Significance of good Industrial Relations or Industrial Peace

  1. Industrial Peace:- Cordial industrial relations bring harmony & remove causes of disputes which leads to industrial peace which is necessary for productivity and growth.
  2. Higher Productivity:- Due to cordial industrial relations, workers take interest in their jobs and work efficiently which leads to higher productivity and production & thus contribute to economic growth of the nation.
  3. Industrial Democracy:- Sound industrial relations are based on consultation between the workers and management which help in establishment of industrial democracy in the organisation.
  4. Collective Bargaining:- Good industrial relations are extremely helpful for entering into long-term agreements as regards various issues between Labour and Management.
  5. Fair Benefits to Workers:- The Workers should get sufficient economic and non-economic benefits to lead a happy life. It is possible when relations between workers and management are cordial and productivity is high.
  6. High Morale:- Good industrial relations imply existence of an atmosphere of mutual cooperation, confidence & respect within enterprise. In such an atmosphere, there are common goals, which motivate all members of organisation to contribute their best.
  7. Facilatation of change :– By creating a climate of cooperation, & confidence make the process of change easy. Hence, full advantage of latest inventions, innovations & other technological advancements can be obtained. The work force easily adjusts itself to required changes for betterment. Thus, smooth industrial relations are necessary and useful to employers and employees.

    Rapid industrial growth and high industrial productivity are possible when smooth industrial relations exist. Along with this, workers get higher wages and other monetary benefits.