Industrial RelationsAn industrial relations system consists of the relationships between employees to fellow employees and employers. The relations might concern managing means of conflict and cooperation within the industrial framework. Handling issues concerning industrial relation is indeed complex thus calling for a harmonious and cooperative than a conflicted relationship between the management and the organizations employees. A good relations system creates an environment conducive to economic efficiency yet instilling motivation, productivity and development of the firm employees and generates loyalty and mutual trust in the relationship. There three main parties involved in the industrial relation, the employers’ posses certain rights, which include rights to hire and fire employees (Barrow, 2002). The management can also affect workers interests by exercising their rights to relocate, close or even merge the factory or introduce technological changes.
The field of industrial relations looks at a relationship between management and the workers, particularly the groups of workers represented by the union, it helps in interaction between employees, employers, government and the associations and institutions where such interactions are moderated. The industrial relations body covers aspects of the employment relationship, including human research management, employee relations and the union-management relations (Salamon, 2002).
The government has a role of influencing and regulating the industrial relations through laws, rules, agreements, award of court and others. It may also include third parties and labor and tribunal courts. Actors in the industrial relations system serve as a link that communicates and harmonize relationships’ between the employers, employees, Government and other institution as shown in the diagram below (Jerome, 2004). The pluralist industrial relations try to balance the competing interests between the employers and workers.
Paradigm analyzes work and employment relationship from a theoretical view rooted in an inherently conflicting of interest between the two parties in an imperfect labor markets. The employment relationship is viewed to be a bargaining problem among the stake holders, who have different competing interests. On most cases the employment outcomes depend on the varied elements on the environment that determines each parties support on the conflicting interest (Jerome, 2004). The industrial relation has a role in designing the employment relationships, when issues concerning power bargaining that may raise problems on central questions about distribution of resources and rules that govern interactions between the two organs that is employer and employees.
As a result procedures involving corporations, labor unions, the public policies and dispute resolving measures are important to the institution achievement, in the pluralist industry relations (Edwards, 2007). The theory of competing interests in Pluralist set up The fundamental assumptions of pluralism industrial relations are a conflict of interest in the employment relationships, the labor market never perfectly competitive. Basing on the facts that employees are simply not commodities, or even a factor of production, thus raising assumptions that yield a theoretical view over the employment relationship that is usually differs significantly form other views of employment relationships, namely the human resource management among others.
On normal occasion buyers and sellers of labor do so, simply to search for a transaction that maximizes their utility. This gives reasons on why competitive markets on several occasions would stimulate maximum aggregated welfare and place checks on abuse on any part in the organization (Kelly, 2002).