Studying employment relations

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1 Studying employment relations Employment relations are the study of the employment relationship, and the rules that govern that relationship, at the workplace. This embodies; Interactions between people and organisations How interactions are governed by formal and informal rules Formerly known as industrial relations, which was criticized for being overly concerned with the sensational, collective and conflictual aspects of relations at work. These characteristics are misleading and inaccurate due to; 1. A decline in trade unionism 2. The development of HR management as a set of practices 3. The revival of labour economics which broadens labour market context Industrial relations has moved to employment relations which embodies routine, individual and consensual aspects of work relations. Employment relationship: an agreement by one person to sell their capacity to work to another person or organisation. Market relation sale Production relation capacity to work o Unknown entity and output Rules are required to regulate conflict between market and product relations. Labour market elements how wages/working hours are determined, conditions of employment Production process elements how employers try to maximize efficiency/effectiveness, how employers/employees consult with one another over production Rules are principles that govern conduct. Rules coordinate action between humans and regulate conflict so that it can be avoided or resolved. Rules can apply to various groups and originate in law, written agreements or custom. Origin: formal vs. informal. Purpose: substantive vs. procedural o Substantive rules focus on real terms of employment relationship (outcomes) o Procedural rules govern the process through which substantive rules are made and enforced (processes)

2 Theories of employment relations Theories explain and give a coherent account of how and why a phenomenon produced the outcome it did. Description is an elementary form of theorizing, the identification of what it is you are trying to explain. To DESCRIBE is to give an account of something, an event or instance. A description can be influenced by experience and point of view, which shapes what is considered important or relevant. THEORY sorts through description and identifies relevance. Theory EXPLAINS description. Lewins Levels of Explanation 1. Description an account of an event or phenomenon from a particular standpoint, whether it is adopted consciously or subconsciously 2. Taxonomy a classification scheme designed for a particular purpose that groups together events or phenomena on the basis of similar characteristics Taxonomies simplify and identify patterns, identifying similarities between events 3. Model a simplification/representation of relationships between events or phenomena that is designed to provide a clearer picture of the world 4. Law a statement of a relationship between 2+ variables that inevitably produces the same outcome, in terms of events or phenomena 5. Causal theory a complete answer to the why question, which not only identifies the inevitable relationships between variables but also provides an account of the process by which one determines the other Employment relationships employees, employers, state Who makes the rules? Unilateral rule-making one party is able to create and enforce rules independently of other parties Bilateral rule-making two parties jointly make or enforce rules Multilateral rule-making 3+ parties jointly make rules The authorship of the rule indicates the power within the employment relationship, e.g. bilateral suggests more balance in the relationship and negotiated compromise. The author of the rule can also have implications for the success of the rule input into rule formation is associated with acceptance of the rule. Models Models go beyond taxonomies because they attempt to link social phenomena together, thereby indicating relationship and potential lines of causality. They attempt to show, at a highly simplified level, how various factors affect each other. Dunlop and Systems Theory -- All industrial relations systems comprise three main actors who interact and produce rules to regulate behavior: the state, employees, employers.

Technology the nature of technology impacts production process and organisation of work and therefore shapes substantive rules and how actors interact 2.

3 These systems operate within a larger environment/context which influences the rule-making behavior of the actors. Dunlop identified three interrelated contexts to explain the prevailing pattern of industrial relations: 1. Technology the nature of technology impacts production process and organisation of work and therefore shapes substantive rules and how actors interact 2. Market or budgetary constraints nature of competition in particular markets might influence capacity for flexibility in negotiations 3. Power relations and statuses of the actors, i.e. legislation and governments might influence labour laws including how parties can interact and over what of Systems Theory: Only three contexts could also include ideology, values, culture, capital markets The link between external contexts and the internal operation of industrial relations systems is overly deterministic The definition and impact of context implies factors that are beyond the control of the actors in employment relations actors can also shape context A hierarchy of contexts This works to address the criticisms about the bluntness of only three contexts that apply universally, different levels and contexts for different actions. The textbook s model of employment relations Employment relations operate at various levels and within each level there are a number of parties who interact and compete. Each level operates within a number of contexts history is vital.

4 Employment relations theories Each theoretical approach to employment relations has its own assumptions which stem from ideological differences and analytical tools. Analytical tools means the sets of concepts used by each approach to analyse ER (determine important actors) o Pluralism/neo-institutionalism, unitarism/hrm, radicalism/labour process Ideological differences include unitarist, pluralist and radical The Pluralist Perspective Pluralists see society in terms of multiple groups with their own interests. As a result the interests of different groups may be competing, and can come into conflict. Pluralists also recognize the possibility of multiple forms of loyalty and attachment (horizontal loyalty). The potential for conflict is inherent in the employment relationship, but is manageable and can be contained by an appropriate network of rules and regulations. Main features of pluralist perspective: The employment relationship is open-ended and indeterminate The role of the state is to protect the weak and restrain the power of the strong Management should earn trust and cooperation Unions have the right to challenge management and seek compromise There should be power sharing in decision making Treatment of power differing distributions of power among groups in society needs to be accounted for Pluralism tends to focus on types of rules and regulations which are likely to accommodate conflict assume rules prevent and resolve conflict o Not all rules are successful and work as intended o They should study how the rules resolve the conflict, study the root of the conflict Analytical tools the main object of study is the rules that regulate the employment relationship, focus on real-world events/processes and the complexity of social relationships, rather than simplifying them. The Unitarist Perspective Unitarist perspectives on employment relations assume each work organisation is an integrated entity with a common purpose and shared goal. The employment relationship is based on mutual cooperation and a harmony of interest between employers and employees, there is no fundamental conflict of interest.

5 When conflict occurs it is caused by aberrant behavior, brought into the relationship by troublemakers, poor communications or bad management Trade unions are troublemakers, and compete for loyalty of employees The role of employees is to be loyal to the organisation, employers provide strong leadership Managers tend to adopt this view because it legitimates their own position and actions Narrow view of conflict as caused by troublemakers which avoids issues such as conflict over distribution, security of employment, power/control issues in decision making etc. Criticised for being prescriptive an ideal model of the way the world should be, rather than descriptive a working model of the way the world is Logical inconsistencies o Focus on individuals when most work involves coordination and collective practice o Emphasis on performance that comes from trust needs trustworthy practices that organisation often fail to foster Analytical tools policies aimed at treating employees as assets and a source of competitive advantage through their commitment, adaptability and skills, assumes universal psychological needs and the necessity of their satisfaction to achieve goals. The Radical Perspective Assumptions: inequality in employment relationship, inevitability of conflict, impossibility of resolving conflict and achieving equality without fundamental changes in society. There is a fundamental and inherent conflict of interest between workers and employers, derived from unequal power and wealth distribution. The state controls conflict as a mean of maintaining social stability, i.e. maintaining conditions for capital production The vulnerability of employees leads them to form unions to change management control Those who own the means of production have power superiority over those who sell their labour for wages reflected in distribution of rewards Focus on conflict tends to obscure trust and cooperation in employment relationship De-skilling thesis is a broad trend but not universal Analytical tools (Labour process) management s task is to convert a worker s capacity to perform work into actual work effort, struggle of control for capitalists over labour price and effort, technological change increases management s control of production and deskills labour process (cannot rely on workers), trend towards routinisation of work, degrading skills needed for production.

Employment Relations (MOD003059) Lecture 2: Some basic theoretical frameworks: ER perspectives and job regulation.

Employment Relations (MOD003059) Lecture 2: Some basic theoretical frameworks: ER perspectives and job regulation. Lecture outline Employee relations perspectives Theoretical approaches to the study of