A Report

On
The Approach of Industrial Relation

Islamic University, Bangladesh

Department of Human Resource Management
Course Name : Industrial Relations (HRM: 2204)

Submitted to: Report prepeared by Group 1

Umme Salma Luna
Lecturer of Human Resource Group Member:
Management Department.
Roll Name
Islamic University, 1732001 Uzzal Hossain
Bangladesh 1732002 Abdus Salam
1732003 Murad Hossain
1732004 Aiatullah Khomini
1732005 Ismail Hossain
1732051 Shapla Khatun
1732052 Jannatul Mowua
1732053 Smrity Sarker
Letter of Transmittal

September 3rd, 2019

Umme Salma Luna

Lecturer,

Department of Human Resource Management

Islamic University, Kushtia, Bangladesh

Subject: Letter of Trasmittal.

Dear Madam, With all due respect, we would like to inform you that we have
completed our report on the approach of industrial relation.In the process of
completing it, we have researched through all the possible mediums for gathering the
required information. We cannot be thankful enough to the lessons we were provided
by you to enrich our point of view and analytical ability. We hope that we could deliver
our best dedication on this in depth analysis based report. We would be honored if
you could provide your valuable judgement on this report after reviewing its concept.
We can only expect of it to be resourceful and informative enough to you.

Sincerely yours,

Group 01
 Content

 Approach of Industrial relation:

1. Unitary approach
2. Pluralistic approach
3. Marxian approach
4. System approach
5. Socio-Action approach
6. HRD approach
7. Psychological approach
8. Gandhian approach
 Approaches to Industrial Relations

The Industrial Relations shows the relationship between the management and the
workmen within the industry to resolve the industrial disputes.
IR is perceived differently by a different group of behavioral practitioners and
theorists. Some believes that IR is related to the Class Conflict while some perceived
it in terms of Mutual Co-operation and still others perceived it in terms of Competing
Interests of various groups.

On the basis of these perceptions, there are eight popular approaches to Industrial
Relations. These are:

 Unitary approach
 Pluralistic approach
 Marxian approach
 System approach
 Socio-Action approach
 HRD approach
 Psychological approach
 Gandhian approach
 Unitary Approach:
Farnham and Pimlott, who are pioneers of the approach, mention that there is no
conflict of interest between the owner of capital and labour power.
The unitary approach is based on the assumption that the organization is an
integrated group of people with single authority/ loyalty structure and a set of
common values, interests and objectives shared by all members of the organization.
Under unitary approach, industrial relation is based on mutual cooperation,
individual treatment, team work and shared goal.
Here, the conflict is seen as a temporary divergence which is caused due to the poor
management or the negligence on the part of the employees to understand and mix
with the organizational culture.

Assumption of the approach:

1. A core assumption of unitary approach is that management and staff, and all
members of the organization share the same objectives, interests and
purposes.
2. Strike is destructive.
3. Capitalist society.
4. The profitability of the firm increase if everyone in the organization have the
common interest and purpose.

The implication of the approach are:

1. Conflict is perceived an irrational activity.
2. Trade unions are regarded as intrusions into the organizations from outside
which compete with management for the loyalty of employees.

https://www.slideshare.net/manumelwin/3-unitary-perspective-approaches-to-industrial-relations-
industrial-relations

https://www.slideshare.net/manumelwin/3-unitary-perspective-approaches-to-industrial-relations-
industrial-relations

https://www.google.com/search?q=assumption+of+unitary+approach+to+industrial+relations&source=lnms
&tbm=isch&sa=X&ved=0ahUKEwiNmpiU46LkAhU04HMBHeG4DEIQ_AUIESgB&biw=1366&bih=657#imgrc=m
KgwUYGiEvY6rM:
 Pluralistic approach:
This approach was practiced in mid 1960s and early 1970s in England. This approach
was developed by British scholars A. Fox. He perceives that organization is a coalition
of competing interest groups mediated by the management.
The pluralistic approach is just the opposite of unitary approach which is based on
the assumption that an organization is an alliance of powerful, management and
trade unions having different competing interests are mediated by the management.
The management and the trade unions are the powerful sub-groups that may not
agree with certain terms and conditions prevailing in the organization and to resolve
those management tries to mediate the interest of both the groups.

Assumption of the approach:

1. Post-Capitalist society, where a relatively widespread distribution of power and
authority within the society.
2. Coalescence of sectional groups within work organization.
3. Differing values, interests and objectives.
4. Competitive authority/loyalty structures (formal & informal).

The implication of the approach are:

1. Conflict is Rational and inevitable.
2. Trade unions have positive role to ensure the wellbeing of the worker.

https://businessjargons.com/approaches-to-industrial-relations.html

https://www.google.com/search?q=assumption+of+pluralistic+approach+of+industrial+relation&source=ln
ms&tbm=isch&sa=X&ved=0ahUKEwiQyrfOpKPkAhVp63MBHRLECAwQ_AUIESgB&biw=1366&bih=657#imgrc
=Ty-JgCqg5xkKFM:
 Marxist approach:
Karl Marx, Father of communism Philosopher, who is the pioneer of the Marxist
approach to industrial relation.
The Marxist approach is based on the basic assumption that the conflict is regarded
as the product of a capitalist society. Marxists argue that industrial relation is a
relation of clashes of class interest between capital and labour. The conflict /clashes
arises not just because of the rift between the employee and the employer, but also
because of the division in the society between labour and capital.
Employer (capital) tries to maximize profit by holding surplus value and underpaying
workers remuneration. Workers clash for his share in the outcome of wealth because
he is the human means of production. Industrial relation is a continuous process of
clash of interest between capitalist and labour.
To overcome such situation workers form trade unions so as to safeguard their
interests. The Marxist believes that the state intervention via legislation and
industrial tribunals work in the interest of the management.

Assumption of the approach:

1. Weakness and contradiction inherent in the capitalist system would result in
revolution and the ascendancy of socialism over capitalism.
2. Capitalism would foster monopolies.
3. Wages (costs to the capitalist) would be minimized to a subsistence level.
4. Conflict is seen as continuous and unavoidable.

The implication of the approach are:

1. All strikes are political and socialism.
2. The different interest between labour and capital.

https://businessjargons.com/approaches-to-industrial-relations.html

http://www.naukrihub.com/industrialrelations/marxist-perspective.html
 System approach :
John Thomas Dunlop is the pioneer of the approach. He suggested that industrial
relation system is a process created by four interrelated elements comprised of—(a)
certain actors, (b) environment context, (c) an ideology, (d) a body of rules.
System approach comprised of three sets of independent variables: the ‘actors’, the
‘contents’ and the ‘ideology’ which binds the industrial relations system together,
and a body of rules created to govern the actors at the workplace.

The actors: managers and their representatives,

workers and their organizations and specialized
government agencies.

The environmental contents: technological

characteristics of the workplace, the product
market and distribution of power.

The ideology: a set of ideas and beliefs which

helps to integrate the system.
The rules: labour policy, labour agreement, bargaining, arbitration etc.

 Dunlop’s model identifies three key factors to be considered in

conducting an analysis of the management-labor relationship:
1. Environmental, economical, technological, political, legal and social forces that impact
employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labor,
management, and government.
3. Rules that are derived from these interactions that govern the employment
relationship.

http://www.naukrihub.com/industrialrelations/dunlop-model.html

https://slideplayer.com/slide/7830345/25/images/12/THE+DUNLOP%E2%80%99S+SYSTEMS+APPROACH+T
O+INDUSTRIAL+RELATIONS.jpg
 Socio-Action approach:
The pioneers of this approach are C.J. Margerison and Max Weber. According to
Green (1994, p.4), “the social action theory views industrial relations from the
individual’s viewpoint and motivation”.
Social action theory represents a contribution from sociologists to the study of
organizations. The theory discusses the behaviour of the individual and group within
organization. This perspective regards conflicts of interests as normal behaviour and
part of organizational life.
Social action emphasis the use of interview, survey and the observation of
interpersonal relation in determining the reality of both society and of organizations.
According to Green, while system approach is up-down, social action theory is a
bottom-up approach.

 Assumptions of this approach :

1. People are human beings.
2. People are members of informal small groups.
3. People have own personality level, individual behaviour and desire.

According to the theory, individual behavior, desire and social works are shaped by
some social and psychological factors. They are exhibited in the diagram.

Goals

Expectation Experience

People

Social Interaction
action with others

Norms,
values,
attitude

https://pdfs.semanticscholar.org/3a29/7a999d9e097613a0d4f007f7485c9f38e808.pdf

http://eduplanetbd.blogspot.com/2016/09/social-action-approach-to-industrial.html
 HUMAN RESOURCE DEVELOPMENT APPROACH(HRD):
Harbison and Myers have defined HRD as the process of increasing the knowledge,
skills and capabilities of all the people in a country.
This approach ensure and help employees developing their personal and
organizational skills, knowledge and abilities. HRD Approach focus on Team Work
base system. HRD Approach is Proactive and not Reactive.
It recognizes employees as the greatest assets in an organization and believes they
can developed to an unlimited extent with proper atmosphere and treatment.
HRD is important to develop strong industrial relations and to motivate workforce.
Effective HRD helps to avoid conflicts and create healthy environment.

 Factors should focus on to avoid troubling in HRD Approach:

1. Clarify goals.
2. Empower people at all levels.
3. Reward performance.
4. Treat people properly.
5. Follow two way communication process.

 Showing Employees Development Graph:

Motivating

Employees
Councelling Mentoring
Develop

Coaching

https://www.slideshare.net/richisimon/approaches-to-industrial-relations
https://www.slideshare.net/apoorvapink/hrd-approach-to-industrial-relation
 Psychological approach:
Mason Harie is the pioneer of the psychological approach to industrial relation.
The psychologists perceived the problem of the industrial relations as a result of the
varying perception, attitude and mindset of the key participants, i.e., the employees
and the management.
Psychologists associated the problems of industrial relations with the perceptions
and attitudes of the focal participant: labour & management.
Mason Harie conducted a test ‘thematic application test’ to understand the
behaviour, mindset and perception of the two major work groups, i.e., executive and
the union leaders, in a particular situation.

The major interpretations of this test were as follows:

 The general belief of a management representative is entirely different from
that of a labour representative.
 Both the management and labour do not consider as dependable.
 Even each of these groups considers that the other one lacks emotional and
interpersonal attributes.

These variance is due to their individual perception. The conflicts between

management and labour occur mainly because each group negatively views the
behavior of the other. This leads to strained industrial relation and conflict between
the employers and the employees.

https://theinvestorsbook.com/approaches-to-industrial-
relations.htmlhttp://www.simplinotes.com/approaches-industrial-relations/
 Gandhian approach:
The Gandhian approach to industrial relations was proposed by Mahatma
Gandhi or Mohandas Karamchand Gandhi.
Gandhian approach to employer-employee relations is based on the fundamental
principles of truth, non-violence and non-possession. This approach presumes the
peaceful co-existence of capital and labour.
According to Gandhiji, the trusteeship is a significant contribution in the sphere of
industrial relations. If the employers and employees follow the principle of
trusteeship, there is no scope for conflict of interests between them.
Gandhiji accepted the workers’ right to go on strike in a peaceful and non-violent
manner, when the employers fail to respond to their moral appeals.

 Gandhi advocated the following rules to resolve industrial conflicts:

1. Workers should seek redressal of reasonable demands through collective
action.
2. Trade unions should decide to go on strike taking ballot authority from all
workers and remain peaceful and use non-violent methods.
3. Workers should avoid strikes as far as possible.

 Following are the various features of the trusteeship or Gandhian

theory:
1. Strikes should be a peaceful and non-violent manner.
2. The industrial disputes and conflicts resolved through healthy interactions,
arbitration and bilateral negotiations.
3. The peaceful co-relation between capital and labour.

https://theinvestorsbook.com/approaches-to-industrial-relations.html

http://www.yourarticlelibrary.com/employee-management/5-approaches-to-employer-employee-relations-
employee-management/27998

http://www.scoopskiller.com/management-materials/human-resource-management/approaches-industrial-
relations/