Industrial Relations
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APPROACHES TO INDUSTRIAL RELATIONS
1. System’s approach
2. Unitary approach
3. Pluralistic approach
4. Marxist approach
5. The social action approach
6. The human relations approach
7. Mahatma Gandhi’s trusteeship approach
8. Socialistic approach
1. Dunlop’s system approach - The systems approach of IR was
developed by John Dunlop in 1958. Dunlop is regarded as father of
industrial relations. He proposed that industrial relations system is a
separate subsystem of society. There are three components of this sub-
system. The interactions 15 Concept and Approaches and
interrelationships of the three components of this sub-system
constitute industrial relations. The three components are:
i. Management (comprising managers)
ii. Workers (as informal and formal organizations)
iii. State (government bodies and organizations concerned with
the relationship between workers and their organizations).
There are certain inherent drawbacks in Dunlop’s approach. It assumes the
stability of factors of internal and external environment.
i. It does not explain how will the system function under dynamic conditions.
Dunlop’s approach focuses on rule making institutions and the settlement of
conflicts. It does not examine the causes of conflicts.
ii. Dunlop’s system concentrates on the process and ignores the role and impact
of informal groups formed at workplace thus discounting behavioural dynamics.
2. Unitary approach –
Unitary approach perceives organization as an integrated system working in
harmony. All the members of the organization share the same objectives, interests
and purposes, working towards the common goals. Such an organisation ‘strives
jointly towards a common objective, each contributing to the best of one’s ability.
Every worker has a place in organization and willingly accepts his responsibilities
for benefit of all, following the leader appointed by the system. Utitarismis based
upon paternalistic approach and believes that there should be one source of
authority in an organization and others should work under this authority to achieve
common objectives. It demands loyalty of all employees.
3. Pluralistic-Perspective –
Pluralistic perspective also known as the Oxford Approach views society as
containing multiple but related interests which must be maintained in equilibrium.
On the same lines, organization is perceived as being made up of significant
and divergent subgroups, namely management and trade unions. Since
interests are opposing therefore conflicts of interest and disagreements
between management and workers/workers’ organisations over work-related
issues and economic issues, like distribution of profits as normal and inevitable.
According to pluralistic approach, management should be less authoritative and
more cooperative as to maintain harmony. Trade unions are deemed as legitimate
representatives of employees. They should anticipate and resolve this by securing
agreed procedures for settling disputes. The focus is on the resolution of conflict
rather than its generation.
4. Marxist Approach –
This approach is based on the ideology of Karl Marx. Also known as the ‘Radical
Perspective’, the Marxist approach is based on the proposition that the economic
activities of production, manufacturing, and distribution are majorly
governed by the objective of profit. Marxism questions the power relationships
of society. The theory is based on premise that industrial relations represent class
conflict and is more of market relations. It proposes that the mode of wealth
creation by capitalists determine the social relations at work and general character
of society. The Marxist approach is primarily based on power relationship
between management and labour and is characterised by the struggle of both
the classes to gain supremacy so as to exert greater influence over the other party.
it ascribes that the conflict is the product of the capitalist society which is based on
classes.
5. Social Action Approach –
The social action approach is a modification of the system approach. In the system
approach, external environment plays a dominant role while the actors such
as employers, employees and their representatives play a passive role in the
process. On the contrary, in the social action approach an active role is played
by the workers and employers. The actors’ understanding of the work situation
becomes more important than the social factors and their opinion determines their
attitude and behavior towards industrial relations. The main protagonist of this
approach is Max Weber. The theory considers negotiations as an important tool for
resolving conflicts. The actors are willing to cooperate with each other and
bargaining forms the basis for such cooperation.
6. Human Relations Approach –
The human relations school founded by Elton Mayo and later propagated by
Roethlisberger, Whitehead, W. F. Whyte and Homans offers a comprehensive
view of the nature of industrial conflict and harmony. The human relations
approach focuses on ways to improve employee motivation and productivity.
Keith Davis is the main proponent of this theory. According to him, human
relations aim to integrate employees with the work-place such that they feel
encouraged to cooperate with each other to work effectively and efficiently,
deriving economic, psychological and social satisfactions. It creates an
environment at work place where people’s productivity is enhanced through
mutuality of interest. The human relations approach highlights certain policies and
techniques to improve employee morale, efficiency and job satisfaction.
7. Mahatma Gandhi’s Trusteeship Approach –
Mahatma Gandhi applied the principle of trusteeship to industrial relations.
Employers should not consider themselves as sole owners of enterprises,
though they may be the legal owners. They should regard themselves only as
trustees, or co-owners. Workers should regard themselves as trustees, and
should consider themselves as the owners of the resources of the enterprise,
protect them and put them to the best use. It means that only that amount of
wealth should be used by capitalist as is necessary to satisfy his needs and wants.
Excess wealth belongs to society so be used for benefit of all. This means that
there should be no conflict of interest between capitalist and labour. Though
legally wealth belongs to capitalists but morally it belongs to labourers and should
be used for their welfare.
8. Socialistic Approach –
Socialistic approach considers workers’ participation in management as an
important factor in the development and perfection of socialistic democracy.
This ensures fullest decentralization and participation in management as multi-
dimensional program for socialist construction. The economic reconstruction is
based upon the nationalization of the means of production and exchange. Under
Communism, state machinery is abolished and the functions of the State are taken
away by the society through public organization based on mutual consent and co-
operation and the compulsion element in relation to members of the society is
removed. In the process of taking away powers from the state and delegating its
functions to the society, workers’ participation in management is of great
importance.
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