That means, nature of relationship established amongst the parties in the industry. Industrial disputes disrupt the flow of production; bring strikes, gheraoes and lockouts, organized demonstration, picketing, etc. The increase in industrial labour led to the formation and development of trade unions and various social groups. It normally lasts for a period of 3 months. The goal is to identify and solve problems, increase employee satisfaction, and improve workplace dynamics. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. Methods of psychology are applied to issues of critical relevance to business, including, 4. i. Maintenance of discipline ensures orderliness, effectiveness, and economy in the use of resources. There has been an acute necessity in India, especially during the post-independence period, to industrialize her economy in order to tackle the multifarious socio-economic problems. Good industrial relation brings about realization among the employees that gain to the organization will not only benefit the employer but will benefit them as well. When parties think of mutual interests, it gives more changes of newer development. Similar other success stories abound in the country. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. Industrial democracy means the government mandated worker participation at various levels of the organisation with regard to decisions that affect workers. Industrial relations usually imply good and positive relations between the employees and employers. Understanding Human Relations: By understanding the relations and group behavior existing between the individuals working in industrial organizations, it is possible to develop concepts and techniques of supervision, effective leadership, motivation etc. Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. This area within industrial and organizational psychology takes a close look at employees and their relationship to a given work environment. conclude that the momentous change in both organisational structure and work processes - involving greatly increased labour-management cooperation - in the last 25 years has been driven not by union pressure tactics or favorable legal forces The most important benefit of industrial relations is that this ensures continuity of production. Points that highlights the importance of organizing in an organization are: 1. A student is supposed to be attached to a company or organization that offers services that are related to the student’s course of study. Unemployment compels workers – particularly illiterate and unskilled – to accept jobs, inhuman working conditions and niggardly wages, notwithstanding. Clarity in Working Relationships 3. Industrial relations have moral dimensions too. On the other hand, lack of discipline means waste, accidents, and confusion. This increase is attributed to the peaceful IR in the plant. In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. In today’s context, contemporary IR strategy needs to be proactive due to factors like pressure to enhance productivity, high degree of attrition, downsizing, increasing presence of women employees, competitiveness, etc. From all these we can conclude that good industrial relations certainly boost up the production and improves the quality and quantity both. Nurturing Industrial Peace – Both employer and employees sit across the table and thrash out issues of difference. Moreover, career patterns have also changed widely by providing change for wide varieties of jobs to the working communities. This has been possible only through fast industrial development which, in its turn, depends on industrial peace. We can’t even retain our freedom without industrial growth.”. Their major aim is to make the workplace a desirable place for all and sundry. Human Resource Management, Industrial Relations, Importance of Industrial Relations. Good IR helps to run an industry effectively and successfully. 4 Importance of Industrial Relations: The following industrial relations 4 importance below are; Increased Productivity: With amicable industrial relations both the workers and managers continue to work on their respective position and contribute towards the overall productivity of the firm. iv. Much of the success or failure of Indian Five Year Plans would be dependent on the maintenance of harmonious employee-employer relations. Experiences indicate that good industrial relations serve as the key for increased productivity in industrial organisations. Industrial relations are human relations in industry. An increase in the morale of workers reduces per unit cost of production too. As such the main objective of industrial relations is to establish good and harmonious labour management relations which promote mutual understanding, mutual confidence and resolve the mutual differences. They also clog the progress the nation. Good industrial relations improve the morale of the employees. For example, at the Alwar plant of Eicher Tractors, productivity went up from 32 per cent between 1994 and 1996 to 38 per cent in 1997. As S. C. Kuchhal rightly put it, “the larger the range they cover and the more fundamental the commodities or services they are associated with, the more marked is their influence and damage”. 3. The relationship may be positive, negative or mixed. To help establish and maintain true industrial democracy which is a prerequisite for the establishment of a socialist society. So, the importance of industrial relations in industry is self-evident and does not need any elucidation. In the opinion of V. B. Singh, “Industrial relations are an integral aspect of social relations arising out of employer-employee interaction in modern industries which are regulated by State in varying degrees, in conjunction with organized social forces and influenced by the existing institutions. 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