Evolution of Employee relations :A dynamics of Perceptions, Choices and Constraints

This article ventures into the intricate world of workplace relations, influenced by a multitude of factors such as labor markets, technological advancements, legislation, political climate, and organizational culture. These elements interact in complex ways, shaping the impersonal context of management activities and the personalized context of employee actions, often leading to inconsistencies and trust issues that affect output consistency.

To navigate the dynamic environment of employer-employee expectations, employment relations theories provide valuable frameworks. The first concerted effort to theorize employment relations was by John Dunlop with his Industrial Relations System (1958). Dunlop envisioned the industrial relations system as a network of rules shaped by actors (managers, workers, government institutions), environmental contexts (technology, markets, power distribution), and a central ideology binding the system together. In this model, the rules governing industrial relations behavior are the dependent variable, influenced by the interaction of actors, contexts, and ideology (Gennard and Judge, 2010).

Alan Fox's theories of employment relations, however, have gained broader acceptance. His classification into Unitarism, Pluralism, and Marxism provides a comprehensive understanding of workplace dynamics.

Unitarism perceives a unified organizational goal and minimal power segregation, enforced by accurate assessment of new hires and sustained by clear communication and equitable promotions, thus minimizing conflict through ideal systems and processes (Kaufman, 2004).

Pluralism acknowledges the existence of heterogeneous interest groups within an organization, leading to potential conflicts over task allocation, rewards, and operations. This diversity necessitates sensitive conflict resolution mechanisms that can turn conflict into positive evolution (Kaufman, 2004).

Marxism explores power disparities as the source of conflict between employee and employer groups. The imbalance between the supply of skilled labor and the demand from wealthy employers leads to exploitation, countered by trade unions and joint regulation institutions (Hyman, 1975).

These theories have evolved into various management models. Unitarism gave rise to Scientific Management (Taylor, 1974), Human Relations Theory (Maslow, 1954; Mayo, 1933; Child, 1967), and HRM Practices (Stone, 1995; Guest, 1989). Pluralism, accepting the inevitability of conflict, led to Systems Theory (Dunlop, 1958) and Strategic Choice Theory (Kochan, 1986). Marxism's focus on class differences and wealth disparities inspired Labor Process Theory (Braverman, 1974) and feminist theories.

Employment relations are shaped by a blend of external and internal factors, including economic, social, political, and economic contexts. Conflict, arising from differences in these factors, may not always lead to industrial action but can manifest in productivity loss, higher turnover, and absenteeism.

In the UK, JCB exemplifies Unitarism, where employees agreed to a pay cut during a financial crisis in 2009. Conversely, British Airways (BA) saw 90% of employees vote for industrial action when benefits were reduced that same year.

In conclusion, understanding employment relations theories and their real-world applications is crucial for managing workplace dynamics effectively, ensuring sustained productivity, and minimizing business impact without compromising output quality.

References:

1. Hyman, Richard (1975). Industrial Relations: A Marxist Introduction, Palgrave Macmillan, pp. 9-31

2. Kaufman, B. (2004). The Global Evolution of Industrial Relations: Events, Ideas and the IIRA, Geneva, International Labour Office

3. Fox, Alan (1974). Beyond Contract: Work, Power and Trust Relations, Faber & Faber

4. Gennard, J. and Judge, G. (2010). Managing Employment Relations, 5th Edition., p. 22-26

5. Dunlop, John (1958). Industrial Relations System, Southern Illinois University Press, 1977

6. Rousseau, Denise (1995). Psychological Contracts in Organizations: Understanding Written and Unwritten Agreements, SAGE Publications