Industrial relations

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Protest against industrial relations reform in Melbourne (15 November 2005).

Industrial relations is a multidisciplinary field that studies the employment relationship.[1][2]

Industrial relations is increasingly being called employment relations or employee relations
because of the importance of non-industrial employment relationships;[3] this move is sometimes
seen as further broadening of the human resource management trend.[4] Indeed, some authors
now define human resource management as synonymous with employee relations.[5] Other
authors see employee relations as dealing only with non-unionized workers, whereas labor
relations is seen as dealing with unionized workers.[6] Industrial relations studies examine
various employment situations, not just ones with a unionized workforce. However, according to
Bruce E. Kaufman "To a large degree, most scholars regard trade unionism, collective
bargaining and labor-management relations, and the national labor policy and labor law within
which they are embedded, as the core subjects of the field."[7]

Initiated in the United States at end of the 19th century, it took off as a field in conjunction with
the New Deal. However, it is generally a separate field of study only in English-speaking
countries, having no direct equivalent in continental Europe.[1] In recent times, industrial
relations has been in decline as a field, in correlation with the decline in importance of trade
unions,[7] and also with the increasing preference of business schools for the human resource
management paradigm.[8]

Contents
1 Overview
2 History
3 Theoretical perspectives
o 3.1 Pluralist perspective
o 3.2 Unitarist perspective
o 3.3 Marxist/Radical perspective
4 Industrial relations today
5 Notes
6 Further reading
Overview
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Industrial relations

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Industrial relations has three faces: science building, problem solving, and ethical.[9] In the
science building phase, industrial relations is part of the social sciences, and it seeks to
understand the employment relationship and its institutions through high-quality, rigorous
research. In this vein, industrial relations scholarship intersects with scholarship in labor
economics, industrial sociology, labor and social history, human resource management, political
science, law, and other areas.

Industrial relations scholarship assumes that labor markets are not perfectly competitive and
thus, in contrast to mainstream economic theory, employers typically have greater bargaining
power than employees. Industrial relations scholarship also assumes that there are at least some
inherent conflicts of interest between employers and employees (for example, higher wages
versus higher profits) and thus, in contrast to scholarship in human resource management and
organizational behavior, conflict is seen as a natural part of the employment relationship.
Industrial relations scholars therefore frequently study the diverse institutional arrangements that
characterize and shape the employment relationshipfrom norms and power structures on the
shop floor, to employee voice mechanisms in the workplace, to collective bargaining
arrangements at company, regional, or national level, to various levels of public policy and labor
law regimes, to "varieties of capitalism" (such as corporatism, social democracy, and
neoliberalism).

When labor markets are seen as imperfect, and when the employment relationship includes
conflicts of interest, then one cannot rely on markets or managers to always serve workers'
interests, and in extreme cases to prevent worker exploitation. Industrial relations scholars and
practitioners therefore support institutional interventions to improve the workings of the
employment relationship and to protect workers' rights. The nature of these institutional
interventions, however, differ between two camps within industrial relations.[10] The pluralist
camp sees the employment relationship as a mixture of shared interests and conflicts of interests
that are largely limited to the employment relationship. In the workplace, pluralists therefore
champion grievance procedures, employee voice mechanisms such as works councils and labor
unions, collective bargaining, and labor-management partnerships. In the policy arena, pluralists
advocate for minimum wage laws, occupational health and safety standards, international labor
standards, and other employment and labor laws and public policies.[11] These institutional
interventions are all seen as methods for balancing the employment relationship to generate not
only economic efficiency, but also employee equity and voice.[12] In contrast, the Marxist-
inspired critical camp sees employer-employee conflicts of interest as sharply antagonistic and
deeply embedded in the socio-political-economic system. From this perspective, the pursuit of a
balanced employment relationship gives too much weight to employers' interests, and instead
deep-seated structural reforms are needed to change the sharply antagonistic employment
relationship that is inherent within capitalism. Militant trade unions are thus frequently
supported.

History
Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by spawning free labor markets and large-scale industrial organizations
with thousands of wage workers.[9] As society wrestled with these massive economic and social
changes, labor problems arose. Low wages, long working hours, monotonous and dangerous
work, and abusive supervisory practices led to high employee turnover, violent strikes, and the
threat of social instability. Intellectually, industrial relations was formed at the end of the 19th
century as a middle ground between classical economics and Marxism, with Sidney Webb and
Beatrice Webb's Industrial Democracy (1897) being the key intellectual work. Industrial
relations thus rejected the classical econ.

Institutionally, industrial relations was founded by John R. Commons when he created the first
academic industrial relations program at the University of Wisconsin in 1920. Early financial
support for the field came from John D. Rockefeller, Jr. who supported progressive labor-
management relations in the aftermath of the bloody strike at a Rockefeller-owned coal mine in
Colorado. In Britain, another progressive industrialist, Montague Burton, endowed chairs in
industrial relations at Leeds, Cardiff and Cambridge in 1930, and the discipline was formalized
in the 1950s with the formation of the Oxford School by Allan Flanders and Hugh Clegg.[13]

Industrial relations was formed with a strong problem-solving orientation that rejected both the
classical economists' laissez faire solutions to labor problems and the Marxist solution of class
revolution. It is this approach that underlies the New Deal legislation in the United States, such
as the National Labor Relations Act and the Fair Labor Standards Act.

Theoretical perspectives
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removed. (October 2012)

Industrial relations scholars have described three major theoretical perspectives or frameworks,
that contrast in their understanding and analysis of workplace relations. The three views are
generally known as unitarism, pluralist and radical. Each offers a particular perception of
workplace relations and will therefore interpret such events as workplace conflict, the role of
unions and job regulation differently. The radical perspective is sometimes referred to as the
"conflict model", although this is somewhat ambiguous, as pluralism also tends to see conflict as
inherent in workplaces. Radical theories are strongly identified with Marxist theories, although
they are not limited to these.

Pluralist perspective

In pluralism, the organization is perceived as being made up of powerful and divergent sub-
groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In
particular, the two predominant sub-groups in the pluralist perspective are the management and
trade unions.

Consequently, the role of management would lean less towards enforcing and controlling and
more toward persuasion and co-ordination. 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 channelled towards evolution and
positive change.

Unitarist perspective

In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal
of "one happy family", where management and other members of the staff all share a common
purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach
where it demands loyalty of all employees, being predominantly managerial in its emphasis and
application.
Consequently, trade unions are deemed as unnecessary since the loyalty between employees and
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.

Marxist/Radical perspective

This view of industrial relations looks at the nature of the capitalist society, where there is a
fundamental division of interest between capital and labour, and sees workplace relations against
this background. This perspective sees inequalities of power and economic wealth as having their
roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and
trade unions are a natural response of workers to their exploitation by capital. 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.

Industrial relations today

By many accounts, industrial relations today is in crisis.[9][14][15] In academia, its traditional
positions are threatened on one side by the dominance of mainstream economics and
organizational behavior, and on the other by postmodernism. In policy-making circles, the
industrial relations emphasis on institutional intervention is trumped by a neoliberal emphasis on
the laissez faire promotion of free markets. In practice, labor unions are declining and fewer
companies have industrial relations functions. The number of academic programs in industrial
relations is therefore shrinking, and scholars are leaving the field for other areas, especially
human resource management and organizational behavior. The importance of work, however, is
stronger than ever, and the lessons of industrial relations remain vital. The challenge for
industrial relations is to re-establish these connections with the broader academic, policy, and
business worlds.

Notes
1. ^ Jump up to: a b Ackers, Peter (2002) "Reframing Employment Relations: The Case for
Neo-Pluralism," Industrial Relations Journal. doi:10.1111/1468-2338.00216
2. Jump up ^ Kaufman, Bruce E. (2004) The Global Evolution of Industrial Relations:
Events, Ideas, and the IIRA , International Labour Office.
3. Jump up ^ Philip Lewis; Adrian Thornhill; Mark Saunders (2003). Employee Relations:
Understanding The Employment Relationship. Financial Times/Prentice Hall. p. 3.
ISBN 978-0-273-64625-9.
4. Jump up ^ Paul Banfield; Rebecca Kay (2008). Introduction to Human Resource
Management. Oxford University Press. p. 114. ISBN 978-0-19-929152-6.
5. Jump up ^ Ed Rose (2008). Employment Relations. Financial Times/Prentice Hall. p. 96.
ISBN 978-0-273-71008-0.
 6. Jump up ^ John R Ogilvie; Susan T Cooper (2005). CLEP Principles of Management W/
CD-ROM (REA) - The Best Test Prep for. Research & Education Assoc. p. 141.
ISBN 978-0-7386-0125-0.
7. ^ Jump up to: a b Bruce E. Kaufman (2008). "The original industrial relations paradigm:
foundation for revitalizing the field". In Charles J. Whalen. New Directions in the Study
of Work and Employment: Revitalizing Industrial Relations As an Academic Enterprise.
Edward Elgar Publishing. p. 31. ISBN 978-1-84720-452-3.
8. Jump up ^ Daphne Taras (2008). "How industrial relations is marginalized in business
schools: using institutional theory to examine our home base". In Charles J. Whalen. New
Directions in the Study of Work and Employment: Revitalizing Industrial Relations As an
Academic Enterprise. Edward Elgar Publishing. p. 124. ISBN 978-1-84720-452-3.
9. ^ Jump up to: a b c Kaufman, The Global Evolution of Industrial Relations.
10. Jump up ^ Budd, John W. and Bhave, Devasheesh (2008) "Values, Ideologies, and
Frames of Reference in Industrial Relations," in Sage Handbook of Industrial Relations,
Sage.
11. Jump up ^ Befort, Stephen F. and Budd, John W. (2009) Invisible Hands, Invisible
Objectives: Bringing Workplace Law and Public Policy Into Focus, Stanford University
Press.
12. Jump up ^ Budd, John W. (2004) Employment with a Human Face: Balancing
Efficiency, Equity, and Voice, Cornell University Press.
13. Jump up ^ Ackers, Peter and Wilkinson, Adrian (2005) "British Industrial Relations
Paradigm: A Critical Outline History and Prognosis," Journal of Industrial Relations.
14. Jump up ^ Ackers, "Reframing Employment Relations."
15. Jump up ^ Whalen, Charles J. (2008) New Directions in the Study of Work and
Employment: Revitalizing Industrial Relations as an Academic Enterprise, Edward Elgar.

Further reading
Ackers, Peter; Wilkinson, Adrian (2003). Understanding Work and Employment:
Industrial Relations in Transition. Oxford University Press.
Blyton, Paul; Bacon, Nicolas; Fiorito, Jack; Heery, Edmund (2008). Sage Handbook of
Industrial Relations. Sage.
Budd, John W. (2004). Employment with a Human Face: Balancing Efficiency, Equity,
and Voice. Cornell University Press.
Commons, John R. (1919). Industrial Goodwill. McGraw Hill.
Hyman, Richard (1975). Industrial Relations: A Marxist Introduction. Macmillan.
Bruce E. Kaufman (1993). The Origins & Evolution of the Field of Industrial Relations in
the United States. Cornell University Press. ISBN 978-0-87546-192-2.
Kaufman, Bruce E. (2004). Theoretical Perspectives on Work and the Employment
Relationship. Industrial Relations Research Association.
Kaufman, Bruce E. (2004). The Global Evolution of Industrial Relations: Events, Ideas,
and the IIRA. International Labour Office.
Kelly, John (1998). Rethinking Industrial Relations: Mobilization, Collectivism and Long
Waves. Routledge.
Salamon, Michael (2000). Industrial Relations: Theory and Practice. Prentice Hall.
Webb, Sidney; Webb, Beatrice (1897). Industrial Democracy. Longmans, Green, and Co.
 Nichols, Theo (1997). The Sociology of Industrial Injury. London: Mansell Publishing
Limited.
Mullins, Laurie J (2005). Management and Organisational Behaviour. FT Prentice Hall.
 Industrial relations has become one of the most delicate and complex problems of modern
industrial society. Industrial progress is impossible without cooperation of labors and
harmonious relationships. Therefore, it is in the interest of all to create and maintain good
relations between employees (labor) and employers (management).

Concept of Industrial Relations:

The term Industrial Relations comprises of two terms: Industry and Relations.
Industry refers to any productive activity in which an individual (or a group of
individuals) is (are) engaged. By relations we mean the relationships that exist within
the industry between the employer and his workmen. The term industrial relations explains
the relationship between employees and management which stem directly or indirectly from
union-employer relationship.

Industrial relations are the relationships between employees and employers within the
organizational settings. The field of industrial relations looks at the relationship between
management and workers, particularly groups of workers represented by a union. Industrial
relations are basically the interactions between employers, employees and the government,
and the institutions and associations through which such interactions are mediated.

The term industrial relations has a broad as well as a narrow outlook. Originally, industrial
relations was broadly defined to include the relationships and interactions between
employers and employees. From this perspective, industrial relations covers all aspects of the
employment relationship, including human resource management, employee relations, and
union-management (or labor) relations. Now its meaning has become more specific and
restricted. Accordingly, industrial relations pertains to the study and practice of collective
bargaining, trade unionism, and labor-management relations, while human resource
management is a separate, largely distinct field that deals with nonunion employment
relationships and the personnel practices and policies of employers.

The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and their
employer, the relationships between employers, the relationships employers and workers
have with the organizations formed to promote their respective interests, and the relations
between those organizations, at all levels. industrial relations also includes the processes
through which these relationships are expressed (such as, collective bargaining, workers
participation in decision-making, and grievance and dispute settlement), and the
management of conflict between employers, workers and trade unions, when it arises.
he main objectives of industrial relations system are:-

To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.
To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country.
To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.

To establish and promote the growth of an industrial democracy based on labor

partnership in the sharing of profits and of managerial decisions, so that ban
individuals personality may grow its full stature for the benefit of the industry and of
the country as well.
To eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
To improve the economic conditions of workers in the existing state of industrial
managements and political government.
Socialization of industries by making the state itself a major employer
Vesting of a proprietary interest of the workers in the industries in which they are
employed.
 The healthy industrial relations are key to the progress and success. Their significance may
be discussed as under

Uninterrupted production The most important benefit of industrial relations is that this
ensures continuity of production. This means, continuous employment for all from
manager to workers. The resources are fully utilized, resulting in the maximum possible
production. There is uninterrupted flow of income for all. Smooth running of an industry is
of vital importance for several other industries; to other industries if the products are
intermediaries or inputs; to exporters if these are export goods; to consumers and workers,
if these are goods of mass consumption.

Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes.
Disputes are reflections of the failure of basic human urges or motivations to secure adequate
satisfaction or expression which are fully cured by good industrial relations. Strikes,
lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial
unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-
operation and increasing production.

High morale Good industrial relations improve the morale of the employees. Employees
work with great zeal with the feeling in mind that the interest of employer and employees is
one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the
gains of industry. The employer in his turn must realize that the gains of industry are not for
him along but they should be shared equally and generously with his workers. In other
words, complete unity of thought and action is the main achievement of industrial peace. It
increases the place of workers in the society and their ego is satisfied. It naturally affects
production because mighty co-operative efforts alone can produce great results.

Mental Revolution The main object of industrial relation is a complete mental revolution
of workers and employees. The industrial peace lies ultimately in a transformed outlook on
the part of both. It is the business of leadership in the ranks of workers, employees and
Government to work out a new relationship in consonance with a spirit of true democracy.
Both should think themselves as partners of the industry and the role of workers in such a
partnership should be recognized. On the other hand, workers must recognize employers
authority. It will naturally have impact on production because they recognize the interest of
each other.

Reduced Wastage Good industrial relations are maintained on the basis of cooperation
and recognition of each other. It will help increase production. Wastages of man, material
and machines are reduced to the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with
minimum cost and higher profits. It also results in increased efficiency of workers. New and
new projects may be introduced for the welfare of the workers and to promote the morale of
the people at work. An economy organized for planned production and distribution, aiming
at the realization of social justice and welfare of the massage can function effectively only in
an atmosphere of industrial peace. If the twin objectives of rapid national development and
increased social justice are to be achieved, there must be harmonious relationship between
management and labor.
 ndustrial relations is used to denote the collective relationships between management and
the workers. Traditionally, the term industrial relations is used to cover such aspects of
industrial life as trade unionism, collective bargaining, workers participation in
management, discipline and grievance handling, industrial disputes and interpretation of
labor laws and rules and code of conduct.

In the words of Lester, "Industrial relations involve attempts at arriving at solutions

between the conflicting objectives and values; between the profit motive and social gain;
between discipline and freedom, between authority and industrial democracy; between
bargaining and co-operation; and between conflicting interests of the individual, the group
and the community.

The National Commission on Labor (NCL) also emphasize on the same concept.
According to NCL, industrial relations affect not merely the interests of the two participants-
labor and management, but also the economic and social goals to which the State addresses
itself. To regulate these relations in socially desirable channels is a function, which the State
is in the best position to perform.

In fact, industrial relation encompasses all such factors that influence behavior of people at
work. A few such important factors are below:

Characters: It aims to study the role of workers unions and employers federations
officials, shop stewards, industrial relations officers/ manager, mediator/conciliators /
arbitrator, judges of labor court, tribunal etc.

Institution: It includes government, employers, trade unions, union federations or

associations, government bodies, labor courts, tribunals and other organizations which have
direct or indirect impact on the industrial relations systems.

Methods: Methods focus on collective bargaining, workers participation in the

industrial relations schemes, discipline procedure, grievance redressal machinery, dispute
settlements machinery working of closed shops, union reorganization, organizations of
protests through methods like revisions of existing rules, regulations, policies, procedures,
hearing of labor courts, tribunals etc.

Contents: It includes matter pertaining to employment conditions like pay, hours of works,
leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc.,
laws relating to such activities, regulations governing labor welfare, social security,
industrial relations, issues concerning with workers participation in management,
collective bargaining, etc.