Tag: objectives, causes and methods towards industrial relations

Parties that are not involved in industrial relations are customers. Industrial relations is concerned with the employer and the employee with their respective organization, at work or arising out of the working situation.Employees, courts and tribunals, employer associations- all are involved in industrial relations.

Marxist approach assumes that the understanding of industrial relations requires an understanding of the capitalized society. Marxists regard state intervention via legislation and the creation of industrial tribunals as supporting management’s interest rather than ensuring a balance between the competing groups.

The unitary approach of industrial relations states that the authority rests solely with the management with no right to anyone to challenge it. The unitary approach is based on the assumption that the organization is an integrated group of people with single authority/ loyalty structure and a set of common values, interests and objectives shared by all members of the organization.

The balance of power is not vested with any one group; rather, it is maintained between the parties to industrial relations. This is the essence of the pluralist approach of industrial relations. The pluralistic approach suggests that there is more than one source of power in the relationship between workers and business leaders. Unions are often a central component to the pluralistic approach that seeks a balance of power between leadership and employees.

Porter's force analysis aims at understanding the important forces of a industry such as supplier power, buyer power, competitive rivalry, threat of substitution and new entry to determine the degree of competition in the business.