Unit III: IR Approaches - Technological Change in IR-Employment issues, Management

Strategy, Trade Union Response, Human Resource Management and IR- Management
Approaches, Integrative Approaches to HRM; International Dimensions of IR

Approaches to IR
The scenario of Industrial Relations (IR) is perceived differently by different people. For some,
Industrial Relations is related to class conflict, others perceive it in terms of mutual co-
operation and still others understand it in terms of competing interests of various groups. HR
managers are expected to understand these varying approaches because they provide the
theoretical underpinnings for much of the role of HRM.
The three popular approaches to Industrial Relations are unitary approach, pluralistic approach,
and Marxist approach.
1. Unitary Approach
Under unitary approach, Industrial Relations is grounded in mutual
co-operation, individual treatment, and team-work and shared goals. Work place conflict is
seen as a temporary aberration, resulting from poor management, from employees who do not
mix well with the organization’s culture. Unions co-operate with the management and the
management’s right to manage is accepted because there is no ‘we-they’ feeling. The
underlying assumption is that everyone benefits when the focus is on common interest and
promotion of harmony. Conflict in the form of strikes is not only regarded as unnecessary but
destructive.
Advocates of the unitary approach emphasize on a reactive Industrial
Relations strategy. They seek direct negotiations with employees. Participation of government,
tribunals and unions are not sought or are seen as being necessary for achieving harmonious
employee relations. The unitary approach is being criticized as a tool for seducing employees
away from unionism and socialism. It is also criticized as manipulative and exploitative.

2. Pluralistic Approach
The pluralistic approach totally departs from the unitary approach. The pluralistic approach
perceives:
1. Organizations as coalitions of competing interests, where the management’s role is to
mediate amongst the different interest groups.
2. Trade unions as legitimate representatives of employee interests.
3. Stability in Industrial Relations as the product of concessions and compromises between
management and unions
Legitimacy of the management’s authority is not automatically accepted.
Conflict between the management and workers is understood as inevitable and, in fact, is
viewed as conducive for innovation and growth. Employees join unions to protect their
interests and influence decision-making by the management.
Unions thus balance the power between the management and employees. In
the pluralistic approach, therefore, a strong union is not only desirable but necessary. Similarly,
society’s interests are protected by state intervention through legislation and industrial tribunals
which provide orderly process for regulation and resolution of conflict.
The theories on pluralism were evolved in the mid-sixties and early seventies when
England witnessed a resurgence of industrial conflicts. However, the recent theories of
pluralism emanated from British scholars, and in particular from Flanders and Fox. According
to pluralists, industrial conflict is inevitable and it needs to be contained within the social
mechanism of collective bargaining, conciliation and arbitration.

3. Marxist Approach
Marxists, like the pluralists, regard conflict between employers and
employees as inevitable. However, pluralists believe that the conflict is inevitable in all
organizations. Marxists see it as a product of the capitalist society.
Trade unions are seen both as labour reaction to exploitation by capital,
as well as a weapon to bring about a revolutionary social change. Concerns with wage-related
disputes are secondary. Trade unions focus on improving the position of workers within the
capitalist system and not to overthrow. For the Marxists, all strikes are political.
Besides, Marxists regard state intervention via legislation and the
creation of industrial tribunals as supporting management’s interest rather than ensuring a
balance between the competing groups. This view is in contrast to the belief of the pluralists
who argue that state intervention is necessary to protect the overall interest of society.
To Marxists, the pluralist approach is supportive of capitalism, the unitary
approach is anathema. Consequently, enterprise bargaining, employee participation, co-
operative work culture, and the like which help usher in cordial Industrial Relations are not
acceptable to Marxists. Such initiatives are regarded as nothing more than sophisticated
management techniques designed to reinforce management control and the continuation of the
capitalist system.

4. Human Relations Approach:

The Human relations approach is propounded by Elton Mayo, who is a humanist and
believes in the positive nature of the employees. According to him, given human initiatives
from management, the employees positively listens and responds properly to them and hence
there is no room left for the conflict to arise. But however Marxists and Pluralists did not
appreciate too much stress on the positive nature of the workers.
Thus, these approaches to industrial relations must be properly understood by the HR managers
as these offer a solid foundation for much of the role of human resource management.
Industrial Relations and Technological Change
Technical change and industrial relations are becoming inextricably linked together. There is a
need for a clear-sighted understanding of all the effects of technical change at the workplace.
This would entail a conceptual framework in which the interaction between social and technical
factors could be properly identified. At establishment level the innovation process typically
involves a balancing of the social, economic and technological vectors of change. Three short
case studies into the innovation process at one of the key manufacturing plants of a major
British vehicle producer are presented, examining a Machine Monitoring System, Team
Working and Maintenance Function. It is clear that the linked issues of work practices and
labour productivity which are to the forefront of workplace industrial relations exert a
significant impact on the economic consequences of technical change. Where technological
innovation involves significant change in work practices, such change will be facilitated when
the forms of co‐operation it demands and the costs and benefits it creates are congruent with
the respective power and policies of management and unions.

Technological change (TC) is a term that is used to describe the overall process of invention,
innovation and diffusion of technology or processes.
Technology is an instrument of development.
It affects various aspects of economic and social life
Impact of Technological Change on Industrial Relations
The two major concerned factors are:
1. The impact of technological change on levels of employment and the nature of skills.
2. The growing resistance of trade unions to technological changes.

o Trade Union Response

o Fear of Unemployment
o Redundancy and Problems of Retraining
o Major Benefits of Improved Technology
o Workers Hardest Hit by Modernization
o Negotiated Change
o Appropriate Training
o Accent on Team Work
o Supportive Management Practices
Rationalization & Automation
Rationalization
Implies a basic change in the structure and control of industrial activities. Its techniques can be
applied to methods, material and men.
Automation
Technology itself controls the operations. The machine provides data from its operations and
feeds it back to its own controls which governs the production process.

Response in India
(I) Cotton-textile- Workers accepted it.
Introduced in the form of efficiency measures.
Additional strain & Inadequate increase in earnings.
(II) Jute- International Competition
Progress slow, Dependence on foreign country for Raw Material
(III) Coal- Rationalization in larger mines, old methods in small mines

Employment issues

 Lack of Privacy
One of the biggest challenges of employee relations is the fact that there is no
presumption of privacy when business owners hire employees. Many companies have
policies that allow security personnel to monitor internet use, phone calls, voicemails,
and email correspondence. Technology has also increased the problems faced by
employees in organization because of the increased intrusion of video and audio
surveillance. When employees feel as if every move they make is being monitored,
they lose trust in upper management and company leaders.
 It's an "Us Against Them" Mentality
Another of the pressing problems faced by employees in organization is that many
workers believe that a significant divide exists between a company's workers and
managers. This is a natural reaction by a group of people who understand that they
must often subordinate their own desires to implement the will of management. This
division can cause a number of issues, such as contract negotiation problems and
strikes, which can require the intervention of trade and labor unions. However, if you
establish the proper balance between empowering your employees, and maintaining
 a chain-of-command, you can help resolve one of the biggest challenges in industrial
relations.
 Inflexibility of Employer
Business owners that run their companies like an autocracy, can trigger challenges in
industrial relations because they create an inflexible environment. When an employer
is inflexible, it can stifle employee creativity, especially if employees believe that
management doesn’t solicit their ideas and suggestions, and is hostile to any
suggestions or ideas that employees do make. The problem is that when management
restricts creativity and imagination, it can also stifle innovation and compromise the
company’s competitive position within its industry. Employers that allow employees
to participate in running the company by soliciting, and using their ideas and
suggestions often find a more productive business environment.
 Gender Wage Disparity
In some companies, the gap between what a woman earns for a position versus what
a man earns for the same position, is another significant challenge in industrial
relations. Although the latest research suggests that the gender pay gap is narrowing,
many instances still exist in which women discover that they are being paid less than
a male colleague for the same work. This can create conflict, especially if a company’s
management is predominantly male. Although there are multiple factors that can lead
to a gender pay gap, the usual perception of female employees is that management
may not value their contribution as much as they do that of male employees. Business
owners that are proactive at ensuring that those men and women who have similar
skills, talents, and prior experience, will earn the same wage -- and this can help
prevent this problem.
 Narrow Focus of Employees
Another issue that arises out of industrial relations is the narrow focus that some
employees have about their role in a company. An employee might regard his task as only
a job that he must complete, rather than a role he can examine as to how he benefits the
organization. Many employees see their managers as people who give orders, rather than
as facilitators who can help employees achieve professional goals. Forward-thinking
business owners, who embrace a team concept and who give employees latitude to
develop ideas and make important decisions without oversight, can offset this problem.

 Less Training

Strategy for Management Control in Industrial Relations

In the modern business corporation the days will soon be
forgotten when labour was laid off at a moment’s notice or a worker sacked at the whim of
a foreman, or when the management prerogative meant largely unfettered decision-making.
Few are likely to regret the passing of such times. A more sophisticated, largely hidden
system of control based on the encouragement of collective bargaining and participation
will form the basis of the corporation’s industrial relations strategy. The limitations on
management power and authority imposed in the 1970s will be accepted as an inevitable
part of the business environment
 The legal rights of the individual from recruitment to termination of employment will be
applied without question and many companies will have schemes in excess of the statutory
requirements. Trade union rights to recognition for bargaining purposes will be irrelevant as
unions will already be recognised, facilities for unions at the place of work will be extensive
and information will readily be disclosed for both bargaining and consultative purposes.
Industrial relations strategy examines how an organization treats
employees and how employees relate to each other. Human resources and management share
the role of providing a safe and positive working environment. They work together to plan and
implement appropriate educational programs and performance management strategies to
influence employee behaviour and maintain the desired workplace culture

 Knowing the Issues

Strategy typically involves a combination of long-term goals for labor relations and short-
term initiatives to address pressing issues. HR and management constantly must identify
workplace issues that are negatively affecting employees. For example, there may be high
levels of conflict between two or more groups of workers. Management must find ways
to resolve conflicts before they become obstacles to accomplishing the organization's
strategic objectives. Management must always protect the integrity of the workplace and
minimize the effects of workplace issues on general staff morale.

 Sharing Values and Beliefs

An organization succeeds in more central objectives if it can maintain a workforce of
individuals who share its core values and beliefs. Therefore, the management team creates
an industrial relations strategy that targets the sharing of information about workplace
culture with new workers and reinforces the support of existing employees. The strategy
also includes investments in employee training and development, which helps workers
feel valued and encourages them to remain in the same organization rather than seeking
opportunities elsewhere.

 Reaching Agreements

Some organizations have unions or collective bargaining units that require management
to negotiate rates of compensation, benefits and working conditions. A union's presence
means management must follow established protocols in conducting IR strategy. These
specific protocols aren't needed in organizations without unions. Management may invest
considerable time and money in negotiating an agreement. Once completed, management
and labor will spend the period of the agreement resolving any other issues that arise
through informal and formal grievance processes.
 Being Strategic vs. Reacting
IR strategy also involves management creating organizational structures and personnel
policies and procedures that benefit both workers and the organization's strategic
objectives. IR considerations may take second or third priority to other organizational

Considerations when managers determine business strategy and choose ideal

organizational designs and internal controls. In organizations without IR strategy, the
approach to solving labor issues is more ad hoc. Managers make reactionary decisions
with limited information before labor issues escalate and affect productivity and morale.

Trade unions responses

During the last two or three years, trade unions have become increasing1y aware of the need
to decide how to respond to the new microelectronics-based technology. The attitude of unions
is obviously a major factor determining the ability of British industry to adapt to the new
technology - subject to the willingness of industry to invest in the first place. From the union
point of view, the security and quality of their members' working lives is at stake, as is their
own role as protectors of their members' interests in their jobs. The TUC has paid considerable
attention to the new technology. A special consultative conference was held in May 1979 to
discuss the issues involved. An interim report on Employment and Technology was considered
at this conference, and a modified version was presented to the annual conference later in the
year.
A number of unions have decided their own policies towards the introduction of new
technology and produced guidelines and model agreements for their negotiators. Agreements
dea1ing with aspects of new technology exist in a variety of industries. This makes it possible
to assess the trade union response, which is complex and raises many issues. These include the
extent of governmental responsibility for full employment and economic growth the limitations
of collective bargaining and the future of industrial democracy. These are broad issues, on
which it is possible only to make some comments at this point in time. The immediate issue is
the control of work, both at the level of policy making in the firm and at the level of the task
and the work-place.
Jobs in the face of technical change has always been central to the role of trade
unions, the new technology has a number of distinctive features. As APEX pointed out, the
new technology differs from the computer technology introduced in the 1960s:
'Microelectronic technology ... is flexible, instantaneous and can be rapidly modified often
enabling it to do a wide range of tasks with very little human effort. It is reliable; it is available
from many competing sources; it is growing at a rapid rate and most important of all it is cheap.
Industrial Relations vs. Human Resource Management:
Any well-maintained organisation must aim to inaugurate their company from both inside and
outside forces. They should also align both inside and outside power in order to increase and
achieve expected goals. To do this, industrial relations and human resource management should
come into play.
Industrial relations and human resource management are two departments that relate to each
other but hold different roles within an organisation. They are also divided under a different
concept.
The different concepts

Industrial relations

Industrial relations (IR) or commonly known as employment relations examines

various employment situations that include employees, employers, trade unions, and
government. Initially, IR will begin with employment relations where compensation is offered
in exchange for work such as employment contract. IR is also affected by a decision of manager
and employer.

Human resource management

Human resource management (HRM) is simply about managing human resources

within an organisation. They should focus on achieving organisational goals and objectives
such as increased ROI through hiring best talents. HRM also provides support and development
to motivate workforce. Thus, effective management of human resources can directly contribute
to organisational effectiveness.
 Human Resources Management (HR) focuses on the process of how an
organisation manages its individual employees throughout the employee life cycle, from
recruitment to training to annual reviews. Industrial Relations (IR), also known as Employment
Relations, focuses on collective relationships between the organisation and its employees.
HRIR graduates gain specialised knowledge about HR practises and
processes of organisations and an understanding of employment law and industrial relations.
They gain skills in interpersonal communication, problem solving, analytical thinking and a
good basis of business understanding that is valued by any organisation.

Integrative Approaches to HRM

International Dimensions of IR