CH 1 The approaches of Industrial Relations

Learning objectives
Understand the different views of the employment relationship and the interaction in an IR System Explain the integral nature of the concept of conflict, cooperation and regulations Identify the importantce and difficulties of comparing industrial relations in different countries. Appreciate the character of labour process and labour market within capitalism and the interrelationship between macro and micro employment issues

 Industrial society is a complex and dynamic society (consist of group, societies and institution) they are interrelated, however have different attitudes and perceptions. They are also being influenced by external environment. We cannot ignore the working aspect of human being, as working hour dominate most of our time.

There are different types of organizations: 1.Big organization, small organization, local or international. 2. They constitute of 3 main actors: Shareholder- represented by management, association of employers. Always to gain as much profit and productivity. Employees- being represented by trade unions. To get good salary and good working conditions Government; being represented by specialize government agencies concern with workers, enterprise and their relationship. Try create industrial harmony Each of the actors above always conflicting between one another in order to achieve their objectives. 3. Besides the above 3 main actors, in the present context academicians have also considered another actor which can also influence the nature of IR i.e Stakeholders.

 Does industrial harmony between the three actors can be easily achieve particularly between employees and management?. To moderate their conflict, the interference of the government is crucial. Government influence the relationship by introducing rules and regulations and some code of industrial harmony. Within the Malaysia contact, some of the related rules are: industrial relation acts, trade union acts, employment act, code of Industrial harmony and etc. (pls. refer to Ministry of HR website).

Definition IR
Industrial relations encompasses a set of phenomena, both inside and outside the workplace, concern with determining and regulating employment relationship

What is Industrial Relations?

A particular set of phenomena associated with regulating the human activity of employment The making and administering of the institutions and rules of work regulation Socio-industrial conflict (in all its forms) and its resolution Explicit and implicit bargaining between employees and employers

Industrial Relations
Much of Industrial Relations at lower level of study place considerable emphasis on factual approach. - Author concentrated their efforts in describing situations as they saw it - they produce guide book rather than theories and explanations. Eg. Describing union structure, laws etc.

 In studying IR it is easier to study and to discuss through frame of reference. Frame of reference; each person perceive and interpret events by mean of conceptual structure of generalizations or contexts postulate about what is essential, assumptions as what is valuable, attitude about what is possible and ideas about what will work effectively. It constitutes the frame of reference of that person.

The nature of employment organization

Approaches to industrial relations

Approaches to organisations

Unitary
Authoritarian Paternalism

Pluralistic
Co-operation Conflict Approaches to industrial relations

Marxist
Evolution Revolution

Input Conflict (differences)

Conversion Institutions and processes

Output Regulation (rules)

Human resource management Labour market

Systems

Social action

Wider approaches to industrial relations

Control of the labour process

Comparative

Unitary perspective
Assumptions Capitalist society Integrated group of people within the work organization Common values, interests and objectives Nature of conflict and its resolution Irrational and aberrant ( straying from the path) If there is/are conflict, they are Frictional and personal Coercion (force) or paternalism (limiting freedom through regulation) Role of Trade Unions Intrusion from outside Historical anachronism (relating to a wrong period) Management only forced to accept trade unions in economic relations

Unitary view
Organization is: A group that united Having same objectives Single authority/kepatuhan yang satu common value, interest and objectives (nilai, minat dan objektif yang sama) Managers have the right to manage, managers have prerogative to make decisions. Those who challange is not rasional.

 Unitary also has considerable support in the academic sphere. A great deal of work in human relations school fall into this category- it emphasizes the important of social relations in industry. It stresses that conflict is the result of poor social relations, to overcome they suggest for ex. Better communication, they ignore differences in interest the source of conflict.

to
According to Fox this view of organization had been abandon as incongruent with reality, but it should not be discard lightly. It provide subconscious foundation (the right to manage) for mgrs seeking to maintain clear distinction between those issues they prepare to negotiate and those they are prepared only to consult. Also appear to have provide the basis for HRM (comment interest, culture and values ideology within organization,

Pluralist perspective
Assumptions Post-Capitalist society, where a relatively widespread distribution of power and authority within the society, a separation of ownership from mgt. a separation ,acceptance and institutionalization of political and industrial conflict Coalescence of sectional groups within work organisation Differing values, interests and objectives Competitive authority/loyalty structures (formal & informal) Nature of conflict and its resolution Rational and inevitable Structural and institutionalized Compromise, negotiate and agreement Role of Trade Unions Legitimate and accepted in both economic and managerial relations Internal and integral to organization

THE NATURE OF IR

Unitary: Human resource management

Management or manipulation?
Focus Strategic & integrated managerial approach to the management of people HRM support for achieving business aims and objectives Mechanisms Individualism (human relations, organisational psychology) Integrating planning, monitoring and control of human resources (not just employees) Securing employee commitment or organisations aims & objectives (performance based rewards, employee involvement)

Pluralist: Input-output model

Input Conversion Output

CONFLICT
Function: Identify Differences of interest Types: 1. Micro-level organisation tensions 2. Macro-level society values & issues Forms of expression: 1. Hidden individual 2. Overt constitutional 3. Industrial pressure

RECONCILIATION
Conducted through: 1. Processes 2. Institutions 3. Levels

REGULATION
Rules: 1. Substantive or procedural 2. Internal or external to the organisation 3. Varying degrees of formality

Marxist: Control of the labour process

Focus
The way capital controls labour

Mechanisms of management control

Scientific management or deskilling Segmentation of labour (core & periphery) Bureaucratic control (policies, procedures & rules) Responsible autonomy (self-control or adoption of management values as integral part of job?)

Employee response
Resistance (restrictive practices) Collectivism (joint regulation)

System Approach
Originated by Dunlop, being subjected to a variety of interpretation, uses and criticism. However they do not invalidate the systems approach but they suggested accommodation and Refinement. It is a broad based integrative model that sought to provide tools of analysis to interpret and gain understanding the widest possible range of IR facts and practices and to explain why particular rules are establish in particular IR systems and how and why they change in response to changes affecting the system. This model sees IR as a subsystem of society distinct from but overlapping, the economic and political subsystem

System Approach
Four interrelated elements: Actors- management, non-managerial employees and their representatives And specialize government agencies concern with IR. Context : influence and constraints on the decisions of the actors which emanate from other parts of society, such as technology, market, budgetary and the locus of power in the society.. Ideology; beliefs within the system which not only define the role of each Actor or groups of actors but also define the view that they have of the role of other actors in the system. If the view compatible-stable IR system and other wise. Rules; the regulatory framework, developed by a range of process and presented in variety of forms which expresses the terms and nature of the employment relationship.

System of industrial relations 1

Dunlop - Actors, working within contexts (environment), developing a body of rules, held together by an ideology

System producing rules (IRS) and system governed by rules (production)

Naturally stable and orderly? Emphasis on roles rather than people Importance of environmental influences

System of industrial relations -2

Industrial relations system (2) Environments Economic structure Political Legal Government and State Agencies Roles Attitudes Values Interests Other levels of the industrial relations system Environments Social Cultural Organisational hierarchy of management Power Choice Attitudes Values Interests

Organisational hierarchy of management Attitudes Values Interests Power Choice Output (substantive rules) Roles

Power Choice Industrial relations system (1) Rule-making process Internal rules

Input (conflict)
Power Disorder Productive system

Roles

Control/ order

Market Environments

Technology

WIDER APPROACH TO IR

Comparative approach
Difference between: Comparative (analysing different countries) International (transnational institutions and phenomena) Importance of comparative approach Inform public policy debate Changing world economy Development of fair international employment standards Problems of comparison Lack of common terminology and definitions Differences between stated institutional framework and reality of actual practice Problems of transferability

Convergence
Logic of industrialisation All countries subject to same economic, technological and market forces All need concentrated, disciplined workforce with new and changing skills Similar government role in providing economic and social infrastructure for industrialisation (competing for same international investment) Modified convergence Countries at different stages of industrialisation Alternative solutions to common problems Regional based convergence

Divergence
Distinctive value systems and cultural features

Heterogeneity within national industrial relations systems (decentralisation & flexibility)

Different strategic choices by Government, employers and unions at macro (society) and micro (organisation) levels on nature, content and process of employment relationship Political-economic framework of newer industrialised countries versus pluralistic framework of older industrialised countries