INDUSTRIAL RELATIONS

Back ground and framework of industrial Relations

Introduction Concept of IR originated in the USA in the early 20th century. It soon extended to Great Britain It entered public discourse in 1912 in the aftermath of violent industrial conflicts

Introduction IR became known as the processes and institutions through which employment is managed, such as trade unions and employers’ associations, collective negotiations, labour legislation and organized conflict.

Introduction IR became known as the processes and institutions through which employment is managed, such as trade unions and employers’ associations, collective negotiations, labour legislation and organized conflict.

Introduction It provided the basis for academic research and teaching. Some writers: Labour and trade unions were regarded as positive forces for social improvement. Their perspectives converged with progressive employers.

Introduction Their common belief was that social peace could be encouraged by a better understanding of the sources of industrial conflict and the mechanics of collective regulation.

Model of Industrial Relations Early writers on IR came from a variety of backgrounds. As the study became increasingly institutionalized it became a study in its own right. A most notable writer was John Thomas Dunlop Industrial Relations System appeared in 1958

Model of Industrial Relations For Dunlop the defining characteristics were The full range of rule making governing the workplace. Analysis of the rules of employment. John Thomas Dunlop

Model of Industrial Relations For Dunlop the defining characteristics were The actors (employers, workers and their organizations and governments) involves in their formation and administration John Thomas Dunlop

Model of Industrial Relations For Dunlop the defining characteristics were The Contextual Influences (economic, technological and political) required a distinctive theoretical apparatus which identified industrial relations as a separate discipline. John Thomas Dunlop

Model of Industrial Relations JD’s Model was 1st published in 1958 and revised in 1993 John Thomas Dunlop

Model of Industrial Relations It defines IR as the field defined by the study of interaction between: Workers, Employers, Their Associations and The State. John Thomas Dunlop

Model of Industrial Relations The interactions take places against the background of several variables: Technology The design of work Power relations within society at large. John Thomas Dunlop

Model of Industrial Relations The system is kept in tact by shared ideology, Its product is the norms that govern The Employment Relationship and the Labour Market John Thomas Dunlop

Model of Industrial Relations The IR system is Flexible and can be applied at: Enterprise Domestic Occupational and Sectoral National And International Level John Thomas Dunlop

Model of Industrial Relations IR system as a distinct subset of the Economic System and separate of the Political System. Political System Economic System John Thomas Dunlop Industrial Relations System

Model of Industrial Relations Criticisms of JD IR System: The assumption of shared a ideology driving the system rather than power and conflict was excessive. John Thomas Dunlop

Model of Industrial Relations Criticisms of JD IR System: The separation of the industrial relations system from the other systems namely the political system, was problematic. John Thomas Dunlop

Properties of John Dunlop’s Model Model which explains why particular rules are established. How and why they change in response to changes

Properties of John Dunlop’s Model Argument – IR is a discipline in its own right It is related to economics and to social systems in general.

Properties of John Dunlop’s Model He envisaged the following: Regulated relationships at the workplace as a social product. Concerns with analysis at the level of the individual or even the primary group

Properties of John Dunlop’s Model The main elements of the Model are: Interrelatedness of institutions and behaviour. Rules that govern the relationship between actors and institutions.

The Impact of Dunlop’s Work Dominated IR Research for decades It became the starting point from which most other influential commentators proceeded.

The Impact of Dunlop’s Work There was no difficulty in appreciating the impact of his work. It provided a mechanism for grounding the subject area.

The Impact of Dunlop’s Work It enabled the movement away from the narrow concentration on collective bargaining. It enabled the claim that IR as a discipline in its own right

The Impact of Dunlop’s Work He developed the thinking of Industrial Relations as having a theoretical core through the study of the Industrial Relations Systems.

The Impact of Dunlop’s Work NOTE Views the IR System as a subsystem of the wider society or the total social system. It is seen as providing certain essential influences and constraints IR System is regarded as comprising actors, context & ideology They bind the IR Systems together and a body of rules created to govern the actors at the place of work

The Creation of Rules The creation of rules is seen to be the central aim of the Industrial Relations System IR Rules

The Creation of Rules Managers and their supervisors. There three (3) groups of actors who take part in the rule making process. Managers and their supervisors. Non-managerial workers and their Spokesmen. Specialized government agencies and specialized private agencies

Impact of the Environment on the Industrial Relations System Impacts are Technological aspects of the work place. Markets and budgetary constraints The focus and distribution of power in the larger society.

INDUSTRIAL RELATIONS

Back ground and framework of industrial Relations

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Model of Allan Flanders Member of the Oxford School of Industrial Relations. Developed a particular institutional approach to the analysis of industrial relations. Published “The System of Industrial Relations in Great Britain” (1954) Institutional analysis is that part of the social sciences which studies how institutions—i.e., structures and mechanisms of social order and cooperation governing the behavior of two or more individuals—behave and function according to both empirical rules (informal rules-in-use and norms) and also theoretical rules (formal rules and law).

Model of Allan Flanders Other Contributions The design of State Income Policy, The reform of Collective Bargaining, Productivity Bargaining And his impact of the Donovan Report of the UK in 1968. the process of reaching an agreement (productivity agreement) through collective bargaining whereby the employees of an organization agree to changes which are intended to improve productivity in return for an increase in pay or other benefits

Model of Allan Flanders Alan Flanders furthered the work of Dunlop He focused on Why management on the whole is slow to innovate labour relations and have little to do with labour relations?

Model of Allan Flanders He believed that An immense amount of experimenting and education was needed about changes in management methods and outlook that he considered necessary.

Model of Allan Flanders He believed that An immense amount of experimenting and education was needed about changes in management methods and outlook that he considered necessary.

Model of Allan Flanders He believed that An Industrial Relations System required that ideology be sufficiently compatible and consistent, so as to commit a common set of ideas which recognizes an acceptable role for each other.

Model of Allan Flanders He claimed that “Voluntarism” is in a way common to all actors, and prescribed a limited role for specialized public agencies.

Marxist Approach to Industrial Relations The Marxist approach to the study of Industrial Relations is rooted in the theory of conflict founded by Karl Marx.

Marxist Approach to Industrial Relations Conflict theory is based on the premise that: Conflict exists in society and in organization, It is essential to reorganize this and have a framework to deal with it.

Marxist Approach to Industrial Relations Marx argues that conflict arises in organizations because of different values and interests,

Marxist Approach to Industrial Relations In the context of trade unionism and the industrial environment, the conflict is pitted between employers and employees.

Marxist Approach to Industrial Relations According to Marx, industrialisation engerders the polarization of societies into two (2) classes: The Bourgeoisie The Proletariat

Marxist Approach to Industrial Relations The Bourgeoisie – those who owns the means of production (factors, land, etc.) and The Much Larger Proletariat – the working class who actually perform the labour necessary for the means of production.

Marxist Approach to Industrial Relations The Pyramid

Marxist Approach to Industrial Relations He argues that relationship between the two (2) classes is Fundamentally Parasitic “Dialectical Materialism”.

Marxist Approach to Industrial Relations It remains this way along as the proletariat are always under-compensated for the true value of their labour by the bourgeoisie (according to the labour theory of value) “Dialectical Materialism”.

Marxist Approach to Industrial Relations This allows the bourgeoisie to grow absurdly wealthy through the exploitation of the proletarian’s labour. “Dialectical Materialism”.

Marxist Approach to Industrial Relations The Marxist sees no difference in the conflicts between: Society and Individual, and even within organizations.

Marxist Approach to Industrial Relations Hence the class conflict in industry is a reflection in society as a whole and this outcome is the same leading to revolution.

Marxist Approach to Industrial Relations The Marxist perspective also has the following: The institution of the capitalist society grows out of the power base of the bourgeoisie, and do not represent a permanent solution of the conflict.

Marxist Approach to Industrial Relations The Marxist perspective also has the following: Trade Unions exist to enable the workers to gain a power base on which they can secure improved terms and conditions from the capitalists.

Marxist Approach to Industrial Relations The Marxist perspective also has the following: Unions offer protections against the owners and managers, hence the need for collectivism which is more powerful than individualism.

Marxist Approach to Industrial Relations The Marxist perspective also has the following: Trade Unions are not necessarily seen as the basis for revolution, but they contribute to the wider class struggle in society.

Marxist Approach to Industrial Relations Note: In the essence of equal opportunity and difference among human beings, Marx developed ALTERNATIVE DISPUTE RESOLUTION (A.D.R.)

Marxist Approach to Industrial Relations Criticism of the Marxist Approach The Marxist Approach fails to recognize changes that have taken place in society since Marx wrote over 100 years ago.

Marxist Approach to Industrial Relations Criticism of the Marxist Approach The Marxist view on power and property is also not relevant since today the distribution of power and property has changed, and it is more widely spread than before.

Marxist Approach to Industrial Relations Criticism of the Marxist Approach There is much more social mobility today, and the simple division of society described by Marx no longer exists.