If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labour.
The impact of good industrial relations on production may be seen from the following facts:
1. Reduces Industrial disputes: Good industrial relations reduce the industrial disputes. Disputes are reflections of the basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lock-outs, 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. It helps promoting co-operations and increasing production.
2. High Morale: Good industrial relations improve the morale of the employees. 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. Every worker feels that he is a co-owner of the industry. The employer in his turn must realize that the gains of industry are not for him alone but they should be showed equally and generously with his workers. In other words, complete unity of the thought and action is the main achievement of industrial peace of workers int the society and their ego is satisfied. It naturally affects production, because a mighty co-operative efforts alone can produce great results.
3. Mental Revolution: The main object of industrial relations ins a complete mental revolution of workers and employers. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers employees and government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as a partners of the industry and the role of worker in such a partnership should be recognized. On the other hand,workers must recognize employer authority. It will naturally have impact on production because they recognize the interest of each other.
4. New Programmes: New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labour welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs.
5. Reduced Wastage: Good industrial relations are maintained on the basis of co-operation and recognition of each other. It will help increase production. Wastages of man material and machines and reduced to the minimum and thus national interest is protected.
Thus form the above discussion it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency o workers. New and new projects are introduced for the welfare of he workers and to promote the morale of the people at work.