LABOUR LAWS AND THEORETICAL PERSPECTIVES ON INDUSTRIAL
UNIT 1 SECTION
INDUSTRIAL 2
RELATIONS Unit 1, section 2: Theoritical perspectives on industrial relations
RELATIONS
The effective management of employee relations is the prerequisite of
positive psychological contracts and ensuring that employees feel involved
in decision-making processes in the organization. Consequently, a number
of views have been proposed for managing this relationship. Prominent
among these are the unitary, pluralistic and Marxist theories of industrial
relations. The three theories are discussed in this section.
The objective of this section is to provide the student with a background
understanding of the various perspectives on industrial relations practice.
Three perspectives, paradigms, theories or views have been identified, and
these are discussed in this section. The main objective of the section
therefore, is to help the student to acquire an intensive knowledge of how
the three theories describe industrial relations practice in Ghana.
Introduction to the theories of industrial relations
Industrial relations has grown out of three contrasting theoretical
perspectives, each of which offers a particular perception of the workplace
relations. The three views are generally called the unitary, pluralistic and
Marxist theories. Each theory contrasts in its understanding and analysis of
the workplace relations, and therefore, interprets issues at the workplace
differently.
The Unitary theory of industrial relations practice
The unitary theory assumes that the work organization or industry
represents a harmonious and collaborative unit where parties to the
employment relationships tend to share the same or similar goals, interests,
values and a single centre of loyalty and authority. On this basis, unitary
theories belief that there is no conflict between asset-owners (employers)
and skill-owners (employees) as they both exist for a common purpose,
which only fools, such as organized labour may choose to disrupt. In other
words, employers and employees share the same view about the
organization, and would each perform what is best for meeting the common
interest and expectations of both parties. Consequently, the formation of an
organized labour or trade union is considered obstructive and unnecessary
for the proper management of the enterprise. Collective bargaining is an
anti-social mechanism and a sign of revolt against management.
There is no conflict of interest between employers and employees. Industrial
conflict is considered as being pathological and must be removed just as a
dentist has to extract a decaying tooth before it affects the remaining good
teeth in the mouth. Managers rely on dismissals, transfers and demotions to
remove troublemakers from the workplace.
The structure of administration is simple. Workers rarely participate in
decision making as this is contrarily managerial prerogative. There is one
party system in terms of administration. Managers are the people trained
and educated to plan, organize, lead and control the affairs of the
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organization. Employers have only their labour to sell and must obey
instructions from management.
Ownership of the organization is exercised by management, and they
represent the best interest of both employees and employers in the
organization. The authoritarian style of leadership is considered more
appropriate and is therefore, tolerated. The classical school of management
thought, with their emphasis on structure, objectivity and rationality were
formed in line with the teachings of the unitary theory of industrial relations
practice.
The Pluralistic theory of industrial relations practice
The pluralistic theory assumes that the workplace, being a subsection of
society is embedded in diversity of social groups, social interests, varying
values and beliefs that generate conflict. For example, worker’s motive for
higher wages, increased leisure, autonomy and work flexibility differs
markedly with the employers desire to make profits through cost-cutting
mechanisms such as low wages and minimal incentive packages. Following
the differing desires between employers and employees, the pluralistic
theory acknowledges the existence of conflicts. According to the pluralistic
theorists, conflict is inevitable at the workplace. What management is
required to do is to consistently resolve it for the total advantage of all
parties in the employment relationship.
Typically, the pluralistic theory of industrial relations practice allows for the
formation of organized labour. Trade unions are deemed as legitimate
representatives of employees. The role of management is not to coerce or
control trade unions, but to persuade and use them for the benefit of the
organization during collective bargaining processes.
In this frame of mind, managers often use various mechanisms for involving
workers in decision making on issues affecting their working lives or those
aimed at improving the productivity of the organization. These
involvements are manifested during staff meetings with employees, quality
circles, joint consultative committees, work councils and social meetings.
Whenever there are conflicts, both parties meet to settle their differences
following an operational, non-intimidating grievance handling procedures.
Theories such Mayo’s human relations movement, Maslow’s hierarchy of
human needs, Argyris’s immature-mature continuum, and MacGregor’s
theory X and Y can be considered as being framed in line with pluralistic
theory of industrial relations practice.
The Marxist theory of industrial relations practice
The Marxist theory of industrial relations practice assumes that the
employment relation arises primarily from the disparity in the distribution of
economic power and access in society, and principally the disparity between
those supplying financial capital and those who supply labour. According to
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the general Marxist theory, conflict is believed to stem from the division
within society between those who own or manage the means of production
and those who have only their labour to sell. In the context of the
organization, therefore, industrial disputes do not only reflect the demands
and tensions from just the employees and employers in the organization, but
also the inherent nature of conflict in society. Thus, while industrial disputes
may directly result from the behaviours of employees and employers in the
industry, they are indirectly propelled by a long-lasting conflict in society.
In the Marxist view, there is exploitation against those who offer just their
labour for a living. Those who own capital are concerned with maximizing
their profits and regarding labour as a factor of production to be exploited
like any other factors. Thus, industrial conflict, in whatever form, is merely
an expression of the underlying economic conflict between those who own
capital and those who sell only labour within society.
The Marxist’s view of industrial relations looks at the nature of the capitalist
society where there is a fundamental division of interest between capital and
labour, and sees the workplace relations against this background.
Consequently, the growth of trade unions is seen as an inevitable employee
response to the exploitations from capital owners, and the means to enhance
the industrial power and protection of the interest of members in the
working class. Trade unions are therefore considered as performing
protective function for their members. They are a permanent opposition
which does not seek to be an alternative management.
The study of industrial relations perspective is important because it helps
one to pay particular attention to how each theory or perspective views the
workplace in relation to conflict and harmony, employer prerogative and the
role of trade unions. There are divergent views as to how they each interpret
the employment relationship, and each provides the basis for their
interpretations. In other words each theory focuses on the study of all aspect
of people at work as individuals and groups, organized or unorganized, the
behavior of employer and employee organizations, together with public
policy or legal framework governing employment relations.
Self-assessment questions
1) Justify the view that the Pluralistic theory of industrial relations practice
best describe the situation in Ghana
2) Outline the differences between the Unitary and Marxist theory of
industrial relations practice. Which of these theories is more objective
and why?
3) How important is the study of the theories underlying industrial relations
practice to the potential business manager?
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