Approaches to Industrial Relations

 Psychological Approach  Sociological Approach  Human Relations Approach  Gandhian Approach  Human Resource Management Approach  The Action Theory Approach
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 The Unitary Approach  The Pluralist Approach  The Marxist/RadicalApproach  Weber s Social Action Approach  The Oxford Approach

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Why So Many Approaches...?

y The problems posed in the field of industrial relations

cannot be solved within the limits of a single discipline, and hence it is bound to be interdisciplinary in approach.
y Any problem in industrial relations has to be

approached on a multi-disciplinary basis, drawing from the contributions of a number of disciplines.

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Psychological Approach
y Problem of industrial relations lie in the

perception and attitude of the participants.

y Study by Mason Haire on the behaviour of two

groups, namely, Union leaders and Executives .

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Psychological Approach (contd.)

Results of Mason Study: a) The general impression about a person is radically different when he is seen as a representative of management from that of a person as a representative of labour.
b)The management and labour see each other as less dependable. c) The management and labour see each other as inadequate in thinking regarding emotional characteristics and interpersonal relations.

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Sociological Approach
This approach includes various sociological factors like value system, customs, norms, symbols, attitude and perception of both labour and management. As industrialisation gets momentum, a set of new industrial-cum-social patterns emerges. These influences shape the industrial relations. Now a days industrial relations are determined by power.

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Human Resource Management Approach

y The term, human resource management (HRM) has become increasingly used in the literature of personnel/industrial relations. y The term has been applied to a diverse range of management strategies and, indeed, sometimes used simply as a more modern, and therefore more acceptable, term for personnel or industrial relations management.

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(Contd.)
Some of the components of HRM are (i) HR organisation (ii) HR planning (iii) HR systems (iv) HR development (v) HR relationships (vi) HR utilisation (vii) HR accounting (viii) HR audit.
Quite clearly, therefore, it questions the collective regulation basis of traditional industrial relations. Emphasises individualism & the direct relationship btn management & its employees.

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THE HUMAN RELATIONS APPROACH The human relations approach highlights certain policies and techniques to improve employee morale, efficiency and job satisfaction. It encourages the small work group to exercise considerable control over its environment and in the process helps to remove a major irritant in labour-management relations. THE GANDHIAN APPROACH Focus point: Truth, non-violence and non-possession Crux: Presumes the peaceful co-existence of capital and labour If the employers follow the principal of trusteeship than there is no scope of conflict of interest between labour and management, THE ACTION THEORY APPROACH Focal Point : Collective regulation of Industrial Labour. Management and Labor operate within a framework of Coalition relationship. Action theory analysis of industrial relations focuses primarily on bargaining as a mechanism for the resolution of conflicts.

THE OXFORD APPROACH Focus Point :substantive and procedural rules . Business enterprise: Social system of production and distribution, which has a structured pattern of relationship. institution of job regulation : Internal & External Internal: code of work rules, wage structure, internal procedure of joint consultation, and grievance procedure. External: Trade Unions

WEBSTER APPROACH Focus Point: Control & Power Struggle

Unitary perspective
y The organization is perceived as an integrated & harmonious whole with

the ideal of "one happy family", where management & other members of the staff all share a common purpose, emphasizing mutual cooperation.
y Has a paternalistic approach where it demands loyalty of all employees,

being predominantly managerial in its emphasis and application

y Trade unions are deemed as unnecessary since the loyalty between

employees & organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown.

Pluralist perspective
y The organization is perceived as being made up of powerful & divergent

sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders.
y In particular, the two predominant sub-groups in the pluralistic

perspective are the management and trade unions.

y The role of management would lean less towards enforcing & controlling

and more toward persuasion and co-ordination.

y Trade unions are deemed as legitimate representatives of employees,

conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channeled towards evolution and positive change

Radical perspective
y Here IR looks at the nature of the capitalist society, where there is a

fundamental division of interest between capital & labour, and sees workplace relations against this history.
y Inequalities of power & economic wealth as having their roots in the nature

of the capitalist economic system.

y Conflict is seen as inevitable y Trade unions are a natural response of workers to their exploitation by

capital. y Whilst there may be periods of acquiescence, the Marxist view would be that institutions of joint regulation would enhance rather than limit management's position as they presume the continuation of capitalism rather than challenge it.