Everything you need to know about the importance of industrial relations. Industrial relations are human relations in industry. The importance of the human factor in an industrial organisation is beyond question.
Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. It results in industrial peace which is essential for the countries, particularly for India, where the economy is being geared in a planned way to ameliorate the lot of the masses.
Industrial relations are the key for increased productivity in industrial establishments. 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. The production of engine cylinders has gone up from 29, 390 (in 1995-96) to 32, 501 (in 1996-97).This increase has been possible because of peaceful industrial relations.