Industrial Relation Theories and Application

INDUSTRIAL RELATION-
THEORIES AND APPLICATION

 Industrial Relations Reform Act 1993- bargaining to be done
to settle workplace disputes between employee and
management.
 Industrial relations include the internal and external activities
in workplace determining the employment relation.
 Theories:
 Unitarist theory
 Employees share same interest with management
 Trade unions are illegitimate and create unnecessary conflict
 Pluralist theory
 Employees’ objectives different from manager’s
 Trade unions are legitimate part and do not cause conflict
 Radicals theory
 industrial relation to be necessary for employees but not
ideal
 Marxist theory
 believe in institutions run by state organization
 standardized compensation
IR helps to maintain industrial peace, encourages industrial
democracy, provides benefit to workers and management
and productivity is improved.
 IR deals with the system used by employers and unions to
ANALYSIS OF INDUSTRIAL RELATION
SUMMARY OF THE
DISPUTE
 Unfair dismissal
 Lockout issues
 Fair pay
 Collective bargaining
 Victimization
 Public holiday

HRM APPROACH TO
EMPLOYMENT RELATIONSHIP
 A HR in real business would adopt both the approaches- hard and soft
 Hard or traditional approach involves: (Brewster, Chung & Sparrow,
2016)
 Employee is treated as resource of business
 Lack of proper communication
 Minimum wages are paid
 Delegation is not properly given
 Follows autocracy leadership
This approach provides little attention to the requirements of the employees.
Therefore, this approach suffers: (Ariani, 2013).
 High rate of absenteeism
 Turnover of staff
 Less recruitment
Effects on the employees due to bad management:
 Increases stress in employees
 Employees loose motivation to work
Hence, management should give up their traditional approach and gradually
change with the flow of modern times. HR manager should know how to deal
with conflicts on hours and wage, providing adequate safety and enlightening
on leave policy and also time and attendance issues. These steps taken by
the HR can improve the situations of the employees and their relations will be