The concept of Industrial Relations has a wide meaning. But when taken in its wider sense it includes the relation between an employee and an employer in the course of running of an industry and may project itself to spheres which may transgress to the areas of quality control, price fixation and disposition of profits. Thus industrial relations, when taken in its wider meaning, is a set of functional inter-dependence involving economic, social, psychological, demographic, technological, occupational, political and legal variables.
Productivity is a multi-faceted concept.
While production is the actual output, productivity is only a means to achieving the output. It is concerned with an effective and efficient utilisation of resource-capital, material, energy, information and human. The National Productivity Council has found through its studies that there is need for creating attitudinal changes, an appropriate work culture and an environment conducive to productivity. Industrial relations come to picture and take their own place in the world of productivity, because only through effective industrial relations, the labour quality can be sustained and improved. Optimum utilisation of labour component in industry, being within the domain of industrial relations, social justice has got direct link with industrial relations.