Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
Copyright  2005 McGraw-Hill Australia Pty Ltd
PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and War...
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Ir ch 1

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Ir ch 1

  1. 1. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–1 Part one The nature and context of industrial relations CHAPTER ONE THE STUDY OF INDUSTRIAL RELATIONS
  2. 2. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–2  What is industrial relations?  Distinguishing different approaches to the study of the employment relationship  A pluralist perspective: Neo-institutionalism  A unitarist perspective: HRM  A radical perspective: The labour process  Final observations  Summary Overview
  3. 3. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–3 What is industrial relations?  Definition important—setting the scope of study.  Many attempts at definition: – from job regulation to social relations at work.  Challenges to the discipline: – rise of non-unionism – growth of human resource management (HRM) – revival of labour economics.  A broad definition: ‘industrial relations is about the behaviours and interaction of people at work’.
  4. 4. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–4 What is industrial relations? (cont.)  Industrial relations (IR) assumes the employment relationship is conflictual: – power relations at work.  Traditionally, it focused on ‘collective’ aspects of employment.  It has expanded to incorporate ‘individual’ aspects.  IR is interdisciplinary by nature.
  5. 5. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–5 Distinguishing different approaches to the study of employment relations  There are three distinct ideological perspectives to origins and nature of industrial relations, each leading to a distinct approach/analytical tool to explain industrial relations: 1. a pluralist perspective, leading to ‘neo-institutional’ approaches 2. a unitarist perspective, which informs human resource management (HRM) 3. a radical perspective, which enables a ‘labour process’ approach.
  6. 6. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–6 A pluralist perspective: neo- institutionalism Pluralism  First, what is the pluralist perspective? – Conflict is inevitable: competing interests between the parties. – Power is diffused among the main bargaining groups within the employment relationship: no-one dominates. – Trade unions are viewed as providing a mechanism that legitimates employees’ rights to bargain within the workplace. – The state is regarded as an impartial entity, whose primary function is to protect the ‘public interest’.
  7. 7. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–7  What are the criticisms of pluralism? – Theory of pluralism is unclear. – Power is not evenly diffused:  it is is typically weighted towards management in the workplace. – Emphasis upon rational approach to conflict management:  a form of managerialist thinking that obscures. – The emphasis on rules and regulations neglects process. A pluralist perspective: neo- institutionalism (cont.) Pluralism (cont.)
  8. 8. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–8  Neo-institutionalism is an extension of pluralist thinking about the role of ‘rule-making’ in the employment relationship.  It sees that the employment relationship is governed by two types of rules: 1. formal/informal rules 2. substantive/procedural rules. These rules are made in a broader context: as a result of the forces and imperatives of capitalist social relations, in society and in the workplace. A pluralist perspective: neo- institutionalism (cont.) Neo-institutionalism
  9. 9. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–9  Other features of the neo-institutionalist approach: – the open-endedness of the employment relationship – understands the present in terms of the past – seeks to describe and understand the ‘real’ world – is not concerned with developing grand theory—develops theory through induction. A pluralist perspective: neo- institutionalism (cont.) Neo-institutionalism (cont.)
  10. 10. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–10  What is the unitarist perspective? – Assumption of a common purpose and shared goals, with no fundamental conflict of interest between labour and capital. – Conflict is an aberration, the result of:  poor communications  poor management. – Unions are seen as an unwelcome intrusion:  complete loyalty of employees. – Role for strong management. A unitarist perspective: HRM Unitarism
  11. 11. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–11  Approaches within unitarism: – scientific management (Taylorism/scientific management):  work study/‘one best way’  establishment of work rules. – human relations (Mayo/the Hawthorne experiments):  emphasis on work groups and social relations at work  less importance given to economic incentives. A unitarist perspective: HRM (cont.) Unitarism (cont.)
  12. 12. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–12  Approaches within unitarism (cont.): – neo-human relations (McGregor/Likert/Herzberg):  importance of individual needs of workers  creating satisfaction from the nature of job. – human resource management:  emphasis on the management of commitment  integration of employees into organisational strategy. A unitarist perspective: HRM (cont.) Unitarism (cont.)
  13. 13. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–13  What are the criticisms of unitarism? – A narrow approach that neglects causes of conflict. – Fails to explain the prevalence of conflict within organisations. – Does not account for uneven distribution of power among employees and employers in the decision-making process. A unitarist perspective: HRM (cont.) Unitarism (cont.)
  14. 14. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–14  HRM is the modern form that a unitarist approach to IR typically takes, that is: – the management of the employment relationship primarily from the perspective of the employer.  This can be seen in the main focuses of HRM: – plan human-resource requirements – recruit and select employees – train and manage employee performance – reward employees – dismiss or retire employees. A unitarist perspective: HRM (cont.) The analytical tools of HRM
  15. 15. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–15  HRM as a scholarly concept is relatively imprecise.  What is its scope? – Is it a study of employer labour-management practices, or – is it concerned with the optimal allocation of labour to achieve management’s goals? A unitarist perspective: HRM (cont.) The analytical tools of HRM (cont.)
  16. 16. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–16  The two main schools within the HRM approach are: 1. ‘soft’ HRM—‘developmental humanism’ 2. ‘hard’ HRM—instrumental integration of employees into firm objectives.  ‘Best practice’ approach vs ‘contingency’ approach. A unitarist perspective: HRM (cont.) The analytical tools of HRM (cont.)
  17. 17. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–17  ‘Soft’ HRM: – focuses on individual employees and the management strategies needed to increase employee satisfaction, organisational commitment, motivation and work performance – employees have universal needs, best identified and met using techniques drawn from psychology and organisational behaviour – the techniques of management, aimed at achieving these goals, are considered to be ‘best practice’, the ‘best’ ways to develop employees towards organisational goals. A unitarist perspective: HRM (cont.) The analytical tools of HRM (cont.)
  18. 18. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–18  ‘Hard’ HRM: – focuses on the better integration of HR strategies into business strategy – employees are seen as a commodity to be better allocated, in order to assist the achievement of business strategies – decisions about the adoption of specific HRM policy becomes increasingly about cost–benefit analysis.  Management’s aims are to achieve ‘best fit’ between HR strategy and business strategy. A unitarist perspective: HRM (cont.) The analytical tools of HRM (cont.)
  19. 19. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–19  Criticisms of HRM approaches: – both ‘hard’ and ‘soft’ HRM lack empirical evidence confirming prescriptions. – ‘soft’ HRM has fundamental contradictions:  individual performance and development, and team- based cooperation  implementing organisational flexibility can undermine the stability, trust and long-term development needed to achieve organisational goals  HR’s championing of organisational culture can conflict with the desire for flexibility. A unitarist perspective: HRM (cont.) The analytical tools of HRM (cont.)
  20. 20. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–20 A radical perspective: The labour process Radicalism  What are the common features of radical perspectives? – Fundamental and inherent conflicting interests between management and workers. – Uneven distribution of power between bargaining groups, within the workplace and society. – The role of trade unions—to challenge managerial control. – The state protects the interests of capitalists.
  21. 21. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–21  What are the criticisms of a radical perspective? – Preoccupied with conflict:  obscures any cooperation or shared goals between management and workers. – Class struggle not part of modern capitalism. – Capital is not homogenous:  competition among capitalists. – Under-estimates the independence of the state. A radical perspective: The labour process (cont.) Radicalism (cont.)
  22. 22. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–22 A radical perspective: The labour process (cont.) Class struggle and control in the labour process  Marx argued that capital social relations are based on a fundamental divide between the bourgeoisie and the proletariat.  Labour possesses labour power—the potential effort that each employee offers.  Potential labour does not always equal actual labour.  Management’s task is to convert this labour power into actual work and effort, in order to make a profit.
  23. 23. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–23  This gives rise to the central theme within the labour-process approach: How does management maximise the conversion of ‘potential’ labour into ‘actual’ labour? – Labour is not always compliant in this process, resulting in conflict between management and labour. – As this relationship is open-ended, management seeks to establish methods for ensuring control, to maximise ‘actual’ labour effort. A radical perspective: The labour process (cont.) Class struggle and control in the labour process (cont.)
  24. 24. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–24  The labour-process argument: How does management maximise the conversion of labour power into actual labour? – Braverman (1974) argued that management seeks control and improved performance through deskilling labour. – Friedman (1977) argued that management could use either:  direct control or  ‘responsible autonomy’ based approaches. A radical perspective: The labour process (cont.) Class struggle and control in the labour process (cont.)
  25. 25. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–25 Final observations  Chapter has highlighted three perspectives to the employment relationship: – unitarist – pluralist – Marxist.  Each of these approaches are competitors in seeking to explain the nature of the employment relationship: – each approach is based on different value judgments. – each approach emphasises different aspects of the employment relationship.  This text adopts a pluralism/neo-institutionalist approach.
  26. 26. Copyright  2005 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Industrial Relations 3e by Bray, Deery, Walsh and Waring 1–26 Summary  The ‘commonsense’ approach to industrial relations highlights conflict between trade unions and employers: – Need to move beyond this limited view. – Theory provides a guide to understanding the relationship between the parties in the employment relationship.  Three types of theories are introduced in this chapter: – pluralist/neo-institutionalist – unitarist/HRM – radical/labour-process theory.

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