Importance of Industrial Relation
(1) Reduces Industrial Disputes – Peaceful industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction, which are fully cured by good industrial relations. Strikes, lock-outs, go slow tactics, gherao, and grievances are some of the reflections of industrial unrest which do not spring upon an atmosphere of industrial peace.
(2) High Morale – Sound industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interests of employer and employees are the same, i.e., to increase production. Every worker feels that he is a co-owner in the organisation and every employer realises that the gains of industry are not for him alone but are to be shared equally and generously with workers. Complete unity of thought and action is the main achievement of industrial peace.
(3) Collective Bargaining – Good industrial relations are extremely helpful for entering into long-term agreements as regards various issues between labour and management.
(4) Fair Benefits to Workers – The workers should get sufficient economic and non-economic benefits to lead a happy life. It is possible when relations between workers and management are cordial and productivity is high.
(5) Facilitation of Change – Climate of cooperation and confidence make the process of change easy. Hence, full advantage of latest inventions, innovations, and other technological advancements can be obtained. The work force easily adjusts itself to required changes for betterment. Thus, smooth industrial relations are necessary and useful to employers and employees.
(6) Mental Revolution – Industrial relations completely transform the outlook of employers and employees. The process of joint consultations paves the way for individual democracy. This motivates the workers to give their best to the organisation and share the fruits of progress jointly with the management.
(7) Worker ‘ s Development – New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labour welfare facilities, etc. It increases the efficiency of workers resulting in higher and better production at lower costs.
(8) Reduced Wastage – Good industrial relations are maintained on the basis of cooperation and recognition of each other. It helps in increasing production. Wastage of man, material and machines are reduced to the minimum and, thus, national interest is protected.
(9) Uninterrupted Production – The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all – from manager to workers. The resources are fully utilised, resulting in the maximum possible production. There is uninterrupted flow of income for all.