CH 1 The approaches of Industrial Relations

Learning objectives
Understand the different views of the emplo ment relationship and the interaction in an IR ! stem "#plain the integral nature of the concept of conflict$ cooperation and regulations Identif the importantce and difficulties of comparing industrial relations in different countries% &ppreciate the character of labour process and labour mar'et within capitalism and the interrelationship between macro and micro emplo ment issues

 Industrial societ is a comple# and d namic societ (consist of group$ societies and institution) the are interrelated$ however have different attitudes and perceptions% The are also being influenced b e#ternal environment% *e cannot ignore the wor'ing aspect of human being$ as wor'ing hour dominate most of our time%

There are different t pes of organi+ations, 1%-ig organi+ation$ small organi+ation$ local or international% .% The constitute of / main actors, !hareholder0 represented b management$ association of emplo ers% &lwa s to gain as much profit and productivit % "mplo ees0 being represented b trade unions% To get good salar and good wor'ing conditions 1overnment2 being represented b speciali+e government agencies concern with wor'ers$ enterprise and their relationship% Tr create industrial harmon "ach of the actors above alwa s conflicting between one another in order to achieve their objectives% /% -esides the above / main actors$ in the present conte#t academicians have also considered another actor which can also influence the nature of IR i%e !ta'eholders%

 3oes industrial harmon between the three actors can be easil achieve particularl between emplo ees and management4% To moderate their conflict$ the interference of the government is crucial% 1overnment influence the relationship b introducing rules and regulations and some code of industrial harmon % *ithin the 5ala sia contact$ some of the related rules are, industrial relation acts$ trade union acts$ emplo ment act$ code of Industrial harmon and etc% (pls% refer to 5inistr of HR website)%

3efinition IR
Industrial relations encompasses a set of phenomena$ both inside and outside the wor'place$ concern with determining and regulating emplo ment relationship

*hat is Industrial Relations4

A particular set of phenomena associated with regulating the human activity of employment The ma'ing and administering of the institutions and rules of wor' regulation !ocio0industrial conflict (in all its forms) and its resolution "#plicit and implicit bargaining between emplo ees and emplo ers

Industrial Relations
5uch of Industrial Relations at lower level of stud place considerable emphasis on factual approach% 0 &uthor concentrated their efforts in describing situations as the saw it 0 the produce guide boo' rather than theories and e#planations% "g% 3escribing union structure$ laws etc%

 In stud ing IR it is easier to stud and to discuss through 6frame of reference7% 8rame of reference2 each person perceive and interpret events b mean of conceptual structure of generali+ations or conte#ts postulate about what is essential$ assumptions as what is valuable$ attitude about what is possible and ideas about what will wor' effectivel % It constitutes the frame of reference of that person%

The nature of emplo ment organi+ation

&pproaches to industrial relations

Approaches to organisations

Unitary
&uthoritarian 9aternalism

Pluralistic
Co0operation Conflict Approaches to industrial relations

Marxist
"volution Revolution

Input Conflict (differences)

Conversion Institutions and processes

Output Regulation (rules)

Human resource management Labour market

Systems

Social action

Wider approaches to industrial relations

Control of the labour process

Comparative

Unitar perspective
&ssumptions : Capitalist societ : Integrated group of people within the wor' organi+ation : Common values$ interests and objectives ;ature of conflict and its resolution : Irrational and aberrant ( stra ing from the path) : If there is<are conflict$ the are 8rictional and personal : Coercion (force) or paternalism (limiting freedom through regulation) Role of Trade Unions : Intrusion from outside : Historical anachronism (relating to a wrong period) : 5anagement onl forced to accept trade unions in economic relations

Unitar view
=rgani+ation is, & group that united Having same objectives !ingle authorit <'epatuhan ang satu common value$ interest and objectives (nilai$ minat dan obje'tif ang sama) 5anagers have the right to manage$ managers have prerogative to ma'e decisions% Those who challange is not rasional%

 The unitar perspective has a great deal of support in industr and government% "g% -ased on research the bul' of -ritish mgrs% 5aintain a preference for unitar in decision ma'ing% e$%g pronounce hostilit to the power of trade unions$ limited amount of personal commitment to collective presentation% *hat is our view about 5ala sia4

 !o is in the government% 8or e#ample in U> unitar perspective pla important part in the U> IR &ct 1?@1$ one of the aim of the act was to reduce the incidence of what was termed 6disruptive and disorderl behavior7 b the use of e#ternal legal control% *hat is our view about 5ala sia4

 Unitar also has considerable support in the academic sphere% & great deal of wor' in human relations school fall into this categor 0 it emphasi+es the important of social relations in industr % It stresses that conflict is the result of poor social relations$ to overcome the suggest for e#% -etter communication$ the ignore differences in interest the source of conflict%

to
&ccording to 8o# this view of organi+ation had been abandon as incongruent with realit $ but it should not be discard lightl % It provide subconscious foundation (the right to manage) for mgrs see'ing to maintain clear distinction between those issues the prepare to negotiate and those the are prepared onl to consult% &lso appear to have provide the basis for HR5 (comment interest$ culture and values ideolog within organi+ation$

9luralist perspective
&ssumptions : 9ost0Capitalist societ $ where a relativel widespread distribution of power and authorit within the societ $ a separation of ownership from mgt% a separation $acceptance and institutionali+ation of political and industrial conflict : Coalescence of sectional groups within wor' organisation : 3iffering values$ interests and objectives : Competitive authorit <lo alt structures (formal A informal) ;ature of conflict and its resolution : Rational and inevitable : !tructural and institutionali+ed : Compromise$ negotiate and agreement Role of Trade Unions : Legitimate and accepted in both economic and managerial relations : Internal and integral to organi+ation

Conflict result from industrial and organi+ational factors% 1% 3ifferent roles of mgt% and emplo ees 5grs responsible for efficienc $ productivit and profitabilit "mplo ees, more of personal term (better pa $good wor'ing conditions and good job securit %

.% Conflictual behavior result form, !pecific situation (e%g the closure of some part of organi+ation and change to new technolog ) general management principal (to cut cost$ increase profit and productivit )

&ccording to 8o# mutual independent of sectional groups e#ist onl Bin the common interest in the survival as a whole% 9luralist also assume sometime normative divergencies between the parties are not so fundamental or so wide to be unbridgeable% *here each group prepared to limit its claim and aspiration% Resolution of the conflict is characteri+ed b the need to establish accepted institution and procedures which achieve collaboration$ through comprehensive$ codified s stems of negotiated regulations%

TH" ;&TUR" =8 IR

Unitar , Human resource management

Management or manipulation?
8ocus : !trategic A integrated managerial approach to the management of people : HR5 support for achieving business aims and objectives 5echanisms : Individualism (human relations, organisational psychology) : Integrating planning$ monitoring and control of human resources (not just employees) : !ecuring emplo ee commitment or organisation7s aims A objectives (performance based rewards, employee involvement)

Unitar , Human resource management

&ntara ciri0ciri HR5 (&mstrong)
: 9e'erja perlu diurus$ sece'ap dan se'etat mung'in$ seperti juga sumber0sumber lain supa a dapat mema'sima nilai tambah% : 9erlu ada satu sistem$ bantu0membantu dalam bentu' 'omuni'asi 0 contoh, team briefing$ dll% : 9enggunaan te'ni' penglibatan pe'erja contoh, CCC : 5emberi pene'anan terus terhadap Dualiti contoh, TC5 : 8le#ible dalam pen usunan 'erja 0 'os efe'tif dalam penggunaan buruh% : 9ene'anan terhadap temawor'% : !trategi latihan, 9e'erja diberi latihan dalaman sendiri untu' men esuai'an dengan te'noligi ang diguna'an$ daripada mengambil pe'erja ang telah ada s'ill% Ini mening'at'an pengantungan pe'erja pada maji'an dengan cara mengasing'an mere'a mengi'ut pe'erjaan%

Unitar , Human resource management

-erbagai contoh ang dapat 'ita lihat bagaimana piha' pengurusan boleh mengguna'an berbagai 'aedah untu' menge'ploitasi'an dan menurun'an tahap 'eupa aan buruh% &ntara n a2 -uruh$ buruh han a mahir dalam sebahagian dari proses 'erja tertentu contoh, han a line tertentu% 8le#ible compan $ ada pe'erja tetap 0 untu' jang'amasa panjang% 9e'erja 'ontra' sementara 0 i'ut 'eperluan s ari'at% 3engan membahagi 'an buru' 'epada dua 'ategori berla'un a proses divide and rule% Responsible autonom , !atu 'aedah pengurusan saintifi'$ di mana pe'erja diberi sedi'it ha' untu' mengawal 'erja mere'a sendiri$ tetapi ian a dalam bidang ang pengurusan lihat dapat capai obje'tif organisasi dan dapat mening'at 'eber'esanan organisasi 0 maji'an lebih untung% 9ersonal Control , dimana orang ang diatas bertanggung jawab terhadap 'erja dan a'tibiti orang bawahan% -ureaucratic control, berasas'an polisi $ peraturan dan undang0 undang di tempat 'erja

9luralist, Input0output model

Input Conversion Output

CON L!C"
Function: Identif 3ifferences of interest Types: 1% 5icro0level organisation tensions .% 5acro0level societ values A issues Forms of expression: 1% Hidden individual .% =vert constitutional /% Industrial pressure

#$CONC!L!%"!ON
Conducted through: 1% 9rocesses .% Institutions /% Levels

#$&UL%"!ON
Rules: 1% !ubstantive or procedural .% Internal or e#ternal to the organisation /% Ear ing degrees of formalit

5ar#ist, Control of the labour process

-%5 5esin$ &latan dan -uruh -%5 F -arang 5entah -%-%1 F -arang -oleh 1una -%-%1 C&9IT&L! -&R&;1 9&!&R&;

5ar#ist ' Control of labour process(

Proses )a*alan +uruh ' Control of labour process( Thomson mendefinasi'an proses buruh 6labour process7 sebagai satu cara dimana bahan mentah ditu'ar oleh buruh dengan mengguna'an alat0alatan atau mesin$ pertama 'epada barang0barang untu' diguna'an dan 'emudian di bawah sistem 'apitalis ian a ditu'ar 'epada barangan ang boleh ditu'ar didalam pasaran%

 Thomson 0 &sas Theor ini ialah, 1% B!ocial RelationG ang wujud antara pe'erja : dimana ian a a'an menghasil'an 'eupa aan ('e'uatan) dan 'apasiti ini diambil oleh 'apitalis sebagai satu jalan (cara) untu' mengeluar'an barangan ang bernilai$ dan tida' secara langsung buruh juga dianggap sebagai barangan ('omoditi)%

H unsur wujud daripada teori ini,

: 9erhubungan -uruh 0 modal satu bentu' e'ploitasi 0 'euntungan biasan a lebih pada modal% : Logi' timbun 0 tambah (acumulation) iaitu pemodal a'an cuba ting'at'an proses pengeluaran dan turun'an 'os pengeluaran% : Terting'at pengeluaran$ bertambah fa'tor 'awalan sama ada secara am<'husus% : 9emodal a'an mengguna'an berbagai 'aedah sistemati' untu' mendapat 'erjasama dan budi bicara pe'erja untu' mening'at pengeluaran 'euntungan lebih pada pemodal%

5ar#ist, Control of the labour process

8ocus
: The wa 6capital7 controls 6labour7

5echanisms of management control

: : : : !cientific management or des'illing !egmentation of labour (core A peripher ) -ureaucratic control (policies$ procedures A rules) Responsible autonom (self0control or adoption of management values as integral part of job4)

"mplo ee response
: Resistance (restrictive practices) : Collectivism (joint regulation)

! stem &pproach
=riginated b 3unlop$ being subjected to a variet of interpretation$ uses and criticism% However the do not invalidate the s stems approach but the suggested accommodation and Refinement% It is a broad based integrative model that sought to provide tools of anal sis to interpret and gain understanding the widest possible range of IR facts and practices and to e#plain wh particular rules are establish in particular IR s stems and how and wh the change in response to changes affecting the s stem% This model sees IR as a subs stem of societ distinct from but overlapping$ the economic and political subs stem

! stem &pproach
8our interrelated elements, &ctors0 management$ non0managerial emplo ees and their representatives &nd speciali+e government agencies concern with IR% Conte#t , influence and constraints on the decisions of the actors which emanate from other parts of societ $ such as technolog $ mar'et$ budgetar and the locus of power in the societ %% Ideolog 2 beliefs within the s stem which not onl define the role of each &ctor or groups of actors but also define the view that the have of the role of other actors in the s stem% If the view compatible0stable IR s stem and other wise% Rules2 the regulator framewor'$ developed b a range of process and presented in variet of forms which e#presses the terms and nature of the emplo ment relationship%

! stem of industrial relations 0 1

Dunlop 0 &ctors$ wor'ing within conte#ts (environment)$ developing a bod of rules$ held together b an ideolog ! stem producing rules (IR!) and s stem governed b rules (production) ;aturall stable and orderl 4 "mphasis on roles rather than people Importance of environmental influences

! stem of industrial relations 0.

Industrial relations system ( ! !nvironments !conomic structure #olitical $egal (overnment and 'tate Agencies Roles &ttitudes Ealues Interests Other levels of the industrial relations %system& !nvironments 'ocial Cultural Organisational hierarchy of management #ower Choice &ttitudes Ealues Interests

Organisational hierarchy of management &ttitudes Ealues Interests #ower Choice =utput (substantive rules) Roles

#ower Choice Industrial relations system )*+ Rule0ma'ing process Internal rules Input (conflict) 9ower 3isorder 9roductive s stem Mar et !nvironments "echnology

Roles

Control< order

*I3"R &99R=&CH T= IR

Comparative approach
3ifference between, : Comparative (anal sing different countries) : International (transnational institutions and phenomena) Importance of comparative approach : Inform public polic debate : Changing world econom : 3evelopment of 6fair7 international emplo ment standards 9roblems of comparison : Lac' of common terminolog and definitions : 3ifferences between stated institutional framewor' and realit of actual practice : 9roblems of transferabilit

Convergence
Logic of industrialisation : &ll countries subject to same economic$ technological and mar'et forces : &ll need concentrated$ disciplined wor'force with new and changing s'ills : !imilar government role in providing economic and social infrastructure for industrialisation (competing for same international investment) 5odified convergence : Countries at different stages of industrialisation : &lternative solutions to common problems : Regional based convergence

3ivergence
3istinctive value s stems and cultural features Heterogeneit within national industrial relations s stems (decentralisation A fle#ibilit ) 3ifferent strategic choices b 1overnment$ emplo ers and unions at macro (societ ) and micro (organisation) levels on nature$ content and process of emplo ment relationship 9olitical0economic framewor' of newer industrialised countries versus pluralistic framewor' of older industrialised countries