Tag: Relationship

  • Difference between Demand and Supply Forecasting Planning

    Difference between Demand and Supply Forecasting Planning

    Demand Forecasting Planning and Supply Forecasting Planning Difference relationship class 11 12 PDF; Demand forecasting planning is a quantitative part of human asset planning. It is the way toward assessing the future necessity of HR, everything being equal, and sorts of the association. Also, other hand Supply forecasting planning implies assessing the supply of HR contemplating the examination of current HR stock and future accessibility.

    The basic relationship and difference between Demand Forecasting Planning and Supply Forecasting Planning class 11 12 PDF.

    Basically, demand planning is forecasting client demand while supply planning is the administration of the stock supply to meet the objectives of the figure. We should investigate the various segments of demand forecasting planning versus supply forecasting planning and how they can coordinate.

    Meaning and Definition of Demand Forecasting Planning:

    Demand organizers join informational indexes from verifiable deals, market impacts for instance publicizing, online media, and so on, retailer/merchant activities like advancements, spiffs, and so on, and different conditions, for example, climate or schools opening to figure client demand. Also, there are two sorts of demand forecasting. Unconstrained demand sales forecasting centers around crude demand potential without calculating potential requirements, for example, limit and income.

    Then again, obliged forecasting considers the restrictions of the part of the task of the business. The fact is to utilize the two kinds to empower the business to encourage custom orders; and, give their clients the best incentive for cash while downplaying the supply cost. Improved demand forecasting decreases the measure of stock held to meet assistance targets consequently lessening costs. Also, Demand forecasting planning arrangements are crucial for compelling forecasting; as they make it conceivable to deal with total information from the various offices and uncover purchasing behaviors and patterns.

    Meaning and Definition of Supply Forecasting Planning:

    Supply planning looks to satisfy the demand plan while meeting the monetary and administration objectives of the business. Supply chain planning factors on the whole viewpoints identified with stock creation and coordinations. Also, These segments incorporate open and arranged client orders, on-hand amounts, lead times, least request amounts, security stocks, creation leveling, and demand pursue.

    Supply planning programming can computerize contributing the demand plan; and, all the part information from there on creating an expert creation plan. When the supply plans see up, an audit on the limit and its effect on assets finish, and amendments make as needs be. Both demand and supply planning is similarly significant and works advantageously to guarantee effective help conveyance. Also, The utilization of huge informational indexes, supply, and demand planning arrangements can deliver more precise conjectures and plans which will expand profit from the venture. What are the Relationship and Difference between Demand Forecasting Planning and Supply Forecasting Planning class 11 12 PDF? Below are you’ll better understand;

    Forecasting Planning Demand and Supply:

    The second period of human asset planning, forecasting demand, and supply include utilizing quite a few complex factual strategies dependent on investigation and projections. Such forecasting methods past the extent of this conversation. At a more down-to-earth level, forecasting demand includes deciding the numbers; and, sorts of staff that an association will require sooner or later. Most chiefs consider a few components when forecasting future faculty needs.

    The demand for the association’s item or administration is central. Consequently, in a business, markets, and marketing projections project first. At that point, the staff expected to serve the projected limit assessment. Different factors ordinarily thought about when forecasting the demand for workforce incorporate spending requirements; turnover because of renunciations, terminations, moves, and retirement; innovation in the field; choices to update the nature of administrations gave; and minority recruiting objectives.

    Forecasting supply includes figuring out what faculty will be accessible. The two sources are inward and outer: individuals previously utilized by the firm and those external the association. Variables supervisors ordinarily consider when forecasting the supply of workforce incorporate advancing representatives from inside the association; recognizing workers willing and ready to prepare; accessibility of required ability in nearby, provincial, and public work markets; rivalry for ability inside the field; populace patterns (like the development of families in the United States from Northeast toward the Southwest); school and college enlistment patterns in the required field.

    Interior wellsprings of workers to fill projected opportunities should check. This encourages by the utilization of the human asset review or the orderly stock of the capabilities of existing staff. A human asset review is just an authoritative outline of a unit or whole association with all positions (generally managerial) show and key regarding the “promotability” of every job occupant.

    Demand and Supply Forecasting Planning Difference or Relationship or Comparison Chart or tables:

    BASIS FOR COMPARISONDEMAND Forecasting PlanningSUPPLY Forecasting Planning
    MeaningDemand forecast plan is the desire of a buyer and his/her ability to pay for a consumers or particular commodity at a specific price.Also, the Supply forecast plan is the quantity of a commodity which is made available by the firms or producers to its consumers at a certain price.
    CurveDownward-sloping forecasting plansUpward-sloping forecasting plans
    SlopeUpper to Down way line graphOther hand, Down to Upper way line graph
    Relationship with PriceInverse PriceAs well as, Direct Price
    RepresentsThis is representing by CustomerOther hand, this is representing by Firm
    Effect of VariationsIf we have forecasting plan, we know – When the demand increases but supply remains constant, it leads to shortage but when the demand decreases and the supply is constant leads to surplus.Other hand forecasting plan, we know – When the supply increases but demand remains constant, it leads to surplus but when the supply decreases and the demand is constant it results in shortage.
    Determinants and forecasting other than priceTaste and Preference base forecasting plans. Also, The number of Consumers Analysis. This forecasting depends on the Price of Related Goods. It is forecasting depends on Consumer Income. Consumer Expectations Planning.Price of the Resources and other input base forecasting plans. The number of Producers Analysis. This forecasting depends on the Price of factors of production. It is forecasting depends on Taxes and Subsidies. As well as, Technology Planning.
    Demand Forecasting Planning and Supply Forecasting Planning Difference relationship class 11 12 PDF.

    6 best Key relationship or difference Between Demand Forecasting Planning and Supply Forecasting Planning:

    Forthcoming focuses will disclose to you the relationship or difference between demand and supply forecasting planning:

    • Demand is the ability and paying limit of a purchaser at a particular cost. Then again, Supply is the amount offered by the makers to their clients at a particular cost.
    • While the demand bend is descending to one side, the supply bend is upward to one side. And so the demand bend is a negative slant though the supply bend is a positive slant.
    • Demand has a roundabout relationship with the cost for example as the cost expands, the amount demanded diminishes, and it the other way around. Then again, the supply has an immediate relationship with cost as in when the cost expands, the amount provided increments, and the other way around
    • While demand is a pointer of clients or purchasers, supply addresses the firm or makers of the item.
    • Demand for an item affects by five variables – Taste and Preference, Number of Consumers, Price of Related Goods, Income, Consumer Expectations. Conversely, Supply for the item is subject to the Price of the Resources and different data sources, Number of Producers, Technology, Taxes and Subsidies, Consumer Expectations.
    • At the point when the demand increments however supply stays steady, it prompts deficiency yet when the demand diminishes and the supply is consistent prompts excess. As against, when the supply increments yet demand stays consistent, it prompts excess however when the supply diminishes and the demand is steady it brings about deficiency.
    Demand Forecasting Planning and Supply Forecasting Planning Difference relationship class 11 12 PDF Image
    Demand Forecasting Planning and Supply Forecasting Planning Difference relationship class 11 12 PDF; Image from Pixabay.

  • The relationship of Controlling with other Functions of Management

    The relationship of Controlling with other Functions of Management

    What does mean the relationship of Controlling? Control is closely related to other functions of management because control may affect by other functions and may affect other functions too. Often it is said planning is the basis, the action is the essence, delegation is the key, and information is the guide for control. Relations of Controlling with other Management Functions in Hindi.

    Here are explained; The relationship of Controlling with other Functions of Management.

    This reflects how control is closely related to other functions of management. In fact, managing process is an integrated system and all managerial functions are interrelated and interdependent. When control exists in the organization, people know: what targets they are striving for, how they are doing in relation to the targets, and what changes are needed to keep their performance at a satisfactory level.

    The relationship of controlling with major managerial functions can describe as follows:

    Planning:

    Planning is the basis for control in the sense that it provides the entire spectrum on which control function is based. In fact, these two terms are often using interchangeably in the designation of the department, which carries production planning, scheduling, and routing. It emphasizes that there is a plan, which directs the behavior and activities in the organization.

    Control measures this behavior and activities and suggests measures to remove deviation if any. Control further implies the existence of certain goals and standards. The planning process provides these goals. Control is the result of particular plans, goals, or policies. Thus, planning offers and affects control. There is a reciprocal relationship between planning and control.

    Thus various elements of planning provide what is intended and expected and the means by which the goals are achieving. They provide a means for reporting back the progress made against the goals, and a general framework for new decisions and actions in an integrated pattern. Properly conceived plan become important elements in implementing effective control.

    Action:

    Action as the Essence, Control basically emphasizes what actions can take to correct the deviation that may be found between standards and actual results. The whole exercise of the managerial process is taken to arrive at organizational objectives set by the planning process.

    For this purpose, actions and further actions are necessary; each time there may be correction and change in the actions depending upon the information provided by control procedure. Though it is not necessary that each time a corrective action is taking but control ensures the desirability of a particular action.

    This is important for organizational effectiveness. Thus, in a real sense, the control means action to correct a condition found to be in error or action to prevent such a condition from arising and is never achieve without having acted as an essential step.

    Delegation:

    Delegation is the key for control to take place because control action can be taken only by the managers who are responsible for performance but who have the authority to get the things done. A manager in the organization gets authority through delegation and red legation. It does not make sense to make someone responsible for achieving results without delegating him adequate authority.

    In the absence of adequate authority, a manager is unlikely to take effective steps for correcting the various deviations located in the process of analysis. Taking of corrective actions may see in the context of controllability of a factor affecting the deviation or non-achievement of organizational objectives. Some of these factors are controllable and some are uncontrollable.

    A controllable factor is one, which can control by executive action, while the uncontrollable factors lie outside his jurisdiction. A manager’s action is likely to be more effective if more factors are controllable by him. He can have better controllability if he has been authorizing to take decisions on various matters concerning him and affecting his action. Tile best policy of delegation is the matching of responsibility and authority.

    It suggests that a manager must have corresponding authority as compared to his responsibility. He has to control the operations, which are exercising by taking action. And, action may take within the limit of the authority. So the only person who can directly control activities is the one who is directly responsible for them. This is the basic principle for effective organizations.

    The relationship of Controlling with other Functions of Management, #Pixabay.

    Information:

    Information as of the Guide, Control action is guiding by adequate information from beginning to the end. Management information and management control systems are closely interrelating; the information system is designing on the basis of the control system. Every manager in the organization must have adequate information about his performance, standards, and how he is contributing to the achievement of organizational objectives.

    There must be a system of information tailor to the specific management needs at every level. Both in terms of adequacy and timeliness. Control system ensures that every manager gets adequate information. The criterion for adequacy of information for a manager is his responsibility and authority that is in the context of his responsibility and authority. What type of information a manager needs.

    This can determine on the basis of careful analysis of the manager’s functions. If the manager is not using any information for taking a certain action. The information may mean for informing him only and not falling within his information requirement.

    Thus, an effective control system ensures the flow of information. That is requiring by an executive, nothing more or less. There is another aspect of information for control and other function, that is, the timeliness of the information. Ideally speaking, the manager should supply the information when he needs it for taking action. For correcting the deviation, timely action is requiring by the manager concerned.

    For this purpose, he must have the information at the proper time and covering the functioning of a period, which is subject to control. The control system functions effectively on the basis of the information, which is supplying in the organization. However, the information is using as a guide and on this basis, a manager what action can take.

  • The Relationship between Central and Commercial Banks!

    The central bank and commercial banks have their distinct identities and functions. The central bank, through its function of the lender of the last resort, acts as an active agent of the government in implementing its monetary policies. In developed countries, the efficient carrying out of this function is easy. Also learned, Economic and Market Value Added, The Relationship between Central and Commercial Banks!

    Learn, Explain The Relationship between Central and Commercial Banks! 

    The following concept of relationship below are;

    Central Banks:

    A central bank, reserve bank, or monetary authority is an institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and usually also prints the national currency, which usually serves as the state’s legal tender.

    Central banks also act as a “lender of last resort” to the banking sector during times of financial crisis. Most central banks usually also have supervisory and regulatory powers to ensure the solvency of member institutions, prevent bank runs, and prevent reckless or fraudulent behavior by member banks.

    Commercial Banks:

    A commercial bank is an institution that provides services such as accepting deposits, providing business loans, and offering basic investment products. The commercial bank can also refer to a bank, or a division of a large bank, which more specifically deals with deposit and loan services provided to corporations or large/middle-sized business – as opposed to individual members of the public/small business.

    In developing economies, however, this is not so simple. Here a case is often made for entry of the central bank in some selected fields to promote the development of the economy; besides ensuring the growth of a sound banking structure to cope with the increasing needs of credit. Commercial bankers take this as an encroachment on their field.

    The Relationship between the commercial banks and the central banks:

    The relationship between the commercial banks and the central bank has to be based on reciprocity. The commercial banks should conform to the spirit of central bank directives rather than letters. On the other side, the central bank should invariably satisfy the genuine needs of the commercial banks in times of stresses and strains. A moral code of conduct between the two will have to be evolved, accepted and followed.

    They argue that the major part of the Central Bank’s funds comprise the reserves of the commercial banks meant for safeguarding their safety (liquidity). It would be immoral on the part of the central bank to compete in business with the commercial banks with their money. In view of the co-operation that the central bank often seeks from commercial banks for carrying out its policies, the central bank should not invite hostility from them by giving them unjust competition through its special privileges as the bankers’ bank and the banker of the government.

    In spite of these arguments, opinion has gone in favor of the undertaking of some commercial business by the central bank, especially in underdeveloped economies. A small amount of business can hardly affect the liquidity position of the ‘creator of liquidity’. It is not at all necessary that the central bank uses the commercial banks’ funds for this. It can set up a separate department for commercial business and create resources also.

    In fact, it may organize a special agent bank as its favored child for doing the arduous business necessary for economic development often avoided by commercial banks. Further, if the central bank feels that the steering wheel of credit control in its banks is loose and not functioning satisfactory, it may gain an edge of maneuverability by keeping in touch with the market through a limited amount of business.

    Besides, in an agriculturally depressed economy like India, the central bank may take up the onus of developing a bill market, granting direct loans, or discounting good bills of exchange. As regards direct loans, it may be a bit difficult to democrat clearly the central bank’s field vis-a-vis that of the commercial banks.

    The difficulty is removed if the central bank while doing ordinary commercial business keeps in mind that in its operations, the public interest and not profit-earning motive, prevails; what it can get done through commercial banks it never undertakes to do itself.

    The various quantitative and qualitative instruments of credit control should be judiciously used by the central bank. No doubt, the bank has the drastic weapons of reserve ratio requirements, open market operations or changes in the bank rate, etc. but none of them is fool-proof.

    After all, it is bank official on the spot who can judge between the credits asked for socially desirable productive purposes or credit being taken in the name of bonafide purposes, but to be used for some anti-social actions. Unless the commercial bank and the central bank provide willing co-operation, the one will be weakened and the other will be frustrated. This is why moral persuasion must be preferred now to direct action.

  • The relationship between Economic and Market Value Added!

    Whether a company has positive or negative Market Value Added (MVA)  depends on the level of rate of return compared to the cost of capital. All this applies to Economic Value Added (EVA) also. Stewart has defined the relationship between EVA and MVA. When a business earns a rate of return higher than its cost of capital, EVA is positive. In other words, investors are earning more than their investment in that business than they could elsewhere. In response, investors bid up share prices, increasing the value of their business and driving up its MVA. Similarly, investors discount the value of businesses that earn a return below their cost of capital. Also learned, The relationship between Economic and Market Value Added!

    Learn, Explain The relationship between Economic and Market Value Added! 

    Thus, MVA is an estimate made by the investors of the net present value of all current and expected future investments in the business. In other words, it can be said that MVA is same as NPV and can be calculated as the present values of all future EVAs. Similarly, it can be the present value of future free cash flows, because discounted EVA and discounted free cash flows are mathematical equivalents.

    What Does Economic Value Added (EVA)?

    What is the definition of economic value added? EVA compares the rate of return on invested capital with the opportunity cost of investing elsewhere. This is important for businesses to keep track of, particularly those businesses that are capital intensive. When calculating economic value added, a positive outcome means that the company is creating value with its capital investments.

    Definition: Economic value added (EVA) is a financial measurement of the return earned by a firm that is in excess of the amount that the company needs to earn to appease shareholders. In other words, it is a measure of an organization’s economic profit that takes into account the opportunity cost of invested capital and ultimately measures whether the organizational value was created or lost.

    What Does Market Value Added Mean?

    What is the definition of market value added? MVA is a vital concept that investors use to gauge how well the company has been using its capital. The state of MVA, either positive or negative, can reinforce or undermine the company’s current direction. If it is negative, the firm might decide to change directions in favor of a more value-oriented approach. Also, negative MVA signals to investors that the company is not using its capital effectively or efficiently. Thus, it’s not a good investment.

    Definition: Market value added (MVA) is a financial calculation that measures the capital that investors have contributed to a company in excess of the market value of the company. In other words, it measures if the firm has created positive value or destroyed value from its investors.

    From the definition of Market Value Added (MVA), the value of the firm can be expressed as Market Value = Capital + MVA of the firm.

    However, MVA is the present value of all future EVAs. Therefore, the value of the firm can be expressed as the sum of its capital; current EVA capitalized as perpetuity and the present value of all the expected future EVA improvements.

    Market Value = Capital + Value of current EVA as perpetuity+ Present value of expected EVA Improvement

    Since market value is dependent on the market implications of all future performance, market values are sensitive to the changes in current EVA as well as expected EVA improvement. This results in an interesting problem for the management. They need to decide the level of focus on generating current results and future prospects. The solution seems to be clear. Management must focus on producing the best results today a while making significant efforts for the future simultaneously. The stress has to be in the long term and short term perspective both.

    In a nutshell, the relationship between Economic Value Added (EVA) and Market Value Added (MVA)  can be summarized as follows:

    • The relationship between EVA and MVA is more complicated than the one between EVA and The firm value.
    • MVA of a firm reflects not only expected EVA of assets in place but also expected EVA from future projects.
    • To the extent that the actual EVA is smaller than expected EVA, the market value can decrease even if EVA is higher.

    Market Value Added (MVA)  is, thus, in a way best performance measure because it focuses on cumulative value added or lost on invested capital. It is the difference between the capital investors have put in business (cash in) and the value they could get by selling their claims (cash out). It is a focus on wealth in dollar or rupees rather than the rate of return in percentage. It, therefore, recognizes all value-adding investments even if than original rate of return.

  • Discuss the Compare of Coordination and Cooperation

    Discuss the Compare of Coordination and Cooperation

    Before Discuss the Compare of Co-Ordination and Co-Operation, first looking at their definition of Coordination and Cooperation. Coordination refers to the organization of all the activities in an orderly manner, to achieve unanimity of individual efforts in the pursuit of group goals. On the flip side, cooperation is a discretionary action of individuals to work together or help one another, for a mutual benefit. It is a joint effort of the members working in the organization for accomplishing a defined target. Also Learned, Essay on the Co-ordination of an Organization, Discuss the Compare of Coordination and Cooperation.

    Here are Learn, Discuss the Compare of Coordination and Cooperation.

    Definition of Coordination:

    By coordination, we mean a cycle, utilized by the administration to synchronize different exercises in the association. The power connects the wide range of various capacities performed by the administration, for example arranging, coordinating, putting together, controlling, staffing, driving, and so forth association, to make the most ideal utilization of the association’s assets.

    Coordination assumes a critical function in keeping up routineness in tasks, for example, buy, creation, deals, human asset, showcasing, account, and so forward, as it is the consistent idea that associates all the exercises. It is something, which is natural in all administrative capacities. The cycle focuses on the efficient administration of individual or collective endeavors to guarantee unanimity in real life, in the achievement of normal destinations.

    Definition of Cooperation:

    We characterize cooperation as an optional action in which at least two people consolidate and work in the quest for shared objectives. In this cycle, the individuals from the association put forth joined attempts, for inferring common advantages. Along these lines, each member is required to effectively partake in the gathering movement, really at that time they can be in an ideal situation.

    Cooperation is available in all the degrees of the association and happens between the individuals from the association. Aside from business, cooperation likewise happens at the public and worldwide level, for example between various states and nations of the world.

    Through cooperation, the data can share among members effectively, which builds the information base, work performed, and assets, in a skilled way.

    Differences between Coordination and Cooperation:

    Basis Coordination Cooperation
    Meaning It is an orderly arrangement of group efforts in pursuit of common goals. It means mutual help willingly.
    Scope It is broader than co-operation which includes as well because it harmonizes the group efforts. It is termed as a part of coordination.
    Process The function of coordination is performed by top management. The functions of co-operation are prepared by persons at any level.
    Requirements Co-ordination is required by employees and departments at work irrespective of their work. Co-operation is emotional in nature because it depends on the willingness of people to work together.
    Relationship It establishes formal and informal relationships. It establishes an informal relationship.
    Freedom It is planned and entrusted by the central authority & it is essential. It depends upon the sweet will of the individuals and therefore it is not necessary.
    Support It seeks wholehearted support from various people working at various levels. Co-operation without co-ordination is fruitless & therefore it may lead to unbalanced developments.

    Therefore, the existence of co-operation may prove to be an effective condition or requisite for co-ordination. But it does not mean that co-ordination originates automatically from the voluntary efforts of the group of members. It has to be achieved through conscious & deliberate efforts of managers, therefore to conclude we can say that co-operation without co-ordination has no fruit and co-ordination without co-operation has no root.

    Discuss the Compare of Coordination and Cooperation Image
    Discuss the Compare of Coordination and Cooperation; Image from Pixabay.

    The Main Key Differences Between Coordination and Cooperation:

    The following points are noteworthy so far as the difference between coordination and cooperation is concerned:

    • The methodical game plan and synchronization of various components of the executives to guarantee, smooth working, know as coordination. The demonstration of working together or following standards, for the acknowledgment of shared objectives, calls cooperation.
    • Coordination is a basic action of the board; that helps in accomplishing agreement in real life among different related exercises and branches of the association. Actually, cooperation relies upon the desire of any individual, for example, to work with or help somebody willfully, for achieving regular destinations.
    • Coordination of a devise cycle performed to incorporate various exercises of the association. Then again, cooperation is a characteristic cycle, which isn’t arranged however happens precipitously, out of shared regard.
    • Coordination is a persistent capacity of the board. Thus, it is as long as possible. As against this, the cooperation of people is needed for achieving an errand or movement, consequently, it is for the momentary as it were.
    • Coordination may bring about the foundation of formal and casual connections. Dissimilar to, cooperation offers to ascend to the casual connection between people.
    • In coordination, there is open correspondence between all the individuals from the association. As restricted, implicit correspondence happens between people in cooperation.
    • Coordination of exercises performs at high-level administration, though cooperation performs at each level.

    Relationship Between Coordination and Cooperation:

    Co-ordination is a systematic plan of collective endeavors to give solidarity of activity in the quest for common destinations. It implies uniting the endeavors of various components of the association to give them the solidarity of direction. While cooperation indicates the collective endeavors of individuals working in the association intentionally to accomplish a specific reason.

    The presence of co-operation among the individuals from a gathering encourages co-ordina­tion. In any case, coordination doesn’t start from the deliberate endeavors of the gathering individuals. It must accomplish by the conscious endeavors of the administration.

    For example, five people occupied with pushing a taxi out of the mud have a solid demeanor of co-operation. Be that as it may, they may not be effective except if one of them gives leader­ship and coordinates the exercises of all. Similarly, the ensemble conductor coordinates the endeavors of the individuals from his gathering to delivering fine music.

    So, co-operation without co-ordination has no organic product, and coordination without co-operation has no root. Co-operation and co-ordination go hand in hand and one is the venturing stone of the other. A decent chief attempts to accomplish both because just through cooperation and coordination he can complete things through others.

  • What is the Scope of Industrial Relations?

    What is the Scope of Industrial Relations?

    The concept of industrial relations is explaining their scope and IR has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others. Also, learn the Importance of Industrial Relations.

    Learn and Study, What is the Scope of Industrial Relations?

    The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations broadly define to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted.

    Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

    The scope of industrial relations is quite vast.

    The main issues involved here include the following:

    • Collective bargaining.
    • Machinery for settlement of industrial disputes.
    • Standing orders.
    • Worker’s participation in management, and.
    • Unfair labor practices.

    Definition and Scope of industrial relations:

    The ultimate aim of any human activity at the socio-economic level should be the minimal use of available resources in achieving the maximum economic and social results, i.e. to be increasingly productive. The productivity of capital, machines, and resources other than human resources can be improved in various ways.

    But improving the productivity of human resources is a complex and onerous task, for the simple reason that “labor” stands for both an individual human being and a group of individuals with different perceptions about productivity, motivation and attitudes, and with different needs. In organizations, individuals do not operate in isolation. They interact and react collectively to various issues in which management has an interest, including productivity.

    Thus productivity improvement extends beyond the domain of the management of workers and becomes a labor-management or industrial relations issue to be negotiated, settled and implemented jointly by the management and the union. Productivity improvement as an industrial relations issue thus acquires a greater significance in all enterprises where the employees are organized.

    “Industrial relations” broadly means the relations arising out of employment. In this broad sense, it covers the area of personnel management or human resources management and labor-management relations or labor relations. In its narrower sense, it refers only to the relations between management and the unions. And in its popular usage, it refers only to labor-management relations.

    More things…

    Industrial relations in organizations is the total of the management’s attitude to labor and of labor’s attitude to management’s policies and practices that affect the interests of the employees. Industrial relations are, basically, interactions between management and union(s). They involve continuous dialogue between the two sides on various issues of common interest; through such dialogues, the two sides shape each other’s attitudes.

    The approach, methods, strategies, and techniques, etc., of management in achieving the desired objectives vary from one organization to another. This is especially true about productivity improvement through industrial relations. It is, therefore, primarily the responsibility of management to develop industrial relations with workers and the unions to promote productivity continuingly.

    Another scope of Industrial Relations:

    Based on the above definitions, the scope of Industrial Relations can easily be delineated as follows:

    1. Labor relations, i.e., relations between labor union and management.
    2. Employer-employee relations i.e. relations between management and employees.
    3. The role of various parties’ viz., employers, employees, and state in maintaining industrial relations.
    4. The mechanism of handling conflicts between employers and employees, in case of conflicts, arise.

    The main aspects of industrial relations can be identified as follows:

    1. Promotion and development of healthy labor-management relations.
    2. Maintenance of industrial peace and avoidance of industrial strife.
    3. Development and growth of industrial democracy.

    What is the Scope of Industrial Relations - ilearnlot
    Scope of Industrial Relations, Image from Online.

  • What is the Importance of Industrial Relations?

    What is the Importance of Industrial Relations?

    Industrial relations refers to processes and outcomes involving employment relationships. Importance of Industrial Relations for Employees and Employers. Frequently the term used in a narrower sense, for employment relationships involving the collective representation of employees in the form of a labor union or employee association, especially in the United States.

    Learn and Study, What is the Importance of Industrial Relations?

    At the other extreme, industrial relations has been defined by Thomas A. Kochan, in his book Collective Bargaining and Industrial Relations, as “all aspects of people at work,” but there are some aspects of people at work that entail highly technical subjects (e.g., industrial hygiene, ergonomics) which are not normally regarded as falling within the mainstream of industrial relations study. Also, learn the Importance of Employee Relations.

    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. Thus, IR ensures the continuity of production.
    • Reduced Industrial Disputes: An effective IR helps in the reduction of industrial disputes as both the management and the workers maintain harmonious relations with each other and work in unison towards the accomplishment of production objectives.
    • Increased Morale: The peaceful industrial relations boost the moral level of the employees as they feel that their interest coincides with that of the employer’s, and their efforts will result in the overall profitability of the firm.
    • Minimization of Wastage: A good IR ensures reduced wastage as the resources – Man, Machinery, Material are fully utilized and are effectively contributing towards the overall productivity of the firm.
    More importance;

    The significance of good industrial relations in any country cannot ones emphasize. Good industrial relations are necessary for the following reasons.

    1. To help in the economic progress of a country. The problem of an increase in productivity is essentially the problem of maintaining good industrial relations. That is why they form an important part of the economic development plan of every civilized nation.
    2. To help in to establish and to maintain true industrial democracy this is a prerequisite for the establishment of a socialist society.
    3. They help the management both in the formulations of informed labor relations policies and in their translation into action.
    4. To encourage collective bargaining as a means of self-regulation. They consider the negotiation process as an educational opportunity a chance both to learn and to reach.
    5. To help the government making laws forbidding unfair practices of unions and employers. In climate good industrial relations every party works for the solidarity of worker’s movement. Unions gain more strength and vitality. There is no inter-union rivalry.
    6. Employees give unions their rightful recognition and encourage them to participate in all decisions. Unions divert their activities from fighting and belligerence to increase the size of the distribution and to make their members more informed (workers education) on vital issues concerning them.
    7. To boost the discipline and morale of workers. Maintenance of discipline ensures orderliness. Effectiveness and economy in the use of resources. On the other hand, lack of discipline means waste, loss, and confusion. It also means insubordination and non-co-operation.
    8. Industrial relations are eventually human relations, therefore, the same basis of human psychology prevails in the field of industrial relations, and the efficiency of an industry is directly related to the quality of the relationship, which is being built up amongst the individuals who work together.

    Importance of Industrial Relations for Employees and Employers:

    Industrial relations usually imply good and positive relations between employees and employers. The good Industrial Relations help run an industry effectively and successfully, i.e., the desideratum of the day. Top 5 importance of Industrial Relations can imbue with the multiplicity of justifications.

    To mention, good Industrial Relations help:

    Foster Industrial Peace:

    Under the mechanism of Industrial Relations, both employees and managers discuss the matter and consult each other before initiating any actions. Doubts, if any, in the minds of either party are removed. Thus, unilateral actions that prop confusion and misunderstanding disappear from the scene. In this way, Industrial Relations helps create a peaceful environment in the organization. Peace, in turn, breeds prosperity.

    Promote Industrial Democracy:

    Industrial democracy means the government-mandated worker participation at various levels of the organization about decisions that affect workers. It is mainly the joint consultations, that pave the way for industrial democracy and cement relationships between workers and management. This benefits them both. The motivated workers give their best and maximum to the organization, on the one hand, and share their share of the fruits of organizational progress jointly with management, on the other.

    The benefit to Workers:

    Industrial Relations benefits workers in several ways. For example, it protects workers against unethical practices on the part of management to exploit workers by putting them under inhuman working conditions and niggardly wages. It also provides a procedure to resolve workers’ grievances relating to work.

    The benefit to Management:

    Industrial Relations protects the rights of managers too. As and when workers create the problem of indiscipline, Industrial Relations provides managers with a system to handle employee indiscipline in the organization.

    Improve Productivity:

    Experiences indicate that good industrial relations serve as the key to increased productivity in industrial organizations. Eicher Tractors, Alwar represents one such case. In this plant, productivity went up from 32 percent to 38 percent between 1994 and 1997. This increase attribute to the peaceful IR in the plant.

    Similar other success stories abound in the country. As reported by V.S.P. Rao, Sundaram Fasteners (A TVS group company which begged the prestigious GM award for the fourth successive year in 1999 as a quality supplier of radiator caps) well knows for zero breakdowns, zero accidents, and zero defects. The company did not lose even a single day due to strike. The per-employee productivity is comparable to the best in the world. One study rates the company among the 20 most competitive companies in Asia.

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    Importance of Industrial Relations for Employees, Image from Online.

  • Do you know what is Industrial relations?

    Do you know what is Industrial relations?

    Industrial relations are the relationships between employees and employers within organizational settings. The field of industrial relations looks at the relationship between management and workers, particular groups of workers represented by a union. This article explains Industrial Relations by their meaning and different definition; Industrial relation is the interactions between employers, employees and the government, and the institutions and associations through which such interactions mediate. Also learn, Know What is Employee Relations?

    Learn and Understand, Do You know what is Industrial relations? Meaning and Definition.

    The term industrial relation has a broad as well as a narrow outlook. Originally, industrial relations broadly define to include the relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. Now its meaning has become more specific and restricted.

    Accordingly, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations; while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

    The meaning of Industrial relations; IR is a multidisciplinary field that studies the employment relationship. Industrial relations are increasingly being called employment relations or employee relations because of the importance of non-industrial employment relationships; this move sometimes sees as further broadening of the human resource management trend. Indeed, some authors now define human resource management as synonymous with employee relations.

    Other authors see employee relations as dealing only with non-unionized workers, whereas labor relations see as dealing with unionized workers. Also know more, Industrial relation studies examine various employment situations, not just ones with a unionized workforce. However, According to Bruce E. Kaufman;

    “To a large degree, most scholars regard trade unionism, collective bargaining and labor-management relations, and the national labor policy and labor law within which they are embedded, as the core subjects of the field.”

    Definition of Industrial Relations:

    After, their meaning they define their definition of industrial relations according to different authors below are;

    “Employer-employee relationships that are covered specifically under collective bargaining and industrial relation laws.”

    According to Dale Yoder’,

    “IR is a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment processes of Industry.”

    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 the State in varying degrees, in conjunction with organized social forces and influenced by the existing institutions. This involves a study of the State, the legal system, and the workers’ and employers’ organizations at the institutional level; and of the patterns of industrial organization (including management), capital structure (including technology), compensation of the labor force, and a study of market forces all at the economic level.”

    Encyclopedia Britannica defined IR more elaborately as;

    “The concept of industrial relations has been extended to denote the relations of the state with employers, workers, and other organizations. The subject, therefore, includes individual relations and joint consultation between employers and workers at their places of work, collective relations between employers and trade unions; and the part played by the State in regulating these relations.”

    As the name implies, Industry Relations comprises of two words, Industry, and Relations. Where industry covers the production activity in which the group of workmen engages; while the relations show the relationship between the management and the workers within the industry. IR plays a significant role in today’s working scenario where the harmonious relationship between the employers and employees needs to have an uninterrupted production.

    Industrial Relations mainly cover the following:
    • Regulatory body to resolve industrial disputes.
    • Collective Bargaining.
    • The role of management, unions, and government.
    • Labor Legislation.
    • Worker’s Grievance Redressal system.
    • Disciplinary policy and practice, and.
    • They give Training.

    The relationships which arise at and out of the workplace generally include the relationships between individual workers; the relationships between workers and their employer and the relationships between employees. Also learn, What is the Importance of Employee Relations? The relationships employers and workers have with the organizations form to promote their respective interests; and, the relations between those organizations, at all levels.

    Industrial relation also includes the processes through which these relationships express (such as, collective bargaining, workers’ participation in decision-making, and grievance and dispute settlement); and, the management of conflict between employers, workers and trade unions, when it arises.

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    Do you know what is Industrial Relations? meaning and definition. Image from Online.

  • What is the Importance of Employee Relations?

    What is the Importance of Employee Relations?

    Maintaining healthy Importance of employee relations in an organization is a prerequisite for organizational success. Strong employee relations are required for high productivity and human satisfaction. Employee relations generally deal with avoiding and resolving issues concerning individuals which might arise out of or influence the work scenario. Strong employee relation depends upon a healthy and safe work environment, a cent percent involvement and commitment of all employees, incentives for employee motivation, and an effective communication system in the organization.

    Learn, Why Employee Relations at Workplace? and, What is the Importance of Employee Relations?

    Healthy employee relations lead to more efficient, motivated, and productive employees which further leads to an increase in sales level. What are Employee Relations? According to the Chartered Institute of Personnel Development, the use of industrial relations to describe workplace relations is no longer as prevalent, due to the widespread deindustrialization of developed economies and declining union membership. Instead, employers now use the term “employee relations,” which refers to relationships that exist in both unionized and nonunionized workplaces. Employers hope to manage employee relations successfully with each respective individual, as a means to raise morale and productivity.

    Every individual in the workplace shares a certain relationship with his fellow workers. Human beings are not machines that can start working just at the push of a mere button. They need people to talk to, discuss ideas with each other, and share their happiness and sorrows. An individual cannot work on his own, he needs people around. If the organization is empty, you will not feel like sitting there and working. An isolated environment demotivates an individual and spreads negativity around. People must be comfortable with each other and work together as a single unit towards a common goal.

    Introduction

    However, when it comes to employee relationships, they can only have a good relationship when they are disappointed with the company. Sometimes cutting through the hard work with some fun games is essential. Some fun outdoor activities and some employee appreciation gifts are always encouraged.

    Employees must share a healthy relationship at the workplace. Let us find out why the importance of employee relations in an organization:

    There are several issues on which an individual cannot take decisions alone:

    He needs the guidance and advice of others as well. Sometimes we might miss out on important points, but our fellow workers may come out with a brilliant idea that would help us to achieve our targets at a much faster rate. Before implementing any plan, the pros and cons must be evaluated in an open forum where every employee has the right to express his opinions freely. On your own, you will never come to know where you are going wrong, you need people who can act as critics and correct you wherever you are wrong. If you do not enjoy a good relationship with others no one will ever come to help you.

    Work becomes easy if it is shared among all:

    A healthy relationship with your fellow workers would ease the workload on you and in turn, increases your productivity. One cannot do everything on his own. Responsibilities must be divided among team members to accomplish the assigned tasks within the stipulated time frame. If you have a good rapport with your colleagues, they will always be eager to assist you in your assignments making your work easier.

    The organization becomes a happy place to work if the employees work together as a family:

    An individual tends to lose focus and concentration if his mind is always clouded with unnecessary tensions and stress. It has been observed that if people talk and discuss things with each other, tensions automatically evaporate and one feels better. Learn to trust others, you will feel relaxed. One doesn’t feel like going to the office if he is not on talking terms with the person sitting next to him.

    An individual spends around 8-9 hours a day at his workplace and practically it’s not possible that one works nonstop without a break. You should have people with whom you can share your lunch, discuss movies or go out for a stroll once in a while. If you fight with everyone, no one will speak to you and you will be left all alone. It is important to respect others to expect the same from them.

    An individual feels motivated in the company of others whom he can trust and fall back on whenever needed:

    One feels secure and confident and thus delivers his best. It is okay if you share your secrets with your colleagues but you should know where to draw the line. A sense of trust is important.

    Healthy employee relations also discourage conflicts and fights among individuals:

    People tend to adjust more and stop finding faults in each other. Individuals don’t waste their time in meaningless conflicts and disputes, rather concentrate on their work and strive hard to perform better. They start treating each other as friends and try their level best to compromise and make everyone happy.

    A healthy employee relationship reduces the problem of absenteeism at the workplace:

    Individuals are more serious about their work and feel like coming to the office daily. They do not take frequent leaves and start enjoying their work. Employees stop complaining about each other and give their best.

    It is wise to share a warm relationship with your fellow workers because you never know when you need them:

    You may need them at any time. They would come to your help only when you are nice to them. You might need to leave for some personal reasons; you must have a trusted colleague who can handle the work on your behalf. Moreover, healthy employee relations also spread positivity around.

    It is essential that employees are comfortable with each other for better focus and concentration, lesser conflicts, and increased productivity. Now, you may understand the importance of employee relations.

    What is the Importance of Employee Relations - ilearnlot
    What is the Importance of Employee Relations?
  • Do you Know What are Employee Relations?

    Do you Know What are Employee Relations?

    Learn and Understand, Do you Know What are Employee Relations?

    Employee Relations, An organization can’t perform only with the help of chairs, tables, fans or other non-living entities. It needs human beings who work together and perform to achieve the goals and objectives of the organization. The human beings working together towards a common goal at a commonplace (organization) are called employees. In fact, the employees are the major assets of an organization. Also learn, Employee and Industrial Relations, Do you Know What are Employee Relations?

    “The success and failure of any organization are directly proportional to the labor put by each and every employee.” The employees must share a good rapport with each other and strive hard to realize the goal of the organization. They should complement each other and work together as a single unit. For the employees, the organization must come first and all their personal interests should take a back seat.

    Definition of Employee Relations:

    “Communications between management and employees concerning workplace decisions, grievances, conflicts, problem resolutions, unions, and issues of collective bargaining.”

    According to the Chartered Institute of Personnel Development, the use of industrial relations to describe workplace relations is no longer as prevalent, due to the widespread deindustrialization of developed economies and declining union membership. Instead, employers now use the term “employee relations,” which refers to relationships that exist in both unionized and nonunionized workplaces. Employers hope to manage employee relations successfully with each respective individual, as a means to raise morale and productivity.

    Employee relations is your company’s structure of managing the rapport between the bosses and the staff. “Well in that case, what is the difference between HR and employee relations?”

    That’s an easy one, employee relations are just one facet of the role of HR. HR is an umbrella term which includes tasks such as payroll, updating employee databases and many more responsibilities – one of these being managing ER.

    Our knowledge of how important ER is has helped us shape how we make our HR software. Features such as letting an employee clearly keep track of their staff benefits and tools to let their workers get to know more about them are all in place to create a happier workplace.

    Better Understand, What are Employee Relations?

    Every individual shares a certain relationship with his colleagues at the workplace. The relationship is either warm, so-so or bad. The relationship can be between anyone in the organization – between co-workers, between an employee and his superior, between two members in the management and so on. It is important that the employees share a healthy relationship with each other to deliver their best performances.

    An individual spends his maximum time at the workplace and his fellow workers are the ones with whom he spends the maximum hours in a day. No way can he afford to fight with his colleagues. Conflicts and misunderstandings only add to tensions and in turn, decrease the productivity of the individual. One needs to discuss so many things at work and needs the advice and suggestions of all to reach a solution which would benefit the individual as well as the organization.

    No individual can work alone. He needs the support and guidance of his fellow workers to come out with a brilliant idea and deliver his level best.

    Employee relations refer to the relationship shared among the employees in an organization.

    The employees must be comfortable with each other for a healthy environment at work. It is the prime duty of the superiors and team leaders to discourage conflicts in the team and encourage a healthy relationship among employees.

    Life is really short and it is important that one enjoys each and every moment of it. Remember in an organization you are paid for your hard work and not for cribbing or fighting with each other. Don’t assume that the person sitting next to you is your enemy or will do any harm to you. Who says you can’t make friends at work, in fact, one can make the best of friends in the office. There is so much more to life than fighting with each other.

    Observation says that a healthy relationship among the employees goes a long way in motivating the employees and increasing their confidence and morale. One starts enjoying his office and does not take his work as a burden. He feels charged and fresh the whole day and takes each day at work as a new challenge. If you have a good relationship with your team members you feel going to office daily. Go out with your team members for a get together once in a while or have your lunch together. These activities help in strengthening the bond among the employees and improve the relations among them.

    An employee must try his level best to adjust to each other and compromise to his best extent possible.

    If you do not agree with any of your fellow worker’s ideas, there are several other ways to convince him. Sit with him and probably discuss with him where he is going wrong and needs a correction. This way he would definitely look up to you for your advice and guidance in future. He would trust you and would definitely come to your help whenever you need him. One should never spoil his relations with his colleagues because you never know when you need the other person.

    Avoid using foul words or derogatory sentences against anyone. Don’t depend on lose talk in office as it spoils the ambiance of the place and also the relationships among the employees. Blame games are a strict no-in office.

    One needs to enter his office with a positive frame of mind and should not unnecessarily make issues out of small things.

    It is natural that every human being cannot think the way you think, or behave the way you behave. If you also behave in the similar way the other person is behaving, there is hardly any difference between you and him. Counsel the other person and correct him wherever he is wrong.

    It is of utmost importance that employees behave with each other in a cultured way, respect each other and learn to trust each other. An individual however hardworking he is, cannot do wonders alone. It is essential that all the employees share a cordial relation with each other, understand each other’s needs and expectations and work together to accomplish the goals and targets of the organization.

    Do you Know What are Employee Relations - ilearnlot