4 Broad Theoretical Perspectives.: Unitary

THEORETICAL
PERSPECTIVES
4 Broad theoretical perspectives.
i. Unitary : only one source of authority ie
management - they own & they control;
conflict is unnecessary & TU are avoidable.
ii. Pluralist: Organization composed of
different sectional groups & interests,
objectives and leadership; common interest
and mutual dependence are necessary for
survival - "conflict is necessary, but it can
be and need to be managed & resolved".
iii. Radical or Marxist:
• Production system is private owned and motivated by
profit.
• Managers are agent of owners. They try to control
over production.
• Class struggle and conflict is necessary for social
change.
• Social change (revolution) is require to end the
disparity between those who own capital and who
supply labour.
• It sees industrial conflict synonymous with political
and social conflict.
• It consider pluralism as mere illusion.
• Conflict is inevitable in capitalist system.
• Annihilate capitalist class to establish socialist
industrial system where there will be no conflict.
iv. Trusteeship approach: MK Gandhi:
• Trustee is one who holds property in trust for
other. ie. Industry / manager for workers and
society.
• They will use and expend only that require for
personal minimum need. Not for private profit
but for greatest good of all.
• Gandhi believed that people should keep
minimum of wealth for themselves to be able
to lead a life that millions lead and give up the
rest to be held in trust for the greatest good of
all.
C. THE SYSTEMS FRAMEWORK: Dunlop model
 - IR as a subsystem of society, distinct from, but overlapping

other subsystems.
 One of the significant theories of industrial labor relations
was put forth by John Dunlop in the 1950s.
 According to Dunlop industrial relations system consists of
three agents – management, workers and government
agencies.
 These actors and their organizations are located within an
environment –
 environment – defined in terms of technology, labor and
product markets, and the distribution of power in wider
society as it impacts upon individuals and workplace.
 Within this environment, actors interact with each other,
negotiate and use economic/political power in process of
determining rules that constitute the output of the industrial
relations system.
 He proposed that three parties—employers,
labor unions, and government-- are the key
actors in a modern industrial relations system.
 He also argued that none of these institutions
could act in an autonomous or independent
fashion.
 Instead they were shaped, at least to some
extent, by their market, technological and
political contexts.
 industrial relations is a social sub system subject
to three environmental constraints- the markets,
distribution of power in society and technology.
 Dunlop's model identifies three key factors
to be considered in conducting an
analysis of the management-labuor
relationship:
 Environmental or external economic,
technological, political, legal and social
forces that impact employment
relationships.
 Characteristics and interaction of the key
actors in the employment relationship:
labor, management, and government.
 According to Dunlop there are 4
interrelated elements comprising :-
 i. Certain actor,
 ii. Certain context,
 iii. An ideology- which bind the IR
system together and
 iv. A body of rules.
 Inputs Processes Outputs

 Actors
Bargaining
 Contexts Rules
 Ideology Conciliation

Arbitration

Lawmaking, etc
Feedback
Fig. Dunlop's Framework of IR System

1. The Actors
 The actors are:
 (i). Managers & their representatives;
 (ii). Workers and their organizations;
 (iii). Specialized govt agencies (&
specialized pvt agencies created by first
two actors) 1. concerned with workers,
enterprises, and their relationship.
 - First two directly related to each other
ii. The Contexts
 The contexts are :

 (i) the technological characteristics of
workplace and work community;
 (ii) labour and products markets factor
or budgetary constrain and
 (iii) locus and distribution of power in the
larger society.
iii. The Ideology
 A set of ideas and beliefs commonly held by
the actors that helps to bind or to integrate
the system together as an entity.
 The ideology of an industrial relations system
is a body of common ideas that defines the
role and place of each actor and the ideas
that each actor holds towards the place and
the function of the others in the system.
 The ideology or philosophy of a stable system
involves a congruence or compatibility among
these views and the rest of the system.
iv. Network or web of rules
 The factors such as – concern procedures for
establishing rules, the substantive rules themselves,
and the procedures for deciding their application –
are critical in an industrial relations system.
 These may be expressed in a variety of forms. Such
as : regulation and policies on management
hierarchy’ law of any workers hierarchy, the
regulations, decrees, decisions, awards or orders of
government agencies , CB agreements and the
customs and traditions of the workplace and work
community.
 In any particular system the rules may be incorporate
in number of forms; they may be written, an oral
tradition, or customary practices.
Some limitations in Dunlop theory
(System framework)
 Dunlop’s theory has certain shortcomings.
 For example- Actors in IR are not just managers, workers, and
govt.
 With liberalization and growing environmental concerns Now
environmental groups, consumers and community also play
critical roles in IR processes and outcomes
 Also Dunlop talk about role of “his” actors but not people.
 In IRs, relationship are established by primarily by and between
people.
 Therefore, Behavioural aspects like human motivations and
preferences cannot be ignored.
 Improvement in Dunlop theory: Kochan et al - Strategic choice
framework
System Framework modified
 There have been some modification and improvements to
Dunlop framework.
 However, non of them has seriously contested or altered the
original framework.
 Modification was directed to the areas where Dunlop did not
paid much attention.
 For instance, the strategic choice framework of Kochan, et al
integrates the traditional theoretical framework on industrial
relations with key concepts on strategy, structure, and
decision-making.
 Kochan et al. also proposed that industrial relations activities
among the three principle social partners take place at three
places:
 i. top tier: strategic decision-making;
 ii.Middle tier: collective bargaining and / or personnel policy-
making; and
 iii. Bottom tier: workplace, individual and organizational
relationship.
Three-Tier Structure of Industrial Relations activity
by – Kochan et al.
Level Employers Unions Government

Long term Business, Political, Macroeconomic
strategy and investment, and representational, and social
policy-making human resource and organizing policies
strategies strategies
Collective Personnel Collective Labour laws and
bargaining and policies and bargaining administration
personnel policy negotiation strategies
strategies
Workplace- Supervision, job Contract Labour laws and
individual- design, and work administration, workers’ rights
organization organization job design, and
relationships work
organization
D. Internalists or Implant Theories:
These theories were contributed by
behavioural scientists who were
concerned with the patterns of human
behaviour in work situations
a. Human Relation School:
 represented by Elton Mayo - 1927 –
1932 conducted Howthronne studies.
 The central argument of human
relation school is that “key to workers
morale, high productivity and industrial
peace lies in the quality of human
relations in industry”.
 b. Behaviour School:
 According to this school “worker’s degree of attachment to work
and their morale are closely linked with fulfillment of the basic
motives and security and participation”.
 conflict between workers and managers is caused by lack of
understanding of interpersonal factors - personality differences
and irrational behaviour
 Effective communication would help the parties to develop
accurate perceptions and understanding each other’s needs -
such as safety and social needs (Maslaw) even though their
physiological needs are met.
 McGragor also mentioned that employees should get
opportunities at work to satisfy higher level needs, otherwise
their behaviour will be affected.
 McGragor has developed the principle of integration in respect
of participative management whereby individual workers can
achieve their goals by directing their efforts to the success of
organization.
 According to the behavioural scientists,
the issues in industrial relations have their
origin in the differences in the perceptions
of management, unions and workers.
 The differences arises due to
personalities, attitudes.
 Similarly, factors like motivation,
leadership, group goals v. individual
goals, etc. are responsible for industrial
conflicts.
Gandhian Approach to Industrial
Relations
 peaceful coexistence of capital and labour.
 Trusteeship implies cooperation between
capital and labour.
 redressal of demands through collective
bargaining.
 Strike to be avoided - only last measure
through non violent methods.
 Workers should take recourse to voluntary
arbitration

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THEORETICAL

 - IR as a subsystem of society, distinct from, but overlapping

Fig. Dunlop's Framework of IR System

 The contexts are :

Level Employers Unions Government

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