Impacts of industrial relations conflict for a business
Industrial relations conflict can affect the business in the following way.
Ø Reduced productivity
Ø Loss of profits
Ø Damage to public image
Ø Difficulty in recruiting & keeping staff
Ø Wasted time and energy
Ø Increased costs
Due to lack of interests, labour will not concentrate in quantity and quality of production. It leads to loss of profit.
2. Loss of profits
Even though all companies and organizations are targeting in profits, they can‘t proceed for that goals because of labour absence and decrease in production.
3. Damage to public Image
Company‘s good will and self image is very important in this competitive world. So, due to industrial disputes and strikes that image will be get down in people mind.
4. Difficulty in recruiting & keeping staff
Employee must have the value and satisfaction in their working period about the company, but if the firm‘s value has damaged due to industrial disputes means the company can‘t recruit any other employees to their company and fulfilment of goals.
5. Wastage of time and Energy
If unnecessary disputes arises inside the organization and it is continuing means it will result in major discussion and finally it leads to wastage of time and energy.
6. Increased costs
The mantra for perfect business is decrease in cots and increase in profits, but the increase in industrial disputes will have the main problem of increase in costs and decrease in production and also the profit
1. Unrest and unnecessary tensions engulf the hearts and minds of all the people involved - labour and senior management.
2. There is economic loss due to conflicts because conflicts may result in strikes and lock-outs. This causes low or no production resulting in industrial loss.
3. Industrial loss may cause economic depression because many industries are interlinked. A problem in one industry may drastically affect another industry.
4. The lives of low-level labourers become worse when they are out of work. They may be the only working members of the family, and their joblessness may lead everyone in the family to poverty.
5. When industrial conflicts get out of hand, they become a threat to peace and security. Workers may resort to violence and indulge in sabotage.