In Industrial relations, employment relations can be explained as a multidisciplinary academic field that deals in the employment relationship. It is also defined as the company’s interrelations between employees and employers, trade unions or labor unions. Today, we are going to discuss about the different theories and applications of employment relations that you need to consider when writing an assignment on the subject.
As we have already discussed what the term “employment relations” meant? There are many important industrial relations’ theories with various functions and responsibilities.
Who Are The Main Actors In Industrial Relationship?
Though, there are different models for industrial relations such as Dunlop’s System Theory and British Model of Industrial Relations. As per the British model of industrial relations, three key actors are –
- Employers and associations
- Workers and their unions
- Government and their bodies
The workers and their labour unions are the way to develop skills and motivate them in terms of production. The employer’s role is to set the provision of raw materials such as finance and human resources which are required in the production of goods and services whereas the government and its bodies develop the assumptions in order to enable the environment to produce goods and services. The above-given following actors play their roles and functions with the expectation of some specific rewards.
Also, there are a few models, theories, and contexts concerned with industrial relations. The British system has been practised in Nigeria and a few other countries in the world.
Main Theories Of Employment Relations
The four important employment relationship theories are Pluralist, Unitarist, Marxist and Radical. These theories include or dismiss several elements concerned with industrial relations function. These elements depend on the standards and values hold in awe of philosophy.
In industrial relations, the term “unitarist theory” highlights the employee’s and employers’ co-dependency. To a unitarist, the organizations are friendly, integrated, and collaborative and they do not favor the employees or trade unions. They strongly believe that organisation loyalty will detract from those of employee loyalty.
This employment relationship theory highlights the function and processes of trade unions and management. Also, it strengthens the legitimacy and value of collective bargaining. People who are acting as pluralists find organizations within unions and management as legitimate. They say that the primary functions of management are to interact, communicate, discuss and persuade rather than demand and control.
Don’t get confused between Marxist theory and radical theory. Radical Theory mainly focuses on the necessary industrial relations of employees that protect themselves from large businesses. Radicals say that the corporations working to earn profit have no regard for their employees apart from legal obligations.
The Marxist theory or marxist philosophy can be explained as a method of a socioeconomic analysis that views social conflict and class relations. This concept claims that institutions can be better employers if they are run as a state organisation.
Importance of Employee Relationship
When an employee has a healthy and strong relationship with their employer/s, it benefits the whole organisation. Studies show that employees who have respectful terms with the employees are likely to be more happy, productive and loyal in the long-run. Unfortunately, building such a mutual and healthy relationship with employees is not as easy as it is said. Here are a few reasons:
Retaining Loyal Employees
Employees remain loyal to employers when they are appreciated and feel comfortable within the organisation. And employees having an unfriendly relationship leads to losing an employee. Companies should motivate and build positive relationships among managers, workers, and employers to achieve success.
As we have discussed above that the company that has a strong relationship with the employer is more productive, and thus the company can generate more revenue. When an employee for you, they are devoting their full effort and try to maintain the personal stake to the project.
Reduce Workplace Conflicts
It has been seen in the study that when an employee enjoys working around the employer, they are less likely to create conflict. It can be said that a positive employer and employee relationship creates a peaceful workplace environment.
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