Collective bargaining is an important element in industrial relations. Collective bargaining helps to make the relationship between employees and employers smooth. A strong bond between the employers and employees contribute to the successful working of the company.

When management people and employees communicate with each other for reaching an agreement it can be said as an outcome of collective bargaining. Most people think collective bargaining as the process in which union members of the employees talk with employers for getting benefits. However collective bargaining is the process through which conclusion is reached regarding wages of employees, working hour of employees and working conditions at the company.

The process of negotiation as part of collective bargaining can have different effects depending on the size of the company. In the case of small-scale industries, consultants are hired for negotiating with the employees whereas in the case of large industries industrial relation manager will handling such jobs. If there is union among employees they may either select one of them as representatives or hire a consultant to negotiate with the employers.

At the end of a collective bargaining process, an agreement will be reached. This collective bargaining agreement will have the rules and regulations which gives an idea about the relation between the employees and employers. This agreement will generally include leaving policies wages and benefits that will be given to employees. In the case of small-scale industries, it is easy to make decisions while in the case of large organizations it will take time.