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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 labor union movement over the years has shaped the way individuals work and live for both the nicest and unpleasant. Some would think the unions influence has created a power struggle between management and union leaders. In today’s time, some citizens insist the existence of unions are a must to aid in employee freedom, while others view the labor unions as just another problem in the line of progress. The purpose of labor unions was for employed workers to come together and collectively agree on fundamental workplace objectives. The rise of the union came about after the Civil War- responding to the industrial economy. Surprisingly at the least unions became popular within the 1930-50’s and began to slowly decrease, starting in the 1960’s on to today. Although, the popularity of labor unions has decreased, its importance remains to be evident with politics, journalism, auto, and the public education industries. The objective of this paper is to shine light upon labor unions, taking a closer look at the disputed issues of union ethics, concerns of union diversity, and the opposing viewpoints of labor unions.
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 ...
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).
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
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.
...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.
The relationship between employer and employees plays a pivotal role in the performance of the organization. Employers and employees have certain responsibilities towards each other which facilitate a fair and productive workplace. Positive work relationships create a cooperative climate with effort towards the same goals. Conflict, on the other hand, is likely to divert attention away from organizational performance.
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)
...04). The theory which in my opinion is the ‘best’ or most appropriate theory of industrial relations is the Pluralist theory. This theory has been in pole position in western societies for over thirty years. In today’s environment it is the most realistic theory as it assumes conflict is inevitable and recognizes that both employees and employers will have different objectives unlike the unitarist theories beliefs. It is now recognized that better managed industrial relations programmes and cooperation with trade unions can seriously impact on the prevention of disputes, increase productivity, quality and the motivation of workers within organisations and help to align employee objectives with the organisations objectives.
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
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.
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.