 Namaskar dear learners. My name is Chainika Sanapati and I am from Maninam Devan School of Management Krishnakanta on Lukovice State of University. Welcome to the second part of the video on the unit labor environment from the course business environment. By now you have got some idea on the concept related to labor market principles of labor legislation and also the definitions of labor welfare. So in this video we will discuss on the industrial relation the concepts of industrial relations then also the importance of industrial relation why it is important in an organization and also we will discuss about trade union the concept of workers participation in the management and also we will discuss at the end of this video the VRS and golden handshake. Let us now discuss about the concept of industrial relations. So the term industrial relation comprises of two terms that is industrial and relations. So the term industry refers to any productive activity in which an individual or a group of individual is or are engaged and by relations we mean the relationship that exists within the industry between the employer and the employees and the workmen. The term industrial relations has a broad as well as narrow outlook. So originally industrial relations were broadly defined to include the relationships and interaction between employers and employees and so from this perspective industrial relations covers all aspects of the employment relationship including human resource management, employee relations, union management or labor relations. But now its meaning has become more specific and restricted. So accordingly industrial relations pertains to the study and practice of collective bargaining trade unionism than labor management relations. So let us now discuss some of the definitions of industrial relations. In the world of Leicester industrial relations involve attempts at arriving at solutions between the conflicting objectives and values between the profit motive and social gain, between the discipline and freedom, between authority and industrial democracy, between bargaining and cooperation and between conflicted interest of the individual, the group and the community. Thus industrial relation can be defined as a coin having two phases that is cooperation and conflict. This relationship undergoes change from thesis to antises and then to synthesis. Thus the relationship starting with the cooperation soon changes into a conflict and after its resolution again changes into cooperation. This changing process become a continuous feature in the industrial relation system and makes the industrial relation concept a dynamic and evolving one. Let us now discuss the scope, objective and need of industrial relations. Based on the definitions that we have discussed industrial relation the scope of the industrial relation can be outlined as a labor legislation that is relationship between the labor union and management. Then employer-employee relations that is relations between management and employees, the role of various parties, the mechanism of handling conflicts between employers and employees in case if there any conflict arises. The main and the primary objective of industrial relation is to maintain and develop good and healthy relationship between the employees and the employers or operatives and the management. Thus the objective of industrial relations can be stated as establish and foster some relationship between workers and the management by safeguarding their interest, avoid industrial conflicts and strike by developing mutuality among the interest of the concerned parties and keep as far as possible strikes, lockouts and garrows at bay by enhancing the economic status of the workers, then provide an opportunity to the workers to participate in the management and decision making process, then raise productivity in the organization to curb the employee turnover or absenteeism and to avoid unnecessary interference of the government as far as possible and practicable in the matter of relationships between the workers and the management. There is definitely a need of industrial relations and the need of industrial relation has arised to defend the interest of the workers for adjusting the reasonable salary or wages. It also helps the workers to seek perfect working conditions, then the workers, employees are concerned with the social security measures also through industrial relations. So industrial relation is also needed for achieving the democracy by allowing workers to take part in the management as well. Industrial relation encompasses some factors that influence behavior of the people at work. Some of the important factors are the characters. It aims to study the role of the workers' unions and employers, federations, officials, shop stewards, their industrial relations officers or managers or mediators, consulator etc. Then institutions, it includes government employers, trade unions, union federations and associations, then government bodies, labor courts, tribunals and other organizations which are direct or indirect impact on the industrial system. Then methods, methods focuses on collective bargaining, workers participation in management, then in disciplinary procedures, then grievance reversal machinery, then dispute settlement machinery, revision of existing rules and regulations or policies and procedures, hearing of the code labor tribunals and then the contents. It includes matter pertaining to employment conditions like pay, hours of work, leave, with wage, health and safety, disciplinary action, lay off dismissals, then participation in workers' participation in management, then collecting bargaining. So, these are some of the things, factors that includes in the contents. As we have discussed about industrial relation, here it is very important to discuss about trade union also. So, let us now discuss about the meaning of trade union. So, the trade union are voluntarily organizations or association of workers formed to promote and protect their interests through collective actions. Thus, a labor union or trade union is an organization of workers who have joined together to achieve goals in areas such as wages and working conditions. The union negotiates contracts and conditions with employers keeping employee satisfaction high and protecting workers from unsafe and unfair working conditions. Thus, the primary for purpose of the trade union is collective bargaining. Under the trade union act 1926, the term trade union may be defined as any combination where the temporary or permanent formed primarily for the purpose of regulating the relationships between the workers and the employers or for imposing restrictive conditions on the condition of any trade or business and includes any federation of two or more unions. Let us now discuss about workers' participation in management, its meaning and some of the definitions given by the scholars. Workers' participation management is a system of communication and consultation either formal or informal by which employees of the organization are kept informed about the affairs of the undertaking or through which they express their opinion and contribute to the management decision process. Workers' participation in management provides a chance to employees in organizations decision making process. The workers' participation may be at shop level, departmental level or at the top level. The workers' participation in management implies the willingness to share the responsibility and accept commitment by the workers in executing decisions of the management with consultation of the workers. The workers' participation in management conducted through the mechanism of forums which provide the association of workers' representatives. Let us now discuss about the levels and forms of workers' participation in management. So the level of participation of workers in management is number one, information participation of workers. It ensures that employees are able to receive information and express their views pertaining to the matters of general economic importance. Then consultative participation of workers under this kind of workers' participation in management, workers may act as consultant in the matter of workers' safety, health and their welfare at workplace. The associative participation of workers, this kind of workers' participation in management is the next level of consultative participation. Under this participation of management, morally the management accepts and implements the opinion of the employees. Then administrative participation of worker, under this kind of participation of workers in management, worker take part in discharge of managerial functions. Then decisive participation of workers, it is the highest level of workers' participation in management where the employees and the management together take decision on the matters related to the workers, welfare and production related issues. There are certain forms of workers' participation in management. Number one, the joint consultation model. Number two, joint decision model. Number three, self-management or auto management scheme. The number four, workers' representation on the board. So what is joint consultation model? In this consultation model, the management consult with the workers before taking decisions. The workers represent their views through joint consultative committees. Then joint decision model. In this form, both the workers, the employees and the management jointly decide and execute the decision. Then the self-management or self-management scheme. In this model or form, the entire control is in the hands of the workers. The workers manage the organizations themselves. Then the workers' representation on board. So under this method, the workers elect their representative and send them to the board to participate in the decision making process. Let us now discuss about voluntary retirement scheme that is BRS and Golden Handshake. Voluntary retirement is legally tenable and forms an integral part of public policy. This scheme is voluntary on both sides, the employer and the employees. The voluntary retirement scheme package is offered to the employees as an incentive to retire earlier than their normal retirement age. And the BRS package usually contains generous retirement benefits for certain employees. The main purpose of BRS is to downsize the number of employees on payroll or adopt a changing business environment. Let us now discuss some of the cost constraints and benefits of BRS. Costs and benefits to the company. A company introduces BRS with a view to reduce its surplus labor. If a company or an organization can reduce its workforce through retrenchment, it has to pay compensation at the rate of 15 days salary for every year of completed service. So companies employing more than 100% cannot retrench their employees without giving prior notice. Then consultation with the employees or union or paying compensation under the law. And also obtaining prior permission of the appropriate government. The extent of BRS amount is dependent on the number of factors like relative health of the enterprise, the real cost in terms of intangible elements, moral and motivation. Let us now discuss about golden handshake. A golden handshake is a clause in an employment contract that provides the employee with a significant severance package in the case that the employee or the executive losses his or her job through firing, restructuring or even scheduled retirement. This can be in the form of cash, equity and other benefits like stock options. Golden handshake are offered only to a high ranking executives by major corporations. We can take an example of golden handshake like it is usually offered to a director, senior executive or consultant who is to let go before his or her contract has expired. This situation is most common after the event of mergers or takeovers or buyout. So dear learners, we have come to the end of this part of the video on the unit labour environment. So in this unit including both the parts of the video we have gone through the concept of labour market, we have gone through the concept of labour legislation, also the what is called industrial relation, the concept of industrial relations is important. Also we have learned about workers participation in management, the concept of VRS and golden handshake. So thank you so much for watching this video. We will also come up with other units related to management. Thank you so much for watching.