Characteristics of Different Theories of Employee Relation

Running Head: EMPLOYMENT RELATION
EMPLOYMENT RELATION
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1EMPLOYMENT RELATION
Industrial relations refers to the relationship between the employee and the employers. In
other words, it can be stated that there are two divisions in industry in terms of the employees
and the employers. The cooperation between these two divisions defines as the industrial
relations. According to Hyman (2015) the industrial relation is a basic concept to procure
industrial peace and bring more efficacy into the practice of the organisation so that both the
company and the employees will get benefits. On the other hand, Tapia, Ibsen and Kochan
(2015) articulated that the role of the industrial relation is resembled with the practice of
enhancing productivity of an organisation. The more the organisation endures better employment
relationship the more it will get advantage in terms of productivity and profitability. In this
regard, the role of the government and the trade unions are also significant enough to influence
the organisation in creating better opportunities for the employees (Heywood and Jirjahn 2014).
In a further extent, the government enacts a series of regulations and legal framework for
safeguarding the interests of the employees. The organisation is also compelled to abide the
legislation in order to sustain its business in the respective country (Kaufman 2014). Based on
this understanding, this essay aims to evaluate the characteristics of different theories of
employee relation. Besides this, the implication of the theories in the context of Australian trade
unionism is also discussed in this essay in terms of highlighting the benefits and disadvantages of
having trade union in Australia.
As far as the Marxist approach of industrial relation is concerned, it can be argued that
there are certain features of the Marxist approach. For instance, Ackers (2014) opined that the
Marxist approach defines the relationship between the employees and the employers from a
societal perspective. The Marxist approach asserted that the real motive of industrial relation is
missing in the capitalist economy. In the capitalist economy, the over exploitative nature

2EMPLOYMENT RELATION
between the organisation over the employees is an obvious stance. The primary purpose of the
organisation is to maximise its profitability by any means and the workers are the cheapest tool
to use. Therefore, it is evident that the organisations will put emphasis on the labourers
massively by providing them low wages. As a result of that the principle aim of the industrial
relation in terms of establishing a better relation between the employees and the employers is not
happened in a capitalist society. Therefore, it is unavoidable for the organisations to supress the
grievances and protest of the labour class. The central reality of the industrial relation is based on
the conflict between the two entities. However, there is no scope of developing open conflict
between the employees and the employers. It is more of a clash of interest that prevails in the
society where the employers are identified as the “have” groups whereas the employees are
belonged to the “have not” groups.
This argument promulgates another feature of the Marxist concept of industrial relation.
From the research of Hyman, R. and Price (2016) it can be derived that the industrial relation
depicts a clear power structure within the society. In other words, the power structure in the
social hierarchy can be depicted through the industrial relation. The social background of the
industrial relations makes it more lucid and appreciable in terms of understanding the ideal
composition and feature of the industrial relation. The Marxist approach vehemently claimed that
the division between the employees and the employers is actually a replica of the social division
where the labour class had always been the victim of exploitation. Therefore, the theory
advocates that it is important to understand the society in the glass of perceiving a clear idea of
the social classification that is already existed within the society. From that point of view, it can
inarguably be claimed that the society is the mirror of industrial relations.

3EMPLOYMENT RELATION
In course of discussing the relationship between the employees and the employers,
Hornborg (2014) pointed out a significant aspect of the employment relations. The Marxist
approach argued about the redemption from the conflict through class struggle. As a result of that
it will become easier for the workers to raise their voice against the corporate farms and private
organisation. As a matter of fact, the research of Shantz, Alfes and Truss (2014) opined that
Marxism rightly went against privatisation and intended to transform it into a state run
institution. The reason behind it was that the government institution would help the workers to
elevate their life and securing their interests profoundly. A standardisation of the entire employee
relationship process will help both the organisation and the employees to make progress and
getting benefits of the profit. Equal share of benefit is the focal point of this proposition. In fact,
a standardisation of the compensation will promote better co-operative, non-competitive work
environment.
The Pluralist theory defines the relationship between the employees and the employers
from a different point of view. According to Hassink, Klaerding and Marques (2014) one of the
major characteristic feature of the pluralist theory is to identify the existence of both the trade
unions and the corporate organisations in a market. In a more precise form, it can be argued that
the in a Pluralist form of industrial relation the trade unions are pledged to safeguard the interests
of the employees. The reason behind the existence of Pluralism in employee relation is to cater a
better advantage for the employees in bargaining for their rights and privileges. Siebert et al.
(2015) opined that the in a private market the employees are often face severe bargaining
problem as the interest of the organisation differs from the employees. Private organisations with
their compelling interests are identified as the most crucial part in making profitability which
was reflected on increasing profitability. On the other hand, the employees put their demand on