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In today's ever changing dynamic world, even the unions have understood that strikes and militancy have lost their relevance and unions are greatly affected by it. The trade union membership has fallen drastically throughout the world and the future of labor movement is in danger. The challenge before HRM is to adopt a proactive industrial relations approach which would enable HR specialist to look into challenges that may unfold in the future and to be prepared to convert them into opportunities. Industrial relations has become one of the most delicate and complex problem in the modern industrial society. Industrial progress is impossible without the cooperation of labour and harmonious relationship with the management. Hence, it is in the interest of all to create and maintain good relations between employees and employers (Kuhn, James W, Lewin, David, Mcnulty, Paul J, 1983)1. Industrial peace is necessary for accelerating the process of production of goods and other economic activities. Industrial unrest could lead to disastrous consequences in respect of the overall economic growth of the country. The term "industrial relations" refers to the relationship between the organized labour force and the management in an industrial enterprise. Through mutual trust and respect on the part of both management and labour, a state of harmonious industrial relations could be developed, promoted and maintained in an organization (B.R. Patil, 1990)2.