Employment Relationship: Economic, Social & Legal Dimensions

1071 Words3 Pages
bulb-icon

Recommended: The theories of industrial relations

In the theory and practice of industrial relations, it is pertinent to note that it arises from employment relations. Hence, it highlights the dual nature of industrial relations and the constant actions by the two sides attempt to control power in the relationship (Block, Berg & Belman, 2004). Therefore, what is central to industrial relations is the employment relationship between an employer and employee as it gives raise to the bargaining agenda in the pursuit of power. As a result of common practice of bargaining in the employment relationship, some three major dimensions can be identified. These are: economic, legal and social; this paper will thus seek to show how the three interact and posit that the economic dimension is most influential in employment relationships.

Employment relationships at its basic level revolves around economics, this is highlighted by the neoclassical economics which provides a theoretical approach on how employment relations take a form of economic transactions the world over. This is because individual laborers and firms are keen on maximizing utility and profits respectively from scarce resources based on market determined prices which are beyond their control. For example, the employees are often seeking work using their individual skills at a price offered by the firms. After which, they can enjoy utility of that wage through consumption; whereas, the capitalists or firms seek to maximize their profits by producing goods and services from the employees which is covered by wages. The case of competition as a result of globalization is prevalent in the market environment and therefore firms seek to maximize outputs at a lower wage rate leading to pressure on the employment relationship (Dibben...

... middle of paper ...

...oyment Relationship, pp. 94-118

Budd, JW 2013, "The Thought of Work in Employment Relations", Employee Responsibilities and Rights Journal, vol. 25, no. 1, pp. 61-65.

Charlesworth, S & Todd, P 2013, “Women, work and industrial relations in Australia”, Journal of Industrial Relations, Vol. 55, no. 3, pp.371-385

Dibben, P and Williams, CC 2012, Varieties of Capitalism and Employment Relations: Informally Dominated Market Economies. Industrial Relations: A Journal of Economy and Society, 51: pp.563–582.

Kalleberg, AL & Reve, T 1993, 'Contracts and commitment: Economic and sociological perspectives on employment relations', Human Relations, vol. 46, no. 9, pp. 1103- 1132.

Riley, J & Sheldon, P 2008, 'Remaking Industrial Relations in Australia', Economic And Labour Relations Review, 18, 2, pp. 1-6, EconLit with Full Text, EBSCOhost, viewed 22 March 2014.

Show More
Related

  • Hormel And Local P9 Negotiation

    644 Words  | 2 Pages

    In times of heated business disputes, navigating negotiation strategies is paramount to a successful business venture. In addition, the need to understand the various aspects of emotional exchanges that shift from rights, powers, and interests on both sides in the integrative and distributive approaches is the core of the modern day negotiations in business disputes. In the negotiation case between the parties, the two opposing sides represent an actual negotiation that occurred between Hormel and Local P9 in the 1980s. In this case, P-9 symbolized democracy and a willingness to oppose different demands for consensus regardless of the agenda or strategies of the international union. The defeated strike is a classic example of how employers can utilize

    Read More

  • Final Paper

    1312 Words  | 3 Pages

    David Brody argues that the rise of contractual or collective bargaining relationships during the post WWII era formalized the relationship between employers and unions, but simultaneously began to put a break on shop floor activism. Explain Brody’s argument and, where relevant, incorporate Weber’s theory of bureaucracy.

    Read More

  • The Gospel of Wealth, by Andrew Carnegie

    960 Words  | 2 Pages

    Carnegie states, “Under the law of competition, the employer of thousands is forced into the strictest economies, among which the rates paid to labor figure prominently, and often there is friction between employer and the employed, between capital and labor, between rich and poor” (393). It is this competitive nature which allows the hardest working individuals to rise above their peers, create personal wealth and continue to accumulate wealth. Competition is a beneficial to capitalism. A company can produce an item and sell the

    Read More

  • Employment Law

    1376 Words  | 3 Pages

    The purpose of this paper is to analyze a specific, hypothetical employment situation encountered and to include the information regarding employment conflicts, questions, grievances, lawsuits, etc., in terms of how the situation was handled or resolved.  Employment conflicts are a constant issue everyday in any organization; it is how you handle them both legally and professionally that counts.

    Read More

  • The Capitalist System in Business

    1311 Words  | 3 Pages

    In North America, jobs have become scarce and unemployment skyrocketing, as the domestic factories and producers of goods are being outsourced to undeveloped and developing nations. The capitalist relation between capital and labour is the cause of this movement that is seen of local jobs being given to workers who will work for lower wages.

    Read More

  • Service based economy in the U.S.

    354 Words  | 1 Pages

    We say that we are heading toward a more global economy because of the fact that competition in today’s markets is global. This means that corporations in the United States can compete in foreign markets and vice versa, therefore U.S. corporations and foreign corporations become interdependent and thrive off each other. This can have a good impact on the United States because it allows U.S. corporations to seek materials and labor outside of the U.S. in countries such as China, India, and Mexico, where workers are paid a lot less money than U.S. workers, thus allowing them to sell their products for significantly cheaper than if they were produced in the U.S.; however, the tradeoff is that many American workers in the industrial sector lose jobs due to this shift of labor to overseas. In the long run this will be beneficial for the U.S. and although some percentage of workers are losing work, new jobs in the services sector, in fields such as computer technology, telecommunications, and language skills are opening up and experiencing growth because of this change.

    Read More

  • Japan And China In The 21st Century Essay

    1922 Words  | 4 Pages

    The 21st Century has witnessed Asia’s rapid ascent to economic prosperity. As economic gravity shifts from the Western world to the Asian region, the “tyranny of distance [between states, will be] … replaced by the prospects of proximity” in transnational economic, scientific, political, technological, and social develop relationships (Australian Government, 1). Japan and China are the region’s key business exchange partners. Therefore these countries are under obligation to steer the region through the Asian Century by committing to these relationships and as a result create business networks, boost economic performance, and consequently necessitate the adjustment of business processes and resources in order to accommodate each country’s employment relations model (Wiley, Wilkinson, & Young, 2005). Cognizant of the fact that neither Japan nor China has given up on its external (protectionism or parity) adjustment tools, it is posited that they can nonetheless coexist since both “produce different things and in different ways” and as such avoid the cited perilous US and Mexico competition; but due to globalization, the operating environment portends a convergence or divergence of Industrial Relation (ER) strategies between China and Japan (Lipietz, 1997; Zhu & Warner, 2004).

    Read More

  • Unitary Frame of Reference

    1994 Words  | 4 Pages

    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.

    Read More

  • How Does The External Environment Affect Employment Relations?

    1292 Words  | 3 Pages

    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.

    Read More

  • Social Systems: Marxism Approach and Human Relations Approach

    526 Words  | 2 Pages

    The Marxist approach looks at industrial relations from a societal perspective. It views industrial relations as a small-scale version of a capitalist society. This approach surrounds itself with the assumption that industrial relations under capitalism are unavoidable, and thus would be a source of conflict. According to Marxist, industrial conflict is central to industrial relations, however actual altercations are uncommon. The approach also sees this as a form ...

    Read More

  • Managerial Prerogative

    1853 Words  | 4 Pages

    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...

    Read More

  • The Labor-Management Relationship

    1991 Words  | 4 Pages

    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).

    Read More

  • The Best Theory of Industrial Relations

    1375 Words  | 3 Pages

    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.

    Read More

  • Causes Of Industrial Relations And Industrial Conflict

    1489 Words  | 3 Pages

    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

    Read More

  • Systems Theory of Industrial Relations

    917 Words  | 2 Pages

    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.

    Read More

More about Employment Relationship: Economic, Social & Legal Dimensions

Open Document