The Three Major Dimensions of Bargening in the Employee Relationship

Introduction

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. 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 crucial in industrial relations.

Economic dimension

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. In this arena of globalization, the case of competition 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 & Will...

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...r example increase in women and youth demographics may influence the economic dimension as market for such group increases hence the need to produce more for them by transferring resources there.

Conclusion

From the paper it can be concluded that research from the neoclassical economics and the present situation that economics is the biggest dimension influencing employee relations. Regardless, of the view it is also clear that the other dimensions of social and legal play a role in employee relations. This is because the legal aspect lays a basis for arbitration and bargaining on cases of employee relations. The social dimension is also relevant as it dictates the culture of the employees as well as the employer hence guide in how they relate. But overall, the economic dimension is clearly the pertinent factor in employee relations as well as industrial relations.