The term 'industrial relations' meant to relationships among management and labour or between employees and their organisations that characterise or develop out of employment. Theoretically there are two parties in the 'employment' relationship -management and labour. A trade union is a formal association of workforces that promotes and defend the interests of its members by collective action. A trade union always strives for attaining better objective. Organisational health may be diagnosed by methods evolved for grievance redressal & techniques which adopted to decrease the rate of absenteeism and labour turnover and to enhance the employee relations. Trade unions in most countries have been the natural conclusion of the modern factory system.