Dunlops Industrial Relations System Model

industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of
power in society and technology. The basis of the theory is that group cohesiveness is provided by the common
ideology shaped by the societal factors.
Certain actors, certain contexts, ideology that binds them together and a body of rules created to govern the actors
at the workplace and work community. The actors management, labour and government possess a shared ideology
Aggressive, Transactional, Together, Your boat.
Rules :
1) Substantive rules : Conditions under which people are employed. Derived from the implied terms and
conditions of employment, legislations, agreements, practices and managerial policies and derivatives.
2) Procedural rules : Govern how substantive rules are to be made and understood
Dunlops model identifies three key factors to be considered in conducting an analysis of the management-labor
relationship:
1. Environmental or external economic, technological, political, legal and social forces that impact employment
relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labor, management, and
government.
3. Rules that are derived from these interactions that govern the employment relationship.
Systems in Manufacturing tradeoff between systems and people. Ultimately, introduction of new rules and
regulations and revision of the existing ruels for improving the industrial relations are the major outputs of the
industrial relations system, These may be substantive rules as well procedural rules.
Contract Labour vs Standard Labour
Industry wants contract labour because of requirements of flexibility (Liberalization) , improving
competitveness in the globalized market economy. The change in operations Just in Time for example.
Highly prevalent in skilled, semi-skilled and unskilled work.
BPO, KPO, Staffing industries
Why people join Trade Union?
Job security : Sense of job security and ensure management will not make unfair and arbitrary decidions about
employment. Unions to ensure jobs are protected against layoffs, recalls, promotion etc.
Wages and Benefits : Unions-united strength ensure fair wages. Benefits such as medical facility, pensions, paid sick
leave etc
Working conditions : Healthy and safe environment. Feel more secured knowing the trade union is directly involved
in safety and health issues
Fair and Just Supervision : Change in leadership styles autocratic to democratic, people oriented. Formal grievance
procedures involving collective discussion by both parties.
Powerlessness : Individually feel voiceless or powerless to bring about changes that will benefit them. Unions
powerful collective voice to communicate to management their dissatisfaction and frustration.
Labour Philosophy Unity is Strength

Need to belong : Social factors organize programmes, functions and social events from time to time strong bond
among the union members
Management failure in ensuring Job security, fair remuneration, safe and healthy working conditions, fair
supervision, involvement in decision making, sense of belonging etc. motivates employees to join a union.

Causes of Industrial Disputes

Theoretical Perspectives :
Unitary perspective : Organization perceived as integrated and harmonious system. Core assumption : Management
and staff share same objectives, interests and purposes; working towards shared mutual goals. Trade unions
deemed as unnecessary and conflict perceived as disruptive.
Employee point of view :
1)
2)
3)
4)

Working practices should be flexible.

Role of union is to further communication
Sound terms and conditions of employment
Employee participation in decision making is enabled.

Employer point of view :

1)
2)
3)
4)
5)
6)

Staffing policies should try to unify effort, inspire and motivate employees
Proper communication of organizations objectives
Reward systems designed to foster and secure loyalty and engagement
Line managers should take ownership of staffing responsibilities
Conflicts arise due to lack of information, inadequate presentation of managements policies
Integration of personal objectives with organizations

Pluralistive perspective : Different power groups management and trade unions conflicts normal. Management
must lean less towards enforcing and controlling and more towards persuasion and co-ordination. Conflict dealth by
collective bargaining and not viewed as a bad thing channelled towards evolution and positive change.
They should anticipare and resolve this by securing agreed procedures for settling disputes
Implications of approach :
1) Firm should have industrial relations personnel specialists who advise managers and provide specialist
services in respect of staffing and matters relating to union consultation and negotiation
2) Independent external arbitrators should be used to assist in the resolution of disputes.
3) Union recognition should be encouraged and representatives given scope to carry out their representative
duties
Marxist perspective : Capitalist society ir always has conflicts. Classes exist so conflicts are inevitable.
Compensation payable is an outcome of power struggle. Weakness : Views Industrial relations as a product of
outcome of the industrial conflict.
Psychological approach
Perceptions of management, unions and the workers. Conflicts occur because every group negatively perceives the
behaviour of the other. Problems are further aggravated by various factors - income, level of education,
communication, values, beliefs, customs, goals of persons and groups, prestige, power, status, recognition, security
etc are host factors both economic and non-economic which influence perceptions unions and management towards
each other. Industrial peace proper attitudes and perception of two parties

Sociological approach
Industry is a social world in miniature. Goals, attitudes, perception of change decided by broad social factors like the
culture of the institutions, customs, structural changes, status-symbols, rationality, acceptance or resistance to
change. Industry is inseparable from the society it works in.
Industrial-cum-social patterns emerge providing new relationships, institutions and behavioural pattern, new
techniques to handle human resources.
Human Relations approach
. In fact major problems in industrial relations arise out of a tension which is created because of the employers
pressures and workers reactions, protests and resistance to these pressures through protective mechanisms in the
form of workers organization, associations and trade unions.
Services of specialists in Behavioural Sciences (namely, psychologists, industrial engineers, human relations expert
and personnel managers) are used to deal with such related problems.
The workers are likely to attain greater job satisfaction, develop greater involvement in their work and achieve a
measure of identification of their objectives with the objectives of the organization; the manager, on their part,
would develop greater insight and effectiveness in their work.

Methods for improving Industrial Relations

1)
2)
3)
4)
5)
6)

Workers participation in Management

Mutual Accommodation
Sincere Implementation of Agreements
Sound Personnel Policies
Governments role
Progressive Outlook

Methods of Collective Bargaining

1) Conjunctive/Distributive bargaining :
Most common type of bargaining and involves zero-sum negotiations, in other words, one side wins and the
other loses. Both parties try to maximize their respective gains. They try to settle economic issues such as
wages, benefits, bonus etc.
Unions and management have initial offers or demands, target points (eg. Desired wage level), resistance
points (eg. Unacceptable wage levels) and settlement ranges (eg. Acceptable wage level)
2) Cooperative/Integrative bargaining :
Both sides are trying to reach a mutually beneficial alternative, i.e win-win situation.
Both sides share information about their interests and concerns and they create a list of possible solutions to
best meet everyones needs.
Ex. In recession, companies cannot offer competent wages, then both parties realize the importance of
survival and negotiate the terms of employment in a flexible way.

Settling disputes Impasse state

Conciliation
Parties to dispute use a conciliator, who meets parties both separately and together in an attempt to resolve their
differences. They do this by lowering tensions, improving communications, interpreting issues, encouraging parties
to explore potential solutions and assisting parties in finding a mutually acceptable outcome.
Differs from arbitration the process in and of itself, has no legal standing, and the conciliator usually has no
authority to seek evidence or call witness, usually write no decision, and makes no award.
Differs from mediation the parties are often in need of restoring or repairing a relationship, either personal or
business
Mediation
The term "mediation" broadly refers to any instance in which a third party helps others reach agreement. More
specifically, mediation has a structure, timetable and dynamics that "ordinary" negotiation lacks. The process is
private and confidential, possibly enforced by law. Participation is typically voluntary. The mediator acts as a neutral
third party and facilitates rather than directs the process.
Benefits cost, confidentiality, control, compliance, mutuality, support
Arbitration
Third party decision maker. A dispute is resolved by an impartial adjudicator whose decision the parties to the
dispute have agreed, or legislation has decreed will be final and binding. Parties can choose their own judge

Maruti Case highlights the shortcoming of Dunlops framework. It homogenizes the 3 actors whereas in reality this
may not be true. Another drawback is the lack of actionability of this framework as we cant discuss the nuances of
management. Carrying on, predictability is also low.
Stakeholders Analysis
Stakeholder -> Agenda -> Power

Align people with similar interest and with high power.

Organizations must take decisions in three dimensions business/technical, social, political

Module 2
Workplace stressors heavy workloads, lack of control, poor communication, role ambiguity, job security and lack of
management support

Suicides at France Telecom

Employees committing suicides as said due to Management by Terror, stress at work.
Company claims that the suicides were a result of personal, not professional issues. Suicide rates were inline
with the national statistics.
Company had to move with times; customer demand for mobile phones rather than fixed lines meant massive
restructuring was inevitable.
Why? Average age is 47 which makes it difficult for them to adapt to organizational change. Stronger argument
French workers are resistant to change because they are one of the few workforces that still have a say in how they
are managed. The 35-hour week, union representation and strong employment laws protect workers rights any
changes in working practices are difficult to push through. Anglo-American, emerging economies employees are
flexible change is only constant
Protecting workers rights and the French Savoir Vivre comes at high cost for companies. Not easy to restructure,
shed employees, and retrain the workforce to cope with changing market demands.
How must change must we embrace, and how quickly? What is the tipping point? And who takes the ultimate
responsibility when things go badly wrong?

IF change is incremental, no need to worry but if the change is drastic (social status, basic identity of people is
affected) requires moral engagement, provision of social fabric so that they can tide over depression, cut of
information to media.

Corporate Reputation Risk

Reputation built over the years, suicides hits the conscience of the managers and the workforce. Media
sensationalizes things. Firm has to take political measures.
Learned Helplessness
Clinical Depression and related mental illnesses may result from real or perceived absence of control over the
outcome of a situation.
In a fast paced world, especially for college students, stress can eventually alter one's mood or emotions. In the
abstract, the authors state the following focuses:
1. how exercise can alter the behavioral consequences of stress and how "learned helplessness" affects
animals
2. the neurocircuitry of learned helplessness and the role of serotonin (or 5-HT)
3. exercise-associated neural adaptations and neural plasticity that may contribute to the stress-resistant brain

Ethics and Organizational Performance

http://www.ibmadison.com/Blogger/Open-Mic/August-2012/Defending-the-Code-Using-ethics-to-improveorganizational-performance-submitted-by-Denis-Collins/
A managements code of ethics minimizes ethical ambiguities by communicating clear ethical guidelines for
employees to apply when making decisions. Organizational values vs Occupational values.
Purpose : demonstrate managerial concern for ethics, convey a particular set of values and obligations, meet legal
requirements and industry trends, positive impact on employee behaviours.
Communication of ethical code is necessary and ethical hypocrisy must be avoided.
Global ethics
Local Ethics

Module 3
Employee Engagement Refers to the positive, fulfilling, motivational state of mind that people encounter
when they are completely immersed in their work to the point that time seems like it is flying by. Energy
dimension and Identification dimension.
Kahn, 1990 The harnessing of organization members selves to their work roles, in engagement, people
employ and express themselves physically, cognitively, and emotionally during role performances
Psychological Meaningfulness feeling that one is receiving a return on investments of ones self in a currency of
physical, cognitive, or emotional energy
1) Job characteristics ex. Autonomy and variety
2) Work characteristics ex. Supervisor support
3) Role characteristics ex. role fit
Psychological Safety feeling of being able to show and employ ones self without fear of negative consequence to
self-image, status or career
1)
2)
3)
4)
5)

Rules and regulations of workplace

Interpersonal relationships
Group and intergroup dynamics
Management style and process
Organizational Norms Norms are shared expectations about the general behaviours of system members
People that stayed within generally appropriate ways of working and behaving felt safer that those
who strayed outside those protective boundaries

Psychological Availability Notion that individuals must have the physical, emotional, cognitive resources to devote
towards becoming engaged in their work.

1)
2)
3)
4)

Goal setting
Psychological contract
Job Design
Leadership lenient then possibility of shirking responsibilities, strict leads to retaliation, rebel etc. middle
path proscribe rather than prescribe
5) Coaching
6) Supervisor Support
7) Training
JD-R model Parity between Job demands and resources
Positive discipline reinforcement and punishments (B.F. Skinner) positive reinforcement is the best.
Negative reinforcement removal of something bad due to behaviour leading to favourable outcome
http://www.educateautism.com/behavioural-principles/negative-reinforcement.html

Self-Directed Team
Why?
In Innovative jobs, where things keep changing; a dynamic environment in relation to the
customer/product and technology/landscape. A sunrise industry has come up which is based on new
technology where perpetual innovation is the key.
Complex and interdependent tasks such as in hospitals, consultancy. A fluid mechanism that shifts the
leadership baton amongst the employees. Everybody should know each others jobs. So that there is high
flexibility

Module 4
Expatriate companys home country individual in foreign office
Coordination and control of diverse and dispersed operations and activities, management
development acquiring international management skills and competencies, effective communication of
local needs and strategic information to and from headquarters.
Expatriate failure : return of expatriate manager failure to attain expected performance levels, inability
to adjust to work and cultural environment in host country.
Direct costs: Airfare, relocation expenses, salary and training
indirect costs: Loss of reputation, market share, morale and productivity in the local work force,
complications with the host government, lost credibility and career advancement.
Host-country individual companys employee from the same country the company is located (foreign)
Third-country individual individual from some other country in foreign office.
Staffing process :
1) Ethnocentric :

Staffing most important positions in foreign subsidiaries with expatriates from companys
home country. Expatriates are often believed to better represent the interests of the home
office and ensure that the foreign offices are aligned with home headquarters.
Adv: alignment of interests of home office with foreign subsidiaries, communication also
easier (there should be no language and cultural barriers), predictability of performance
Disadv: Lose perspective and insights that local employees can provide that may help
overcome unique hurdles in each foreign office. More expensive than locals. High ratio of
expatriates local resentment, cultural myopia
2) Polycentric :
All host-country individuals in the entire office.
Adv: Guide company on local market conditions, politics, law and culture. Company willing
to make a commitment to the country and its people. Cheaper, no relocation expenses.
Disadv: Disconnect in perspective and interests with home country. Locals may put local
interests above the companys broader interests. Lower control
3) Regiocentric :
Region-centred rather than country-specific. Large pool of managers, restricted flow only to
countries within region. Regional staff for key positions anywhere in the region that is
defined by the multinational organization.
Comes as a transition from being Polycentric or Ethnocentric -> Geocentric
More sensitivity to local operations with less corporate integration. Allows interactions and
sharing of information between those managers who have been transferred to regional
headquarters.
May cause federalism at regional level
4) Geocentric :
The circumstances dictate the best policies and the most appropriate individuals to staff the
operations. Best elements of each culture should be adopted in the design of HR systems
and the most qualified individuals, irrespective of nationality.
Companies with advanced stage of internationalization.
In general, third-country nationals can bring the following qualities: (1) understanding of the
operation from the perspective of a foreigner, who is not biased by the cultural perspective
either of the home country or of the host country; hence, these individuals can bring more
unbiased and potentially novel ideas and perspectives; (2) increased likelihood of
acceptance by both home country and host country employees; and (3) demonstration of
the global image of the multinational corporation.
Appointment of host-country nationals in key positions in the headquarters, that is, in the
home country.
Adv: Make best use of all its human resources, employees in different international
contexts, strong unifying and informal management network.
Disadv : national immigration policies may limit implementation, expensive to implement
due to training and relocation costs, compensation structure may be problematic.
Conditions required :
1) Availability of highly competent or potentially competent employees
2) International experience within top management
3) Competent or potentially competent cadre of managers willing and ready for
international deployment
4) Willingness to learn and an openness to new and different experiences and ideas
https://knowledge.sagepub.com/view/businesstoday/n431.xml#n431

Four-dimensional Criteria :
1) Self-orientation : high self-esteem and sel-confidence
2) Others-orientation : ability to develop relationships with host country nationals, wiilingness to
communicate
3) Perceptual ability : ability to understand why people of other countries behave the way they do,
being non-judgemental and flexible in management style
4) Cultural Toughness : ability to adjust to the ways of country of assignment.

Module 5
In the present world scenario, Identity of an individual has two parts
i)
ii)

Virtual
Physical Self

Search for what is relevant. And search only when it is necessary and relevant.
Complete identity individual identity and organizational identity.