Approaches to IR

Session 2
Approaches to IR
Unitary Perspective

Pluralistic Perspective

Radical Perspective
Approaches to IR
Unitary Perspective:
One Source of Authority i.e. Management
Own and Control
Employers are a law unto themselves
Conflict is unnecessary & irrational and can be
resolved through coercion.
Trade unions are avoidable and intrusions from
outside competing with management for the
loyalty of employees.
Unitary Perspective Contd..
An organisation is composed of a group of
people under a single / unified loyalty
structure.
It is Managements right , prerogative and
responsibility to take decisions regarding how
an enterprise is to function.
Underlying assumption is organisational
system is in basic harmony, and conflict is
unnecessary and exceptional.

Pluralistic Perspective
View of society as post- capitalist.
There is a relatively widespread distribution of
authority and power within the society.
A separation of ownership from management.
A separation of political and industrial conflict and an
acceptance and institutionalization of conflict in both
spheres.
Conflict can be resolved through compromise and
agreement.

Pluralist Perspective Contd..
Organisation is a collection of people from
different sections, each with its own interest,
objectives and leadership.
Underlying assumption is that the
organisation is in a permanent state of
dynamic tension resulting from the inherent
conflict of interest between the various
sectional groups and requires to be managed
through a variety of roles, institutions and
processes.
Radical / Marxist Perspective
Organisation exists within a capitalist society.
Class conflict is source of societal change.
It arises because of disparity in distribution
and access of economic power.
Conflict is inherent in economic and social
systems.
Conflict resolution is possible only through
societal transformation.
Radical / Marxist Perspective
Trade unions are employee response to
capitalism.
Unions are expression and mobilisation of
class consciousness.
Unions develop political awareness and
activity.
Theories of IR
Psychological approach to IR:
The problems of IR are deeply rooted in the
perception and the attitude of participants.
The conflict between labour and management
occurs because every group negatively views/
perceives the behaviour of other.
The problem of IR is aggravated by unfulfilled
needs of power, prestige, recognition, economic
motives etc.
Theories of IR
Sociological Approach:
Industry -> social world, workshop -> community
made up of various individuals and groups with
differing personalities, educational background,
family breeding, emotions, likes and dislikes etc.
Value System, customs, norms, symbols, attitude
and perception of both labour & management.
Social consequences of industrialisation:
Organisation, social mobility, migration generate
many social evils like family disintegration, stress
and strain, personal and social disorganisation.
Theories of IR
Human Relations Approach:
Human being is a complex being and the
interactions with others are far more complex.
Dissatisfied needs of individual are at the base of
conflict.
The core of HR approach is integration between
individual needs and objectives of the
organisation.
Theories of IR
Socio- Ethical Approach:
Good IR can be only maintained when both labour
and management realize, their moral
responsibility in contributing towards resolution of
conflict through mutual cooperation and greatest
understanding of each others problems.
This approach encourages mutual settlement of
disputes, collective bargaining and voluntary
arbitration and not compulsory adjudication.
Theories of IR
Gandhian / Trusteeship Approach:
Philosophy presumes the co-existence of capital
and labour, which calls for the resolution of
conflict by non-violence and non- co-operation.
Workers right to strike is acceptable in a just
cause but in a peaceful and non- violent manner
resorted to only after employers fail to respond to
their moral appeals.
The capitalist is expected to hold industry in trust
for the community and workers are expected to
be co- trustees with owners.
Theories of IR
System Approach: John Dunlop
Focus is on participants in the process,
environmental forces and the output.
Participants: Workers and their organisations,
Management and their representatives, and
Government agencies.
An ideological linking to a considerable extent
regulates the relations among parties.
An ideology is a set of ideas and beliefs commonly
held by the actors that helps to build or integrate
the system together as an entity.


System Approach
The context or environment: ground in which
participants interact
Technological characteristics of the workshop.
The market or economic constraints;
The locus and balance of power existing in a
society.
System Approach
IR = f (a, t, m, p, i)
Actors: Establish rules for workplace and the
work community. This web of rules consists of
procedures for establishing rules, the substantive
rules and procedures for their application to
particular situations

Changing Dimensions of IR
Weakening of institution of trade union.
Collecting bargaining being decentralised
replaced by unit bargaining, individual
bargaining etc.
Changing patterns of Compensation/ Reward
Management.
Pro- Labour stance of Govt. undergoing
change.
Strategic Issues confronting IR
Technology & Job
Skills Development
Labour Mobility
Labour Commitment
Work Culture
Productivity & Competitiveness.
Emerging business scenario
Features of Indias New Economic Policy:
Core sectors have been opened for Private sectors
Inflow of FDIs
Banking & Insurance sectors being opened for
investment from foreign FIIs.
Relaxations on Inspection and Licenses.
Indian membership of WTO, IMF & WB.
Influence of core conventions of ILO started
influencing business.
Disinvestment.
Growth of Non- Core, service and non-
infrastructural sector.
Impact of China.
Changing role of trade unions in sunset and
sunrise industries.
Role of consumer forums, NGOs,
Environmental campaigners & media.

New HR issues of Flexibility: Size of workforce,
composition of workforce, Job enrichment,
Flexi- timings, flexi pay, flexi- working places.
Contracting out of non- core activities.
Changing pattern of managerial practices.
Changing nature of work.
Use of technology at work.