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CH 1

The approaches of IndustrialRelations

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Learning objectives Understand the different views of the employment

relationship and the interaction in an IR System Explain the integral nature of the concept of

conflict, cooperation and regulations Identify the importantce and difficulties of

comparing industrial relations in differentcountries.

Appreciate the character of labour process andlabour market within capitalism and theinterrelationship between macro and microemployment issues

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Industrial society is a complex and dynamicsociety (consist of group, societies andinstitution) they are interrelated, however have different attitudes and perceptions. Theyare also being influenced by externalenvironment.

We cannot ignore the working aspect of human being, as working hour dominatemost of our time.

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There are different types of organizations:1.Big organization, small organization, local or international.2. They constitute of 3 main actors: Shareholder- represented by management, association of

employers. Always to gain as much profit and productivity. Employees- being represented by trade unions. To get good

salary and good working conditions Government; being represented by specialize government

agencies concern with workers, enterprise and their relationship.Try create industrial harmony

Each of the actors above always conflicting between one another inorder to achieve their objectives.3. Besides the above 3 main actors, in the present context

academicians have also considered another actor which canalso influence the nature of IR i.e Stakeholders.

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Does industrial harmony between the threeactors can be easily achieve particularlybetween employees and management?.

To moderate their conflict, the interference of the government is crucial. Governmentinfluence the relationship by introducing rulesand regulations and some code of industrialharmony. Within the Malaysia contact, someof the related rules are: industrial relationacts, trade union acts, employment act, codeof Industrial harmony and etc. (pls. refer toMinistry of HR website).

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Definition IR

Industrial relations encompasses a setof phenomena, both inside and outside

the workplace, concern with determiningand regulating employment relationship

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What is Industrial Relations?

The making and administering of theinstitutions and rules of work regulation

Socio-industrial conflict (in all its forms) andits resolution

Explicit and implicit bargaining betweenemployees and employers

A particular set of phenomena associated withregulating the human activity of employment

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Industrial Relations

Much of Industrial Relations at lower level of study place considerable

emphasis on factual approach.- Author concentrated their efforts in

describing situations as they saw it

- they produce guide book rather thantheories and explanations. Eg.Describing union structure, laws etc.

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In studying IR it is easier to study and todiscuss through frame of reference.

Frame of reference; each person perceive andinterpret events by mean of conceptualstructure of generalizations or contextspostulate about what is essential,assumptions as what is valuable, attitudeabout what is possible and ideas about whatwill work effectively.It constitutes the frame of reference of thatperson.

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The nature of employmentorganization

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Pluralistic

Co-operation

Conflict

Authoritarian

Paternalism

Unitary

Humanresource

management

Systems

Evolution

Revolution

Marxist

Control of the labour

process

Input Conversion Output

Conflict(differences)

Institutionsand

processes

Regulation(rules)

Approaches to organisations

Approaches to industrial relations

Social action

Wider approaches to industrial relations

Approaches to industrialrelations

Labour market Comparative

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Unitary perspective Assumptions

Capitalist society Integrated group of people within the work organization Common values, interests and objectives

Nature of conflict and its resolution Irrational and aberrant ( straying from the path) If there is/are conflict, they are Frictional and personal Coercion (force) or paternalism (limiting freedom through regulation)

Role of Trade Unions Intrusion from outside Historical anachronism (relating to a wrong period) Management only forced to accept trade unions in economic

relations

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Unitary view

Organization is: A group that united Having same objectives Single authority/kepatuhan yang satu common value, interest and objectives (nilai,

minat dan objektif yang sama)

Managers have the right to manage,managers have prerogative to makedecisions. Those who challange is notrasional.

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The unitary perspective has a great dealof support in industry and government.Eg. Based on research the bulk of British mgrs. Maintain a preference for unitary in decision making. e,.gpronounce hostility to the power of trade

unions, limited amount of personalcommitment to collective presentation. What is your view about Malaysia?

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So is in the government. For example inUK unitary perspective play important

part in the UK IR Act 1971, one of theaim of the act was to reduce theincidence of what was termeddisruptive and disorderly behavior bythe use of external legal control.

What is your view about Malaysia?

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Unitary also has considerable support inthe academic sphere. A great deal of work in human relations school fall intothis category- it emphasizes theimportant of social relations in industry.It stresses that conflict is the result of

poor social relations, to overcome theysuggest for ex. Better communication,they ignore differences in interest thesource of conflict.

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to

According to Fox this view of organization hadbeen abandon as incongruent with reality, butit should not be discard lightly. It providesubconscious foundation (the right tomanage) for mgrs seeking to maintain clear distinction between those issues they prepare

to negotiate and those they are prepared onlyto consult. Also appear to have provide thebasis for HRM (comment interest, culture andvalues ideology within organization,

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Pluralistperspective

Assumptions Post-Capitalist society, where a relatively widespread distribution of

power and authority within the society, a separation of ownershipfrom mgt. a separation ,acceptance and institutionalization of politicaland industrial conflict

Coalescence of sectional groups within work organisation Differing values, interests and objectives Competitive authority/loyalty structures (formal & informal)

Nature of conflict and its resolution Rational and inevitable

Structural and institutionalized Compromise, negotiate and agreement

Role of Trade Unions Legitimate and accepted in both economic and managerial relations Internal and integral to organization

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Conflict result from industrial andorganizational factors.

1. Different roles of mgt. and employees Mgrs responsible for efficiency,

productivity and profitability

Employees: more of personal term(better pay ,good working conditionsand good job security.

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2. Conflictual behavior result form: Specific situation (e.g the closure of

some part of organization and changeto new technology) general management principal (to cut

cost, increase profit and productivity)

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According to Fox mutual independent of sectionalgroups exist only in the common interest in thesurvival as a whole.

Pluralist also assume sometime normative divergenciesbetween the parties are not so fundamental or sowide to be unbridgeable. Where each group preparedto limit its claim and aspiration.

Resolution of the conflict is characterized by the need toestablish accepted institution and procedures whichachieve collaboration, through comprehensive,codified systems of negotiated regulations.

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THE NATURE OF IR

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Unitary: Human resourcemanagement

Focus Strategic & integrated managerial approach to the

management of people HRM support for achieving business aims and objectives

Mechanisms Individualism ( human relations, organisational psychology )

Integrating planning, monitoring and control of humanresources ( not just employees ) Securing employee commitment or organisations aims &

objectives ( performance based rewards, employeeinvolvement )

Management or manipulation?

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Unitary: Human resource management

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Unitary: Human resource management

Berbagai contoh yang dapat kita lihat bagaimana pihak pengurusanboleh menggunakan berbagai kaedah untuk mengekploitasikandan menurunkan tahap keupayaan buruh. Antara nya;

Buruh, buruh hanya mahir dalam sebahagian dari proses kerjatertentu contoh: hanya line tertentu.

Flexible company, ada pekerja tetap - untuk jangkamasapanjang. Pekerja kontrak sementara - ikut keperluan syarikat.Dengan membahagi kan buruk kepada dua kategori berlakunyaproses divide and rule.

Responsible autonomy: Satu kaedah pengurusan saintifik, dimana pekerja diberi sedikit hak untuk mengawal kerja merekasendiri, tetapi ianya dalam bidang yang pengurusan lihat dapatcapai objektif organisasi dan dapat meningkat keberkesananorganisasi - majikan lebih untung.

Personal Control : dimana orang yang diatas bertanggung jawabterhadap kerja dan aktibiti orang bawahan.

Bureaucratic control: berasaskan polisi , peraturan dan undang-undang di tempat kerja

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Pluralist: Input-output model

CONFLICT RECONCILIATION REGULATION

Function:Identify Differencesof interest

Types:1. Micro-level organisation

tensions2. Macro-level society

values & issues

Forms of expression:1. Hidden individual2. Overt constitutional3. Industrial pressure

Conducted through:1. Processes

2. Institutions

3. Levels

Rules:1. Substantive or

procedural2. Internal or external

to the organisation3. Varying degrees of

formality

Input Conversion Output

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Marxist: Control of the labour process

B.M B.B.G BARANG PASARANCAPITALS

Mesin,Alatan danBuruh

B.M = Barang Mentah B.B.G = Barang Boleh Guna

( l f l b

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Marxist ( Control of labour process)

Proses Kawalan Buruh ( Control of labour process) Thomson mendefinasikan proses buruh labour

process sebagai satu cara dimana bahan mentah ditukar oleh buruh dengan menggunakan

alat-alatan atau mesin, pertama kepada barang-barang untuk digunakan dan kemudian di

bawah sistem kapitalis ianya ditukar kepada barangan yang boleh ditukar didalam

pasaran.

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Thomson - Asas Theory ini ialah: 1. Social Relation yang wujud antara

pekerja dimana ianya akanmenghasilkan keupayaan (kekuatan)dan kapasiti ini diambil oleh kapitalissebagai satu jalan (cara) untuk

mengeluarkan barangan yang bernilai,dan tidak secara langsung buruh jugadianggap sebagai barangan (komoditi).

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4 unsur wujud daripada teori ini: Perhubungan Buruh - modal satu bentuk ekploitasi

- keuntungan biasanya lebih pada modal.

Logik timbun - tambah (acumulation) iaitu pemodalakan cuba tingkatkan proses pengeluaran danturunkan kos pengeluaran.

Tertingkat pengeluaran, bertambah faktor kawalansama ada secara am/khusus.

Pemodal akan menggunakan berbagai kaedahsistematik untuk mendapat kerjasama dan budibicara pekerja untuk meningkat pengeluarankeuntungan lebih pada pemodal.

M i t C t l f th

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Marxist: Control of thelabour process

Focus The way capital controls labour

Mechanisms of management control Scientific management or deskilling Segmentation of labour (core & periphery) Bureaucratic control (policies, procedures & rules) Responsible autonomy (self-control or adoption of

management values as integral part of job?)

Employee response Resistance (restrictive practices) Collectivism (joint regulation)

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System ApproachOriginated by Dunlop, being subjected toa variety of interpretation, uses and criticism. However they do notinvalidate the systems approach but they suggested accommodation andRefinement. It is a broad based integrative model that sought to provide

tools of analysis to interpret and gain understanding the widest possiblerange of IR facts and practices and to explain why particular rules areestablish in particular IR systems and how and why they change inresponse to changes affecting the system.

This model sees IR as a subsystem of society distinct from but overlapping,the economic and political subsystem

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System ApproachFour interrelated elements:Actors- management, non-managerial employees and their representativesAnd specialize government agencies concern with IR.Context : influence and constraints on the decisions of the actors which

emanate from other parts of society, such as technology, market,budgetary and the locus of power in the society..Ideology; beliefs within the system which not only define the role of eachActor or groups of actors but also define the view that they have of the roleof other actors in the system. If the view compatible-stable IR system andother wise.Rules; the regulatory framework, developed by a range of process andpresented in variety of forms which expresses the terms and nature of theemployment relationship.

System of industrial relations

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System of industrial relations -1

Dunlop - Actors, working within contexts(environment), developing a body of rules, heldtogether by an ideology

System producing rules (IRS) and systemgoverned by rules (production)

Naturally stable and orderly?

Emphasis on roles rather than people

Importance of environmental influences

System of industrial relations

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Market

Disorder

Input(conflict)

Environments

Environments Environments

Industrial relations system (2)

Power

Technology

Political Legal

Other levels of theindustrial relations

system Economic structure Social

Cultural

Government and State Agencies

AttitudesValues

Interests

Roles

Organisational hierarchy of

management

Organisational hierarchy of

management

AttitudesValues

InterestsRoles

Power ChoicePower

Choice

Productive system

Control/order

Rule-making process

Internal rules

Industrial relations system (1)

Output

(substantive rules)

Power Choice

Roles

AttitudesValues

Interests

System of industrial relations- 2

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WIDER APPROACH TO IR

Comparative

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Comparativeapproach

Difference between: Comparative (analysing different countries) International (transnational institutions and phenomena)

Importance of comparative approach Inform public policy debate Changing world economy Development of fair international employment standards

Problems of comparison

Lack of common terminology and definitions Differences between stated institutional framework and

reality of actual practice Problems of transferability

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Convergence

Logic of industrialisation All countries subject to same economic, technological and

market forces All need concentrated, disciplined workforce with new and

changing skills Similar government role in providing economic and social

infrastructure for industrialisation (competing for sameinternational investment)

Modified convergence Countries at different stages of industrialisation Alternative solutions to common problems Regional based convergence

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Divergence

Distinctive value systems and cultural features

Heterogeneity within national industrial relationssystems (decentralisation & flexibility)

Different strategic choices by Government,employers and unions at macro (society) and micro(organisation) levels on nature, content and processof employment relationship

Political-economic framework of newer industrialisedcountries versus pluralistic framework of older industrialised countries