It tries to regulate the activities and behaviour of both employee’s organisations and employer organisations. They should also align both inside and outside power in order to increase and achieve expected goals.
It affects the rights of workers and trade unions by providing job security, income security and social security. The human resource professional along with the supervisor can even hand over a small trophy as a token of appreciation to the top performers. The enterprise-level bargaining has become the dominant even in industries like cotton, silk, plantations in the regions of Mumbai, Coimbatore etc. If, the management personnel believe on the philosophy of settling workers’ grievances/ disputes through bi-lateral negotiation process, they give much more emphasis on mutual talk, sharing responsibility, collaboration, partnership dealing and mutual trust.

Lack of trust and co-operation between the two groups can result in conflicts, disputes and strikes. It is vital for the human resource department to guide every single employee through that learning curve. So all attempts should be made to keep the attitude highly positive and accommodative.The most important part of any organization is human being. In government and public sectors, workforce is shrinking due to non-filling of regular posts and introduction of Voluntary Retirement Scheme (VRS). Ultimately both the fields are concerned with achieving organizational efficiency and we should seek to attain a symbiotic relationship between the two with the two completing rather than competing with each other. Economic liberalisation and globalisation have had a tremendous impact on labour-management relations. If industrial relation is not maintained perfectly, it may lead to low production and productivity, creation of tense situation, lower industrial development, loss of industrial peace and harmony etc. at the national level. These associations, tend to create grounds for negotiations, consultations and dis­cussions on mutual basis leading to good labour- management relations. Under such situation, possibility of establishing healthy human relations develops and these relations influence industrial relations pattern of organization. Involve a neutral third party to resolve the conflict. He has developed 9 systems in his book, “Robert W. Cox’s Approaches to a Futurology of Industrial Relations (1971).”Robert Dubin is regarded as the harbinger of the system approach to industrial relations. Gandhiji advocated peaceful co-existence of capital and labour. New and new projects are introduced for the welfare of the workers and to promote the morale of the people at work. (a) Relationship among employees, between employees and their superiors or managers. in Norway and Sweden.In India, there are more than ten Federations of trade unions or Central Organisations of trade unions representing a large number of workers affiliated to them. That kind of avoidance of law is not accepted by the court. At the second level i.e., outside the firm, the main concern is with the conflicts not resolved at intra-organisational level.Beside this in an industry consists of a group of employees coming from different caste, colour, culture and family backgrounds having different attributes, such as – personality, educational background, emotions, sentiments, likes dislikes, ideologies, attitudes and behaviour. In public enterprises, the government has withdrawn the budgetary support for expenditure arising out of collective bargaining. Providing proper work environment to help workers adapt to work. These councils serve as channels of communication between the management and the workers. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e., to increase production. Thus the three groups of employees, employers and the government work within the social and economic environment that prevails at a particular time. It changes the work organization by necessitating retaining and redeployment. The unconcerned attitude of The Government and the high handedness of the employers towards labour compelled labour to combine for a common cause may be for protest against inhuman conditions of work, meagre wages or harsh treatment of the foreman.Towards the end of 19th century, the attitude of the Government showed a change towards labour because of the agitation by social philanthropists like Robert Owen, Ruskin and others to U.K. and Lokhandey, Bengali and Nadia in India.

Before liberalisation, trade unions in India played a major role in protecting the interests of the workers by using political tactics such as strikes and gheraos. Every worker feels that he is a co-owner of the industry. To deal with the complex task of putting various policies and programmes into action, the first line management / supervisors need to be imparted training in this context.