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Industrial relations theory
Industrial relations theory
Discuss the theories of industrial relations
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Abstract
Industrial relation is one of the most important functions of human resource management. Good industrial relations create the foundation for more effective performance by the employees, workers, and management in any organization. Clearly defined role of human resource in industrial relations is very important for measuring the success of any organization and is linked to its human resource strategy. In the case of RHSP, a leading Indian MNC, industrial relations have been studied. The procedure involved designing a suitable instrument and stratified random sampling. The record revealed that barring a few individuals, the greater majority of the individuals were satisfied with the nature of industrial relations. However, a worry
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Adverse working conditions, Limited employment options and options for vertical mobility have resulted in unification of workers so as to get their demands met. Employees have their unions and employers their bargaining association and there is a constant tussle to establish the relations between these two sides. Rapid changes in methods and techniques of production and government legislation have also helped improve worker welfare. Thus government, employees and employers constitute the key stakeholders in industrial relations. Ancillary stakeholders include employers’ associations, trade unions and tribunals. Industrial relations if they function well will help reduce industrial disputes, generate High morale, Mental revolution 4) New programs. & 5) Reduce wastage. The drawbacks of industrial relations include Commutative class struggle, Misleading of workers by TU Leaders, Physical fight between management and workers, by-passing legal methods by trade unions among …show more content…
Globalization has made workplace practices quite fluid, and the effects of globalization on labor relations are the focus of an ongoing study. The debate of the longer-run trajectory of employment relations systems under the weight of globalization namely whether the industrial relations systems of countries are converging or diverging has been reignited. The systems are undergoing divergence according to Ali, at least in the case of India, china and Korea. Globalization as a phenomenon is something any nation will need to take into account so as to have a fighting chance in the competitive market. This competitiveness entails certain flexibility as exemplified by all the three nations in question. The need, types and levels of flexibility depend on a suite of factors specific to that country. The pressures of competition will force nations to converge in their practices in the short run but the long run will see a divergence based on the key players participating in labor
Even though the very purpose of a union is to defend the interest of its members, the company could also use the instrument to promote the official point of views of the company’s management. In clear, the union and the management could work in good intelligence to promote the interest of worker and the interest of the company. Generally, the problem between management and union come when they one as another as an adversary and not as a partner. To be more constructive and create a working atmosphere profitable for both parties, union and company’s management need to work side by side to address real problems. Thus, worker must understand that the best job security for them comes primarily from the existence of the company and so their union should not be a mean for jeopardizing the company’s purposes. Similarly, the management must also understand that he will not achieve his annual goals unless the workers are well treated and the condition of work meet the standards set by official rules and regulations. This is a clear psychological contract between the company and it workers. The success of the company depends heavily on the respect of that psychological contract. Personally, I will play the role of a mediator between my boss and the worker who want to unionize and explain. I will clearly explain to my boss the benefit of having a union in the company and also explain to the worker the necessity to help the company increase it performance by working harder. And the union should not be a tool for undermine the efforts of the management to achieve better
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.
Harbridge, R. and Walsh, P. (2002), Globalisation and labour market deregulation in Australia and New Zealand: Different approaches, similar outcomes, Employee Relations, 24(4): 423-436.
Labor unions were established as a way for workers’ needs and grievances to be heard by management. According to Fossum (2012), “forming a union creates a collective voice to influence change at work” (p. 7). The collective voice of workers in a union holds much more power than any single employee’s voice. It can loudly draw attention to mistreatment or abuse of workers. The organized collective voice of workers demands to be treated in a fair way by its management in terms of wages, hours, benefits, and working conditions.
The disadvantages of union membership are viewed from the employee and employer perspective. Through the employee lens, the disadvantages manifest in the form of fees, loss of autonomy, and less collaborative work environment. As part of the union, you surrender many of your individual rights in exchange for the organized results that can potentially manifest through the collective bargaining process. Therefore, there isn’t any assurance that your individual concern will even be addressed.
Human Resource Management (HRM) is the administration and control of employees. Its purpose is to ensure that the workers and the employer cultivate a valuable relationship. As a result, the company will record an exceptional performance particularly with regard to employee productivity (Paauwe, 2004). Further, the workers will benefit in terms of job satisfaction and self-development (Paauwe, 2004). Some of the activities involved in managing workers include selection and recruitment, training, development, motivation, and appraisal (Sharma, 2009). This paper aims to analyse the role of human resource management in organisations and its linkage to the wider organizational strategy using Tesco and Harrods as illustrations.
The development of free-market economics has, since the 18th century, resulted in the spread of a set of ideas, creeds and practices all over the developed and much of the developing world. Today, the globalisation of trade, capital, technology and innovation has accelerated competitive conditions for businesses all over the world. Globalisation may be defined as the opening of markets to the forces of neoliberalism and capitalism; it is characterised by the free movement of people, talent, skills, capital (intellectual, social and economic) across international borders. All kinds of barriers have either been swept away, diffused or made obsolete by the forces of globalisation: trade barriers, subsidies, geographical boundaries, linguistic and cultural differences. Technological advancements have pulled the world closer and, in the process, affected how labour relations and worker/employer relations operate and develop. The multinational corporation as well as the public sector alike are affected by global competition.
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 importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources. While some companies took the human side of employment seriously, there were others who did not find it mandatory. Hence they faced huge labor unions and factory shut downs (Henning, 2001).
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).
There are many different approaches and theories regarding industrial relations nowadays. In order to mount an opinion on which is the ‘best’ or most appropriate theory of industrial relations, each theory will have to be analyzed. The three most prevalent theories of industrial relations which exist are The Unitarist theory, The Pluralist theory and The Marxist theory. Each offers a particular perception of workplace relations and will therefore interpret such events as workplace conflict, the role of trade unions and job regulation very differently. I will examine each of these theories in turn and then formulate my own opinion regarding which is the ‘best’ or most appropriate theory.
Industrial relations is an umbrella concept that overall encompasses the relationship between the employer and the employee on the contrary Industrial conflict between or among groups, industries and government. Economically, the factor of productivity in workplace is very important
An important aspect of this framework conceives the industrial relations system as self-adjusting towards equilibrium. In so far as change in one element had repercussions for the other elements, they are held to set in motion a range of processes that invariably restores a sense of order on the system. Strategic choice theory Another widely used and more recent theory drawing on pluralist assumptions is Kochan, Katz and McKersie’s (1986) strategic choice theory. This particular theory picks up on the systems concept developed by Dunlop (1958) and advanced on it by accommodating a number of contemporary changes in the way industrial relations was being practiced. Three such changes are noted as being influential in determining the way managers deal with industrial relations issues. The first is identified in the recent decline in union membership and the rise of new industries not covered by unions. The second is noted in the way collective bargaining structures and outcomes involving trade unions
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.