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Industrial Relations theories
The actors of pluralist theory of industrial relations
Industrial Relations theories
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4. How does the external environment influence Employment Relations?
Employment relations refer to the relationship between the employer and the employee. Employment relations are governed by the provisions of the employment contract and/or collective agreement where applicable, common law principles and legislative provisions governing specific situations. Many factors in the external environment have an effect on the employment relations within an organization, which they need to monitor and possibly adapt to the necessary changes. The external environmental factors that would influence employment relations are political, economic, social, technological, legal and environmental.
Political factors can influence employment relations because
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Unitary Approach:
The unitary approach to IR is perceived that everyone has a common interest. All the employees share the goals of the organizations and cooperate properly with management, as one unit or team. The purpose of this approach is to be harmonious and for employees to build a good relationship with the employer. If there is any dispute it is seen as disruptive and treacherous, as the organization goals are above interpersonal conflict. Management does not seek negotiations with employees and unions since it is not seen as being necessary for achieving harmonious employee relations
2. Pluralistic Approach:
The pluralistic approach accepts the legitimacy of workers forming themselves into trade unions to express their interests, influence management decision and achieve their objectives. The pluralistic approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. The role of managers/management would lean towards enforcing, controlling, persuading and coordinating. Trade unions play an important role in this approach, being that employees can join unions to protect their interests and influence decision making by the management. Trade unions balance the power between management and employees, hence its an important factor in this approach and industrial
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The concept of industrial relations involves the interaction of employers and employees, for that reason without power and authority will be a lack of direction and control over the system of industrial relations. Authority frequently comes from the duties and responsibilities delegated to a position holder in a bureaucratic structure whilst Power is the possession of authority, control, or influence by which a person influences the actions of others, either by direct authority or by some other, added intangible
The primary objective of a trade union is to improve the well being of its members. They were formed to counter the superior economic power of the employers. It has long been recognised that the market dominance of employers could onl...
History shows that there has been conflict of power within the workforce between union and management. This essay will discuss if management should have the right to determine whether a union should operate within their workplace. It is necessary first to discuss the roles of unions and management in the workplace and discuss both points of view on the power distribution between unions and management in the workplace.
Factories were known for their ill treatment of their employees, long hours and dirty and unsafe conditions. In 1866, unions started to form to improve working conditions for the workers. A fundamental problem faced by democratic societies is as long as people live their lives individually and go their separate ways and be selfish individuals, they are unlikely to meet collectively to resolve issues. There needs to be meaningful unity among people to alleviate this problem to get people obliged to one another, so there is a willingness to sacrifice for shared goals. Bonding of its citizens creates a democracy. Unions seemed to offer the middle class a chance to become a crucial part of fostering institutions of constitutional democracy. The unions have went through several transitions, but have always worked for the working force. I will discuss the history of the various unions, their wins and losses, and the struggle of the employee to achieve democracy in the workplace.
In continuation, the concept of labor unions is quite simple. Labor unions have working members fuse together to become a powerful force. This powerful force works to ...
...ir conflicts resolutions and motivations. Some measures which can help a human resource management department to impart equity would include but not limited to competitive salary, fringe benefits, career progression, gender, personal development, promotion etc are few variables which HRM require to look after to keep employees motivated. Through such measures, the companies can reduce the probability of employee dissatisfaction, non compliance with the standards and regulations and hence reduced chances of legal actions.
Union movement is a general term often used to describe the collective organization of people from a particular trade or collection of trades, with the primary aim of representing workers and agitating for better working conditions and treatment from their employers while also demanding the implementation of labour and employment laws. As much as union movement have evolved over the years to become what it is today, some minority groups are not fully represented within these unions. Therefore, this essay examines how change has been manifested in union movement and about how further change might occur. Precisely, it will be examined in this essay the range of actions that minority groups could take to advance their interests within the union
McShane and von Glinow determine that the first three powers - legitimate, reward, and coercive power - are granted to persons through the organization or co-workers, whereas the two other powers – expert and referent power - depend on the “power holders own characteristics” (301). The first source of power that can be assigned to members of the organization is Legitimate Power, which is defined as an “agreement among organizational members that people in certain roles can request certain behavior of others” (302). This source of power generally results from different roles in the organization (hierarchy). Like the manager can expect his or her employees to do what he or she requires. Another source of power that can be given to employees is Reward Power, which is defined as “the person’s ability to control the allocation of rewards valued by others and to remove negative sections” (302). Reward power offers incentives and is the opposite of the third source of power, which is Coercive Power. Coercive power is the last source of power that is assigned to people and involves “the ability to apply punishment” (303). The fourth source of power is Expert Power, which does not originate from the position but rather from within the person. Expert power is “the capacity to influence others by possessing knowledge or skills that others value” (303). For instance, an employee can develop expert power when gaining important knowledge for the organizations that others would also like to have. The fifth source of power that does not depend on the role or position of an employee, but on the person’s own characteristics is Referent Power, which is defined as “the capacity to influence others on the basis of an identification with and respect for the power holder” (303).
Trade unions are important in the working environment, they organize and represent the interests of the employees and also ensure that their employment relationship is regulated through processes of collective bargaining (Venter & Levy, 2009). The interests of trade unions are also considered to be of importance because they look after the interests of those in the production processes. As a result models of behavior and collective bargaining were developed by Hicksian.
Dunlop(1958) argues that in the system of industrial relations, there are 3 major components in the system. There are the actors, the context and the common ideology. The actors consist of the employers and their organizations and employees and, if present, the groups that represent them and the state or government agencies. The second major component, the context, is the situation or environment that influences any decision or activity, this is usually technology, market constraints or distribution of power in the wider society. The common ideology, under which the purpose of this essay falls, can be seen as a binding idea or theory which the actors share for the purpose of stability in the system. Under the common ideology component, there are various conflicting theories or frames of reference.
The laws and regulations surrounding Industrial Relations since the 1900’s have, at each reform, placed tighter constraints on the amount of power unions are able to exert. The reforms have also radically increased managerial prerogative, through an increased use of individual bargaining, contracts and restrictions imposed on unions (Bray and Waring, 2006). Bray and W...
Traditional literature in the field of labor relations has focused immensely on its benefit towards the employer and in the process equating it to working rules. This has been so despite the field being expected to cover the process of, labor management, union formation, and collective bargain; all which are anticipated to create a positive employer-employee relationship. This relationship is said to be positive if there exist a balance between employment functions and the rights of the laborer. Also important to note, is that this relation is equally important to the public sector as it is to the private one. Therefore, to ensure a mutually conducive labor environment exists, effective labor management process and inclusive negotiation program should be adopted (Mulve 2006; Walton, 2008).
Power culture can be defined as a situation where the decision making ability of the organization remains in the hands of a few people. They tend to me the most important people and the decision makers of the organization. And Role culture can be defined as a culture where every employee is delegated tasks according to his educational qualifications to extract the best capabilities of the given employees. (Handy, 2013)
Industrial Relations is a multidisciplinary field dealing with the study of employment relationship in union and non-union organizations. There have been various theories of industrial relations in place, but the first and most influential theory was put forward by John Thomas Dunlop. Dunlop, as a labor economist, remodelled the work of sociologists and developed a framework of industrial relations system. He developed the System’s Theory which stressed on the interrelationship of institutions and behaviors that enables one to understand and explain industrial relation rules.
Unitarism is very conservative and assumes that employers and employees have harmonious relationship. Both sharing the same objectives and interests, so the employment relations based on mutual cooperation according to Bray et al. (2014 p.51) the Table 3.2 in Appendix.
Environmental factors affect an organisation in 2 ways. They set limits and pose threats and they also provide opportunities and challenges. A change in the government export policy may suddenly threaten an export oriented organisation. A reduction in the rate of interest may provide cheap finance to an organisation.