Approaches to Industrial Relations

Different scholars have different views on industrial relations, leading to various approaches.
These approaches help understand and analyze:

The scope and complexity of the subject.

The relationship dynamics between labor and management.
The creation of labor policies.
How conflicts between workers, employers, and other stakeholders are resolved.
The Unitary Approach to Industrial Relations
Core Belief: This approach assumes that an organization is a single, harmonious unit, working
towards a common purpose. Everyone in the organization shares the same goals, interests, and
values.

Key Points:
Common Purpose: Everyone in the organization works towards the same goals—efficient
production, good profit, and high pay.
Shared Interests: Employers and employees are seen as partners, working together for mutual
benefit.
Management's Role: Employers are seen as providing jobs, income, and security, and their
authority is considered legitimate and rational. Any opposition to management is viewed as
unreasonable.
Paternalistic View: Management takes a fatherly or authoritative role, with the belief that a team
spirit exists across the organization.
Conflict: Conflict is rare and seen as something external or minor, not a result of the organization’s
structure. When conflict does occur, it is considered a minor issue rather than a fundamental
problem.
Trade Unions: Trade unions and collective bargaining are viewed negatively, often seen as
disruptive or anti-management.

Why is this approach attractive to employers?

Legitimizes Authority: It supports the idea that management has the right to govern the
organization, and any conflict is the fault of the employees.
Conflict-Free Ideal: It assumes that if everyone works together, there will be no significant
conflicts.
Criticism and Relevance:
While this approach has been largely abandoned by many scholars because of its overly simplistic
view of workplace dynamics, it still holds appeal for many managers as it reinforces their authority
and justifies a more controlled, conflict-free work environment. However, it can ignore underlying
issues and the need for dialogue and negotiation in diverse, modern workplaces.

Despite its criticism, the Unitary Approach is still appealing to some employers because it
legitimizes their authority and assumes that any conflict is caused by the workers, not the
management.

In summary, the Unitary Approach sees organizations as cohesive, with a single goal, and views
conflict as an exception rather than the norm.

The Pluralist Approach

The Pluralist Approach views organizations as complex systems with distinct groups, each with
its own interests and leadership. Here’s a breakdown:
Multiple Groups: The organization is made up of different groups, such as employees, managers,
and unions. Each group has its own goals, values, and leadership.
Complex Structure: These groups often have different loyalties and sources of authority, which
creates competition and tension. These tensions need to be managed to keep the organization
working together.
Inevitable Conflict: Unlike the Unitary Approach, the Pluralist Approach believes that conflicts
between management and employees are natural, rational, and unavoidable. These differences in
goals and interests lead to conflict, but it's a normal part of organizational life.
Negotiation and Compromise: In a pluralistic society, various pressure groups (like unions) must
negotiate, make compromises, and come to agreements. This ensures that social and political
changes happen in a structured and peaceful way.
Legitimacy of Unions: The Pluralist Approach recognizes that employees have the right to form
organizations (like trade unions) to express their interests, influence management decisions, and
pursue their goals. Trade unions are seen as a necessary counterbalance to the power of
management, helping to ensure that employees' voices are heard.
In summary, the Pluralist Approach views organizations as made up of competing groups with
different interests. Conflict is seen as natural and is addressed through negotiation and
compromise, with trade unions playing a key role in balancing power between management and
employees.

The Marxian or Radical Approach

The Marxian Approach to industrial relations comes from Marxist theory, which focuses on
society and social change. It’s not just about industrial relations but explains the broader issues in
capitalist societies. Here's a simplified explanation:

Capitalism and Ownership: In a capitalist society, production (like factories or businesses) is

privately owned, and the main goal is to make a profit. Managers, who work for the owners, control
how things are produced.
Class Conflict: Marxists believe that change in society comes from class conflict. This conflict
happens because some people (the rich or owners) have more economic power than others (the
working class or laborers). This power imbalance creates social and political tension.
Role of Institutions: The social and political institutions in society are shaped by this unequal
distribution of economic power. These institutions usually protect the interests of the powerful
group (the owners).
Conflict is Inevitable: Marxists argue that social and political conflicts (like strikes or protests) are
just expressions of the deeper economic conflict between the rich and the poor. These conflicts
will continue as long as capitalism exists.
Criticism of Pluralism: The Pluralist Approach (which says that labor and management can
negotiate and balance power) is seen by Marxists as an illusion. It pretends that there’s a fair
balance of power, but really, the working class is exploited by the owners. According to Marxism:
 Conflict can't be fully controlled or resolved as long as capitalism exists.
 Capitalism works by keeping the working class' living standards low so the rich can keep
getting richer.
Role of Trade Unions: Marxists believe that trade unions form because of the exploitation of
workers in capitalism. While unions can help improve conditions, they can’t fully fix the power
imbalance. Workers need to develop class consciousness (understanding that they are being
exploited) in addition to union consciousness (just focusing on workplace issues) to challenge the
system.
In summary, the Marxian Approach sees class conflict as the driving force behind social change.
It believes that capitalism creates an unfair balance of power between the rich and the working
class, and trade unions can only do so much to address this imbalance. Ultimately, Marxists argue
that true change requires challenging the capitalist system itself.

The Systems Approach: The Dunlop Model

The Systems Approach to industrial relations, developed by John Dunlop in the 1950s, is a way of
understanding workplace relationships. Dunlop believed that industrial relations are a part of
society but have their own structure and elements. He described industrial relations as a system
made up of four interconnected parts.

The Four Key Elements of Dunlop's Model:

Actors: These are the key players involved in industrial relations:

Managers and their representatives (who make decisions and give instructions).
Workers and their organizations (who follow instructions and perform work).
Government agencies (which regulate and oversee workplace laws and relationships).
Managers and workers are directly linked—managers manage, and workers work. In some
systems, government agencies may play a very strong role, even overriding managers or workers
in some matters.

Contexts: These are the factors that shape industrial relations:

Technology: The tools and methods used in the workplace.

Economic factors: Market pressures, budget constraints, and financial limitations.
Power Distribution: The balance of power in society, which affects how much influence different
groups (managers, workers, government) have in the workplace.
Ideology: This refers to the shared ideas and beliefs that hold the system together. It helps everyone
understand their role and how they should view the roles of others.

If the beliefs and views of managers, workers, and government align, the system is stable.
If their views conflict, the system becomes unstable.
Network or Web of Rules: These are the rules and regulations that govern how the workplace
operates. They include:

Management policies and procedures.

Worker rights and duties (often governed by laws or union agreements).
Government regulations and labor laws.
Collective bargaining agreements between workers and employers.
Workplace customs and traditions.
These rules define how work relationships are managed and help maintain order in the system.

Summary:
Dunlop's Systems Approach explains that industrial relations are shaped by four things: the actors
(managers, workers, government), the contexts (technology, economy, power distribution), the
ideology (shared beliefs about roles), and the network of rules (laws, policies, agreements). All
these elements interact to create a functioning industrial relations system.