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.
The purpose and policy of the labor relation are as follows:
- To prescribe the lawful rights of both employees and employers in their relations concerning commerce
- To give orderly and peaceful procedures for preventing employees and employers from interfering with each other’s legitimate rights
- To protect the rights of individual employees in their relations with labor organizations whose activities affect commerce
- To define and prescribe the labor and management practices that affect commerce
- To protect the public’s rights in connection with labor disputes affecting commerce
Purposes of Labor Relations
Labor relation is the study and practice of managing unionized employment situations. A brief description of purposes of labor relation is as follows:
- Harmonious Relations
Labor relation brings an efficient relationship between industrial actors employees, employers and the government/society. It aims to develop and promote a good working relationship within and outside the organizational sphere.
- Legal Representation
Labor relations bring about a legal representation of the society or that state in organizational affairs. This means labor relation brings all actors in a negotiation regarding the implementation of labor laws, rules, and regulations.
- Industrial Peace
Through the institutionalization of organizational rules and regulations, an efficient relationship between and among the industrial actors is obtained. This ultimately results in a high degree of industrial peace in the organization. Hence, an effective maintenance of labor relations ensures industrial peace and organizational stability.
- Physical Facility
A good maintenance of labor relations in the organization introduces a good working environment thereby increasing organizational facilities in the workstation. Moreover, the workers get sufficient financial and non-financial benefits/incentives to lead a quality life.
- Effective Communication
Another purpose of labor relation is to introduce an effective communication system in the organization. The communication system will be effective when it allows two-way flow of messages and information between all levels of employees. For effective communication, the actors should also be effectively involved in the system.
- Change Management
An effective implementation of labor laws, rules, and regulations by introducing a creative work environment, cooperation and confidence make the process of change easy. This helps to initiate organizational and environmental changes in today’s Topsy-curvy environment.
- Productivity and Organizational Effectiveness
A good labor relation aims to increase the productivity of the workers as well as the organization. Due to cordial labor relations, employees take interest in their jobs and work effectively and efficiently. This leads to higher production output thereby enhancing the existing level of productivity at a higher point. This ultimately results in the enhancement of organizational effectiveness.
- Reduce Industrial Actions
An efficient relationship between industrial actors helps to reduce industrial actions such as strikes, lock-outs, sits-in, demonstration, and other protective activities.
- Organizational Stability
Labor relation aims to establish an efficient and friendly work environment in the organization. The introduction of industrial peace provides an important pre-condition for organizational stability and goal achievement.