
Labor relations is thus crucial to industries like autos and airlines with heavily unionized workforces. Hence, labor relation or employee relation or industrial relation is a system that makes the social dialogue between employees, employers and society/government. It refers to all means of the relationship between management and employees, unions and management, unions and employees and between the employees themselves. It is a joint effort of these major influences that produce harmonious industrial relations between them. But it is the multi-dimensional force that is influenced by the external forces economic, social, cultural, political, legal, technological and occupational forces. The primary concern of labor relations is to promote a healthy and harmonious relationship between employees and the employers. Besides management and workers, the government is another important factor that influences organizational affairs through legal and administrative measures. In this way, this harmonizes the divergent and conflicting interests of these parties through a consolidated dialogue.