Explanation:

The relationship between Employer and employee or trade unions is called Industrial Relation. Harmonious relationship is necessary for both employers and employees to safeguard the interests of the both the parties of the production. In order to maintain good relationship with the employees, the main functions of every organization should avoid any dispute with them or settle it as early as possible so as to ensure industrial peace and higher productivity.

Industrial Relation is that part of management which is concerned with the manpower of the enterprise – whether machine operator, skilled worker or manager.Industrial Relation is a relation between employer and employees, employees and employees and employees and trade unions.