Importance of Good Industrial Relations in Organizations

The essay helps in analyzing the importance of the good industrial relations in the organization which will help in improving the working conditions in the organizations. The significance of the industrial relations is analyzed for development and success of the organization in an effective manner.

Running head: EMPLOYMENT RELATIONS
Employment Relations
Name of the Student
Name of the University
Author note

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EMPLOYMENT RELATIONS
Introduction
The essay helps in analyzing the importance of the good industrial relations in the
organization which will help in improving the working conditions in the organizations. The
significance of the industrial relations is analyzed for development and success of the
organization in an effective manner. The ‘good industrial relations’ is being simply described
as the workplace in which the employees are motivated and appreciated in performing the
different tasks in an effective manner.
Importance of Good Industrial Relations
The good industrial relations help the organizations in ensuring continuity of the
production of the organization in an efficient manner. This occurs when the workplace has
solved the various problems, but there is no such single means in achieving the same in an
effective manner. Rainnie (2016), has commented that the good industrial relations rely on
the employers taking active role in managing the different employees. Furthermore, the
employers analyze the different issues and try to resolve the same in a successful manner.
On the other hand, Goffee and Scase (2015), has opined that in the year 1996 of
Workplace Relations Act, this can be identified that the power of industrial relations
Commission in Australia is limited and this can be improved with the implementation of
collective bargaining process in the different organizations. Tapia, Ibsen and Kochan (2015),
has opined that different failure of the human wishes or the motivations helps in securing
adequate expression or satisfaction which are being cured by the good industrial relation
practices.

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Theories on Industrial Relations
According to Gunnigle, Brewster and Morley (2017), the different strikes, lockouts,
unfair practices along with grievances are the likeliness of the industrial turbulence and this
will not seem in the industrial calm atmosphere. In the end, this can be analyzed that the good
industrial relation basically depends on which theory is most effective and persuasive in
nature which is inclusive of the following: Unitarism, Radicalism and Pluralism. On the other
hand, Wright and Kaine (2015), has commented and opined that Unitarism is being perceived
as the most harmonious and integrated kind of system wherein the management staffs and
members in the group share the similar kinds of purposes, objectives along with interests
which are being viewed as a positive aspect well.
Furthermore, Buttigieg, Deery and Iverson (2014), has commented that the single
entity with the solitary kind of expert has the reliability structure which is patriarchal in
nature. In this respective perspective, this can be analyzed and identified that these
perspectives are treated as irrational when this is in opposition to the management and this is
legitimate in nature (Wright 2016).
For instance- Lack of communication or wherein monitoring of the employees is not
being done in a proper manner to catch the problems either production or safety and the main
criticism which can be found on the unitarist theory is conflict which can be a huge problem
for the company and this can affect the organization and employees working in the company
as well.
On the contrary, Goss (2015), has commented that radicalism concept objects the
capitalistic power wherein both ownerships along with the control is being extended beyond
corporate limits and in the labor market itself. However, Axelsson and Easton (2016), has
commented that this concept tries to allow few fundamental rights as this helps in creating

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association in which the workers in the organizations possibly create trade unions. They will
be asserting gradation of control through the entire process of the collective bargaining. As
per the authors, this can be seen that the macro or the societal approach is wherein the theory
of unionism helps in developing into concept of social control along with radical
consciousness class. The main goal is eliminating the capitalism which is not effective
industrial relation theory.
Applications of Different Industrial Relations
According to Bowden and Barry (2015), this can be analysed that both Unitarism
along with radicalism approaches help in postulating he least kind of conflict. The author has
commented that Unitarism concept sees no such kind of conflict except as the pathological
kind of condition, on the other hand, radical theory helps in viewing that the industrial firm is
the part of the society which is being accepted norms of the different industrialization. Both
the approaches do not have any kind of intrinsic kind of conflict that is inclusive of the
industry and society.
Rainnie (2016), has opined that both these theories on industrial relations see the IR
as harmonious means which helps in organizing the society under the different circumstances
which is normal in nature. Bowden and Barry (2015), has commented that both these
concepts have their own unities wherein this can be seen that both these unities derive the
philosophical and conceptual substance from the capitalistic production system and the
ideology which is related to liberal political view.
According to Wright (2016), this has been seen and analysed that pluralism concept
has become hugely relevant in nature which helps in examination of the social processes in
industrial relations. Due to the property and corporate laws, the entire ownership has been
diffused and this has been done through proper collective bargaining. Due to the collective

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kind of bargaining, this has been seen that the conflict has become more institutionalized in
nature. Kim and Bae (2017), has commented that this kind of specialised kind of collective
bargaining process has benefitted for resolving the various kinds of conflicts between the
management along with the labour.
Rainnie (2016), has opined that the equality of the power of the disappearance of the
conflicts caused among the different groups is unrealistic in nature in the present scenario.
The different pluralists have tried to make a proper choice between seeking greater avenues
of the liberty and social equality in the organization. However, Wright (2016), has opined and
hypothesised that there are three major failures which are critical in nature which are as
follows:
The first assumption is wherein the political kind of theory helps in assuming that the
equality of the power which is being done within the different groups. The constituent groups
in the society help the government in evolving the public policy which is being based on
consensus and mutuality (Wright 2016).
Furthermore, the second assumption is relating to the economic theory helps in
underplaying conflict between the different kinds of economic groups in the society. On the
other hand, this has been seen that the history helps in revealing continuing battle over the
different kinds of scarce resources.
The next failure is relating to the freedom and liberty are the coveted goals and this
respective aspect, this has been analysed that there is one specific group of individuals who
are being benefitted from it and the other half do not feel motivated and this affects as this
creates biasness in the economy or society.
Process of Industrial Relations

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According to Poole (2017), this can be identified that the industrial relations is the
precise accommodative procedure of collective bargaining and the entire success is resolving
the conflict amongst the management along with labour and this helps in analysing the
managerial prerogatives in an effective manner. From the above discussion, this can be
analysed that radicalism and Unitarism are the different two approaches which has helped in
postulating the least amount of the conflict. Furthermore, as the author has commented that
Unitarism do not see any kind of conflict, on the other hand radical approaches views the
industrial organization as part of the entire society (Kougiannou, Redman and Dietz 2015).
However, on the contrary this has been noticed that pluralism and radicalism
approaches have different kinds of unities. Both of them derive philosophies from capitalistic
system of the entire production along with liberal ideology of politics. In the entire summary,
this can be analysed and identified that pluralism does not deny the entire existence of the
small or dominant groups existence with various common interests as this will help in
forming stable coalition along the different class lines. Lastly, this can be concluded that
industrial relations assist in managing the different workers in the organization successfully
and gain positive outcomes as well.
Conclusion
Therefore, this can be concluded that pluralist industrial relations paradigm helps in
recognizing that the employment relationship is complex in nature and this is essential to
understand the employment relations as this will create policies along with different practices
which will promote shared prosperity and this will help in creating long term and long-lasting
democratic freedoms.
Furthermore, this has been argued that relationship should be modelled as the
complex problem of bargaining between the different human agents that are operating in

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imperfect kind of markets. From the entire analysis, this can be identified that the good
industrial relations will be best accomplished and clarified with the help of pluralism aspect
and this helped in gaining more perfect relationships in an effective manner and this will gain
competitive advantage in the entire market as well. The three approaches have been defined
in an effective manner which helped in managing the different kinds of relations of workers
efficiently.

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References
Axelsson, B. & Easton, G., 2016. Industrial Networks (Routledge Revivals): A New View of
Reality. Routledge.
Bowden, B. & Barry, M., 2015. Recasting industrial relations: Productivity, place and the
Queensland coal industry, 2001–2013. Journal of Industrial Relations, 57(1), pp.48-
71.
Buttigieg, D.M., Deery, S.J. & Iverson, R.D., 2014. Voice within trade unions? A test of the
voice and loyalty hypothesis. Journal of Industrial Relations, 56(1), pp.3-23.
Goffee, R. & Scase, R., 2015. The Entrepreneurial Middle Class (Routledge Revivals).
Routledge.
Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
Gunnigle, P., Brewster, C. and Morley, M., 2017. European industrial relations. Policy and
Practice in European Human Resource Management: The Price Waterhouse Cranfield
Survey, p.139.
Kougiannou, K., Redman, T. and Dietz, G., 2015. The outcomes of works councils: the role
of trust, justice and industrial relations climate. Human Resource Management
Journal, 25(4), pp.458-477.
Poole, M., 2017. Towards a new industrial democracy: Workers' participation in industry.
Routledge.
Rainnie, A., 2016. Industrial relations in small firms: Small isn't beautiful. Routledge.

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Tapia, M., Ibsen, C.L. & Kochan, T.A., 2015. Mapping the frontier of theory in industrial
relations: the contested role of worker representation. Socio-Economic Review, 13(1),
pp.157-184.
Wright, C.F. & Kaine, S., 2015. Supply chains, production networks and the employment
relationship. Journal of Industrial Relations, 57(4), pp.483-501.
Wright, C.F., 2016. Australian industrial relations in 2015. Journal of Industrial
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