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Employees play a vital role in the operations of any organization. They are involved in various organizational duties including administration, production, sales and distribution among others. For employees to perform at optimum level, there must be a positive association between them and the management.
However, disagreements in the organizational setting are unavoidable. Industrial relations play a vital part in facilitating the process of dispute resolution in organizations. Industrial relations, which are also referred to as labor relations, deal with problems involving employment, work conditions, pay and other labor complaints within a defined structure that is fair to both employers and employees (Budd, Gomez, & Meltz, 2004).
Industrial relations involve various elements that govern the relationships inside and outside the workplace. There are four key theories of industrial relations. The unitarist paradigm focuses on the interdependency of management and staff. The Marxist theory suggests that capitalism breeds impunity, which oppresses employees while profiting the organizations.
Consequently, the Marxist theory argues that corporations should be run as noncompetitive state organizations. The radical theory is similar to the Marxist theory, though it argues that industrial relations do not provide the ideal solution for employees to protect their interests from the profit-hungry corporations (Budd, Gomez, & Meltz, 2004).
The pluralist industrial relations theory evaluates the work and the employment relationship based on the prevalence of disparities between the dealings of employers and employees in flawed labor markets. According to the pluralist paradigm, conflicts arise due to varied and competing interests between different stakeholders. Some of these include the variation between high wages against low labor costs, employment security against flexibility, and safe workplace against high output.
This implies that the employment relationship conflict is characterized by mixed motives. As such, the implications of disagreements between stakeholders are dependent on different factors that influence the bargaining power of each stakeholder. This theory best explains the relationship between the organizational setting and the achievement of the group and individual goals (Onyeonoru, 2005).
The elements of pluralist industrial relations access both the employee behavior and fair treatment of individuals, who are regarded as human agents, rather than rational agents. The competition among corporations trickles down to the employees, resulting in mediocre work standards.
Hence, the pluralist industrial relations paradigm also focuses on creating a balance between the competing interests in the employment relationship. This implies that various decision-making factors such as cultural values, emotions, habits and fairness are valued in the pluralist paradigm (Onyeonoru, 2005).
There are various assumptions that influence the pluralist theory. The first one suggests that there has to be a conflict of interest in the employment relationship. The second one argues that labor markets are competitive while the third one stresses that employees are regarded as human agents, and not economic or rational agents.
The pluralist industrial relations do not support the value of competitive markets and the rationale of neoclassical economics. Instead, it proposes a balancing paradigm between capital and labor based on their implications on the goals of workers, employers and society. The absence of a workable and equitable balance among these interests, results in reduced economic growth due to decreased consumer purchasing power, as well as reduced investments in human and physical capital (Onyeonoru, 2005).
According to the pluralist industrial relation paradigm, extreme corporate power poses a substantial burden on society through the creation of poor wages and working conditions. Consequently, the individual perception of justice and equality influences the outcomes of employee earnings and efficiency (Onyeonoru, 2005). As such, the pluralist theory holds that behavioral elements of decision-making influence the achievement of individual and group goals.
References
Budd, J. W., Gomez, R. & Meltz, N. M. (2004). Why balance is best: the pluralist industrial relations paradigm of balancing competing interests. Theoretical Perspectives on Work and the Employment Relationship. Retrieved from http://jbudd.csom.umn.edu/RESEARCH/buddgomezmeltz.pdf
Onyeonoru, I. P. (2005). Industrial conflict in historical context: evolution, management and transformation. Perspectives on peace and conflict in Africa. Web.
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