Employee and industry
relations
EMPLOYEE RELATION VS. INDUSTRY RELATIONS
Over the past few decades, there has been confusion between the two
terms. A debate regarding the nuances between the concept of
“Employee Relations” and “Industry Relations” has continuously been
contested. Many see the need to differentiate the two, others see that
they are overlaps, and many see that these are link together to the point
that they can be interchangeably (Blyton, Turnball, 1994).
“Industrial Relations” for many:
The term is synonymous and associated with collectives, such as mass movements of
workers, trade unions, and others.
It was also linked to “Industrial” work, such as the manufacturing sector, labor intensive
tasks, and factory work that are full-time.
The tone of “Industrial Relations” were thought of to be more focused on “ collective
action” such as bargaining agreements.
Employee Relations for many:
The term revolves around a smaller subset of industries and goes beyond the collectives,
such as trade unions.
Are no longer just focused on factory work, manufacturing jobs, but now also includes the
service sector/non ---union entities, part- time and contractual workers.
The term “ Employee Relations” generally focuses on the restrictions and agreements between
the industry to its workers in various levels of collectivization, as a union or as an individual .
Psychological Contract and Why It Matters
An intangible agreement between both parties binds the relationship between the employer and
their employee. This means that the relationship within the corporate structure is guided and
predicated on a set of practices and expectations between them.
Example of these norms are as follows:
Both parties observe fairness and transparency
Employee impact and value are recognized and rewarded by their employer in various forms,
such as benefits, tenure or career growth.
Both employer and employee will work toward the shared goal of growth that will be beneficial
for both parties based on shared values, mores, and vision.
Reciprocity exists in this interaction where the employer extracts value from the labor generated by
its subjects while at the same time, employee earn monetary compensation, security, and self
fulfillment.
Adding to the broad prescription above, the employee themselves seek specific
conditions that will further elevate their sense of belongingness and self
actualization, which could be, but are not limited to, the set examples below:
Community building among peers
Tenure and security
Corporate mobility and promotions
Expansion of skillsets and training
Humane treatment
Work/ life balance or integration
Having their voices and suggestions heard by the management
Impact and performance are duly rewarded
Flexibility on task and processes
Job satisfaction- is an instance where the dynamic is being studied.
Employee satisfaction- is measured through surveys regarding various aspects of their jobs and
each employee’s views regarding it.
Example of factors:
Power, influence, control, and freedom regarding the task given
Self actualization and fulfillment when doing their jobs
Respect among peers and working relationship in the workplace
Compensation
Recognition of the personal value
Another contributing factor to this is the emergence of the “ Gig Economy”, where more and
young workers are pushed to pursue part-time jobs because of the lack of wages relative to the
demands of current-day economy.
Relationship Attachment: Compliance and commitment
Compliance
The word itself conjures ideas of submission and power. In the relationship between employee
and employer, compliance has different forms and root sources of power present in this
interaction(Etzioni,1975).
Sources of power:
Coercive – punishment
Remunerative – financial reward
Normative – symbolic awards tied to values held by the company
Forms of involvement:
Alienative- negative or antagonistic
Calculative- careful and thoughtful choices
Moral- positive and in accordance with norms set by the company
Commitment
Is about involvement or moral bond between employer and employee and sharing an
optimistic view that leads to mutually beneficial relationship.
Two distinct forms:
Attitudinal commitment- commitment that can be distinguished with the
psychological bond of the employer and employee that is held by common norms and
values.
Behavioral commitment – commitment that can be described as “going beyond
expectation” or loyalty to the company.
Two sides of the Coin: Cooperation and Conflict
Relationship between the employee and the employer is best achieved in an environment of
mutual support and transparency to reach their goals. Cooperation and conflict exist and are a
part of this ongoing and never-ending interaction.
Fox (1996) identified “frame of references” three different frames, and these are “unitarist”,” pluralist,”
and “ radical/ Marxist” references which were then expanded in the nineties with the inclusion of the
feminist perspective.
Unitarism
As the term suggests, it is a view that assumes that companies and their employees are like- minded
and thus, share various commonalities, such as norms and aspirations.
Pluralism
Looks into the diversity of individuals and acknowledges. Therefore, it accepts the notion that there are
differences in objectives norms, and perspectives which then creates groups or unions.
Radical/Marxist
Class and exploitation of workers are the central notions behind this perspective.
It is understood in this perspective that:
Labor + Technology + Capital= Goods and Services ( Surplus value)
Industrial Relation as a system
In 1958, a man named J.T Dunlop created the idea of industrial relations as a system . He sees the system
rooted in the ideas of “Input, Processes, and Output”.
Outputs
Dunlop sees output defined by substantive and procedural rules that manage the main characters or actors
within an industrial environment.
Substantive rules- result of rules such as hourly wages
Procedural rules- result of compromises about the system
Inputs
Again for Dunlop, there are three pillars that are the independent variables. These are actors, context and
ideology.
Actors
• A group comprised of laborers who are not part of the managerial level
• A group comprised of managers that may also include employee collectives
• Exogenous agencies that exist beyond the employee/ employer relation, such as government agencies,
national labor associations, and others.
Context
Market influence- Economics and the market play a huge part in industrial relations such as that of
emerging market trends, a global competition that pressures firms to be more accommodating, and
flexible to employee terms.
Technological Influence- the impact of disruptive innovations plays an important role in the system,
such as that of drastic changes to production practice, which will force the industry to adopt to the
skills sets, manpower requirements, and labor to achieve targets.
Ideology
It is simply the totality of values, beliefs, ideas, and more that are reinforce and shared by all actors
across the different hierarchies.
Processes Synthesis: Inputs and Outputs
For the system to find a consensus, the inputs are turned to outputs with the help of a process in which
actors are subjected. These processes include collective bargaining agreements in resolving the conflict
by arriving at a consensus where both parties agree upon.
THANK YOU!
