Following are the benefits of having an effective IR system in place:

☛ Continuous production

☛ Continuous employment for all

☛ Smooth flow of income for workers and businessman

☛ Lesser number of disputes between employees and employers like strikes, lock outs, grievances etc.

☛ Higher level of motivation in the employees as they consider themselves to be a part of the organization

☛ Less wastage of time, man, machine and material

☛ Lesser cost of production

☛ Optimum utilization of resources leading to higher profits for employers and employees

☛ Economic growth of the society