EMPLOYEE RELATIONS STUDY NOTES There are many different approaches and theories regarding industrial relations nowadays.

In order to mount an opinion on which is the best or most appropriate theory of industrial relations, each theory will have to be analyzed. The three most prevalent theories of industrial relations which exist are The Unitarist theory, The Pluralist theory and The Marxist theory. Each offers a particular perception of workplace relations and will therefore interpret such events as workplace conflict, the role of trade unions and job regulation very differently. I will examine each of these theories in turn and then formulate my own opinion regarding which is the best or most appropriate theory. The Unitary theory is based on the assumption that the organisation is, or should be, an integrated group of people with a single authority/loyalty structure with a set of common values, interests and objectives shared by all members of the organisation. This is expressed by Gennard and Judge (1997), who state organisations are assumed to be harmonious and integrated, all employees sharing the organizational goals and working as members of one team. Through the unitary approach it is assumed that both management and employees can achieve and satisfy their common goals (high levels of productivity, profitability, pay and job security). In the Unitarist theory management see their function as controlling and directing the workforce and see the organisation as a unitary system which has one source of authority which is itself and one source of loyalty which is the organisation. Under the unitary theory the organisation system is in basic harmony and any opposition to or conflict with management is regarded as both unnecessary and exceptional, (Salamon, 1992). As pointed out by (Gunnigle, McMahon and Fitzgerald, 2004), the existence of conflict is not perceived to be a structural occurrence within organisations. However when conflict does arise, it can be the result of breakdowns in communication, clashes in personalities within the organisation or by troublemakers. As conflict is abnormal and seen as irrational there is no need for trade union representation within the company. Trade unionism is regarded as a threat as trade unions are seen as an intrusion into the organisation from outside who compete with management for the loyalty of its employees. Employers are also opposed to recognizing collective bargaining initiatives as this will only diminish their decision making initiatives and responsibilities further. Under the Unitarist theory under no circumstances should unions have a part to play in the exercise of authority and decision making within the organisation, as this would represent a violation of managerial prerogative (Ed Rose, 2001). The existence of trade unions and collective bargaining is therefore resisted wherever possible. A perfect example of where trade unionism is resisted is with Ryanair. Ryanair have one of the highest turnover rates in the airline industry and in order to substantially decrease their turnover they may need to allow union representation for their staff. Their cabin crews are not getting the wages they deserve for the hard work they put in. Long flight hours, little rest time, all of this deserves better pay and proper compensation. Staff in workplaces with a union and a collective agreement gets better pay and conditions, and better income. This is true for most full-service airlines as well as low-cost carriers. Easy jet for example has a collective agreement, and staff earns better wages there.

Unlike the unitarist theory the pluralist theory recognizes that both employers and employees have different interests. In pluralism the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives,

interests and leaders. Fox (1966) argued that this gives rise to a complex of tensions and competing claims which have to be managed in the interests of maintaining a viable collaborative structure. In comparison to the unitarist theory where there is only one source of loyalty and authority which resides with management, the pluralist theory has many sources of loyalty and authority to management, trade unions and other interests groups. There will therefore inevitably be continuous tensions within the organisation arising from conflicts of interest and loyalties which requires management by a variety of role players or representatives, procedures, processes and specialist institutions. In contrast to the unitarist theory, pluralism views conflict as a naturally occurring phenomenon in organisations. It is seen as both rational and inevitable. It is accepted as a characteristic of organisations which arises from different perspectives and interests between the different groups and individuals in a society. Trade unions are recognized as legitimate representatives of employees which can enable groups of employees to influence management decisions. Conflict is dealt by collective bargaining, which, if managed successfully, can in fact be channeled towards evolution and positive change. Therefore greater stability is given to IR by Collective Bargaining than by shackling and outlawing trade unions (Clegg 1975). In the past in Southern Asia the focus was on achieving economic efficiency and less on achieving better rights for workers. Unions were viewed as potential obstacles that could get in the way of economic development and little emphasis was placed on industrial relations. However, there are now major changes taking place across Asia as both the government and employers are focusing more on industrial relations. It is now recognized how better managed industrial relations programmes and cooperation with trade unions can seriously impact on the prevention of disputes, the productivity within organisations and help to align employee objectives with the organisations objectives. The Marxism theory concentrates more on the structure and nature of society rather than the actual workplaces in the society and assumes that conflict in the employment relationship is reflective of the structure of the society. It embraces the political, social and economic structures of society and therefore according to Rose, views and analyses industrial relations not only in organizational job regulation terms but also in social, political and economic terms. Marxism focuses on the fundamental division of interest between capital and labor, and views workplace relations against this background. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by owners. According to Wallace, Gunnigle and McMahon trade unions may perform a central role in the wider political process for the attainment of significant alterations to the economic and social system on behalf of the proletariat. Conflict is the result of an uneven distribution of wealth and power between the dominant establishment group (employers, shareholders) and workers. The Marxist view is that trade unions and collective bargaining would enhance rather than limit management's position as they presume the continuation of capitalism rather than challenge it. In conclusion it is clear that the Unitary, Pluralistic and Marxist theories make quiet different assumptions about the nature of organisations, work and society and consequently view conflict and the role of trade unions differently. The unitarist theory is unrealistic in its outlook. It assumes that organisations will be harmonious and integrated and views conflict as abnormal whereas in todays society conflict is seen as a naturally occurring phenomenon. One of the major weaknesses of this theory is that it does not acknowledge the fact that employees and employers will have different objectives which is one of the main reasons for industrial conflicts. The Marxist theory is considered to be outdated as the whole nature of the class conflict has changed, as a result of contemporary

society, with its mixed economy and welfare state, is now more open and socially mobile, (Wallace, Gunnigle and McMahon 2004). The theory which in my opinion is the best or most appropriate theory of industrial relations is the Pluralist theory. This theory has been in pole position in western societies for over thirty years. In todays environment it is the most realistic theory as it assumes conflict is inevitable and recognizes that both employees and employers will have different objectives unlike the unitarist theories beliefs. It is now recognized that better managed industrial relations programmes and cooperation with trade unions can seriously impact on the prevention of disputes, increase productivity, quality and the motivation of workers within organisations and help to align employee objectives with the organisations objectives.