Industrial relations.

INDUSTRIAL relations are the most critical component of human resource management. Other elements of HRM, such as recrAuAiAtment, determination of salary and perquisites, performance and job evaluation, training and development, discipline handling, etc may be handled through the skills and experience of HR personnel. However, managing industrial relations requires many other traits in the individual, such as knowledge of labour laws, good communication skills, patience, perseverance and a cool temperament, analytical thinking and the ability to handle crises.

In the West, no distinction is drawn between the terms 'employee relations' and 'industrial relations'; both are considered a common title for the industrial relations function within personnel management. Employee relations have been defined by the dictionary of human relations, published by Oxford University Press, as follows: 'The term underlines the fact that industrial relations is not confined to the study of trade unions but embraces the broad pattern of employee management, including systems of direct communication and employee involvement that target the individual worker.'

In Pakistan, the term 'industrial relations' is considered a separate area, which is quite comprehensively governed by the provisions of the Industrial Relations Ordinance, 1969. As is evident from the following preamble of the ordinance, its scope is quite large and encompasses various activities of unions, management of forums and collective bargaining: 'An ordinance to amend and consolidate the law relating to the formation of trade unions, the regulation of relations between employers and workmen and the avoidance and settlement of any differences or disputes arising between them.'

In most companies in Pakistan, employees are divided into two broad categories: management and non-management. The management employees are placed in higher cadres and their terms and conditions of employment are quite different from those of non-management staff.

If there is a union in the organisation, the latter are called 'unionised staff' and their terms of employment are based on the provisions of a collective labour agreement signed with the union. Their employment is protected by labour laws and does not depend upon the whims of the employer.

The absence of a union means unilateral decisions by the management.

In companies where there are no unions, decisions about periodical increases in salary and benefits are...