The Main Features of a System of Industrial Relations - Coursework Example

Industrial Relations Introduction Industrial relations is a widely studied subject in modern days. This is because of the rise in industrialization in every part of the world, causing the need to be keen on the occupational issues surrounding the industrial field. It is impossible to have good progress in industrial operations without highly regarding labourers, laws regarding them and relationships with them and among themselves. The gap between management and labourers also needs to either be reduced or totally covered. The industrial relations field cannot be termed as one, which focuses on one discipline; it covers many disciplines, which all revolve around relationships in the employment arena (Budd 2004). Not only does it cover relationships in employment in industrial areas only; it has spread even to the corporate sector of employment, and most people refer to it as employment relations instead of industrial relations. Better still, others refer to it as labour relations, because they feel that just calling it industrial relations makes it look shallower than it actually is (Kaufman 2004). What is “Industrial Relations?” Industrial relations come from two separate words, each of which has its own meaning. The word “industrial” is in relation to anything related to industries, which means that it covers production. The word “relations” obviously shows that it entails relationships. In production, there are many people and groups involved, and there is a structure of how these different individuals or groups relate to each other. In addition, the main form of relationship focused on here is the relationship between the employers (or managers) and employees or labourers (Mullins 2005). When the two terms are combined, industrial relations simply focus on demystifying the relationship between employers and labourers, and the context of this relationship is mainly organizational. This means that unions are mainly focused on, because they are the basic way through which solid relational structures between the two parties can be established. The main reason why industrial relations exist is to focus on relationship between the two mentioned parties, but this is not where it stops (Barrow 2002). It also covers human resource, union management and relations between employees. These three areas broadly cover the three main types of relationships in the work place, which include employer-employee relationships, employee-employee relationships and employer/employee-union relationships. Not only are such relationships focused on independently, but the expression and growth of these relationships is also focused on. Conflicts, decision-making and bargaining are also covered in this subject of industrial relations (Edwards 2007). The Main Features of a System of Industrial Relations Industrial relations are a subject that has three major features: science building, dispute resolution and codes of ethics and conduct. In the first feature, industrial relations mainly cover issues pertaining to social sciences, which include relationship structures in the industrial or workplace context. Various areas are researched on so that this feature of industrial relations is effective. Such areas include labour laws, labour economics, human resource, politics, psychology and sociology (Budd 2004). In the second feature of industrial relations, dispute resolution is mainly focused on. Policies are drafted which will help improve the relationships in the industrial and organizational context. Not only are policies made, but institutions and unions are formed to help represent each party fully and so that it will be easy for any complaints and disputes to surface and be accessible. This is as opposed to when there are no such unions, because it becomes very hard for the individual complaints and disputes to come to the attention of the industrial relations specialists (Ackers 2003). In the third feature, codes of ethics and conduct are key and industrial relations focuses on setting and maintaining the principles governing the relationships between workers and management and relationships among workers (Edwards 2007). It seeks to ensure that labour is not looked at as an article of trade but as an output given by human beings, who are the workers. It also seeks to ensure that workers are treated as democratic entities that deserve to be treated appropriately. It does not only narrow down to ethics and conduct as far as management, workers and unions are concerned, but it also goes to the government level, whereby it ensures that relevant government bodies respect the labour rights, privileges and the principles of compensation and incentives (Kaufman 2004). Theories in Industrial Relations There are three main theories that scholars of industrial relations use to structure it and make it more understandable. These theories are meant to emphasize on any elements in industrial relations that are set or that arise in different situations or contexts. The three main theories include unitary, pluralist and radical. Each theory is developed with features that make understanding of industrial relations possible, and it becomes easy to understand and interpret labour laws, conflict resolution and the principle of unions (Mullins 2005). I. The Unitary Theory The unitary theory looks at an organization as a family in which each member of the family seeks for the mutual benefit of the other without any bias or restrictions whatsoever. Each of these members of this family all look towards one goal and no member hamper the progress of the other in this journey of reaching towards that goal (Budd 2004). None sees the other as a threat, an obstacle or as a subject, but the role each member plays is appreciated and highly regarded. This is similar to the family set up, where children do not see parents as threat simply because they cater for the bills while the children help around the household chores. In addition, the parents do not despise the children because they are at a high position of authority towards the children instead, each member embraces their role, and everything is done for the smooth running of the family. When such a balance is attained in industrial relations, workers stop withholding their services because they feel that they will grow the company. In addition, employers stop withholding benefits from workers because they feel that too much freedom will cause them not to work or will cause them to despise management. The unitary theory suggests that when such a harmonious family like atmosphere is reached at in industries and in the work place context, then there will be no more need for unions. This is because each party will be loyal to each other (Edwards 2007). II. The Pluralist Theory In pluralist theory, an organization is seen as a body, which is comprised of many other smaller bodies within it, and all these smaller bodies have their own organizational structure within them. Though this theory admits that there are many subgroups, it mainly focuses on two, which it believes are very crucial in determining the structure of industrial relations. These two are the management body and the trade unions body (Mullins 2005). The theory suggests that the management body can be said to work appropriately when it stops being a body that mainly does ruling, imposes policies, and becomes a body that coordinates and influences those in its leadership. When this is attained, trade unions will cease being seen as bodies that are lawyers to workers, and they will start being bodies that will spearhead evolution and advancement of both parties (Budd 2004). III. The Radical Theory The radical theory looks at the structure of the current industrial relations setting as one ran by capitalism. Capitalism is a structure in the society, which has no common or mutual interest, because affluence and power rise at the expanse of labour (Kaufman 2004). This goes even into the context of the work place, where capitalist economic structure prevails, because affluence and power brings inequalities between principal and labour. When such a capitalist structure is in place, conflict between different parties at the workplace becomes the order of the day. Because of the inequality that results to conflicts, trade unions are formed as an involuntary response. These unions are mainly formed for the workers, and they mainly focus on ensuring that workers are not exploited. Once such unions are formed, the gap between employers and employees widens, because there is a breach of trust between the two parties, indicated by the presence of an “advocate” between the two (Barrow 2002). Why One Should Study Industrial Relations There are many careers in which one can fit when they study industrial relations. First and foremost, one can be a lecturer in the same. With the high rate of industrialization I the world, many people are seeking to be equipped with a certificate of qualification in industrial relations. Therefore, universities and other institutions of higher learning are looking for more and more lecturers who have specialized in industrial relations. In addition, one can pair up a Trainee Advisor certificate with an industrial relations degree so that they can be career advisors in institutions that have young people. Most institutions of higher learning have such careers advisors, and those who have a qualification in industrial relations are at a better position. In such a position, the main duties are to talk to the students on employment issues, liaising with potential employers of the students, advising them on the suitable career choices for each one of them, et cetera (Budd 2004). In addition, any company can take you as their human resource manager. People who have studied industrial relations are at a better position to get such positions than those who have done the basic human resource management course. This is because industrial relations covers human resource management and so much more, making one more competent and productive when given such a post. In fact, graduates in industrial relations are becoming a threat to most human resource managers, and these managers are enrolling in universities so that they can further their studies and minimize the chances of them being replaced. Apart from being a human resource manager, one can also be a company’s recruitment advisor (Mullins 2005). One can also be a management consultant when they study industrial relations. Such consultants are employed by organizations so that they can help address the issues that come with employment, workers, compensation, occupational health, industrial relations, et cetera. A management consultant also advises on the best methods of organization and the best implementation methods for policies. This goes hand in hand with being an operational research specialist. Such a specialist does research on emerging issues in industrialization and occupational sectors, and advises appropriately. An operational researcher also has direct consultation with workers and customers, and he or she does adequate research and analysis based on the info they get, after which thy devise means and formulas which organizations can apply (Kelly 2002) The Australian Industrial Relations System and the Australian Labour Market Over the past two decades, numerous changes have occurred in the Australian labour market. These changes are significant, especially when put in relation to industrial relations in the region. The demand, both internationally and locally, has really changed, causing a change in the industrial relations system therein. In addition, the policies set by the government to govern industrial relations have been changed over time. Such changes have occurred especially in customs, quota and monopolization. The Australian government is now less into monopolization, and its focus at this point in time, is to ensure maximum privatization in the industrial sector (Edwards 2007). In addition, there is a lot of automation being implemented in the Australian labour market. Production processes in industries are becoming automated by the day, and automation is not only limited to other corporate sectors like banking, like it was two decades ago. The numbers of people being recruited and employed in the manufacturing industry in Australia are decreasing every year (Sappey 2009). Two decades ago, the manufacturing sector was the largest employer in the Australian market. However, today, the manufacturing sector is below the retail trade sector and services sector. The manufacturing sector is now the number three employer in Australia. Industries based on giving of services rather that sale or manufacture of commodities have shot up in the number of people it employs every year in Australia (Salamon 2000). Apart from the service providing sector bloating with people, the part time employment sector has also grown vastly over the past two decades. The people opting for full time employment are decreasing every year by about ten percent per annum, while those opting for part time jobs are increasing by more than ten percent every year in Australian labour market. Casual employees are also on the rise in Australia (Kaufman 2004). Casual workers are different from other employees in that the arrangements and terms of employment are very different. A casual worker does not enjoy the privileges that the other employees have, for instance the privileges of having leaves that are fully paid for, and being sure of continuation with the job even after coming from leave. They are not entitled to other benefits like health allowances, house allowances, car allowances et cetera. They do not have job security like the other workers have. Their employment is usually somewhat a contract based employment, in which the employer has an upper hand in deciding when and how the contract will be terminated (Wooden 2000). Casual workers are on the rise because of the stiff competition in the sectors that require skilled labour. Therefore, these workers prefer to do casual work, even when some of them are qualified for skilled labour (Wooden 2000). Increase in casual labour in Australia is mainly accompanied by underemployment. There are so many underemployed workers, and the labour force is really strained. There are two main categories of underemployed people in Australia; those who work part time and those who work full time (Sappey 2009). For those who work part time, some of them or most of them are very willing to work as full time workers, or they are willing to work for longer hours than they do, but they do not get the chances. For the full time workers, underemployment makes them to work for the normal hours and when they are on leave or on holidays instead of resting. Statistics indicate that there are more women in part time jobs that there are part time male employees (Kelly 2002). There is also the underlying issue of long working hours in Australia. On average, a worker should work for about forty hours every week, which is an average of eight hours (9 am to 5 pm or 8 am to 4 pm) for five days a week, preferably Monday through Friday (Barrow 2002). However, this statistic is no more in Australia. Most people work for even fifty hours every week, and the percentage of those doing so is rising with about twenty percent every year, and this is quite an alarming rate. Most of the times, people work for these long hours because they are underpaid, and they therefore work over time to secure some more income than they are getting in the normal working hours. People in Australia also work for long hours due to the pressure given to them during the normal working hours of the day. Employers expect much more work to be done within the normal eight working hours, and sometimes their expectations are unrealistic because they expect a ten hours job to be done in seven or eight hours non stop (Salamon 2000). Conclusion As an area of study, industrial relations are a field that covers many disciplines, which directly and indirectly affect the relations in industries. These fields include economics, occupational health, law, social sciences, political science and psychological studies. The compensation issues in industrial relations are catered for under the economics part of it, while rights of workers and employers can be covered under labour laws and policies. Occupational health is there to ensure that workers work in the best working conditions that are not only comfortable but also safe. Social sciences, together with psychology, help one to understand relationships between human beings in the workplace context better, hence enabling one to take measures from an informed perspective. Political science helps one to relate politics and government to the working environment, and to know how politics affect and relate to industrial relations. Industrial relations can therefore be comfortably called an assorted discipline, and studying it can make one quite competent (Budd 2004). Therefore, the appreciation of industrial relations in every country, especially in the case of Australia, can cause a huge difference in the country’s industrialization. References Ackers, P., and Wilkinson, A. 2003. Understanding Work and Employment: Industrial Relations in Transition. Oxford: Oxford University Press Barrow, C. 2002. Industrial Relations Law. London: Routledge. Budd, J. 2004. Employment with a Human Face: Balancing Efficiency, Equity, and Voice. Cornell: Cornell University Press. Edwards, P. 2007. Industrial relations: theory and practice. Oxford: Oxford University Press Kaufman, B. 2004. Theoretical Perspectives on Work and the Employment Relationship. Industrial Relations Research Association. Kelly, J. 2002. Industrial Relations: Approaches to industrial relations and trends in national systems. London: Routledge. Mullins, L. 2005. Management and Organizational Behavior. New York: FT Prentice Hall. Salamon, M. 2000. Industrial Relations: Theory and Practice. New York: Prentice Hall. Sappey, K. 2009. Industrial Relations in Australia. Sydney: Pearson Education Australia. Wooden, M. 2000. The Transformation of Australian Industrial Relations. New York: The Federation Press. Read More