Definition of Industrial Relation?

The term 'industrial relations' usually refers to relationships between labor and capital that grow out of employment. There are two parties in the 'employment' relationships- labor and management. Both parties needs to work in a spirit of cooperation, adjustment and accommodation. Over the years state has also come to play two major industrial relations- one, as the controller of the relationship between the employee and worker and other, as an employer by setting up an extremely large public sector.

Industrial relations has been defined by the different author in different ways.

1. According to V.L. Allen:

What is Industry?

Industry encompasses a transformation process in which inputs are converted in outputs. Industry may be defined as any activity that creates utility. According to  Bangladesh labor law,-2006 Industry means any business, trade, service employment or occupation. In broad sense, industry is characterized by the existence  of the following,

                                   1. Employer and employee.
                                   2. Works on the basis of wages.
                                   3. Products or service to be produced.
                                   4. Buying and selling of labor power.
                                   5. Creation of utiliity.

Definition of Compensation or What is Compensation?

To survive in a complex, competitive global company all organization (Public & Private) must be able to focus on the effective an efficient supply of goods and service. A key factor in promoting effective delivery of goods and service is provision of a performance base compensation system to the employees.

Many Author have defined compensation which are mentioned below
1. Dale Yoder: “Compensation is paying people for work.”
2.Benham: Compensation is the value of work of the employees according to the agreement between employer and employee.
3. John Dunlop: Has explained the concept of the compensation wages from three stands points:
(a) Wages determind the standard of volume of service of employees of market.
(b) compensation Influences distribution of employment of industries, firms and professional organization
by impact on cost.
(c) Compensation has performed some important activities like supply of active media through which
technological  facilities have been scattered through the economy.

Objective of compensation

Compensation have some important objectives. To achieve these objectives a well conceived compensation scheme or plan may be established. These objectives are mentioned in the following points:
1. To be legal: It must get approval from the govt or top management in the organization.
2. To be adequate: Compensation must be sufficient so that needs of the employees are fulfilled substantially.
3. To be motivational: Compensation must be increase the level of motivation and job satisfaction of the employees.
4. To be equitable: Compensation policy should be declared in such a way so that no discrimination can be shown.
5. To provide security: Employees must have guarantee  of getting wages or compensation regularly without any work.
6. To be cost-benefit effective: the organization must be make a balance between cost for giving compensation and benefits to be
accrued from the employees.