Industrial Relations Theories

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Table of Contents

Introduction
Theories of the workplace relations
Arguments in favor and against unions
Conclusion
Works Cited

Introduction

Industrial relations refer to the ways in which employees and employers relate within an organization. The relations include interactions covering human resource management, employee relations, and union relations. The relations arise from interactions between individual workers, between workers and their employers, and the interactions that employers and employees have with bodies formed to protect their various interests (Hall, 13).

The relationships are articulated in various ways involving the workers. Industrial relations have been regarded as a study of the rules governing employment, and they give directions on how the rules are changed, interpreted, and administered. There are different theories that explain the different inclinations of the industrial relations (Jackson 12).

Theories of the workplace relations

Unitary theory

It views the organization as having one source of legitimate authority, having a unified authority, and a loyalty structure. The relations are placed on common values, interests, and objectives. All organizational participants are viewed as a team who share a common destiny. In unitary theory, conflict is seen as evil and destructive.

Therefore, it should be avoided at all costs. Conflict is believed to be caused by mismanagement and poor communications. Trade unions are outlawed and viewed as an illegitimate source of authority. They are seen as an intrusion competing for employees’ loyalty. In this theory, organizations exist in perfect harmony and all conflict is unnecessary (Jackson 16).

Conflict / Pluralist Theory

The theory recognizes that employees and managers have different objectives, which create a conflict of interest in the workplace. The theory argues that conflict is inevitable, rational, functional, and a normal situation at the workplace, which is then resolved through compromise, agreement and collective bargain.

Trade unions are viewed as legitimate and are not causes of conflict, but emphasizes on competition and collaboration in the workplace. This theory is the most efficient means of institutionalizing employment rules as it creates a balance in employee and management power (Jackson 18; Hall, 39).

Marxist Theory

The theory reflects a wider class of conflict between capital and labor. It shows that workplace relations are a reflection of the incidence of societal inequalities and the inevitable expressions about them in the workplace. Conflict is inevitable, and capital seeks to reduce costs while employees seek fairer price for labor.

Conflict will only cease by revolutionary changes in the distribution of property and wealth. According to the theory, trade unions should raise revolutionary consciousness of workers and union leaders who accommodate managers betray the workers. Bargaining power gives little solutions and gives leaves important managerial powers intact (Jackson, 20).

Systems theory

This is a general theory of industrial relations. It states that industrial relations is a sub-system of a wider society that has four elements. These elements include the following:

a) Actors: they include the employers, employees, their representatives, and government agencies

b) Environmental contexts: this includes technologies, markets, budgets and distribution of power.

c) Procedural and substantive rules governing the actors.

d) Binding ideologies and common beliefs that encourage the actors to compromise.

The systems approach holds that behavior is as a result of the structure and processes of the system (Jackson 22).

Social action theory

The theory views the relation from the individual point of view and motivation. Each member of the organization has his/her own goals and views conflict as normal and a part of an organization’s life. Social actions arise out of the expectations, norms, attitudes, values, experiences, situations and goals of an individual.

The social action approach is important in weakening the fatalism of the structural determinations and stresses. In this case, the individual retains some power and freedom.

Industrial relations have been shaped and benefited largely from the theories by the major theorists. The industrial relations all over the world have been improved for the common good of all the stakeholders in the organizations (Hall, 17). They are also important for the achievement of organizational and individual goals.

A sound industrial relations systems represent harmonious relations more cooperative than conflicting. They also create better environments for economic growth. They require policies that govern them (Jackson 25).

Collective Bargain

This is the process through which the employees come together with the aim of championing for their rights. This is achieved through a system of shared responsibility and decision making between the labor force and the management. Collective bargaining involves the Union as the workers’ representatives, and management as the employers’ representatives. Collective bargaining has four elements that make it a complete, which include the following:

a) Legality: the contract being negotiated must be a legal agreement.

b) Economic perspective: the contents of the bargain must specify the terms and conditions of employment regarding salary, wage increment, and other benefits.

c) Must be between two parties: the agreement is between labor and management.

d) It is a system involving shared responsibility and decision making.

Collective bargaining ensures the improvement of workers’ standards of living through fair remuneration and good working conditions, guarantees security of tenure, and employee promotion on the basis of merit.

It allows for participation of the labor force in running an enterprise through the decision making and control management. It also allows for ease and fair dispute management and other employment issues settlement.

Historical background

Trade unions were initially established in the United States in the 1700s. They were meant to safeguard the welfare of the workers. Many other unions were formed in other countries in the world thereafter.

In the past, many employees came together to form unions. They were brought together by their areas of expertise. Thus two categories of labor unions emerged. These included: Crafts union and industrial unions.

Crafts union was formed by workers specialized in a certain trade while the industrial unions were formed by workers in the various industries. Some of the major unions at the time included the National Labor Union organized in 1866 and the Nobel Order of the Knight of Labor in 1869.

In the 19th century, courts were antagonistic to unions as they were seen as restraining trade by violating the laissez-faire capitalism core principle that states should not support interferences in business. The conflict that existed for there to be antagonism was between freedom of association, which gave people a right to form associations, and freedom of voluntary exchange in markets, which objected any form of market contracting opposing unions.

There was a change when the Wagners Act passed in 1935. Some of the elements of this Act included the establishment of clear rights of workers to form unions, protection in organizing activities for preventing employers from unfair practices and unfair bargains. The Act led to the establishment of a National Labor Relations Board (NLRB).

This changed the attitude of the federal governments about the legitimacy of the collective organizations by workers. During the 1950s, there was a dramatic expansion of unions.

With the rules in place, unionization reached its peak in 1953 with regard to the private sector. In the 1970s, there was the uneasy truce between unions and employers, which showed new competitive pressures. The only group served by the unions is employees and they have not accomplished their aspirations as the employer is set against giving workers a voice and power in the various organizations (Jackson 13).

Unions have been of better help, and workers under unionized institutions wish to retain their unions. In addition, those who are not unionized would wish to register in unions given a chance. There are numerous benefits that came through the unions.

The Union membership has been on the downward trend since the last two decades of the 20th century. This can be attributed to the fact that the unions have accomplished their missions and made working condition better. In addition, there has been a fall in the number of blue-collar jobs.

This can also be attributed to increase in the labor laws that aim at enhancing the workers’ plight. There are other factors that have led to this trend. The number of unionized workers is still high all the same (Hall, 49).

Stages of Union development

Labor unions are usually organized on several different levels. Local Unions are formed to champion for the welfare of employees in a given region. This may include a city, state, or regional block. The national union is known to be the umbrella union of all other small unions within a country.

There is also the international level. However, it is not all the unions that have this element. It is made up several national unions whose bases are the local unions just like the national unions. The top level labor union organization is the federation, which is made up of many national and international labor unions.

The federation level is an umbrella union that synchronizes and facilitates the functioning of other small unions. It also champions for political representation of the unionized workers (Hall, 19).

Roles of the Unions

Labor unions have power that emanates from the collective power of its members. Therefore, they articulate issues that are facing their members and are mandated to perform certain responsibilities (Khan, 79). Their roles range from national development, environmental issues. Unions play a big part in national development as they are the catalyst of social change and justice. They are responsible for harmonious industrial relations and contribute greatly to human resource development (Hall, 22).

Catalyst of social change and justice: Well organized union yields tremendous power. When the powers are properly used, they convert into agents of social change and justice. They have successfully uplifted the economic status of workers consequently changing the social positions of the masses.

Harmonious Industrial relations: with the influence they have, they are in a position to dictate the nature industrial relations. Without the strong influence of these unions, it is at times hard to harmonize the relations between employers, employees, and the government agencies (Khan, 80).

Existence of harmonious industrial relations is manifested by lack of strikes, disputes, and lockouts. Harmonious industrial relations, attracts political stability, incentives in business, and natural resources are made available attracting investors to do business where these unions exists.

Development of human resources: In developing human resource, unions have been very instrumental in effecting changes and improvements in developing nations that are in the transition period from agriculture to industrial economies. It accelerates the change in attitudes of the labor force (Khan, 91).

Consequently, this has effects on the workforce quality and the quality of its work. New attitudes include safety awareness, time keeping, teamwork and open mindedness. The union also facilitates and accelerates the pace of adapting for workers from their initial orientations to the current orientation, creating a productive, and competitive workforce. They play a big role in training, education and skill building to empower the workforce (Hall, 23).

Poverty alleviation: Khan noted that the struggle against poverty is one of the missions that unions focuses to eradicate all over the world (79). In addition, they have always involved the strategies of poverty alleviation. Unions make representations to governments and international agencies.

They campaign for policies that can assist in poverty eradication. They organize workers and assist them in creating smooth employee employer relations through providing channels for employees to voice their grievances enforcing mutual agreements (Khan, 81). These platforms ensure that workers get fair terms and conditions of work, as well as fair remunerations for their labor services.

The alternative poverty alleviation policies include organizing unemployed youths into the informal sector of the economy, funding women, and establishing groups and associations for the peasant farmers and other small scale workers in the society (Khan, 82).

Role for Public Health and Sustainable Development: Interest in the overall state of the environment has been manifested by both employers and employees. They have ways in which to treat those infected with HIV/AIDs and other diseases for the common good of everyone at work and for productivity purposes of the workforce.

Arguments in favor and against unions

Arguments in favor of unions

a) Public workers get a good pay such that strikes are less, and there is continuity of work.

b) They protect workers from various company abuses, creating for them favorable working conditions.

c) The unions establish long-standing employment relationships. The relationship is among the employers and employees. The relationship has positive implication for both parties.

d) Unions provide a platform for workers to advocate for benefit remuneration, benefits, and acceptable working environments (Hall, 52).

Arguments against Unions

a) They can escalate prices for consumers. In this case, employers may be compelled to increase remunerations in which case the burden is to be shouldered by clients.

b) Unions constrain skilled employees from being recruited. In this case, the unions tend to hold workers in their positions in the name of securing their jobs, even those that are not fit for the jobs.

Non fit employees are often protected from layoffs and being fired. Thus, new positions are hard to open up in the labor market.

Conclusion

With the many changes that have occurred over the years in the society, unions need to change their structure in order to accommodate the dynamic changes that are occurring in the world today. Historically, the unions were viewed as bodies for workers’ welfare and rights.

They have now become major instruments of national development. As years pass by, the roles of unions will continue to evolve, change, and increase to accommodate the changes in the world. Unions have been instrumental in shaping the destinies of their mother nations and their citizens.

Works Cited

Hall, Richard. Industrial Relations: A Current Review. Thousand Oaks, CA: Sage Publications, 2006. Print.

Jackson, Michael P. Industrial Relations. London: Croom Helm, 1982. Print.

Khan, Muhammad Tariq. “Role Of Labor Unions Beyond Collective Bargaining”. Far East Journal of Psychology and Business, 1.1 (2010): 78-90. Print.

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