MA-HR Study Guidelines
MA – HR COURSE OUTLINE
Industrial Sociology
The aim of the course is to gain understanding of industrial sociology and its impact on
society and individuals and groups in work situations.
The specific objectives of the course are to:
o Analyse the causes and consequences of industrialization on society
o Explain the labour process theory and its implications on the management of
people at work places
o Discuss the developments of IR and Trade Unionism
o Understand modern developments in industrialisation
Course Contents
1 Perspectives of industrial sociology
2 Industrialization: review of industrialization in the 3rd World and its consequences of
urbanization (in general and in Africa), the environment and the current situation
3 Developments in Industrial relations and trade unionism, the unitary, pluralist and
radical approaches to managing the relationships at work places; the new realism of
industrial relations..
4 The labour process theory: critique of the scientific management and its consequences:
work alienation, deskilling and work routinisation and management styles. Marxist
theories on labour
5 Processes of industrial relations
6 Modern developments in industrialization - Deindustrialization: its interpretation and
explanation, the crisis of deindustrialization
Continuous assessment
Two written assignments
Class examination
Semester examination
20%
20%
60%
Reading list
Kreitner R (2005), Management Houghton-Mifflin New York
Kanungo R., (1982). Work Alienation. Praeger New York
Salamon M (2000) Industrial Relations Prentice Hall
Osland, Kolb et al, (2007) Organisational Behaviour Pearson – Prentice Hall
Hewitt, T., Johnson, H. and Wield, D. (Eds) (1992) Industrialization and Development,
Oxford University Press: Oxford.
Kiely, R (1998) Industrialization and Development: A comparative analysis, UCL Press:
London.
Internet Websites
Revised
September 2012
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GBS 521 INDUSTRIAL SOCIOLOGY
PART ONE – GENERAL PERSPECTIVES OF INDUSTRIAL SOCIOLOGY
1 Definition and Descriptions of the Extent of Industrial Sociology
Industrial Sociology is another name for the sociology of organisations. It is another
term which stands for industrial relations. Another perspective of industrial sociology is
that it is sociology of work or the study of the interaction of people within industry,
organisations or enterprises. In this case the common terms used are industrial relations
at the societal level, labour relations at the organisation/ company level and employee
relations at the individual level. For example, industrial relations normally refers to
relations between the society and industry and it also refers to inter-departmental
relationships at the organisational/company level; labour relations refers to the
relationships between management and the union and employee relations has the
connotation of boss-subordinate relationship at the individual level.
At the macro sociological scale, industrial sociology is the study of the impact of industry
on a whole society or community. It is this aspect of industrial sociology which this study
programme will focus on. The first topic is on industrialisation and its effects on whole
societies.
Industrialisation is the process of social and economic change whereby a human group
is transformed from a pre-industrial society into an industrial one. It is a part of a wider
modernization process, where social change and economic development are closely
related with technological innovation, particularly with the development of large-scale
energy and metallurgy production. It is the extensive organization of an economy for the
purpose of manufacturing. Industrialization also introduces a form of philosophical
change, where people obtain a different attitude towards their perception of nature.
There is considerable literature on the factors facilitating industrial modernization and
enterprise development. Key positive factors identified by researchers have ranged from
favorable political-legal environments for industry and commerce, through abundant
natural resources of various kinds, to plentiful supplies of relatively low-cost, skilled and
adaptable labor.
One survey of countries in Africa, Asia, the Middle East, and Latin America and the
Caribbean in the late 20th century found that high levels of structural differentiation,
functional specialization, and autonomy of economic systems from government were
likely to contribute greatly to industrial-commercial growth and prosperity. Amongst
other things, relatively open trading systems with zero or low duties on goods imports
tended to stimulate industrial cost-efficiency and innovation across the board. Free and
flexible labor and other markets also helped raise general business-economic
performance levels, as did rapid popular learning capabilities. Positive work ethics in
populations at large combined with skills in quickly utilizing new technologies and
scientific discoveries were likely to boost production and income levels – and as the latter
rose, markets for consumer goods and services of all kinds tended to expand and provide
a further stimulus to industrial investment and economic growth. By the end of the
century, East Asia was one of the most economically successful regions of the world –
with free market countries such as Hong Kong being widely seen as models for other,
less developed countries around the world to emulate.
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Description of Industrialisation
According to the original sector classification of Jean Fourastié, an economy consists of a
"Primary sector" of commodity production (farming, livestock breeding, exploitation of
mineral resources), a "secondary sector" of manufacturing and processing, and a
"Tertiary Sector" of service industries. The industrialization process is historically based
on the expansion of the secondary sector in an economy dominated by primary activities.
The first ever transformation to an industrial economy from an agrarian one was called
the Industrial Revolution and this took place in the late 18th and early 19th centuries in a
few countries of Western Europe and North America, beginning in Great Britain. This
was the first industrialization in the world's history.
The Second Industrial Revolution describes a later, somewhat less dramatic change
which came about in the late 19th century with the widespread availability of electric
power, internal-combustion engines, and assembly lines to the already industrialized
nations.
The lack of an industrial sector in a country is widely seen as a major handicap in
improving a country's economy, and power, pushing many governments to encourage or
enforce industrialization.
2 Industrial Revolution in Western Europe
The United Kingdom was the first country in the world to industrialise. In the eighteenth
and nineteenth centuries, Great Britain experienced a massive increase in agricultural
productivity known as the British Agricultural Revolution, which enabled an
unprecedented population growth, freeing up a significant percentage of the workforce
from farming, and helping to drive the Industrial revolution.
Due to the limited amount of arable land and the overwhelming efficiency of mechanized
farming, the increased population could not be dedicated to agriculture. New agricultural
techniques allowed a single peasant to feed more workers than previously; however,
these techniques also increased the demand for machines and other hardware which had
traditionally been provided by the urban artisans. Artisans collectively called bourgeoisie,
employed rural exodus' workers to increase their output and meet the country's needs.
The growth of their business coupled with the lack of experience of the new workers
pushed a rationalization and standardization of the duties the in workshops, thus leading
to a division of work, that is, a primitive form of Fordism. The process of creating a good
was divided into simple tasks, each one of them being gradually mechanized in order to
boost productivity and thus increase income. The accumulation of capital allowed
investments in the conception and application of new technologies, enabling the
industrialisation process to continue to evolve.
The industrialisation process formed a class of industrial workers who had more money
to spend than their agricultural cousins. They spent this on items such as tobacco and
sugar; creating new mass markets which stimulated more investment as merchants sought
to exploit them. The mechanization of production spread to the countries surrounding
England in western and northern Europe and to British settler colonies, making those
areas the wealthiest and shaping what is now known as the Western world.
Some economic historians argue that the possession of so-called ‘exploitation colonies’
eased the accumulation of capital to the countries that possessed them, speeding up their
development. The consequence was that the subject country integrated a bigger economic
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system in a subaltern position, emulating the countryside who demands manufactured
goods and offers raw materials, while the metropole stressed its urban posture, providing
goods and importing food. A classical example of this mechanism is said to be the
triangular trade, who involved England, southern United States and western Africa.
Critics argue that this polarity still affects the world, and has deeply retarded the
industrialization of what is now known as the Third World.
Some have stressed the importance of natural or financial resources that Britain received
from its many overseas colonies or that profit from the British slave trade between Africa
and the Caribbean helped fuel industrial investment.
The Third World
A similar state-led developing programme was pursued in virtually all the Third World
countries during the Cold War, including the socialist ones, but especially in Sub-Saharan
Africa after the decolonization period. The primary scope of those projects was to
achieve self-sufficiency through the local production of previously imported goods, the
mechanisation of agriculture and the spread of education and health care. However, all
those experiences failed bitterly due to lack of realism: most countries didn't have a preindustrial bourgeoisie able to carry on a capitalistic development or even a stable and
peaceful state. Those aborted experiences left huge debts toward western countries and
fueled public corruption
3 Negative Consequences of Industrialisation
Exploitation The term "exploitation" may carry two distinct meanings: the act of using
something for any purpose. In this case, exploit is a synonym for use or the act of using
something in an unjust or cruel manner. It is this meaning of exploitation which is
discussed below.
As unjust benefit In political economy, economics, and sociology, exploitation involves
a persistent social relationship in which certain persons are being mistreated or unfairly
used for the benefit of others. This corresponds to one ethical conception of exploitation,
that is, the treatment of human beings as mere means to an end — or as mere "objects".
In different terms, "exploitation" refers to the use of people as a resource, with little or no
consideration of their well-being. This can take the following basic forms:





taking something off a person or group that rightfully belongs to them
short-changing people in trade
directly or indirectly forcing somebody to work
using somebody against his will, or without his consent or knowledge
imposing an arbitrary differential treatment of people to the advantage of some
and the disadvantage of others (as in ascriptive discrimination)
In economics most often, the word exploitation is used to refer to economic
exploitation; that is, the act of using another person's labor without offering them an
adequate compensation. There are two major perspectives on economic exploitation:

organizational or "micro-level" exploitation: in the broad tradition of liberal
economic thinking, most theories of exploitation center on the market power of
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
economic organizations within a market setting. Some neoclassical theory points
to exploitation not based on market power.
structural or "macro-level" exploitation: "new liberal" theories focus on
exploitation by large sections of society even (or especially) in the context of free
markets. Marxist theory points to the entire capitalist class as an exploitative
entity, and to capitalism as a system based on exploitation.
Theories of exploitation – The focus of most assertions about the existence of
exploitation towards human beings is the socio-economic phenomenon where people
trade their labor or allegiance to a powerful entity, such as the state, a corporation or any
other private company. Some theories of exploitation (Marxist, new liberal) are
structural, while others are organizational (neoclassical).
In Marxism, the kinds of exploitation described by other theories (see further below) are
usually called "super-exploitation" — exploitation that goes beyond the normal standards
of exploitation prevalent in capitalist society. While other theories emphasize the
exploitation of one individual by an organization (or vice versa), the Marxist theory is
primarily concerned with the exploitation of an entire segment or class of society by
another. This kind of exploitation is seen as being an inherent feature and key element of
capitalism and free markets. In fact, in Das Kapital, Karl Marx typically assumed the
existence of purely competitive markets. In general, it is argued that the greater the
"freedom" of the market, the greater the power of capital, and the greater the scale of
exploitation. The perceived problem is with the structural context in which free markets
operate (detailed below). The proposed solution is the abolition of capitalism and its
replacement by a better, non-exploitative, system of production and distribution (first
socialism, and then, after a certain period of time, communism).
In the Marxist view, "normal" exploitation is based in three structural characteristics of
capitalist society:
1. the ownership of the means of production by a small minority in society, the
capitalists;
2. the inability of non-property-owners (the workers, proletarians) to survive without
selling their labor-power to the capitalists (in other words, without being
employed as wage laborers);
3. the state, which uses its strength to protect the unequal distribution of power and
property in society.
Because of these human-made institutions, workers have little or no choice but to pay the
capitalists surplus-value (profits, interest, and rent) in exchange for their survival. They
enter the realm of production, where they produce commodities, which allow their
employers to realize that surplus-value as profit. They are always threatened by the
"reserve army of the unemployed". In brief, the profit gained by the capitalist is the
difference between the value of the product made by the worker and the actual wage that
the worker receives; in other words, capitalism functions on the basis of paying workers
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less than the full value product of their labor. For more on this view, see the discussion of
the labor theory of value.
Some Marxian theories of imperialism extend this kind of structural theory
exploitation further, positing exploitation of poor countries by rich capitalist ones (or
transnational corporations). Some Marxist-feminists use a Marxian-style theory
understand relations of exploitation under patriarchy, while others see a kind
exploitation analogous to the Marxian sort as existing under institutional racism.
of
by
to
of
Neoclassical theories In neoclassical economics, exploitation is organizational,
explained using microeconomic theory. It is a kind of market failure, a deviation from the
abstraction of perfect competition. The most common scenario is a monopsony or a
monopoly. These exploiters have bargaining power. This kind of exploitation is supposed
to be abolished by the spread of competition and markets.
Other neoclassical theories go beyond simple organizational exploitation. First, another
type of exploiter is the hired "agent" (employee) who takes advantage of the "principal"
(employer) who hires him or her, under conditions of asymmetric information (see the
principal-agent problem). For example, a clerk may be able to "shirk" on the job, secretly
violating the labor contract. Similarly, an executive may embezzle funds, which is also
contrary to the interests of the stockholders. This kind of exploitation is beyond the scope
of markets, within corporate or governmental bureaucratic organizations. It is often
extremely hard to solve using competition and markets but is instead addressed using
monitoring of employees and management, risk-sharing agreements, bonding, and the
like.
A final type of neoclassical exploiter is the free rider who unfairly uses a public good or
resource. Since taxes are typically used to pay for the maintenance of public lands or
resources, a person who benefits from the public good but does not pay taxes for it might
be considered a free rider. Such exploitation of public goods or resources is known as the
Tragedy of the Commons. Many neoclassical economists believe that where possible the
introduction of private property rights would alleviate the overconsumption, i.e.,
exploitation.
New liberal theories – For others, i.e., a number of "new liberals", exploitation naturally
coexists with free markets. As in the Marxist theory, the problem is structural rather than
organizational: given its special position in society (controlling an important asset), an
interest group can shift the distribution of income in its direction, impoverishing the rest,
even though their role serves no reasonable purpose. While Henry George pointed to
land-owners, John Maynard Keynes saw renters (non-working owners of financial
wealth) as fitting this picture. The first receive land-rent while the second receive interest,
even though, according to the proponents of this theory, they contribute nothing to
society. They merely own a certain asset and have the ability to make money from that
asset without actually doing any work themselves. While George argued for a "single
tax" on land-rent to solve this problem, Keynes hoped that interest rates could be driven
to zero.
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In some ways, these theories are similar to the Marxist one discussed above. However,
they deal with the power and influence of special interests in society (and within the
capitalist class) rather than dealing with a structural difference in class position of the
Marxian sort. Further, while Marx saw exploitation as raising the total amount of
production in capitalist society, in these theories exploitation represents a form of waste
or inefficiency, hurting growth under capitalism. Therefore, according to this view,
abolishing rent or interest would make everyone ultimately better off.
Exploitation in Developing Nations - Developing nations are the focus of much debate
over the issue of exploitation, particularly in the context of the global economy. Critics of
foreign companies allege, for instance, that firms such as Nike and Gap Inc. resort to
child labor and sweatshops in developing nations, paying their workers wages far lower
than those that prevail in developed nations (where the products are sold). This, it is
argued, is insufficient to allow workers to attain the local subsistence standard of living if
working hours common in the first world are observed, so that working hours much
longer than in the first world are necessary. It is also argued that work conditions in these
developing-world factories are much less safe and much more unhealthy than in the first
world. For example, observers point to cases where employees were unable to escape
factories burning down — and thus dying — because of locked doors, a common signal
that sweatshop conditions exist. The Triangle Shirtwaist Factory fire of 1911 was another
example, but it occurred in the US, so the first world of then is the equivalent of the third
world of today.
Others argue that, in the absence of compulsion, the only way that corporations are able
to secure adequate supplies of labor is to offer wages and benefits superior to preexisting
options, and that the presence of workers in corporate factories indicates that the factories
present options which are seen as better — by the workers themselves — than the other
options available to them (see principle of revealed preference).
A common response is that this is disingenuous, as the companies are in fact exploiting
people by the terms of unequal human standards (applying lower standards to their third
world workers than to their first world ones). Furthermore, the argument goes, if people
choose to work for low wages and in unsafe conditions because it is their only alternative
to starvation or scavenging from garbage dumps (the "preexisting options"), this cannot
be seen as any kind of "free choice" on their part. It also argued that if a company intends
to sell its products in the first world, it should pay its workers by first world standards.
Following such a view, some in the United States propose that the U.S. government
should mandate that businesses in foreign countries adhere to the same labor,
environmental, health, and safety standards as the U.S. before they are allowed to trade
with businesses in the U.S. (this has been advocated by Howard Dean, for example).
They believe that such standards would improve the quality of life in less developed
nations. According to others, however, this would harm the economies of less developed
nations by discouraging the U.S. from trading with them. Milton Friedman is an
economist who thinks that such a policy would have that effect.
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However, the common response to the argument that corporations exploit poor laborers
by lowering working standards, wages, etc. is that the corporation only has an incentive
to do business in these nations if there is this alleged "exploitation." If activists were to
achieve their goal of raising work standards, it is likely that the corporation would no
longer have a profit incentive to invest in that nation. The result would probably the
corporation pulling back to its developed nation, leaving their former workers out of the
job.
Groups who see themselves as fighting against global exploitation also point to secondary
effects such as the dumping of government-subsidized corn on developing world markets
which forces subsistence farmers off of their lands, sending them into the cities or across
borders in order to survive. More generally, some sort of international regulation of
transnational corporations is called for, such as the enforcement of the International
Labour Organization's labor standards.
Change to family structure – The family structure changes with industrialization. The
sociologist Talcott Parsons noted that in pre-industrial societies there is an extended
family structure spanning many generations who have probably remained in the same
location for generations. In industrialised societies the nuclear family, consisting of only
of parents and their growing children, predominates. Families and children reaching
adulthood are more mobile and tend to relocate to where jobs exist. Extended family
bonds become more tenuous.
Environment – Industrialization has spawned its own health problems. Modern stressors
include noise, air, water pollution, poor nutrition, dangerous machinery, impersonal
work, isolation, poverty, homelessness, and substance abuse. Health problems in
industrial nations are as much caused by economic, social, political, and cultural factors
as by pathogens. Industrialization has become a major medical issue world wide.
4 Urbanisation
Urbanization is the physical growth of rural or natural land into urban areas as a result of
population immigration to an existing urban area. Effects include change in density and
administration services. While the exact definition and population size of urbanized areas
varies among different countries, urbanization is attributed to growth of cities.
Urbanization is also defined by the United Nations as movement of people from rural to
urban areas with population growth equating to urban migration. The UN projects half
the world population will live in urban areas at the end of 2008.
Movement – As more and more people leave villages and farms to live in cities urban
growth results. The rapid growth of cities like Chicago in the late 19th century and
Shanghai a century later can be attributed largely to people from rural communities
migrating there. This kind of growth is especially commonplace in developing countries.
The rapid urbanization of the world’s population over the twentieth century is described
in the 2005 Revision of the UN World Urbanization Prospects report. The global
proportion of urban population rose dramatically from 13% (220 million) in 1900, to 29%
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(732 million) in 1950, to 49% (3.2 billion) in 2005. The same report projected that the
figure is likely to rise to 60% (4.9 billion) by 2030.
According to the UN-HABITAT 2008 Annual Report, sometime in the middle of 2007,
the majority of people worldwide will be living in towns or cities, for the first time in
history; this is referred to as the arrival of the "Urban Millennium". In regard to future
trends, it is estimated 93% of urban growth will occur in Asia and Africa, and to a lesser
extent in Latin America and the Caribbean. By 2050 over 6 billion people, two thirds of
humanity, will be living in towns and cities.
Urbanization rates vary between countries. The United States and United Kingdom have
a far higher urbanization level than China, India, Swaziland or Niger, but a far slower
Urbanization occurs naturally from individual and corporate efforts to reduce time and
expense in commuting and transportation while improving opportunities for jobs,
education, housing, and transportation. Living in cities permits individuals and families to
take advantage of the opportunities of proximity, diversity, and marketplace competition.
People move into cities to seek economic opportunities. In rural areas, often on small
family farms, it is difficult to improve one's standard of living beyond basic sustenance.
Farm living is dependent on unpredictable environmental conditions, and in times of
drought, flood or pestilence, survival becomes extremely problematic.
Cities, in contrast, are known to be places where money, services and wealth are
centralised. Cities are where fortunes are made and where social mobility is possible.
Businesses, which generate jobs and capital, are usually located in urban areas. Whether
the source is trade or tourism, it is also through the cities that foreign money flows into a
country. It is easy to see why someone living on a farm might wish to take their chance
moving to the city and trying to make enough money to send back home to their
struggling family.
There are better basic services as well as other specialist services that aren't found in rural
areas. There are more job opportunities and a greater variety of jobs. Health is another
major factor. People, especially the elderly are often forced to move to cities where there
are doctors and hospitals that can cater for their health needs. Other factors include a
greater variety of entertainment (restaurants, movie theaters, theme parks, etc) and a
better quality of education, namely universities. Due to their high populations, urban
areas can also have much more diverse social communities allowing others to find people
like them when they might not be able to in rural areas.
These conditions are heightened during times of change from a pre-industrial society to
an industrial one. It is at this time that many new commercial enterprises are made
possible, thus creating new jobs in cities. It is also a result of industrialisation that farms
become more mechanised, putting many labourers out of work. This is currently
occurring fastest in India.
Over the last few years urbanization of rural areas has increased. As agriculture, more
traditional local services, and small-scale industry give way to modern industry the urban
and related commerce with the city drawing on the resources of an ever-widening area for
its own sustenance and goods to be traded or processed into manufactures.
Research in urban ecology finds that larger cities provide more specialized goods and
services to the local market and surrounding areas, function as a transportation and
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wholesale hub for smaller places, and accumulate more capital, financial service
provision, and an educated labor force, as well as often concentrating administrative
functions for the area in which they lie. This relation among places of different sizes is
called the urban hierarchy.
As cities develop, effects can include a dramatic increase in costs, often pricing the local
working class out of the market, including such functionaries as employees of the local
municipalities. For example, Eric Hobsbawm's book The age of the revolution: 1789–
1848 (published 1962 and 2005) chapter 11, stated "Urban development in our period
[1789–1848] was a gigantic process of class segregation, which pushed the new
labouring poor into great morasses of misery outside the centres of government and
business and the newly specialised residential areas of the bourgeoisie. The almost
universal European division into a 'good' west end and a 'poor' east end of large cities
developed in this period." This is likely due the prevailing south-west wind which carries
coal smoke and other airborne pollutants downwind, making the western edges of towns
preferable to the eastern ones.
Urbanization is often viewed as a negative trend, but in fact, it occurs naturally from
individual and corporate efforts to reduce expense in commuting and transportation while
improving opportunities for jobs, education, housing, and transportation. Living in cities
permits individuals and families to take advantage of the opportunities of proximity,
diversity, and marketplace competition.
Environmental effects – The urban heat island has become a growing concern. Urban
sprawl creates a number of negative environmental and public health outcomes. For more
than 100 years, it has been known that two adjacent cities are generally warmer than the
surrounding areas. This region of city warmth, known as an urban heat island, can
influence the concentration of air pollution. The urban heat island is formed when
industrial and urban areas are developed and heat becomes more abundant.
In rural areas, a large part of the incoming solar energy is used to evaporate water from
vegetation and soil. In cities, where less vegetation and exposed soil exists, the majority
of the sun’s energy is absorbed by urban structures and asphalt. Hence, during warm
daylight hours, less evaporative cooling in cities allows surface temperatures to rise
higher than in rural areas. Addition city heat is given off by vehicle and factories, as well
as by industrial and domestic heating and cooling units. This effect causes the city to
become 2 to 10o F (1 to 6o C) warmer than surrounding landscapes. Impacts also include
reducing soil moisture and intensification of carbon dioxide emissions.
Changing Form of Urbanization
Different forms of urbanization can be classified depending on the style of architecture
and planning methods as well as historic growth of areas. In cities of the developed world
urbanization traditionally exhibited a concentration of human activities and settlements
around the downtown area, the so-called in-migration. In-migration refers to migration
from former colonies and similar places. The fact that many immigrants settle in
impoverished city centres led to the notion of the "peripheralization of the core", which
simply describes that people who used to be at the periphery of the former empires now
live right in the centre.
Recent developments, such as inner-city redevelopment schemes, mean that new arrivals
in cities no longer necessarily settle in the centre. In some developed regions, the reverse
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effect, originally called counter urbanisation has occurred, with cities losing population to
rural areas, and is particularly common for richer families. This has been possible
because of improved communications, and has been caused by factors such as the fear of
crime and poor urban environments. Later termed "white flight", the effect is not
restricted to cities with a high ethnic minority population.
When the residential area shifts outward, this is called suburbanization. A number of
researchers and writers suggest that suburbanization has gone so far to form new points
of concentration outside the downtown. This networked, poly-centric form of
concentration is considered by some an emerging pattern of urbanization. It is called
variously exurbia, edge city (Garreau, 1991), network city (Batten, 1995), or postmodern
city (Dear, 2000). Los Angeles is the best-known example of this type of urbanization.
Rural migrants are attracted by the possibilities that cities can offer, but often settle in
shanty towns and experience extreme poverty. In the 1980s, this was attempted to be
tackled with the urban bias theory which was promoted by Michael Lipton who wrote:
"...the most important class conflict in the poor countries of the world today is not
between labour and capital. Nor is it between foreign and national interests. It is between
rural classes and urban classes. The rural sector contains most of the poverty and most of
the low-cost sources of potential advance; but the urban sector contains most of the
articulateness, organization and power. So the urban classes have been able to win most
of the rounds of the struggle with the countryside..." Most of the urban poor in
developing countries able to find work can spend their lives in insecure, poorly paid jobs.
According to research by the Overseas Development Institute pro-poor urbanisation will
require labour intensive growth, supported by labour protection, flexible land use
regulation and investments in basic services.'
Urbanization can be planned urbanization or organic. Planned urbanization, i.e.: new
town or the garden city movement, is based on an advance plan, which can be prepared
for military, aesthetic, economic or urban design reasons. Examples can be seen in many
ancient cities; although with exploration came the collision of nations, which meant that
many invaded cities took on the desired planned characteristics of their occupiers. Many
ancient organic cities experienced redevelopment for military and economic purposes,
new roads carved through the cities, and new parcels of land were cordoned off serving
various planned purposes giving cities distinctive geometric designs. UN agencies prefer
to see urban infrastructure installed before urbanization occurs. landscape planners are
responsible for landscape infrastructure (public parks, sustainable urban drainage
systems, greenways etc) which can be planned before urbanization takes place, or
afterward to revitalized an area and create greater livability within a region. Concepts of
control of the urban expansion are considered in the American Institute of Planners.
New Urbanism - New Urbanism was a movement which started in the 1990s. New
Urbanism believes in shifting design focus from the car-centric development of suburbia
and the business park, to concentrated pedestrian and transit-centric, walk able, mixeduse communities. New Urbanism is an amalgamation of old-world design patterns,
merged with present day demands. It is a backlash to the age of suburban sprawl, which
splintered communities, and isolated people from each other, as well as had severe
environmental impacts. Concepts for New Urbanism include people and destinations into
dense, vibrant communities, and decreasing dependency on vehicular transportation as
the primary mode of transit.
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PART TWO – SCIENTIFIC MGT. AND LABOUR PROCESS THEORY
1. Scientific Management and Its Impact
Scientific management is the operational approach in the production – oriented field of
management dedicated to improving efficiency and cutting waste. It has been labeled
scientific management or management science or production/operations management etc.
The underlying purpose is to make ‘person-machine systems” work as efficiently as
possible. The school of thought emphasized the efficient division of labour into small,
specialized jobs that matched with the capacities of workers. This made it possible to
research the best way to do jobs. The ultimate aim was to develop workers’ abilities and
to convey that cooperation between capital and labour resulted in organisational success.
Frederick W. Taylor a mechanical engineer, while working in steel works, was appalled
at the industry’s unsystematic practices: little or no cooperation between managers and
workers; inefficiency and waste were rampant; widespread output restriction by groups of
workers; ill-equipped and inadequately trained workers were left to determine how to do
their jobs. Taylor sought to revolutionize the practice of industrial management. His
scientific management is developing performance standards on the basis of systematic
observation and experimentation.
The main concern for Taylorism was the proper design of the job and the preparation of
the worker. The ideal manager determined the goals to be accomplished divided work in
most efficient way, trained workers to do the job, and rewarded them by wage incentives.
The foremen were seen as the “brains” and workers as “a pair of hands”. Workers were
seen as one of the resources just like machines.
It is the practice of scientific management thought, aimed in principle at effectiveness and
efficiency in manufacturing/production function, which has been heavily criticized by
Braverman as the ultimate embodiment of deskilling and routinisation of the worker.
Deskilling is the process by which skilled labor within an industry or economy is
eliminated by the introduction of technologies operated by semiskilled or unskilled
workers. Work is fragmented, and individuals lose the integrated skills and
comprehensive knowledge of the crafts persons.
Related to the topic of deskilling is deprofessionalization. Examples of
deprofessionalization can be found across many professions: pharmacists, social workers,
nurses and librarians to mention only a few.
In an application to the arts, Benjamin Buchloh defines deskilling as "a concept of
considerable importance in describing numerous artistic endeavors throughout the
twentieth century with relative precision. All of these are linked in their persistent effort
to eliminate artisanal competence and other forms of manual virtuosity from the horizon
of both artist competence and aesthetic valuation."
Automation is the use of control systems (such as numerical control, programmable
logic control, and other industrial control systems), in concert with other applications of
information technology (such as computer-aided technologies), to control industrial
machinery and processes, reducing the need for human intervention. In the scope of
industrialization, automation is a step beyond mechanization. Whereas mechanization
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provided human operators with machinery to assist them with the physical requirements
of work, automation greatly reduces the need for human sensory and mental requirements
as well. Processes and systems can also be automated.
Automation plays an increasingly important role in the global economy and in daily
experience. Engineers strive to combine automated devices with mathematical and
organizational tools to create complex systems for a rapidly expanding range of
applications and human activities.
Many roles for humans in industrial processes presently lie beyond the scope of
automation. Human-level pattern recognition, language recognition, and language
production ability are well beyond the capabilities of modern mechanical and computer
systems. Tasks requiring subjective assessment or synthesis of complex sensory data,
such as scents and sounds, as well as high-level tasks such as strategic planning, currently
require human expertise. In many cases, the use of humans is more cost-effective than
mechanical approaches even where automation of industrial tasks is possible.
Specialised hardened computers, referred to as programmable logic controllers (PLCs),
are frequently used to synchronize the flow of inputs from (physical) sensors and events
with the flow of outputs to actuators and events. This leads to precisely controlled actions
that permit a tight control of almost any industrial process.
Human-machine interfaces (HMI) or computer human interfaces (CHI), formerly known
as man-machine interfaces, are usually employed to communicate with PLCs and other
computers, such as entering and monitoring temperatures or pressures for further
automated control or emergency response. Service personnel who monitor and control
these interfaces are often referred to as stationary engineers.
Automation has had a notable impact in a wide range of highly visible industries beyond
manufacturing. Once-ubiquitous telephone operators have been replaced largely by
automated telephone switchboards and answering machines. Medical processes such as
primary screening in electrocardiography or radiography and laboratory analysis of
human genes, sera, cells, and tissues are carried out at much greater speed and accuracy
by automated systems. Automated teller machines have reduced the need for bank visits
to obtain cash and carry out transactions. In general, automation has been responsible for
the shift in the world economy from agrarian to industrial in the 19th century and from
industrial to services in the 20th century.
The widespread impact of industrial automation raises social issues, among them its
impact on employment. Historical concerns about the effects of automation date back to
the beginning of the industrial revolution, when a social movement of English textile
machine operators in the early 1800s known as the Luddites protested against Jacquard's
automated weaving looms — often by destroying such textile machines— that they felt
threatened their jobs. One author made the following case. When automation was first
introduced, it caused widespread fear. It was thought that the displacement of human
operators by computerized systems would lead to severe unemployment.
Critics of automation contend that increased industrial automation causes increased
unemployment; this was a pressing concern during the 1980s. One argument claims that
this has happened invisibly in recent years, as the fact that many manufacturing jobs left
the United States during the early 1990s was offset by a one-time massive increase in IT
jobs at the same time. Some authors argue that the opposite has often been true, and that
automation has led to higher employment. Under this point of view, the freeing up of the
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labour force has allowed more people to enter higher skilled managerial as well as
specialised consultant/contractor jobs (like cryptographers), which are typically higher
paying. One odd side effect of this shift is that "unskilled labour" is in higher demand in
many first-world nations, because fewer people are available to fill such jobs.
At first glance, automation might appear to devalue labor through its replacement with
less-expensive machines; however, the overall effect of this on the workforce as a whole
remains unclear. Today automation of the workforce is quite advanced, and continues to
advance increasingly more rapidly throughout the world and is encroaching on ever more
skilled jobs, yet during the same period the general well-being and quality of life of most
people in the world (where political factors have not muddied the picture) have improved
dramatically. What role automation has played in these changes has not been well
studied.
Currently, for manufacturing companies, the purpose of automation has shifted from
increasing productivity and reducing costs, to broader issues, such as increasing quality
and flexibility in the manufacturing process.
The old focus on using automation simply to increase productivity and reduce costs was
seen to be short-sighted, because it is also necessary to provide a skilled workforce who
can make repairs and manage the machinery. Moreover, the initial costs of automation
were high and often could not be recovered by the time entirely new manufacturing
processes replaced the old. (Japan's "robot junkyards" were once world famous in the
manufacturing industry.)
Automation is now often applied primarily to increase quality in the manufacturing
process, where automation can increase quality substantially. For example, automobile
and truck pistons used to be installed into engines manually. This is rapidly being
transitioned to automated machine installation, because the error rate for manual
installment was around 1-1.5%, but has been reduced to 0.00001% with automation.[5]
Hazardous operations, such as oil refining, the manufacturing of industrial chemicals, and
all forms of metal working, were always early contenders for automation.
Another major shift in automation is the increased emphasis on flexibility and
convertibility in the manufacturing process. Manufacturers are increasingly demanding
the ability to easily switch from manufacturing Product A to manufacturing Product B
without having to completely rebuild the production lines. Flexibility and distributed
processes have led to the introduction of Automated Guided Vehicles with Natural
Features Navigation.
Division of labour Division of labour or specialization is the specialization of
cooperative labour in specific, circumscribed tasks and roles, intended to increase the
productivity of labour. Historically the growth of a more and more complex division of
labour is closely associated with the growth of total output and trade, the rise of
capitalism, and of the complexity of industrialization processes. Later, the division of
labour reached the level of a scientifically-based management practice with the time and
motion studies associated with Taylorism. Basically, it's a working society that does
many different jobs. Example: A few people do farming, a few people do pottery, and a
few people are blacksmiths. The society works together to make the city wealthier.
The division of labour makes trade necessary and is the source of economic
interdependence.
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There exist as yet few comprehensive studies of the global division of labour (an
intellectual challenge for researchers), although the ILO and national statistical offices
can provide plenty of data on request for those who wish to try.
In one study, Deon Filmer estimated that 2,474 million people participated in the global
non-domestic labour force in the mid-1990s. Of these, around 15%, or 379 million
people, worked in industry, a third, or 800 million worked in services, and over 40%, or
1,074 million, in agriculture.
The majority of workers in industry and services were wage & salary earners - 58 percent
of the industrial workforce and 65 percent of the services workforce. But a big portion
was self-employed or involved in family labor. Filmer suggests the total of employees
worldwide in the 1990s was about 880 million, compared with around a billion working
on own account on the land (mainly peasants), and some 480 million working on own
account in industry and services. "ILO Global Employment Trends report" indicates that
services have surpassed agriculture for the first time in human history: "In 2006 the
service sector’s share of global employment overtook agriculture for the first time,
increasing from 39.5 per cent to 40 per cent. Agriculture decreased from 39.7 per cent to
38.7 per cent. The industry sector accounted for 21.3 per cent of total employment."
Geographical Specialization: land use is naturally suited to specific situation.
Labor Specialization: achieved when the population process is broken into tiny tasks. The
idea is referred to as the division of labor. The productivity gains of the division of labour
are important within any type of production process, ranging from pin manufacture to
legal practice and medical care. The productivity gains are a result of a number of
mechanisms, as follows:
1. Frees workers to focus on tasks that they are best at
2. Learning Curve efficiencies
o More repetitions leads into learning faster ways to perform the task,
causing
 More efficient in terms of time, which is equal to
 Increases productivity because training time is reduced and the
worker is productive in a short amount of time.
 Concentration on one repetitive task makes workers more skilled at
performing that task.
o Might also cause Steepening of the Learning Curve
 Reduces the time needed for training because the task is simplified
 Increase in meta-capabilities like ability to learn further new tasks
3. Little time is spent moving between tasks so overall time wasted is reduced.
4. The overall quality of the product will increasingly bring welfare gains to the
consumer
5. It becomes possible to influence how production takes place
The disadvantages are:
1. Disconnection from effects of actions -- the worker may not feel responsible for
the end result of the process in which he/she contributes to.
2. Lack of motivation
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Furthermore, productivity of labour may decrease while absenteeism may rise due to:
1. Repetitive motion disorder: can be a factor in many manual jobs.
2. Growing dependency: a break in production may cause problems to the entire
process.
3. Loss of flexibility: workers may have limited knowledge while not many jobs
opportunities are available.
4. Higher start-up costs: high initial costs necessary to buy the specialist machinery
lead to a higher break-even point.
Threats to the Division of Labour
General competence - As individuals of populations increase their competence in
directing the basic things on which individuals' lives depend, the need for division of
labor diminishes. For example, the traditional family farming lifestyle moves ordinary
needs like food growing and clothing procurement into the independent sphere.
Ease of use - The mass manufacturing of goods and services with simpler needs allows a
greater segment of the general population to use a greater number of goods and services.
Many now go to supermarkets to buy ready-made gourmet meals. This means many can
prepare gourmet foods themselves. This kind of thing is, paradoxically, a result of
division of labor between food producers and consumers. While this paradox is not a total
threat to division of labor, ease of use can limit it.
Simpler living - The individual's depending on less reduces the need for products and
services. Movements that persuade to buy locally could promote a trend to simpler living,
as this would promote agrarian living in specific. This means that more of the general
population of a locality would be involved in growing foods and especially items that
people really need.
2. Work Alienation
As a result of Industrial Revolution workers found themselves doing small, simpler,
boring repetitive jobs that had limited meaning and challenge for them. The cost of
efficiency was alienation – self-estrangement on the part of workers. Alienation is
composed of six aspects:
o Powerlessness – having low or no control over the job task versus mastery of the
whole job task
o Meaninglessness – incomprehensibility versus understanding of personal and
social affairs.
o Normlessness – high expectancies (commitment) for socially approved means
versus conventional means for the achievement of given goals.
o Cultural estrangement – Individual’s rejection of commonly held values in
society versus commitment to the prevalent group standards
o Self-estrangement – individual’s engagement in activities that are not intrinsically
rewarding versus involvement in activity for its own sake
o Social isolation – sense of exclusion or rejection versus social acceptance.
Work alienation in organisation behaviour is related to the following trends:
o Industrial Revolution
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o Urbanization of workers
o Division of labour and resultant narrowed job scope
o Bureaucratic re-organisation with its emphasis on formalized and decentralized
authority
o Changing technology that produced mechanization and automation
Characteristics and Manifestations of Work Alienation
An alienated worker exhibits the following behaviours: lack of communication, poorly
defined self-concept, and apathy, lack of goals, and resistance to change and, limited
exercise of alternatives, choices and decisions.
A blue-collar worker’s behaviour is characterized by: general dissatisfaction with life,
blunted aspiration, aggressive feelings to other kinds of people and, low political efficacy
mild but debilitating health reactions.
At workplace the behaviours may include: labour distrust and strife, increased union
grievances, reduced productivity, increased tardiness and absenteeism and, subversion.
Individual reactions to alienation differ but exhibit the following behaviours: fatalism,
withdrawal, revolutionary impulses to reorder work or society, involvement in orderly
change, subversion or sabotage. A common response to work alienation is to
compartmentalize one’s life and focus on leisure and/or consumption.
Overcoming Work Alienation
Organizations in an attempt to overcome alienation have developed/devised mechanisms
such as “job involvement or commitment” and “job redesigns” to add personal autonomy,
need satisfaction, and challenges that stimulate the motivation to work.
Job situations that motivate have the following characteristics: skills variety – degree to
which job requires a range of personal competencies and abilities, task identity – degree
to which job requires completion of a ‘whole’ identifiable piece of work, task
significance – degree to which job is perceived as having substantial impact on lives or
other people, autonomy – degree to which job provides freedom, independence, and
discretion in scheduling tasks and in determining procedure to be used in carrying out
task and, job feedback – degree to which doing job related tasks provides direct and clear
information about effectiveness of person’s performance.
Skill variety, tasks identity, and task significance are aimed at replacing the sense of
meaningfulness that was lessened by subdividing jobs into small, repetitive segments.
Granting autonomy over jobs encourages workers to feel responsible (powerful and in
control) for the outcome of their work. Job feedback allows employees to receive
immediate feedback from the work itself, not from the supervisor. Refer to McClelland’s
need for achievement.
Job enrichment is another way to overcome work alienation. The outcomes of job
enrichment are-high internal work motivation, high quality work performance, high
satisfaction with the work and, low absenteeism and turnover. These outcomes occur at
maximum level only when all three critical psychological states are experienced: i)
experienced meaningfulness of the work ii) experienced responsibility for the work
outcome iii) knowledge of the actual results of the work.
Major Job Design Methods
These methods ensure that work situations are motivating and involving. Because of the
close relationship that exists between well – designed jobs and productivity, managers
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must pay particular attention to this area. The major ways of (doing so) designing jobs
that are more congruent with human needs and motivation include:
i)
Job rotation – moving people from one job to another to reduce / decrease
boredom and allow them to learn new skills,
ii)
Job enlargement – increase the number of tasks performed by an individual –
“horizontal job loading” allows more ownership over product or process and
decreases monotony, it provides opportunity to feel more competent since
workers get to use more than one skill and, it increases meaningfulness of a job
iii)
Job enrichment – broadens responsibilities and gives more autonomy for decision
making, creating client systems and direct feedback systems and generally
enlarges the job scope – ‘vertical job loading’ by including planning and control
functions. Job enrichment resolves problems of meaninglessness, powerlessness,
and isolation. It has same motivational advantage as job enlargement – grants
worker’s autonomy, reduces absenteeism and turnover
iv)
Socio-technical system interventions attempt to match technology of the job with
social needs of the employee. Their goal is to produce fit or integration of the
two components. It addresses the job design for a group rather than for an
individual. These are autonomous work teams responsible for assigning the work,
determining work schedule, work process, quality control procedures, reward
structure etc
v)
Self–managed teams (SMTs) – similar to socio technical systems – both
emphasize skill variety, task identity, task significance, autonomy, job feedback
and the social belonging that comes from group membership. In SMTs workers
are responsible for planning, scheduling, organizing, directing controlling and
evaluating own work process
vi)
Quality movement – basic goals of quality programs are: to lower costs, speed up
the flow of information materials and products and, to increase flexibility, reduce
inventory and improve customer satisfaction.
3. Trade Unionism
A trade union or labor union is an organization of workers who have banded together to
achieve common goals in key areas and working conditions. The trade union, through its
leadership, bargains with the employer on behalf of union members (rank and file
members) and negotiates labor contracts (Collective bargaining) with employers. This
may include the negotiation of wages, work rules, complaint procedures, rules governing
hiring, firing and promotion of workers, benefits, workplace safety and policies. The
agreements negotiated by the union leaders are binding on the rank and file members and
the employer and in some cases on other non-member workers.
These organizations may comprise individual workers, professionals, past workers, or the
unemployed. The most common, but by no means only, purpose of these organizations is
"maintaining or improving the conditions of their employment".
Over the last three hundred years, many trade unions have developed into a number of
forms, influenced by differing political and economic regimes. The immediate objectives
and activities of trade unions vary, but may include:
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



Provision of benefits to members: Early trade unions, like Friendly Societies,
often provided a range of benefits to insure members against unemployment, ill
health, old age and funeral expenses. In many developed countries, these
functions have been assumed by the state; however, the provision of professional
training, legal advice and representation for members is still an important benefit
of trade union membership.
Collective bargaining: Where trade unions are able to operate openly and are
recognized by employers, they may negotiate with employers over wages and
working conditions.
Industrial action: Trade unions may enforce strikes or resistance to lockouts in
furtherance of particular goals.
Political activity: Trade unions may promote legislation favorable to the interests
of their members or workers as a whole. To this end they may pursue campaigns,
undertake lobbying, or financially support individual candidates or parties (such
as the Labour Party in Britain) for public office.
The origins of unions' existence can be traced from the eighteenth century, where the
rapid expansion of industrial society drew women, children, rural workers, and
immigrants to the work force in larger numbers and in new roles. This pool of unskilled
and semi-skilled labor spontaneously organized in fits and starts throughout its
beginnings, and would later be an important arena for the development of trade unions.
Trade unions as such were endorsed by the Catholic Church towards the end of the 19th
Century. Pope Leo XIII in his 'Magna Carta’ spoke against the atrocities workers faced
and demanded that workers should be granted certain rights and safety regulations.
Origins and early history - Unions have sometimes been seen as successors to the guilds
of medieval Europe, though the relationship between the two is disputed. Medieval guilds
existed to protect and enhance their members' livelihoods through controlling the
instructional capital of artisanship and the progression of members from apprentice to
craftsman, journeyman, and eventually to master and grandmaster of their craft. A labor
union might include workers from only one trade or craft, or might combine several or all
the workers in one company or industry.
Since the publication of the History of Trade Unionism (1894) by Sidney and Beatrice
Webb, the predominant historical view is that a trade union "is a continuous association
of wage earners for the purpose of maintaining or improving the conditions of their
employment." A modern definition by the Australian Bureau of Statistics states that a
trade union is "an organization consisting predominantly of employees, the principal
activities of which include the negotiation of rates of pay and conditions of employment
for its members."
Yet historian R.A. Leeson, in United we Stand (1971), said:
Two conflicting views of the trade-union movement strove for ascendancy in the nineteenth
century: one the defensive-restrictive guild-craft tradition passed down through journeymen's
clubs and friendly societies, ... the other the aggressive-expansionist drive to unite all 'laboring
men and women' for a 'different order of things'.
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Recent historical research by Bob James in Craft, Trade or Mystery (2001) puts forward
the view that trade unions are part of a broader movement of benefit societies, which
includes medieval guilds, Freemasons, Oddfellows, friendly societies, and other fraternal
organizations.
The 18th century economist Adam Smith noted the imbalance in the rights of workers in
regards to owners (or "masters"). Smith wrote:
We rarely hear, it has been said, of the combination of masters, though frequently of those of
workmen. But whoever imagines, upon this account that masters rarely combine, is as ignorant of
the world as of the subject. Masters are always and everywhere in a sort of tacit, but constant and
uniform combination, not to raise the wages of labor above their actual rate…When workers
combine, masters ... never cease to call aloud for the assistance of the civil magistrate, and the
rigorous execution of those laws which have been enacted with so much severity against the
combination of servants, laborers, and journeymen.
As Smith noted, unions were illegal for many years in most countries (and Smith argued
that schemes to fix wages or prices, by employees or employers, should be). There were
severe penalties for attempting to organize unions, up to and including execution. Despite
this, unions were formed and began to acquire political power, eventually resulting in a
body of labor law that not only legalized organizing efforts, but codified the relationship
between employers and those employees organized into unions. Even after the
legitimization of trade unions there was opposition, as the case of the Tolpuddle Martyrs
shows.
The right to join a trade union is mentioned in article 23, subsection 4 of the Universal
Declaration of Human Rights (UDHR), which also states in article 20, subsection 2 that
"No one may be compelled to belong to an association". Prohibiting a person from
joining or forming a union, as well as forcing a person to do the same (e.g. "closed shops"
or "union shops", see below), whether by a government or by a business, is generally
considered a human rights abuse. Similar allegations can be leveled if an employer
discriminates based on trade union membership. Attempts by an employer, often with the
help of outside agencies, to prevent union membership amongst their staff, is known as
union busting.
19th century unionism - In the early 1800’s many men from large cities put together the
organization which we now call the Trade Union Movement. Individuals who were
members of unions at this time, were skilled, experienced and knew how to get the job
done. Their main reasoning for starting this movement was to put on strikes. However,
they did not have enough men to fulfill their needs and the unions which began this
trendy movement, collapsed quickly. The Mechanics’ Union Trade Association was the
next approach to bring workers together. In 1827, this union was the first U.S. labor
organization which brought together workers of divergent occupations. This was “the
first city-wide federation of American workers, which recognized that all labor,
regardless of trades, had common problems that could be solved only by united effort as a
class.” This organization took off when carpentry workers from Philadelphia went on
strike to protest their pay wages and working hours. This union strike was only a
premonition of what was to come in the future.
"Besides acting to raise wages and improve working conditions, the federations espoused
certain social reforms, such as the institution of free public education, the abolition of
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imprisonment for debt, and the adoption of universal manhood suffrage. Perhaps the most
important effect of these early unions was their introduction of political action."
Workers realized what unionism was all about through the configuration of mechanics
association and many people followed in their footsteps. The strike gave others hope that
they could get their concerns out by word of mouth. Before this time many people did not
speak about their concerns because of the lack of bodies. However, with more people
comes more confidence. Strikes were a new way of speaking your mind and getting
things accomplished.
The next established union which made an impact on the trade movement was the Grand
National Consolidated Trade Union. This union was founded in 1834 as the first domestic
association. However, this union was short lived due to the panic of 1837. “[Andrew]
Jackson thought the Bank of the United States hurt ordinary citizens by exercising too
much control over credit and economic opportunity, and he succeeded in shutting it
down. But the state banks' reckless credit policies led to massive speculation in Western
lands. By 1837, after Van Buren had become president, banks were clearly in trouble.
Some began to close, businesses began to fail, and thousands of people lost their land.”
This collapse of financial support and businesses left workers unemployed. Many of
these workers, who became affected by the 1837 disaster, were members of a union. It
was very hard for them to stay together in an economic hardship. The trade union
movement came to a bump in the road and died out for a short while. The economy was
restored by the early 1840s and trade unions were at their best. National Labor unions
were forming; however, they were different than ones in the past, such as the National
Trade Union. The new National Labor unions consisted of members in the same
occupation. The work force was drastically impacted by the Civil War and the economy
was thriving. Many workers gained employment because of this economic boom and
unions increased greatly. “More than 30 national craft unions were established during the
1860s and early '70s.” One of the significant national craft unions to be formed during
this time was the National Labor Union (NLU). The National Labor Union was the first
national union in the United States. It was created in 1866 and included many types of
workers. Although relatively short-lived, the NLU paved the way for future American
unions. Following the decline of the NLU, the Knights of Labor became the leading
countrywide union in the 1860s. This union did not include Chinese, and partially
included black people and women.
To put things in better perspective, a few topics are considered from Marx’s theory and
detailed under the following selected subheadings of the Marxist Theory.
4 Selected Marx’s Theories
Marx’s theory of exploitation – The focus of most assertions about the existence of
exploitation towards human beings is the socio-economic phenomenon where people
trade their labor or allegiance to a powerful entity, such as the state, a corporation or any
other private company. Some theories of exploitation (Marxist, new liberal) are
structural, while others are organizational (neoclassical).
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"The world is hungry but lacks the money to buy food; and paradoxically, in the
underdeveloped world, in the world of the hungry, possible ways of expanding food
production are discouraged in order to keep prices up, in order to be able to eat. This is
the inexorable law of the philosophy of plunder, which must cease to be the rule in
relations between peoples."— Che Guevara, Marxist revolutionary.
In Marxism, the kinds of exploitation described by other theories are usually called
"super-exploitation" — exploitation that goes beyond the normal standards of
exploitation prevalent in capitalist society. While other theories emphasize the
exploitation of one individual by an organization (or vice versa), the Marxist theory is
primarily concerned with the exploitation of an entire segment or class of society by
another. This kind of exploitation is seen as being an inherent feature and key element of
capitalism and free markets. In fact, in Das Kapital, Karl Marx typically assumed the
existence of purely competitive markets. In general, it is argued that the greater the
"freedom" of the market, the greater the power of capital, and the greater the scale of
exploitation. The perceived problem is with the structural context in which free markets
operate (detailed below). The proposed solution is the abolition of capitalism and its
replacement by a better, non-exploitative, system of production and distribution (first
socialism, and then, after a certain period of time, communism).
In the Marxist view, "normal" exploitation is based in three structural characteristics of
capitalist society: i) the ownership of the means of production by a small minority in
society, the capitalists; ii) the inability of non-property-owners (the workers, proletarians)
to survive without selling their labor-power to the capitalists (in other words, without
being employed as wage laborers); iii) the state, which uses its strength to protect the
unequal distribution of power and property in society.
Because of these human-made institutions, workers have little or no choice but to pay the
capitalists surplus-value (profits, interest, and rent) in exchange for their survival. They
enter the realm of production, where they produce commodities, which allow their
employers to realize that surplus-value as profit. They are always threatened by the
"reserve army of the unemployed". In brief, the profit gained by the capitalist is the
difference between the value of the product made by the worker and the actual wage that
the worker receives; in other words, capitalism functions on the basis of paying workers
less than the full value product of their labor. For more on this view, see the discussion of
the labor theory of value below.
Some Marxian theories of imperialism extend this kind of structural theory of
exploitation further, positing exploitation of poor countries by rich capitalist ones (or by
transnational corporations). Some Marxist-feminists use a Marxian-style theory to
understand relations of exploitation under patriarchy, while others see a kind of
exploitation analogous to the Marxian sort as existing under institutional racism.
The theory of exploitation states that profit is the result of the exploitation of wage
earners by their employers. It rests on the labor theory of value which claims that value is
intrinsic in a product according to the amount of labor that has been spent on producing
the product. Thus the value of a product is created by the workers who made that product
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and reflected in its finished price. The income from this finished price is then divided
between labor (wages), capital (profit), and expenses on raw materials. The wages
received by workers do not reflect the full value of their work, because some of that value
is taken by the employer in the form of profit. Therefore, "making a profit" essentially
means taking away from the workers some of the value that results from their labor. This
is what is known as capitalist exploitation.
The theory has been opposed by, among others Böhm-Bawerk. He argues that capitalists
do not exploit their workers; they actually help employees by providing them with an
income well in advance of the revenue from the goods they produced, stating "Labor
cannot increase its share at the expense of capital." In particular, he argues that the theory
of exploitation ignores the dimension of time in production. From this criticism it follows
that, according to Böhm-Bawerk, the whole value of a product is not produced by the
worker, but that labour can only be paid at the present value of any foreseeable output
Theory of human nature - Marx's theory of human nature occupies an important place
in his critique of capitalism, his conception of communism, and his 'materialist
conception of history'. Marx however, does not refer to what we understand as "human
nature" as such, but to Gattungswesen, which is generally translated as 'species-being' or
'species-essence'. What Marx meant by this is that humans are capable of making or
shaping their own nature to some extent. According to a note from the Marx the term is
derived from Feuerbach’s philosophy, in which it refers both to the nature of each human
and of humanity as a whole. However, in the sixth Thesis on Feuerbach (1845), Marx
criticizes the traditional conception of "human nature" as "species" which incarnates itself
in each individual, on behalf of a conception of human nature as formed by the totality of
"social relations". Thus, the whole of human nature is not understood, as in classical
idealist philosophy, as permanent and universal: the species-being is always determinate
in a specific social and historical formation, with some aspects being of course biological.
Theory of Alienation - Marx's theory of alienation, as expressed in the early writings of
the Marx refers to the separation of things that naturally belong together, or to put
antagonism between things that are properly in harmony. In the concept's most important
use, it refers to the social alienation of people from aspects of their "human nature". He
believed that alienation is a systematic result of capitalism.
Marx's theory relies on Feuerbach's The Essence of Christianity, which argues that the
idea of God has alienated the characteristics of the human being.
In the labour process, Marx's Theory of Alienation is based upon his observation that in
emerging industrial production under capitalism, workers inevitably lose control of their
lives and selves, in not having any control of their work. Workers never become
autonomous, self-realized human beings in any significant sense, except the way the
bourgeois want the worker to be realized. Alienation in capitalist societies occurs because
in work each contributes to the common wealth, but can only express this fundamentally
social aspect of individuality through a production system that is not publicly(socially)
owned, but privately owned, for which each individual functions as an instrument, not as
a social being.
Marx attributes four types of alienation in labour under capitalism. These include the
alienation of the worker from his or her ‘species essence’ as a human being rather than a
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machine; between workers, since capitalism reduces labour to a commodity to be traded
on the market, rather than a social relationship; of the worker from the product, since this
is appropriated by the capitalist class, and so escapes the worker's control; and from the
act of production itself, such that work comes to be a meaningless activity, offering little
or no intrinsic satisfactions. Marx also puts emphasis on the role of religion in the
alienation process, independently from his famous quote on the opium of the masses.
Simply put, the four types of alienation of workers from capitalist/owners are:
i)
Activities of the workers are chosen by the owners, capitalist; who in return pay
them
ii)
Ownership of production/product in hands of capitalist
iii)
Workers are likely to be separated from their fellow workers
iv)
Workers driven away from their potential and tasks become mindless.
Marx on labour power – Labour power is a crucial concept used by Karl Marx in his
critique of capitalist political economy. He regarded labour power as the most important
of the productive forces. Under capitalism, according to Marx, the productive powers of
labour appear as the creative power of capital. Work becomes just work, workers
become an abstract labour force, and the control over work becomes mainly a
management prerogative. Marx introduces the concept of labour power or capacity as
“the aggregate of those mental and physical capabilities existing in a human being, which
he exercises whenever he produces a use-value of any description." He adds further on
that: "labour-power, however, becomes a reality only by its exercise.
Distinction between labour power and labour - According to Marx, there is a clear
distinction between labour and labour-power. "Labour" refers to the actual activity or
effort of producing goods or services. On the other hand, "labour-power" refers to a
person's ability to work, his or her muscle-power, dexterity and brain-power. In some
ways, this concept is similar to that of "human capital". However, most likely Marx
himself would have considered the concept of human capital a reification, the purpose of
which was to convince the worker that he was really a capitalist. The distinction Marx
introduces between labour and labour-power was intended to solve the problem of
explaining how surplus value could arise out of the exchange between capital and labour.
Under capitalism, according to Marx, labour-power becomes a commodity – it is sold and
bought on the market. A worker tries to sell his or her labour-power to an employer, in
exchange for a wage or salary. If successful (the only alternative being unemployment),
this exchange involves submitting to the authority of the capitalist for a specific period of
time. During that time, the worker does actual labour, producing goods and services. The
capitalist can then sell these and realize a profit – what Marx called surplus value – since
the wages paid to the workers are lower than the value of the goods or services they
produce for the capitalist.
Labor power is a peculiar commodity, because it is an attribute of living persons, who
own it themselves. Because they own it, they cannot permanently sell it to someone else;
in that case, they would be a slave, and a slave does not own himself. Labour power can
become a marketable object, sold for a specific period, only if the owners are constituted
in law as legal subjects who are free to sell it, and can enter into labour contracts. Once
actualised and consumed through working, the capacity to work is exhausted, and must
be replenished and restored.
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In general, Marx argues that in capitalism the value of labour power (as distinct from
fluctuating market prices for work effort) is equal to its normal or average (re)
production cost, i.e. the established human needs which must be satisfied in order for the
worker to turn up for work each day, fit to work. This involves goods and services
representing a quantity of labour equal to necessary labour or the necessary product. It
represents an average cost of living, an average living standard.
Included is both a physical component (the minimum physical requirements for a healthy
worker) and a moral-historical component (the satisfaction of needs beyond the physical
minimum which have become an established part of the lifestyle of the average worker).
The value of labour power is thus an historical norm, which is the outcome of a
combination of factors: productivity; the supply and demand for labour; the assertion of
human needs; the costs of acquiring skills; state laws stipulating minimum or maximum
wages, the balance of power between social classes, etc.
Labour power and wages – Buying labour power usually becomes a commercially
interesting proposition only if it can yield more value than it costs to buy, i.e. employing
it yields a net positive return on capital invested. However, in Marx's theory, the valuecreating function of labour power is not its only function; it also importantly conserves
and transfers capital value. If labour is withdrawn from the workplace for any reason,
typically the value of capital assets deteriorates; it takes a continual stream of work effort
to maintain and preserve their value. When materials are used to make new products, part
of the value of materials is also transferred to the new products. Consequently, labour
power may be hired not "because it creates more value than it costs to buy", but simply
because it conserves the value of a capital asset which, if this labour did not occur, would
decline in value; or because it transfers the value of a capital asset from one owner to
another. Marx regards such labour as "unproductive" in the sense that it creates no new
value, but it may be absolutely essential and indispensable labour because without it a
capital value would reduce or disappear.
Marx regards money-wages and salaries as the price of labour power (though workers
can also be paid "in kind"). That price may contingently be higher or lower than the value
of labour power, depending on market forces of supply and demand, on skill monopolies,
legal rules, etc. Normally, unless government action prevents it, high unemployment will
lower wages, and full employment will raise wages, in accordance with the laws of
supply and demand. But wages can also be reduced through high price inflation and
consumer taxes. Therefore a distinction must always be drawn between nominal gross
wages' and real wages adjusted for tax and price inflation. The labour-costs of an
employer are not the same as the real buying power a worker acquires through working.
There is typically a constant conflict over the level of wages between employers and
employees, since employers seek to limit or reduce wage-costs, while workers seek to
increase their wages, or at least maintain them. How the level of wages develops depends
on the demand for labour, the level of unemployment, and the ability of workers and
employers to organise and take action with regard to pay claims.
Marx regarded wages as the "external form" of the value of labour power. The
compensation of workers in capitalist society could take all kinds of different forms, but
there was always both a paid and unpaid component of labour performed. The "ideal"
form of wages for capitalism, he argued, were piece wages because in that case the
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capitalist paid only for labour which directly created those outputs adding value to his
capital. It was the most efficient form of exploitation of labour power.
When labour power has been purchased and an employment contract signed, normally it
is not yet paid for. First, labour power must be put to work in the production process. The
employment contract is only a condition for uniting labour power with the means of
production. From that point on, Marx argues, labour power at work is transformed into
capital, specifically variable capital which accomplishes the valorisation process.
Functioning as variable capital, living labour creates both use values and new value,
conserves the value of constant capital assets, and transfers part of the value of materials
and equipment used to the new products. The result aimed for is the valorisation of
invested capital, i.e. other things being equal, the value of capital has increased through
the activity of living labour.
At the end of the working day, labour power has been more or less consumed, and must
be restored through rest, eating and drinking, and recreation.
The reproduction of labour power – Marx himself argued that: "The maintenance and
reproduction of the working-class is, and must ever be, a necessary condition to the reproduction
of capital. But the capitalist may safely leave its fulfilment to the labourer's instincts of selfpreservation and of propagation. All the capitalist cares for is to reduce the labourer's individual
consumption as far as possible to what is strictly necessary..."
This understanding, however, only captures the sense in which the reproduction of labor
power comes at no cost to capitalists, like the reproduction of ecological conditions, but
unlike the reproduction of, say, machine bolts and plastic wrap. Elites and governments
have always sought to actively intervene or mediate in the process of the reproduction of
labour power, through family legislation, laws regulating sexual conduct, medical
provisions, education policies, and housing policies. Such interventions always carry an
economic cost, but that cost can be socialized or forced upon workers themselves,
especially women. In these areas of civil society, there has been a constant battle between
conservatives, social reformists and radicals.
Marxist-Feminists have argued that in reality, household (domestic) labour by
housewives which forms, maintains and restores the capacity to work is a large "free gift"
to the capitalist economy. Time use surveys show that formally unpaid and voluntary
labour is a very large part of the total hours worked in a society. Markets depend on that
unpaid labour to function at all.
Some feminists have therefore demanded that the government pay "wages for
housework". This demand conflicts with the legal framework of the government in
capitalist society, which usually assumes a financial responsibility only for the upkeep of
"citizens" and "families" lacking other sources of income or subsistence.
Labour power and market – The commercial value of human labour power is strongly
linked to the assertion of human needs by workers as citizens. It is not simply a question
of supply and demand here, but of human needs which must be met. Therefore labour
costs have never been simply an "economic" or "commercial" matter, but also a moral,
cultural and political issue.
In turn, this has meant that governments have typically strongly regulated the sale of
labour power with laws and rules for labour contracts. These laws and rules affect e.g. the
minimum wage, wage bargaining, the operation of trade unions, the obligations of
employers in respect of employees, hiring and firing procedures, labour taxes, and
unemployment benefits.
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This has led to repeated criticism from employers that labour markets are over-regulated,
and that the costs and obligations of hiring labour weigh too heavily on employers.
Moreover, it is argued that over-regulation prevents the free movement of labour to
where it is really necessary. If labour markets were deregulated by removing excessive
legal restrictions, it is argued that costs to business would be reduced and more labour
could be hired, thereby increasing employment opportunities and economic growth.
However, trade union representatives often argue that the real effect of deregulation is to
reduce wages and conditions for workers, with the effect of reducing market demand for
products. In turn, the effect would be lower economic growth and a decline in living
standards, with increased casualisation of labour and more "contingent labour". It is
argued that, because the positions of employees and employers in the market are unequal,
employees must be legally protected against undue exploitation. Otherwise employers
will simply hire workers as and when it suits them, without regard for their needs as
citizens.
Often the demand for "labour market flexibility" is combined with the demand for strong
immigration controls, to block any movement of labour which would be only a burden
for capital accumulation. The term "flexibility" is used because, while capital must be
able to move freely around the globe, the movement of labour must be strictly controlled.
If that control does not exist, it is argued, it could mean additional costs to employers and
taxpayers.
Criticism of Marx's concept - There are five main kinds of criticism of Marx's concept.
Critics have often argued that Marx's definition of labour-power, and how its value and
price are regulated, is vague, incomplete, too general or imprecise; at any rate, that it
permits different interpretations. In part, this criticism is anticipated by Marx, who
acknowledged there was not just "one way" of valuing and compensating workers but
many, although the basic economic relationship involved remained the same.
It is argued by Ian Steedman that Marx's own concept of labour power was in truth very
similar to that of David Ricardo and Adam Smith and therefore that Marx was not saying
anything really new.
Another sort of criticism is that whereas the concept of labour power may be perfectly
valid, Marx misrepresents what happens when a worker enters into a labour contract with
an employer (see Hodgson). It is argued for example that the worker does not sell his
labour power but hires out (or leases out) his labour.
Marx did not just disregard the many different forms in which workers could be
remunerated (although he acknowledged their existence) but his provided no analysis of
the labour market. Thus, while he might have provided an analysis of capital, his analysis
of capitalism is deficient because the labour market is a very important part of it.
A recent criticism by Prof. Marcel van der Linden is as follows:
"Marx's thesis is based on two dubious assumptions, namely that labour needs to be
offered for sale by the person who is the actual bearer and owner of such labour, and that
the person who sells the labour sells nothing else. Why does this have to be the case?
Why can labour not be sold by a party other than the bearer? What prevents the person
who provides labour (his or her own or that of somebody else) from offering packages
combining the labour with labour means? And why can a slave not perform wage labour
for his master at the estate of some third party?”
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This difficulty is anticipated in research conducted during the 1980s by Tom Brass,
gathered together in his 1999 book. Buying and selling of human work effort can and has
taken many more different forms than Marx acknowledges - especially in the area of
services. A modern information society makes possible all kinds of new forms of
hustling.
The Labour Process Theory – Labor Process Theory is a late Marxist theory of the
organization of work under capitalism. It critiques scientific management written by
Taylor in the early 1900s. The theory uses central concepts developed by Braverman in
the 1970s. He wrote Labor and Monopoly Capital: The Degradation of Work in the
Twentieth Century, which provided a critical analysis of scientific management. This
book analyzed capitalist productive relations from a Marxist perspective. Following
Marx, Braverman argued that work within capitalist organisations was exploitative and
alienating, and therefore workers had to be coerced into servitude. For Braverman the
pursuit of capitalist interests over time ultimately leads to deskilling and routinisation of
the worker. The Taylorist work design that is the ultimate embodiment of this tendency.
Braverman's key contribution is his "deskilling" thesis. Braverman argued that capitalist
owners and managers were incessantly driven to deskill the labor force to lower
production costs and ensure higher productivity. Deskilled labour is cheap and above all
easy to control due to the workers lack of direct engagement in the production process. In
turn work becomes intellectually or emotionally unfulfilling; the lack of capitalist
reliance on human skill reduces the need of employers to reward workers in anything but
a minimal economic way.
Braverman's contribution to the sociology of work and industry (i.e., industrial sociology)
has been important and his theories of the labor process continue to inform teaching and
research. Braverman's thesis has however been contested, notably by Andrew Freidman
in his work "Industry and Labour" (1977). In it, Freidman suggests that whilst the direct
control of labour is beneficial for the capitalist under certain circumstances, a degree of
'responsible autonomy' can be granted to unionised or 'core' workers, in order to harness
their skill under controlled conditions. Also, Richard Edwards showed in 1979 that
although hierarchy in organisations has remained constant, additional forms of control
(such as technical control via email monitoring, call monitoring; bureaucratic control via
procedures for leave, sickness etc) has been added to gain the interests of the capitalist
class versus the workers.
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PART THREE – DEVELOPMENTS IN INDUSTRIAL RELATIONS
1. Industrial Relations in Perspective
Zambia is an industrial society that is rapidly becoming complex and dynamic,
comprising different groups’ activities and institutional relationships intertwined with a
variety of attitudes and expectations. During the second republic, Zambia was introduced
to socialist principles and experienced state control in the major sectors of economic
activity. Under such an economic environment industrial relations were subjected to
socialist principles that regulated the society during the period. However during the
current third republic we see a shift in the way the economy is run.
To understand the topic of our study, we need to examine the various relationships that
exist in our working society. Ordinarily, industrial relations often taken to mean labour
relations, is little understood by the uninitiated. Worse still, there are other relationships
that are confused with IR: labour relations and employee relations. In this introduction to
IR we shall briefly explain the meanings of the three terms: IR, labour and employee
relations.
IR is a social phenomenon that should be understood in a wider context. IR is taken to
mean in a much wider context as the relationship that exists between industry and
society. The relationship between the two is very important in the life of any nation as
industry provides the engine for development. Industry is responsible for the creation of
wealth, which through employment and other means, is distributed throughout society.
Since the ongoing industrial revolution that started in the 1800s in Europe still requires
the intervention of Government in the relationship that exists between society and
industry.
At the individual organisational level, the relationship that exists between the
organization and the workers from the community in which it operates constitutes what is
known as labour relations. In North America, particularly in the US, labour relations
mean industrial relations as described above. For our study we should understand IR to
refer to industry –society relationship and labour relations to refer to organization and/or
company – worker relationship.
The third confusing expression is employee relations. In our study this expression will be
taken to mean the relationship that exists between managers and employees at the
individual level. It simply refers to the way that a manager relates to his workers whether
he directs/consults them when making decisions or whether he has empowered them to
make their own decisions and only to consult him when need arises.
Therefore, we can conclude that IR is the all-inclusive social phenomenon, which at the
organisational level is known as labour relations and at the management level it becomes
employee relations. In the language of mathematics, IR is the universal set that contains
subsets of labour and employee relations. In systems concepts, IR is the system of social
relationships with subsystems of labour and employee relations. Another way to
understand these relationships is to consider IR as existing at the global level, labour
relations existing at the collective level and employee relations existing at the individual
level. However, in our study we shall consider these terms as interchangeable in order to
minimise confusion. Students should be aware that the different terms cited above add a
different perspective to the understanding of the concept of industrial relations.
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Salamon (1995) explains that the IR context can be divided into four categories: IR as a
system: roles, relationships, institutions, processes and activities which comprise the
phenomena of industrial relations exist both in a wider variety of industries and services
and at a number of levels ranging from sub-organisational (work group, section or
department) and organisational (site or company) levels through the industry level to the
national level. This creates a pattern of internal influences both horizontally (between
different organisations/industries) and vertically (between different levels).As a system,
IR has an input phase, a process phase and an output phase. Consequently, the IR system
provides a particular context or climate for an individual, for an organisation and for a
society. Therefore we can conclude that industrial relations is to some extent situational.
IR as part of Social Activity: IR is only one segment of a society’s structure and activity
and as such it is influenced by, and in turn influences other segments of the society’s
activity: the economic, social, and political segments are of particular importance.
Actions and changes in these sectors may directly stimulate or constrain specific
industrial relations activities as well as indirectly influence the attitudes of the
participants. These environments exert an influence at all levels of industrial relations
and therefore organisational issues, conflicts and values are inextricably bound up with
those of the society as at large. IR cannot be separated or insulated from the influence of
the society. IR reflects the prevailing societal feelings attitudes aspirations status and
many other aspects.
IR is time related: the present is a continuum between the past and the future;
consequently, current IR owes much to its past and the participants’ goals and
expectations for the future. At the micro level, the time context may be evidenced in two
ways: (a) to day’s problems stem from yesterday’s decisions and its solutions will, as the
environments change, become a problem in the future, and (b) the attitudes, expectations
and relationships manifested by the participants are, at least in part, the product of their
past individual and collective experiences. At the macro level, industrial relations as a
whole are subject to adjustment and development as society itself (expressed through
changes in the economic, social and political environments), changes and develops. We
see that current industrial relations are developed from past influences and decisions and
at the same time it expresses future expectations.
IR shaped by the mass media: the mass media provides an additional and very significant,
context for IR by virtue of their role in shaping attitudes, opinions and expectations. As
part of the general public unionists, and managers have partial direct experience of the
full range of activities in a society. Most knowledge and appreciation of environmental
factors is gained through the facts and opinions disseminated by the mass media.
The press plays a very important role in not only informing the public but also
influencing public opinion on what is happening concerning the welfare of the society or
community or organisation. IR owes much to the public media.
The perspectives of industrial relations are illustrated in the figure below.
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Market
Technology
Employment
Economic
Past
Mass media
Future
National
Industry
Organisational
Wealth
Education
Class
Industrial
Relations
Parties
Legal
Government
Political
Social
Present
Adapted from Salamon M W (1995) Industrial Relations Prentice-Hall
Figure 1.
Industrial Relations Perspectives
Salamon further explains that each of the environments surrounding IR is composed of a
number of interactive elements and interrelates with other environments and IR. For
example: the economic environment interrelates with social expectations regarding the
distribution of wealth and government economic policy interacts with IR in determining
the wage levels. The growth of gender issues in employment is closely bound up with
changing social patterns and expectations in respect of education, work and family
arrangements.
2 The Labour Relations Framework in Perspective.
John Dunlop in his book Labour Relations Systems (1958) suggested that such a system
consists four elements: i) an environmental context; ii) participants, including employees
and their unions managements and the government; iii) a web of rules that describe the
process by which labour and management interact and resolve disagreements; and iv)
ideology. For the system to operate properly, the three participants must, to some degree,
have a common ideology such as acceptance of the capitalist system and must accept the
roles of the other participants. Noe et al (2004) comment that acceptance translate into
convergence of interests and that to the contrary, some degree of worker – management
conflict is inevitable because, although there is an overlap of interests they do however
diverge in key respects such as how to divide the economic profits.
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For that reason, according to Dunlop, an effective IR system does not eliminate conflict.
Rather, it provides institutions such as collective bargaining that resolve conflict in a way
that minimizes its cost to management, employees and the society. This idea alone
provided the basis for the development of schools and departments of industrial and
labour relations to train IR professionals
More recently, Katz and Kochan developed an IR model that is helpful in laying out the
types of decisions managements and unions make in their interactions. According to the
model these choices occur at three levels. The first is at the strategic level where
management makes the basic choices such as whether to work with unions or to devote
its efforts to developing nonunion operations. In this case, environmental factors offer
both constraints and opportunities in implementing strategies. Katz and Kochan suggest
that labour and management choices at the strategic level in turn affect the labour
relations at the second level, the functional where contract negotiations and union
organisation occur, and at the final level, the workplace level where the contract is
administered occurs. The labor relations’ model is depicted in figure 2 below.
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Competitive
Challenges
Legal
Stakeholder needs
Globalisation
High-Performance
Work Systems.
Goals
Employees and
Unions
Management
Society
Union Membership
and Relative
Bargaining Power
Union Structure
and
Administration
Union and
management
interactions
Organising
Negotiating
Administration
Goal attainment
Employees and
Unions
Management
Society
Source: Noe et al (2004) Human Resource Management Irwin McGraw-Hill
Figure 2
A Labour Relations Framework
The model includes the important roles of the environment; the union management and
societal goals; and the separation of union management interactions into categories that
can influence one another and may also be analysed somewhat independently. The model
in addition highlights the important role that relative bargaining power plays in
influencing goals, union – management interactions and the degree to which each party
achieves its goals. The competitive environment and the size and depth of union
membership in turn influence relative bargaining power.
We take a closer look at the components of the labour relations model, especially at the
goals and strategies of society, management and unions.
Goals and Strategies - The Society - Labour unions do not fit well with the capitalist
ideology. However IR experts acknowledge its usefulness in that it provides a protective
blanket to individual workers who are weak in comparison to the power that management
can wield. Noe et al note that labour unions’ major benefit to the society is the
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institutionalization of industrial conflict, which is resolved in the least costly way.
Although disagreements between management and labour continue, it is now much more
peaceful and less violent to resolve disputes through discussions than battling in the
streets. The battles that were common occurrences previously, have now moved to
boardrooms from the streets. Collective bargaining has thus the potential to reduce
economic losses caused by strikes and also contributes to societal stability. Consequently,
labour unions have come to be viewed as an essential component of a democratic society.
Noe et al note that although an industrial relations system based on collective bargaining
has drawbacks, so too do the alternatives. Unilateral control by management sacrifices
workers’ rights and extensive government involvement and the courts can result in
conflict resolution that is expensive, slow and imposed by someone with less firsthand
knowledge of the circumstances than either labour or management.
Management - One of management’s basic decisions is whether to encourage or
discourage unionization of its employees. It may discourage unions because of fears of
higher wages and benefits costs, the disruptions caused by strikes, and an adversarial
relationship with its employees or greater constraints placed on its decision-making
flexibility and discretion. In the past management has used two basic strategies to avoid
unionization: i) provide employment terms and conditions that employees will perceive
as sufficiently attractive and equitable enough so that they see little gain in union
representation, ii) aggressively oppose union representation even where there is
significant employee interest. Where management voluntarily recognizes a union of
where employees are already represented by a union, the focus is shifted from dealing
with employees as individual to employees as a group.
Whatever situation prevails, the basic management objectives remain: controlling labour
costs and increasing labour productivity and maintaining management prerogatives in
important areas such as staffing levels and work rules.
Labour unions - In general, unions seek through collective action, to give workers a
formal and independent voice in setting the terms and conditions of their work as set out
in the table below.
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Establishment and
administration of the
agreement
Contract duration and reopening
and renegotiation provisions
Union security/recognition
Grievance procedures
Arbitration and mediation
Strikes and lockouts
Contract enforcement
Functions, rights and
responsibilities
Management rights
Subcontracting
Union activity on company time
Regulation of technological
change
Advance notice and consultation
Wage determination
General provisions
Rate structure and differentials
Incentive systems and bonus
plans
Job classifications and job
evaluation
Wage adjustments.
Job security
Paid and unpaid leave
Recruitment and transfers
Employment and income
guarantees
Unemployment benefits
Overtime and shift work
Reduction of hours to forestall
layoff
Layoff procedure
Work sharing
Training and retraining
Relocation allowances
Severance and layoff benefits
Vacations and holidays
Sick leave
Funeral and personal leave
National duty
Benefit plans
Health and insurance plans
Pension plans
Profit-sharing
Bonus plans
Plant operations
Special groups
Work rules
Rest periods
Safety and health
Hours of work
Premium pay practices
Shift operations
Hazardous work discipline and
discharge
Trainees and learners
Workers with disabilities
Older workers
Women
Union representative
Nondiscrimination clauses.
Source: Noe et al, (2004) Human Resource Management. McGraw Hill
Table 1.
Provisions in Collective Bargaining
A major goal of labour unions is bargaining effectiveness: with it comes the power and
influence to make employees’ voices heard and to effect changes in the work place.
With this understanding we can now examine the new realism in IR.
3. New Realism in IR
The major strands of the new realism in IR are: - Management proactive approach –
integrated with the achievement of organisational objectives. Management’s focus is on
achieving set objectives through the proper management of the human resource and this
requires fair treatment of employee expectation. Thus management requires being
sensitive and thinking proactively in solving problems of relationships at work. Proactive
thinking requires that managers anticipate reactions or feelings of the workers and then
take appropriate measures to offset or avoid problems that may arise. Process
relationship – shifting from negotiation and agreement to communication and
consultation. In recognition of the fact that workers have rights, that most of them are
enlightened and, also the move to a better quality of work life, management is obliged to
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consider consulting the workers as stakeholders in the well being of the company by
consulting them on issues that have great importance on their livelihood. Therefore
instead of negotiation, consultation, through open communication, is a more progressive
approach to managing people at work. Structure of bargaining – shifting from national
multilevel to single employer – bargaining. Uniform pay rates and conditions of service
throughout industry have been abandoned in favour of pay rates and conditions
commensurate with company performance. It is now common for companies to consult
its workers concerning pay rates and conditions of service. The differences in conditions
of service have generated a healthy competition for improvement in managing people
within industry. For example the mining companies in Zambia are offering competitive
conditions of service and packages to attract and retain the best. Workplace flexibility in
numbers, tasks and time terms - today companies are practicing progressive policies to
maintain stability of employment through protection of employment from the effects on
the economic or legal environments. Flexible practices in employment are the order of
the day in modern companies. Flextime is slowly taking root in Zambian industry so is
contract employment and job redesign to make tasks more manageable. Basis of pay –
based on individual /organisational performance. Companies are now basing pay
packages based on how well the company has performed over a period. In addition to
motivate high performance among employees, pay increases are now based on individual
work performance arrived at through objective performance appraisal systems. Union
response – Unions now agree to recruit women and developing employee services etc.
Trade unions have become more progressive by embracing progress in the field of
employment as a result of studies and changes in the environment. In Zambia, trade
unions have research departments as part of their functions.
4 General Approaches to Industrial Relations
Salamon notes that IR in organisational management is a term that denotes a specialist
area of organisational management and study concerned with a particular set of
phenomena associated with regulating the human activity of employment. Therefore,
approaches to analysing IR require the understanding of two points. Salamon notes that
the first point is that approaches are primarily analytical categorisations rather than
causative theories or predictive models, and the second point is that there is no “one
right” approach. Each approach emphasises a particular aspect of IR that can be taken
together to provide a framework for analysing and understanding the diversity and
complexity of IR.
The nature of employment is of three types. First is the unitary perspective, which
emphasizes that the organisation is a coherent and integrated team unified by a common
purpose. Secondly, the pluralist perspective, which emphasizes that the organisation is an
amalgamation of separate homogeneous groups. That is an organisation is a miniature
democratic state composed of sectional groups with divergent interests over which the
organisation tries to maintain some kind of dynamic equilibrium. Thirdly is the radical
perspective (Marxist approach), which emphasizes that the organisation is a microcosm
and a replica of society within which an organisation exists.
Each perspective has a variation in the form of management behaviour within it. The
unitary perspective can vary from authoritarian to paternalistic approach to the role of
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management. The pluralist can emphasise cooperation or conflict and the Marxist may
advocate evolutionary or revolutionary approach to the desired social change.
Let us now examine these perspectives in much more detail and contrast the essence of
each approach to IR.
The Unitary Perspective - This perspective assumes that the organisation is an
integrated group with a single authority/loyalty structure; that is every one is considered
to be a member of one team with the same purpose – to serve the organisation’s interests.
Secondly, it assumes that management’s prerogative is legitimate and rational; any
opposition is regarded as irrational. Thirdly it assumes that the organisation comprises
complementary partners to the common aims of production and profits in which everyone
has a stake.
In sum, the fundamental belief of the unitary perspective is that the organisation is in
basic harmony and conflict is unnecessary and exceptional. This has two implications for
IR and these are that, conflict is perceived to be an irrational activity. That is to imply
that contravention of management rules is rather deviant than nonconformist dissenting
behaviour. Factionalism is regarded as a pathological (not reasonable or sensible,
useless) social condition, collective bargaining as an antisocial mechanism since it is
founded on the basis of existence of conflicting interest. Conflict is believed to be
factional rather than structural in nature and is caused by such factors as: clashes of
personalities; poor communication; a lack of understanding on the part of workers or by
agitators that management action is legitimate and for the good of all.
Consequently, management approach to conflict resolutions is often based on
authoritarian/paternalistic style. The use of coercion is regarded as legitimate and
management does not need to consult workers. The role of law is to increase legal
intervention in the form of regulating workers behaviour directly and enforcing this
regulation by direct punitive legal sanctions, for example, legislation against trade unions
is aimed at curbing disruptive and disorderly actions. Management concentrates on the
human relations approach or makes appeals to employee loyalty.
Trade unions are regarded as an intrusion in organisations from outside which compete
with management for the loyalty of workers. Managers perceive trade unions as an
anachronism (old fashioned). Managers are reluctant to concede any role for trade unions
in exercising authority and decision-making. In this respect a trade union is seen as
political power vehicle used by a minority in order to challenge legitimate political, social
and economic structure of society. Trade unions and collective bargaining are therefore
tolerated rather than welcomed and are therefore to be resisted wherever possible. The
unitary approach is predominant amongst line managers and it is their common
management ideology for the following reasons: it legitimises management’s authority by
projecting the interest of management and workers as being the same and by emphasising
management’s role of governing in the best interest of all. It confirms that conflict is
largely the fault of the governed than management’s, and, it projects to the outside that
management’s decisions and actions are right and best and that any challenge to them is
mistaken or insubordinate.
The unitary approach is predominant amongst line managers and it is their common
management ideology for the following reasons: it legitimises management’s authority by
projecting the interest of management and workers as being the same and by emphasising
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management’s role of governing in the best interest of all. It confirms that conflict is
largely the fault of the governed than management’s, and, it projects to the outside that
management’s decisions and actions are right and best and that any challenge to them is
mistaken or insubordinate.
The Pluralist Perspective - This perspective is based on the assumption that an
organisation is composed of individuals who band together into a variety of separate
sectional groups, each with its own interests, objectives and leadership. The organisation
is perceived as multi-structured and competitive in terms of groupings, leadership,
authority and loyalty giving rise to a complex of tensions and competing claims that have
to be ‘managed’ in the best interest of maintaining a viable collaborative structure.
In summary, the organisation is in a permanent state of dynamic tensions resulting from
inherent conflict of interest between the variety sectional groups and requires to be
managed through in variety of roles, institutions and processes.
Conflict between management and workers is the total range of behaviour and attitudes
that express opposition and divergent orientation between workers and managers on the
one hand and working people and their union on the other. Thus conflict is seen to be
both rational and inevitable. It results from industrial organisational factors rather than
from individuals.
The primary source of conflict is from the different managerial and worker groups’
aspirations. the managerial group is responsible for efficiency, productivity of the
organization, and coordinating activities to achieve organisational objectives whereas
workers are only required ‘to do’ and their main concerns are perceived in personal terms
of higher pay, better working conditions etc. For example, the closure of high cost
operations are aimed at increased profitability conflicts with the workers objective of
greater job security, new technology is in conflict with feelings of job insecurity,
deskilling, management’s desire to maximise power/authority in order to control gives
rise to workers’ safeguards against arbitrary management action and decision.
Mutual dependence of sectional groups exists in having a common interest in the survival
of the whole of which they are part. Any fundamental divergences can be bridged by
compromises. This compromise is a basic procedural consensus based on the principle of
negotiation. In effect this is a balance of power between principle groups. Each group
limits its claims to a level sufficiently tolerable to enable collaboration to continue.
The resolution of conflict though characterized by an emphasis to establish accepted
procedures and institutions, which achieve collaboration through negotiated comprises, is
through continuous compromises not to liquidate workers’ opposition but to provide or
allow freedom of association consistent with general interest of the whole organisation.
There has to be a need for shared decision-making. Legitimacy of management is not
automatic but must be sought and maintained by management itself, that is management
by consent rather than management by right.
The role of law in this perspective is primarily one of defining the limits of socially
acceptable collective actions and use of power. The role of trade union is seen as
legitimate and positive in safeguarding workers interests. The trade union legitimacy is
based on social values, which recognise the right of interest groups to continue and have
an effective voice in their own destiny.
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The Radical or Marxist Perspective - This approach to IR concentrates on the nature of
society surrounding organisations. It assumes that the organisation exists in a capitalist
society where: production systems are privately owned; profit is key influence on
company policy and, the owner’s managerial agents enforce control over production
downward.
The general theory of radical perspective argues that class/group conflict is the source of
societal change – without conflict society, as a whole would stagnate. The second
argument is that class conflict arises from the disparity in the distribution, and access to
economic power within the society - those who own the capital and those who supply this
labour. The third argument is that the nature of society’s social and political institutions is
derived from the economic disparity and reinforces the position of the dominant
establishment group, for example through differential access to education and medical
care, the media, and employment in government etc. the fourth argument states that social
and economic conflict in whatever form is merely an expression of the underlying
economic conflict within the society.
Under this radical perspective industrial conflict is subsumed to be a reflection of the
inherent nature of capitalist economic and social systems. All conflict comes from the
division within the society between the owners of capital and those supplying labour.
Therefore, conflict is understood to be continuous and unavoidable.
Trade unionism is seen as an inevitable workers’ response to capitalism. It enhances
collective industrial power and it provides a focus for the expression and protection of the
interest of workers. However, trade unionism and IR are viewed as political activities
associated with the development of the working classes. The two are part of the overall
political process for achieving fundamental changes in the nature of the economic and
social systems. Thus the radical perspective criticises pluralism for maintaining an
illusion of a balance of power between the various interest groups and hides the
imbalance in social power.
Furthermore the radical perspective perceives the establishment of processes and
institutions of joint regulation within the organisation as an enhancement in
management’s position. Management is able to achieve its objective of greater
effectiveness by satisfying workers marginal aspirations, thus strengthening the system.
Collective bargaining is seen as a temporary and limited accommodation process for
inherent and fundamental divisions within capitalist-based work and social structures.
Both collective bargaining and trade unionism are seen as supportive of the capitalist
system rather than a challenge. The role of law is that it is supportive of management’s
interests rather than being an independent referee. The obligations of the employers are
precise and specific whereas those of the worker are imprecise.
In sum, the radical perspective views and analyses IR in social, political and economic
terms and not in organisational and job regulations.
5. The Nature of Industrial Relations - As students of IR we should view IR not in
simple terms of job regulation but we should view it in a broader context of social,
political and economic terms. Salamon notes that IR is integrated with and not separated
from the political and socio-economic spheres. He observes that unique characteristics of
employment relationship lie in it being more than a simple economic exchange in the
market place, but it is a lop-sided power and authority relationship; it is also continuous
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and open-ended; and that mutually supporting relationships can stimulate both conflict
and cooperation.
From the three IR perspectives and different approaches are derived two broad
categories: the input – output model and systems model deriving from the pluralist
concept of employment and, the human resource management and control of labour
process approaches deriving from the unitary and radical perspectives respectively. The
models are shown as follows in the figure below.
Approaches to Organisation of IR
Unitary
Pluralist
Marxist
Authoritarian
Cooperation
Evolution
Paternalistic
Conflict
Revolution
Approaches to industrial relations (1)
The Input – Output Model
Input
Conversion
Conflict
(Differences)
Institution and
Processes
Output
Regulations
(rules)
Social action
IR Systems
Human
Social partnership
Resource
Wider
approaches to industrial relations (2)
s
Labour market
Control of
the labour
Process
Comparative
Manage
Source: Salamon M (1995) Industrial Relations
ment
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The Input – Output Model - In this model IR is regarded as a process of converting
conflict into regulation. Conflict is generated by the inherent tensions within
organisations arising from technology, scale, organisation efficiency and uncertainty, that
is the ”essential features of industrialism that generate tensions of command and
subordination, competitiveness, exploitation, physical deprivation at work and economic
insecurity”. The latent conflict of interest that provides the mainstay of industrial
relations can arise from the micro level of the organisation (the economic exchange and
the managerial systems of authority and control) or from the macro level (the
fundamental divisions and differing values in society).
Transformation of latent conflict into manifest conflict is expressed in i) covert
unorganised and individual way through, low employee morale, high labour turnover,
absenteeism, ii) an overt, constitutional form (on an individual and /or collective basis)
through established procedures and institutions – grievance procedures, consultation and
collective bargaining machinery, iii) through industrial pressure (industrial action).
On this point, Salamon explains that the expression of conflict, of the latter forms require
both a will to change the situation and on the part of the employee, a collective
consciousness.
The expression of conflict is regarded as legitimate and functional including industrial
action, in identifying the differences of interests as a prelude to resolving them so as to
maintain stability and equilibrium within the social structure. Another view is that there is
a point beyond which conflict becomes aberrant, abnormal, dysfunctional or pathological
because it may destabilise or destroy the social structure. Conflict is dysfunctional when it
involves violence, a major social disorganisation of the community, civil disobedience or
the extinction of either management or union. Another view regards the function of
conflict as being a total transformation of the whole structure of control within the
organisation of work and in social and economic life. Thus the seeking of order and
stability in industrial relations is a constraint on the function of conflict.
The apparent need to reconcile conflicts of interests through some form of processes and
institutions leads us to understanding industrial relations as a study of the institutions of
job regulation. This concentrates on the nature and variety of interactions that may be
used to transform the conflict of interest into rules regulating the organisation. The
process may vary from unilateral decision-making by management (by government or
management or employees) employees through joint management/union processes
(consultation, collective bargaining and employee involvement or participation) to
tripartite processes involving management, unions and government.
The importance of collective bargaining is reflected in the fact that through trade unions,
the employees’ collective power is used to counterbalance the power of the employer.
Therefore the process of negotiation is the diplomatic use of coercive power; collective
bargaining is a pressure group activity; and collective agreements are compromise
settlements of power conflicts.
Collective bargaining is a vehicle through which employees exercise a countervailing
power against management powers in negotiations and decision-making. In the absence
of organised countervailing force outside the managerial hierarchy to provide a check on
unilateral management decisions over employment relationships, the process of rule
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making and interpretation is one of administrative procedures and management decisionmaking processes.
The regulative output of industrial relations is seen to be ‘rules’ made and differentiated
on the basis of i) the authorship of rules, - unilateral, joint or imposed by government ii)
substantive and procedural rules; substantive rules define the rights and obligations of
employer and employee in the contractual wage/ work bargain; procedural rules define
the conduct of relationship (grievance, discipline, union recognition, consultation and
collective bargaining) iii) whether the rules are determined within the organisation or
externally: external rules apply to more than one organisation and place limitation on the
freedom of action and decision making of those at the organisational level.; internal rules
are specific to the organisation and can be more easily abandoned, modified or replaced
as the situation changes; iv) differing degrees of formality in the determination and
recording of the rules ranging from informal and unwritten ‘custom and practice’ to
codification in formal written documents (policies, procedures, agreements).
In summary the input-output model focuses on the generation, expression and resolution
of conflict but does not provide adequate framework for understanding either the
integrative nature of the parts which comprise ‘industrial relations’ or its relationship to
the wider contexts within which it operates. We now examine the systems approach to
IR.
Industrial Relations System - Dunlop (1958) was the first to apply the systems theory to
industrial relations primarily to produce a broad-based integrative model. He sought to
provide tools of analysis to interpret and gain understanding of the widest possible range
of industrial relations facts and practices and also to explain why particular rules are
established in particular industrial relations systems and how and why they change in
response to changes affecting the system.
The model sees industrial relations as a subsystem of society distinct from, but
overlapping, the economic and political sub systems. The system has four interrelated
elements: i) the actors comprising management, workers and unions, and government
agencies ii) the contextual nature, emanating from the society and being of three types; of
technological character, of economic nature (market or budgetary constraints), and locus
and distribution of power within society iii) ideology: the set of common beliefs, which
define the role of each actor or group of actors but also define the view that they have of
the role of the other actors have in the system. If the views of the roles, one with another
are compatible then the system is stable; if the views are incompatible then the system is
unstable, iv) the regulatory framework, developed by a range of processes presented in
variety of forms, which expresses the terms and nature of the employment relationship..
Much later in the 1970s, wood et al argued that the central feature of the industrial
relations system was the rule-making process and that it was important to distinguish
between the industrial relations system that produced rules and the production system that
was governed by the rules. This provided a framework for distinguishing between i) rules
which are an output of the industrial relations system to govern behaviour within the
production system (substantive rules and procedural rules); ii) rules which are established
for the internal regulation of the conduct of the industrial relations system (procedural).
The role of a common ideology integrating the system has been criticised because it
implies that the industrial relations system is or should be naturally stable and orderly.
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Hyman argues that an image is projected that the various institutions and procedures are
compatible and well integrated and that conflict is self-correcting. The functional view of
industrial relations (to produce order) skates over the fact that the existence of order is a
matter of degree rather absolute. Thus the systems’ apparent concentration on the
stability issue should not be represented as though it presupposes a tendency towards
stability in the industrial relations system. In sum, the systems approach has to accept the
existence of a variety of ideologies that may or may not be congruent and are likely to
produce conflict within the rule making process as they produce consensus.
Another criticism of the industrial relations system is that it appears to emphasise roles
rather than people and ignores behavioural variables as human motivations, perceptions
and attitudes. IR appears to be structurally determined and underestimates the effects and
importance of personal leadership in determining the outcomes of industrial relations
situations.
Furthermore the industrial relations system has been criticised for not adequately
reflecting the real nature of the wider society. The system appears to take the analysis of
the society as given, leaving it subject to the other disciplines of the social sciences.
Furthermore the system focuses its analysis on an empirical conception of power at the
workplace and develops a restricted definition of workers’ interest and trade union that
concentrates on attention on the institutions and procedures in collective bargaining.
This suggests that the system approach should allow for the study of the industrial
relations at two levels – at the narrow level of rule-making process (industrial relations
(1)) and at the wider level to incorporate the boundary between rule making and the
contexts (Industrial relations (2)).
Social Action - This approach to IR emphasises the actors’ definition of reality and it
stresses the way in which man influences the social structures and makes society. It is the
individual’s perception and definition of reality, which determines his behaviour, actions
and relationships. It is important to recognise that people’s orientation to work is the
result of their extra-organisational experiences as their experiences within the workplace.
The essential nature of the relationship between the two elements is that structural
factors may limit the choice of action, but the action will produce a change dependent on
the choices made by others. This then weakens the fatalism of structural determinism and
stresses that the individual retains some freedom of action and ability to influence events
in the direction that he believes to be right and desirable.
The social action approach underpins the importance that has been attached to strategic
decision making in explaining the dynamics of industrial relations. Strategy encapsulates
the idea of an overall design within social action and rationality in the pattern of
decisions. Strategy refers to focused series of interrelated decisions or actions, which
represent a significant shift in values or relationship. The rationality may be based on
instrumental considerations such as material interests or gains, or value considerations
such as ethical, political or other ideals. Through the interrelationship between their
strategic choices and responses to the strategic choices of other, the actors (management,
unions and government) determine the nature of the institutional arrangements of
industrial relations.
Control of Labour Process - Labour process is defined as the means by which raw
materials are transformed by human labour, acting on the objects with tools and
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machinery; first into products for use and, under capitalism, into commodities to be
exchanged on the market.
Salamon explains that the core of the labour process approach rests on the fact that the
social relations which workers enter into to produce useful things becomes a capitalist
labour process when capacity to work is used as a means of producing value and
therefore on the unique characteristics of labour as a commodity. This gives rise to four
elements. First, the labour/capital relationship is one of exploitation wherein surplus
value from work activities accrues to capital. Secondly, the ‘logic of accumulation’
requires capital continually to develop the production process and cheapen the costs of
production. Thirdly, continual development of the production processes requires the
establishment and maintenance of both general and specific structures of control. Lastly,
the ‘resultant structured antagonism relationship’ includes systematic attempts by capital
to obtain co-operation and consent and a continuum of possible and overlapping worker
responses, from resistance, to accommodation on temporary common objectives, to
compliance with greater power of capital, and consent to production practices.
The fundamental industrial relationship during the last century and to date has been one
of management exploitation and degradation of labour by deskilling work through the use
of Taylorist (scientific management) techniques to support the achievement of capital’s
objective. Work-study techniques facilitated the breakdown of work into its component
tasks, which were allocated to separate individuals (specialisation). In so doing
management cheapened the individual’s value to the production process (the task
required less training, skill and/or responsibility and therefore less reward), tied the
individual directly to technical system and made the individual subjected to production
output controls such as bonuses.
This general analysis has been criticised and developed into two main approaches. First,
it does not take into account of employee resistance to the introduction of scientific
management, yet there is evidence to suggest the existence of restrictive worker practices
exhibited in different situations. Second, it does not take into account of other
mechanisms of management control over labour.
More recently two aspects of labour control have been identified. First, the concept of
segmented labour markets divides ‘core’ or’ central’ employees (whose role, skill and
expertise are required for the long-term viability and profitability of the organisation)
from peripheral or marginal employees (where there is less commonality between the
employee’s role/function and the organisation’s long-term needs). This division in
management’s thinking and organisational strategy leads to a real or perceived
segmentation of interests between these groups and consequently a less effective
resistance to management control (divide and rule).
Second, management has a variety of mechanisms apart from scientific management
techniques to control labour. There is direct control exercised through the application of
scientific management distinct from ‘responsible autonomy’ forms of management
exercised through job enlargement and enrichment and employee empowerment.
Within the labour process approach, managers act as agents of capital seeking to
maximise profits by intensifying work and systematically reducing labour costs.
Therefore managers are constantly devising ways of exerting managerial control and
engage in the process of employee mobilisation: i) how employees acquire a collective
definition of their interests in response to management-generated injustice, ii) how groups
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perceive and acquire power resources and deploy them in the construction of different
types of conflictual and collaborative relationships and, in particular, iii) how individuals
are transformed into collective actors willing and able to create and sustain collective
organisation and engage in collective action against the employers.
Human Resource Management (HRM) Approach - There is no one universal
definition of human resource management (hrm). It has applied to a diverse range of
management strategies and it has become an expression of the modern and more
acceptable term of personnel and industrial relations management. This approach is a
strategic integrated and highly distinctive managerial approach to the management of
people. The human resource management approach is rooted in human relations concepts
and approaches and in the theories and writings of McGregor, Maslow and Herzberg.
The interest in hrm stems from a perceived need to meet competitive challenges in both
national and international markets and consequently it should be driven by business and
market considerations with the objective of securing a committed and capable workforce.
The distinctiveness of hrm model lies in combining established elements of
organisational psychology with strategic management to provide a distinct set of
approaches to managing people that promotes positive organisational outcomes; placing
emphasis on using labour to its full capacity or potential. Therefore hrm is about
exploiting the labour resource more fully and it is about asserting management’s right to
manipulate and the ability to generate and develop the resource.
HRM is more directed mainly at management’s need for human resources to be provided
and deployed, planned for, monitored, utilised and maintained. It is a covert form of
employee manipulation dressed up as mutuality. It questions the collective regulation
basis of traditional IR. The human resource management approach to industrial relations
is to avoid, remove or minimise the need for negotiation with unions. Human resource
management seeks to transform IR from adversarial, risk-based institution into a
cooperative, commitment inducing process.
Social Partnership - The term has been interpreted in two ways. First, it is the
involvement of employee representatives in decision-making at the workplace through
works councils or through the process of co-determination. Second, it is an attempt to
create a more consensual and collaborative relationship between employers, employees
and their representatives and a joint commitment to achieve common goals and mutual
benefits. This approach is a unitarist ploy to further compromise the independence of
unions from management and therefore needs to be seen in the broader concept of
participation since it is limited to partnership at work. Social partnership can be viewed
as the latest in a continuum of contextually determined management strategies to change
reform or control the employment relationship to its own advantage.
6. Concepts and Values in Industrial Relations - In this section we are going to
examine several concepts and values industrial relations attempts to address. We begin
with Fairness and equity in an industrial society - Fairness and equity are frequently
associated with considerations of pay and dismissals. Its association with the term
equality, which is one value or belief that may be used to judge the existence and extent
of fairness confuses the use of the terms. Some scholars have suggested that that the idea
of fairness is linked with the customs and traditions and the best social rules. This has led
people to adopt a utilitarian or democratic notion of fairness in the mistaken belief that it
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is demonstrably impartial and fair and therefore will display feelings of unfairness among
the minority. Others go further to suggest that certain activities rise above personal values
and provide an impersonal technical notion of fairness, for example, market force, job
evaluation or the legal process.
Fairness is usefully seen as a relative and variable concept with which to examine the
conduct of human relationships. Thus fairness may be used in three ways. First, it may
imply that in an exchange there should be reasonable reciprocity or balance between the
parties concerned. This also brings about the difficulties of determining what are the
relevant criteria by which to judge the reciprocity of the exchange – should they relate to
outcomes or should they include some aspect of quality? Thus it is fair if participants
consider it to be so. Second, fairness may imply that a particular exchange is consistent
with other exchanges undertaken elsewhere. This requires a wide measure of agreement
regarding both criteria for determining similarities and differences between situations and
the evaluation of their relative importance. Thus it is fair if others outside the direct
participants consider it to be fair. Third, fairness may imply equality of treatment and
consideration in the conduct of different relationships and within the same relationship
over time. There is an expectation that the same types of criteria and standards of
judgment should apply to similar circumstances. Thus it is fair if it is consistent. Lastly,
because fairness is relative, it is not constant. As situations and environments change, so
the participants’ notion of what is fair may change. For example, management’s notion of
a fair wage increase will decrease because its major reference point (reduced demand and
increased competition affecting its ability to pay) changes while the employees’ notion of
a fair increase may remain unchanged because their major reference points (cost of
living, comparability) have not changed.
Since industry is responsible for developing society, it should be fair in the way it treats
society otherwise, there will be the development of dysfunctional disparity leading to
perpetual conflict between classes and the development of negative management
practices such as paternalism and authoritarianism.
Power and authority, its use distribution and balance - The concepts of power and
authority occupy a central position in industrial relations particularly with respect to its
collective aspects. People make value judgments regarding the power of trade union
having too much or too little power in relation to management and government or unions
having little authority or control over their membership or management having too much
or little authority within its own organisation. Power and authority are inextricably
linked: authority is achieved through power and vice versa. There is no universally
accepted definition of power. It can mean: the ability of an individual or group to control
his or their physical and social environment; as part of the process, the ability to influence
the decisions which are or are not taken by others; in operational terms, as in
negotiations, the capacity to elicit concessions from the other party.
In IR we distinguish power meaning the ability to control or impose, direct or regulate a
situation or persons despite any desire or attempts to influence from another individual or
group. Power meaning the ability to influence and thereby secure some modification in
another party’s decision or action: i) the ability to force change in the other party’s
decision after it has been made, by the explicit expression or threat to express that power
and, ii) the ability to generate an implicit influence which will form an integral part of the
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environment which has to be taken into account by the other party in its decision-making
process.
Because of the collective nature of industrial relations, the concept of power over people
has an internal as well as external dimension. A collective exercises internal power and
authority over its members in the establishment and achievement of the collective’s
objectives. Without the exercise of such power and authority the collective lacks
dimension and control. Authority is defined in terms of the legitimate use of power.
Authority rests on the legitimization of power. An important part of legitimization comes
from the process of socialization. At the individual level socialization begins when as
children we are under the authority of our parents, under whom we are socialized into
many aspects of acceptable behaviour. At the organisational level, the process of
socialization is reflected in the notion of managerial prerogative. Management’s inherent
authority based on society’s infrastructure legitimizing its role and power in the operation
of economic systems - the employment relationship is an asymmetrical one.
Consequently management has little need to utilise overtly coercive power in exercising
authority because the subordinates it seeks to control accept the values on which its
power and authority rests.
The notion of power being legitimized through authority has three important implications
for industrial relations: i) use of power is perceived to be unacceptable, while the exercise
of authority is acceptable, ii) there is a potential conflict of loyalty between the
individual’s role as an employee and a trade union member thus the process of
socialization induces an acceptance of orders from those appointed to ‘govern’ iii) the
rights or entitlements of subordinates are closely bound up with the exercise of power and
authority – or, its control. The use of power and authority in companies must be for the
good of all stakeholders and not for a few of the stakeholders. This behaviour is divisive
and leads to creating a conflictual atmosphere that can erupt into open rebellion of
workers or persistent lack of worker commitment. Misuse of power and authority is not
healthy for organisational work life and activity. It leads to competitive ineffectiveness.
Individualism and collectivism
Salamon explains that these terms may be used to refer to three different aspects of
industrial relations. First, management is free to deal with its employees as it sees best
without any intermediary constraints of a trade union. Second, employees are treated
differentially, with individuals doing the same work receiving different pay dependent on
their individual attributes abilities and performance (individual contract) or employees
receiving the same terms and conditions of employment (common collective contract)
irrespective of individual attributes, abilities or performance. Third, the individual
perceives his economic and social well-being to be a matter of his own efforts
independent of any peer group (the concept of egotism) or the individual perceives a
bond with fellow employees and believes that individual needs can only be met via
collective action (the concept of fraternity).
Individualism explains Salamon, is developed along three stages. First, as commodity
status: the employee is regarded as an individual unit of production to be hired and fired
in the light of operational requirements. This results in low employee job security and
direct managerial control of the employee and the achievement of profit. Second,
paternalism: the employee is regarded as a natural subordinate deferential role whose
freedom is limited by ‘well meant’ regulation. Management accepts a degree of ‘social
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responsibility’ to provide benevolent welfare care for employees. Third, resource status:
the employee is regarded as a potential resource to be developed and nurtured (career
development strategies); the management focus is on communication and employee
involvement to secure commitment.
Collectivism on the other hand Salamon explains is the extent to which management
policy is directed towards inhibiting or encouraging the development of collective
representation by employees and allowing them a collective voice in management
decision-making. The development of collectivism is along three stages. First, the unitary
approach; management is overtly or covertly opposed to collective relationships. Second,
the adversarial approach; the management focus is on stability, control and
institutionalization of conflict; containment of collective relationships to limited and
clearly identified areas of operational decision making; reluctance to concede or
compromise even within areas of bargaining. Third, the cooperative approach: the
management focus is on ‘constructive’ relationship beyond simple bargaining of terms
and conditions of employment; greater incorporation of employees and their
representatives into organisational structure and in strategic discussions; openness and
preparedness to modify plans/decisions in light of discussions.
Individualism and collectivism is freedom of the individual and the collective basis of
employment relationship. Individuals in employment have a right to protection from
unscrupulous managers and arbitrary company decisions without due process. This is
guaranteed through fair employment practices. Workers as a collective need protection
from the negative effects of economic and other environmental upheavals on job security.
Rights and responsibilities - A ‘right’ is defined as ‘a just or legal claim or title’ or that
which is due to anyone by law, tradition or nature and appears to stand on two concepts.
First, there are the concepts that imply a right is regarded as being fundamental in nature
and universally applicable to all – for example right to freedom of speech. Such freedom
is not absolute and without constraint where it impinges on the right or freedom of others
for example, the constraint placed on freedom placed on freedom of speech in respect of
libel, slander, and incitement to racial hatred. Second there are concepts that imply a right
is regarded as a special advantage not given to others or an exemption from a general
obligation or duty – for example ‘the right strike’ is based on immunity from a legal
claim for damages. This right does not remove the ‘wrong’ but only the sanction for
committing the wrong is sanctioned is waived.
In IR, one of the fundamental rights issues is that of managerial prerogative or right to
manage. A prerogative is an exclusive right to or privilege held by a person or a group a
hereditary of official right. Managerial prerogative is an area of decision making over
which management exercises sole and exclusive rights of determination. Managerial
prerogative implies there are areas of action so essential to management that they must
remain unilaterally the property of management if management itself is to continue to
exist.
The term responsibility is defined as a duty, obligation or burden having control over
something. The definition implies two different views of the effect of responsibility on
the individual. On the one hand it implies a constraint on the individual’s freedom to act
(the concept of accountability), while on the other hand it implies having the freedom or
discretion to make decisions and exercise judgment (the concept of control).
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Responsibility to and for are interlinked. A manager may have responsibility to his
superior for the effective and efficient operation of a part of the organisation, while trade
unions have a responsibility to their members for protecting their interests, maintaining
and improving their terms and conditions of employment and maintaining the integrity
and continuity of and strength of the union as organisation.
Salamon notes that the rights and responsibilities within a social relationship are not
determined by one role unilaterally unless that role has power to impose its expectations
on others) but rather result from an interaction between different role expectations. It is
the range, balance and interaction between right and responsibilities and the extent to
which these are implicitly or explicitly stated and accepted or challenged, which
demonstrate the nature and quality of social relationships. Salamon further notes that so
far as industrial relations is concerned, the explicit statement of rights and responsibilities
may be codified and enforced within the bipartite rule making of the industrial relations
system as well as being set out in society’s legislation. Thus the employment relationship
is more than just a simple individual wage/work exchange (economic) or contract of
employment (legal): it is also about power and authority relationship between groups
within the work place.
In sum, rights and responsibilities refer especially management prerogative and
responsibility. Managers have rights and responsibility to govern companies. However,
these rights should not infringe on individual and collective rights. Rather management
prerogative should be exercised in the area of social responsibility instead of being
exclusively exercised to benefit shareholders and management.
Integrity and trust - The conduct of the personal relations, which underpin industrial
relations, is concerned with the values of integrity and trust between supervisor and
employee, between shop steward and member or between negotiators. Thus integrity
should be understood in terms of the individual acting according to ‘universally accepted’
code of conduct. Salmon states that the essential quality of integrity (honesty) is that the
individual’s word and others should see actions coincide and express a consistent set of
values. If personal integrity is compromised then the trust and respect of others will be
lost. Salamon notes that trust may be established only between people rather than
between organisational collectives called ‘management’ and ‘union’: inter –
organisational trust stems from interpersonal trust. Interpersonal trust exists where the
individuals have confidence in, and feel able to rely on one another not to seek actively or
even passively to harm each other.
In IR ‘trust’ does not require that the individuals will be completely ‘open and frank’
with each other because within their relationship each recognizes that the other may be
seeking maximum gain in a situation where there e competing interests and objectives. In
IR the establishment of trust requires the individual not to seek to subvert the other’s
position or relationship with third parties; to keep his word and agreements; to keep
confidences or ‘off-the-record’ information; and to accept the legitimacy of the other’s
role and objectives. Trust is difficult to establish and it is very easy to lose it, and that
since it is based on interpersonal relationships between individuals, it is not transferable
to new role incumbents. Integrity and trust - that is, acting in accordance with personal
values of the capital owners, establishing trust between people. Transparency and fairness
are topical issues in managing people. Employees as well as government agencies now
more closely watch actions by owners and management of companies.
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7. Development of Industrial Relations
The development of trade unionism in the developed economies may be seen as a social
response to the advent of industrialization and capitalism. The earlier agrarian society
relied on a benevolent state and trade guilds to provide limited protection of peasants and
artisans especially in Britain.
Organisational Development - Salamon explains that the beginnings of trade unionism
in Britain lie in the Friendly Societies established by skilled craftsmen in the late 18th
century. Members contributed a small amount each week and were entitled to receive
benefit in the event of sickness, unemployment, retirement or death. This was a form of
mutual insurance. The societies provide a forum for discussing wages and other
employment matters. Wage claims were embedded in a subservient manner and
processed in the form of a petition to the employer or Parliament.
Following the repeal of the Combination Act in 1824, workers could organize trade
unions openly rather under the guise of Friendly Societies. In the mid nineteenth century
the first modern trade unions were founded among the craftsmen – new model unionism.
The members of these unions were not only able to read or write, they had industrial
strength derived from their possession of a scarce skill. The new model involved an
organisational hierarchy from national to branch level with a separate head office and a
full-tine General Secretary, rather than relying on officers of a dominant branch to carry
out this function as earlier attempts.
During the second half of the nineteenth century trade union cooperation became
established at the local and national levels, initially to represent the union’s view to
government and seek reforms in legislation. In the 1880s non-craft manual workers began
to organize on a permanent basis – new unionism. These unions organized the semiskilled
and unskilled, poorer paid workers and had to rely on organising large groups as their
source of industrial power. At the same time white – collar unionism was also established
for primary teachers, clerks and municipal workers. By the end of the nineteenth century
the foundations of the modern trade union movement in Britain had been firmly laid permanent organisations representing a wide range of manual and non-manual employees
with the TUC providing a focal point for coordination.
Legal Development - The Combinations Acts (1799-1800) were the last in a line of
legislations, which restricted the freedom of people to combine in organisation to further
their interests because they might be used to subvert the process of government and act as
a cover for rebellion.
Salamon explains that the legal approach towards trade unions was founded on civil
doctrine of restraint of trade and criminal offence of conspiracy. These concepts played
an important part in the legal development of trade unions. The Combinations Acts were
repealed in 1824-5 thereby providing legal freedom to organize but no corresponding
freedom to pursue the objectives of trade unionism.
The Trade Union Act (1871) and the Conspiracy and Protection of Property Act (1875)
established that trade unions were not to be regarded as criminal conspiracies simply
because their purpose was in restraint of trade and that two or persons acting in
contemplation or furtherance of a trade union could not be considered a criminal
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conspiracy unless the act undertaken would be criminal if committed by one person. At
the same time, the Employers and Workmen Act (1875) removed criminal liability from
the employee for breaching the contract of employment. However the legislation still left
trade unions open to legal claims based on civil, as opposed to criminal liability for
conspiracy. This was remedied by the passing of the Trade Dispute Act (1906) which set
out the basis of the law relating to industrial action by protecting union funds from claims
for damages; the Trade Dispute Act (1913) allowed trade unions to participate in political
activities provided they established a separate fund to finance such activities; the Trade
Disputes and Trade Union Act (1927) not only restricted sympathetic strikes and those
which sought to coerce the government but also declared various forms of industrial
action to be illegal intimidation, prohibited civil servants from joining trade unions which
had political objective, prohibited local authorities and other public bodies from operating
closed shops. As governments in Britain changed hands, the developments in the legal
provisions also changed for better or for worse depending on whether it was the
Conservative or Labour party in power.
Political Development - The nineteenth century represents a period of considerable
political as well as industrial change. Two political parties were the major players (the
conservative and Liberal Parties) dominated politics but by the end of the period the
Labour party came on the scene.
In the early years, trade unions enlisted the support of radical members of existing parties
to lead their agitation for industrial reforms and act as their voice in Parliament. By the
end of the nineteenth century organisations with socialist orientation had been formed to
give political expression to the ‘working class movement’. In 1893, the Independent
Labour Party was formed which sought to adopt a middle-of-the-road stance by both
opposing collaboration with the Liberal party and rejecting the revolutionary policies of
the socialist parties. In 1900 the Labour Party won 29 seats and officially changed its
name to the Labour Party
During the twentieth century the Labour Party grew and replaced the Liberal Party as the
viable alternative to the Conservative Party. The relationship between the Labour Party
and the Trade Unions was based on a set of shared values, which included beliefs in the
primacy of collective bargaining, in an expanding welfare state, and state intervention to
promote economic growth and full employment. Trade unions accounted for over 90% of
the membership of the party, 80% of the party’s annual income, sponsored over 50% of
its members of parliament and had significant decision – making influence in the Annual
Conference.
As early as 1924, the trade unions found out that their special relationship with the
Labour Party did not necessarily result in a subservient Labour government; rather there
was a permanent difference in point of view between the government on the one hand the
trade union on the other hand the trade unions had different functions to perform than the
functions of government.
Development of Trade Unionism in Developing Nations
The development of trade unionism in the newly industrialized and industrializing
countries has taken place over a relatively short period of time. The development has also
been subject to different influences.
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First, the general lack of industrialization during the colonial period, coupled with the
use of migrant labour in the primary producing sectors resulted in limited development of
trade unionism especially among the public sector employees.
Second, trade unions provided a significant nucleus for ‘independence’ movement, which
engendered more of an ‘anti-colonial’ (political), rather than ’anti-capitalist’ (industrial)
ideology.
Third, the adoption of a strong post-independence government role in planning and
directing economic development, has tended to include government policy ‘to
subordinate the labour movement and “guide” trade unionism to broader considerations
of national economic development as defined by the ruling elite’.
Developments in Trade Unionism in Zambia
Early development of IR in Zambia can be traced to the development of paid employment
along the line of rail and especially on the Copperbelt. The differences in treatment of
white and black workers by the mine management fueled the creation of trade unions.
Both white and black workers pressured the mine management to treat their groups fairly:
the whites to be recognized as superior and therefore deserving better conditions and pay;
the blacks to be recognized as deserving the same as white workers since they were doing
the same jobs. Management circumvented the responsibility for voluntary reform but
instead practiced racism and greed, and also helped to push for federalism. Management
failed to meet these demands and looked to the Federal government to assist in quelling
the black demand and unrest through legislation and detentions of union and political
leaders.
The following is an extract from a paper by M K Banda entitled Human Resource
Planning in the Mining Industry, tracing the developments of the labour movement
during the early part of the mining industry in Zambia.
“The mining industry has long been acknowledged as the springboard for modern
industrialization in Zambia. But mining operations in Zambia started more than 800 years
ago with the exploitation of malachite deposits in many locations of the present day
Copperbelt and around Solwezi. Pre-colonial mining operations involved male and
female workers including children.
Prior to large-scale mining operations Zambia was entirely made up of tribal
communities under the traditional leadership of chiefs. Copper deposits in Zambia were
discovered in 1902. The country was by then already linked to the outside world by rail
from the south that extended to the Copperbelt as part of the Cape to Cairo rail link.
Large–scale exploitation of copper by the British South African Company who had
prospecting rights in the territory commenced in 1923. Mining operations started with the
exploitation of mineral deposits around Kabwe and later spread operations to the
Copperbelt where copper mineralisation existed in several locations.
The first major mining operations involving copper exploitation were at three mines in
Mumbwa district that started in 1923. These were Silver King, Sable Antelope and LouLou/Crystal Jacket mines. In 1925 these three mines produced 1 299 tons of copper.
These mines were then owned and operated and managed by a Swede called Erickson.
The three mines were the first large copper mines in colonial Zambia making Mumbwa
district the forerunner to the present day Copperbelt.
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As a consequence of the discovery of many copper occurrences to the north of Mumbwa
especially at Luanshya in 1925 and the subsequent large-scale mining operations, there
was a widespread rural-urban migration of people in search of paid employment around
the Copperbelt and along the line of rail. Migration was in part fuelled by the colonial
government demand for poll tax for each adult African male. Migration occurred from all
over the country including migrants from neighbouring countries such as Congo Malawi
and Tanzania. Kenneth Bradley recorded that during the period 1924 and 1931 hundreds
of Europeans flooded into the district and thousands of Africans belonging to dozens of
tribes from every part of Central Africa. The discovery of copper ore bodies with 3 – 5%
mineralisation led to the development Roan Antelope and Rhokana mines in October
1931 followed by Mufulira mine in October 1933 and Nchanga mine in 1939. By 1951
the population census showed that that there were 19 964 Europeans and 87 237 Africans
in employment on the Copperbelt. The large scale mining operations led to the
development of many other industries notably agriculture along the line of rail to provide
food to the growing populations of the new towns on the Copperbelt and along the line of
rail. The mining companies provided basic housing and other social amenities for its
employees and even provided food rations, a practice that continued well into the 1950s.
However amenities were segregated even at work places. There were different change
rooms for Europeans and Africans. The African worker in the mines was treated unfairly
compared to the European who enjoyed better treatment. These practices were later
backed by Federal government policies of partnership with separate development focus.
The African workers’ reaction was to organize themselves to resist the unfair treatment at
work places. At the same time the European workers organized themselves to protect
their interests and maintain the status quo. During the 1950s several legislations affecting
copper mining were passed. The most significant of these were Workmen’s
Compensation, Silicosis Ordinance and the Trade Union and Trade Disputes Ordinance.
The later legislation among other issues provided for compulsory registration of trade
unions and associations, powers to inspect union/association books and to authorize an
inquiry into the affairs of unions and associations, powers to institute injunctions against
officers of a trade union and powers to disqualify an officer of a trade union deemed to be
inimical to industrial peace.
In 1956 the African mineworkers union went on a strike that culminated in the
declaration of a state of emergency that resulted in the arrest and removal of principal
agitators. The Branigan commission of enquiry was instituted to investigate the
underlying and the main bone of contention. The commission’s findings were “the
irresponsible opposition” of the African mineworkers union to the Mines African Staff
Association as the cause of unrest. This pointed to the main underlying problem as failure
by the mining companies to adequately address African advancement.
Progress of African advancement commenced after implementing practical aspects of the
African advancement agreement signed between copper mining companies and the
European Mineworkers Union in 1955. Before implementing the agreement mining
companies carefully considered the qualifications necessary for each job. Proficiency
tests were laid down to ensure that the selected African could successfully carry out the
job. At the end of 1956, 428 Africans had been promoted to advanced jobs and a further
268 were under training. Throughout the mining companies there were 39 000 Africans
on the mines’ payroll.
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This development in the mining industry is testimony to the failure by the mine
managements of the day to adequately deal with labour issues much earlier.
Political developments in the region throughout the 1950s ended up in the break up of the
federal government system and the granting of self-government to the African politicians
and eventually independence. The labour problems of the mining industry continued as
previously. How these problems were addressed is the main thrust of this paper.”
In summary it was the effect of confrontation between management and the unions that
led to the strong development of trade unionism in Zambia.
Students are advised to search the Internet for more detailed information on the
development of trade unionism in Zambia.
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PART FOUR INDUSTRIAL RELATIONS PROCESSES
1. Communication in Industrial Relations
Communication in IR is defined in general as the direct conveying of information from
management to union or employees either within or outside any arrangement for joint
consultation or collective bargaining. We are going to examine these issues more closely
and see their significance in the management of industrial relations.
Salamon explains that a popular myth of Industrial Relations is to ascribe any failure to
resolve problems to misunderstanding or inadequate communication between
management and employee and /or representatives. However, IR problems do not entirely
arise because of miscommunication between participants. Rather IR problems especially
conflict arise from the differences of objectives, interests, perceptions and attitudes that
affect the way in which information and situations are interpreted.
The significance of communication between management and employees/trade unions at
interpersonal and inter-organisational levels is that it provides a means for management
and employee representatives to identify their differences develop a better understanding
of each other’s point of view and seek to accommodate their differing interests within
mutually acceptable solutions to their problems. It is therefore important that an
organisation should establish an adequate system for internal communications.
Very often in organisations, management and union have different perceptions of the
purpose of communication. In management’s view, the general purpose of providing
information is to increase the employees’ knowledge and understanding of the
organisation and management’s position, thereby removing any misconceptions, which
may previously have existed. In the trade unions/employees’ view, the main purpose of
acquiring information is to strengthen their position in respect of the processes of
collective bargaining and joint decision making with the organisation.
It is necessary to recognise that different information serves different purposes and
therefore require different means for dissemination. Four broad categories of information
in Industrial Relations are:
 Information classified as being of general knowledge about the organisation e.g.
information in company newspaper intended to keep people in touch with what is
happening;
 Information which needs regular communication in respect of normal work situation
– e.g. communication between managers and subordinates;
 Communication of major changes in policy or work of organisation which will affect
all or a significant number of employees e.g. introduction of new processes;
 Communication of detailed information to employee representatives as a feature of
the collective bargaining process.
There are four main segments to organisation’s formal communication network. These
are:
 A system of information cascade throughout managerial hierarchy; for example the
dissemination of information of special nature through the medium of management
meetings.
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
A system of communication from management to employees (dissemination) for
example information of general nature and of interest to the majority of employees
through the medium of company newspapers, bulletins on notice boards etc.
 A system of communication from management to representatives (disclosure) for
example the passing of information to employee representatives through formal
meetings between the two parties with the overall purpose of divulging information to
facilitate negotiations.
A system of communication amongst employees (consultation) for example, meetings
during working hours approved by management to enable workers to consider
collectively issues of interest to both employee and organisational welfare.
2. Disclosure of Information
Disclosure of information is defined as the transfer to employee’s representatives of
information generated as an integral part of the managerial function of planning
controlling and decision-making and traditionally retained within exclusive possession of
management. This communication is intended to inform employees of management’s
plans for both short and long terms that may have adverse implications on future
relationships. This serves as a forewarning of what may likely happen to some
individuals.
Salmon points out, that managers argue against disclosure of management information
for the following reasons:
 Relative power relationship - In a competitive, conflictual environment of the
negotiating process at the heart of collective bargain, the possession of knowledge by
one party to the exclusion of the other is an important determinant of relative power.
Managers would be weakening their positions by full disclosure of information to
employee representatives.
 Expansion of joint regulation - The disclosure of management information may lead
to pressure from employees and their union for the expansion of joint regulation into
much wider areas of decision making traditionally the preserve of management;
 Varying degrees of precision of information - Managers are reluctant to divulge
information that might be imprecise as it may reflect adversely on their capability and
credibility in the eyes of the society, the community and employees;
 Confidential information - Managers consider it improper to disclose information to
employee representatives when it has not been made generally available to the
majority of managers. Access to confidentials by representatives is likely to strain
relations with constituents;
Pressures for greater disclosures of information, explains Salamon, arise from:
 The complexity and sophistication in the conduct of negotiations demand that more
and more information be made available to aid negotiations;
 Greater employee involvement in the organisation for the purpose of maximising
organisation potential and adaptability can only be achieved successfully through
openness and greater disclosure of information – this implies that management should
treat employees as mature responsible and willing to contribute to the organisational
welfare
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
General pressure within society for more openness and transparency in many aspects
of community life, political and government systems places a demand for greater
disclosure of information.
It is now a legal requirement for the disclosure of information, on request to the
representatives for the purpose of collective bargaining. (Employment Protection Act (s
17(i)).
In line with good industrial relations, the type of information that may be disclosed to
employees and their representatives relates to:
Pay and benefits – this includes among other types of information, structure of
payment systems (job evaluation criteria) earnings and hours of work, distribution
and make-up of pay: total wage bill, details of fringe benefits etc.
Conditions of service – this would include such items as policies on recruitment,
redeployment, redundancy, training, promotion; appraisal systems etc;
Manpower/human resources – details of numbers employed by grades, department,
age, gender; turnover, absenteeism etc;
Performance: data and information on productivity and efficiency; savings from
increased productivity etc;
Financial: including cost structure, gross and net profits, allocation of profits etc.
3. Joint Consultation
Joint consultation has been variously described as i) the discussion between management
and workers of matters of joint concern which are not the subject of negotiations with
trade unions; ii) an exchange of opinion, by means of which the participants may say
what they like, but decide nothing, and take no executive action; iii) a means of
communication prior to decisions being made or explaining the reasons for certain
decisions after they have been made and iv) leading to advice to management but leaving
free management’s right and responsibility to make the final decision. Thus any
definition of joint consultation, as a process differentiates it from negotiation.
Joint consultation is a form of communication in IR and it is defined as the process
wherein management determines the issues on which the views and opinions of its
employees are sought but retains the discretion to decide the final outcome without
subjecting it to joint agreement with employees and their representatives.
The extent to which employees are able to influence the final decision or to have their
wishes and interests taken into account is dependent exclusively on the good will of the
management making the decision. In practice, however the difference between the
processes of joint consultation and negotiation is often less tangible than the above
definition suggests and the two processes blur into each other.
Joint consultation may be regarded as: i) a means to defer the growth and recognition of
trade union or to restrict the range of collective bargaining; ii) a development phase
between initial trade union recognition and full negotiating rights or iii) a process that
continues alongside and complementing to the collective bargaining process.
Purpose of Joint Consultation - Joint consultation has four major purposes. In the first
instance, joint consultation serves as a means for management to improve efficiency
within the organisation. In this regard the process aims to enlist the cooperation of all
employees in the efficient operation of the company and in the implementation of
management’s decisions. Within this managerial approach the content has tended to be
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confined to specific operational needs and problems; the process has been primarily one
of discussing and implementing decisions already made by management; and the
criterion for success has been the effect it has on the output of the organisation. It is in
this aspect of joint consultation, which has perhaps the closest links to collective
bargaining.
The second purpose of joint consultation is the creation of industrial harmony between
management and employees. This view is closely related to the unitary approach –
applicable to a limited range of issues where management and employees have a
substantial degree of common interest. Joint consultation by itself cannot create industrial
harmony except in so far as it is clearly evident to the employees that their needs and
interests, as expressed through the joint consultative process, have been accommodated
within management’s decision making. Since the process enshrines the concept of
decision making being the sole responsibility of management, there will always be a
residual element of suspicion that management listens to its employees and the proceeds
to implement its decision unchanged. Industrial harmony depends on the acceptability of
management decisions and actions not the act of consultation by management.
Thirdly, the purpose of joint consultation is to serve as a means towards industrial
democracy within the organisation: the involvement of employees in decision making
especially on matters that directly impacts on their lives giving credence to industrial
democracy. It is this aspect that appears to be of most interest to trade unions and
employee representatives. However, the nature of decision-making process is such that it
cannot realistically be considered part of some process of industrial democracy. The
essential characteristic of joint consultation is that management retains the prerogative to
make unilateral decisions, whilst the notion underpinning industrial democracy is that the
decision-making should be subject to some form of partnership between management and
employees. These two concepts of decision-making are fundamentally incompatible.
Many managers consequently favour joint consultation rather than collective bargaining
precisely because it involves less erosion of their prerogative.
Fourthly, the purpose of joint consultation is to provide a grievance forum. Joint
consultation may be used for matters of personal concern to employees, which are not
appropriate for formal negotiations. In this aspect, joint consultation serves a number of
useful purposes in the industrial relations system:
a)
The constraints and atmosphere surrounding joint consultation are likely to be less
threatening than those which surround formal negotiations and the grievance
procedure with their immediate implications of a possible failure to agree and
imposition of sanctions;
b)
It allows employees to raise general complaints or concerns on issues, which are
either not normally subject to negotiation or are difficult to formulate as a precise
grievance capable of resolution through negotiation.
c)
It provides employee representatives with a forum which may be used as an
adjunct to the normal negotiation arrangements in which they may raise an issue
to sound out management’s position as a prelude to and depending on the
response, justification for raising it subsequently in a formal negotiation.
Models of Joint Consultation - The reality of the way joint consultation is operated
suggests four different models:
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



The non –union model - in which the main objective of the joint consultation is to
avoid employee dissatisfaction from arising and creating a closer identification
with organisation (unitary approach);
The managerial model - joint consultation consists of relatively trivial items
requiring no decision-making or recommendations (either there is strong
collective bargaining or strong management decision that there is no need to raise
issues on which the dominant is so strong). Joint consultation is seen a valuable
tool to consultative committee.
The competitive model: involves revitalisation of joint consultation with more
emphasis on high level information and discussion of the organisation’s current
and future situation continued with various direct forms of employee
involvement.
The adjunct model: an advanced form of consultation, informing, consulting and
negotiating that is integrally linked in the process of IR within an organisation.
This helps to lubricate relations in a more informal and less highly charged
atmosphere than that of annual negotiations or dispute resolutions
4. Collective Bargaining
Collective bargaining (CB) could be called joint regulation of employment relationship. It
is responsible for institutionalising industrial conflict. It is a right that is, a prerogative of
every worker in a democratic society. It is defined as a method of determining terms and
conditions of employment, which utilises the process of negotiation and agreement
between management representatives and employee representatives.
The essential characteristic of CB is that employees do not negotiate individually, but do
so collectively through representatives. Two pre-conditions for CB to exist and function
are:
a) Employees themselves are prepared to identify a commonality of purpose, organise
and act in concert; and
b) Management is prepared to recognise employee organisation and accept a change in
employment relationship, which removes or constrains, its ability to deal with
employees on an individual basis.
However, CB lacks legal regulation; there is a no legal requirement on the employer
either to recognise a trade union for collective bargain purposes, or to bargain in good
faith. CB is a voluntary process of collective bargain.
Functions of collective bargaining - CB serves a number of distinct functions, each
emphasising a different concept of the process and a different stage in its development:
1 A market/economic function – in which collective bargain determines on what terms
labour will be supplied by present employees and in future by newly hired workers. CB
in this context is a non-legal means for ensuring management’s compliance with agreed
terms.
2 A governmental function: wherein collective bargaining is regarded as a political
process based on mutual dependence of the parties and the power of each to veto the acts
of the other. In this context collective bargaining is a continuing constitution in which
the collective agreement is a body of law, determined by management/union negotiators
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as the legislative, and executive authority is vested in management who must exercise it
in accordance with the terms of the constitution.
3 A decision making function – This allows workers, through their representatives, to
participate in the determination of the policies, which guide and rule their working lives.
Collective Agreement is a formal memorandum of decisions that have been reached and
is a limitation on management’s freedom and discretion to act unilaterally.
In this context, collective bargaining is founded on the concept of mutuality which
recognises the authority over men requires consent and involves defining areas of joint
concern within which decisions must be sought by agreement. Collective Bargaining
under this context functions organically and in a flexible manner depending on: i) the
desire of the employees that their union be involved in decision making; ii) the degree to
which they have power to force the employee to accept joint decisions; and iii) the degree
to which management is willing to accept the requirement that its decisions must be
subject to agreement with employees before implementation.
Content of Collective Beginning - Three areas are covered in collective bargaining:
substantive, procedural and working arrangements.
Substantive Rules – refer exclusively to those terms of employment such as wages, hours,
holiday etc that can be converted into monetary terms and agreed working arrangements.
Negotiation of these terms of employment is regarded as primary purpose of both trade
union and collective bargaining. The most important element is the regulation of rates of
pay including overtime rates, allowances etc. These are renegotiated in light of any
changes in cost of living, comparison with prevailing wage levels and profitability. Other
areas under these rules are hours of work (reduced from 72 hours per week down to the
present 40 hours per week), paid annual holidays and fringe benefits such as pensions,
sick payments, loans, medical facilities etc.
Procedural Rules – These address the exercise of management authority and decisionmaking. They provide a regulatory framework for resolving the primary conflict between
management’s desire for control of its labour and employees’ desire for protection
against arbitrary management decisions and actions.
Procedural rules also introduce a degree of certainty into organisation relationship
between management, employees and trade unions by defining how various issues are to
be handled and the expected roles of the various parties. The decision to recognise a trade
union is the first step in management’s acceptance of a constraint on their authority
within the organisation: What issues are to be subjected to joint regulation.
Procedural relationships relate to status quo concept, which requires that management
should not implement any change in working arrangements or terms of conditions of
employment until it has been negotiated and agreed with the unions or the disputes
procedure has been exhausted. Procedural rules are considered to be of more importance
than substantive economic rules. They share power and authority rather than money.
We now turn our attention to possible forms of employee participation and involvement
Forms of Employee Participation
Employee participation has three interpretations: i) a socio political concept or
philosophy of industrial organisation (refer to sociological perspectives), ii) a generic
term to encompass all processes and institutions of employee influence within the
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organisation and: iii) a discrete term to denote a nebulous but distinct evolutionary
development of the traditional joint regulatory processes.
Employee participation is defined as a philosophy or style of organisation management,
which recognises both the need and right of employees to be involved with management
in areas of organisation’s decision making beyond that normally covered by collective
bargaining. Employee involvement is defined as measure introduced by management
intended to optimise the utilisation of labour and at the same time secure the employee’s
identification with the aims and needs of the organisation. Forms of
participation/involvements are possible ways of interactions between workers and
management. These interaction relationships occur along three axes:
H
I
E
R
A
R
C
H
Y
Y
High
OBJECTIVE OF PARTICIPATION
Z
(2)
Power
(3)
(2)
(3)
Low Task
(1)
X
Direct
(1)
Indirect
METHOD OF PARTICIPATION
Power
Managerial
Union Officials
(Active)
Employer Directed
Function in
(3)
Works Councils
Decision-
Collective Bargaining
Joint Consultation
Task
Involvement In Work Organisation
(2)
making
Senior Managers
Middle Managers
Supervisory Managers
Employees doing
(Passive)
OBJECTIVE OF PARTICIPATION
Adapted from Salamon M (1987) Industrial Relations
Figure 1
Forms of Employee participation and Involvement
1. Method or extent of participation or involvement: - direct forms allow for personal
involvement in decision-making process; indirect forms restrict masses to a passive
role and rely on representatives to carry out active role of discussing with
management;
2. Level within organisation hierarchy – process takes place at any level from
supervisor to board level;
3. Objective or scope of participation: management functions and decisions which
provide content of participatory processes may be task-centred (operations) direct or
power-centred (decision making and authority)
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We have up to this point in our study examined the significance of communication, joint
consultation and collective bargaining. We have also considered other possible forms of
employee participation. Our study of industrial relations would be incomplete without
examining the nature of industrial action.
5. Industrial Action
The use or threats of industrial action is the most controversial issue in Industrial
Relations. It is regarded as an intolerable abuse of economic freedom and a type of
warfare under which the privileged groups can gain advantage at the expense of the
unprivileged. It is the only ultimate power of the trade union officials they have to
disrupt production or services or the conduct of an enterprise by the withdrawal of labour.
A strike is the most obvious and frequently used form of industrial action. It should be
noted that strikes are only one of a range of activities that may be classified as industrial
action. In addition, industrial action is not the exclusive pressure of employees/union but
may also be instigated by management. Either employees or management with the
objective of exerting pressure within the collective bargaining relationship formally
defines industrial action as any temporary suspension of normal working arrangements,
which is initiated, unilaterally. The potential for industrial action is a constant, integral
quiescent element in the negotiating process. Its use confirms the relative bargaining
advantage between partners and acts as an inducement to make concessions that will lead
to an acceptable solution.
Functions and Forms of Industrial Action
The functions of industrial action are: i) to serve as a direct challenge to the internal order
and stability of the social system. It is seen as a problem that must be controlled to
restore order – otherwise anarchy and lawlessness will prevail; ii) to serve as a necessary
prelude to the development of a new social order. Industrial action challenges the status
quo to bring about change in the current state of order to another – otherwise stagnation
will prevail and iii) to serves as an important element in the maintenance of stability
within the social system- It provides a means for identifying and balancing different
interests within a dynamic and constantly developing social system.
Forms of industrial action are at two levels. These are unorganised individual forms and
organised collective forms. Both categories of behaviour express discontent, their
difference lies in intent.
Unorganised individual forms are expressed in behaviour such as absenteeism, tardiness,
turnover, complaints and grievances and quitting. Organised collective forms of industrial
action are expressed in the form of: i) withdrawal of cooperation e.g. withdrawal from
joint consultation and being inflexible on procedure or work problems; ii) work to rule –
strictly interpreting the duties as specified in the contract of employment, collective
agreement, job description or other rules (safety, health) requiring specific instructions
from management regarding execution of work; iii) overtime ban – the collective refusal
to work outside normal hours of work – affecting rate of production; iv) go slow: working without enthusiasm and at lower level of performance/output than normal; v)
strike – the temporary withdrawal of labour and stoppage of work; vi) work in/sit in occupying the workplace and continuing to work but denying management access to or
control of output.
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The strike is seen as the ultimate and most favoured form of collective action in that, by
stopping work and leaving the workplace, the employees clearly demonstrate both the
importance of the issue in dispute and their solidarity. It is rather easier for the union to
ensure that there is collective solidarity in a strike than other forms of industrial action.
Other forms explains Salamon, may be seen a preliminary action to develop collective
consciousness and to be abandoned in favour of strike action if they do achieve the
required concession from management. Alternatively they may be regarded as of equal
importance, or even preferred, to strike action because i) they involve the employees and
union in less financial loss than a strike whilst still exerting a significant cost on the
management in terms of lost production; ii) they may not be perceived as breach of
contract on the employees’ part, but simply carrying out of those duties which they are
contractually obliged to do. Certainly, if management takes disciplinary action in such
situations it is likely to reinforce the employees’ collective consciousness and solidarity.
Industrial action (IA) is the most controversial issue in IR. It has potential harmful
consequences to the national economy and political system. One description of IA is that
it is “an intolerable abuse of economic freedom…a type of warfare under which the
privileged groups can gain at the expense of the unprivileged” and it embodies the
unacceptable principle that “power to disrupt may be properly relied on by those in a
position to organize disruption in order to secure whatever objectives they believe are
good, or for their own advantage”.
Salamon points out that those who emphasize the critical role played by the display of
power in influencing the management/ employee relationship and the outcome of any
specific negotiation argue that “it is only the ultimate power of trade union officials and
their members to disrupt production by the withdrawal of labour”. Other arguments point
out that “collective bargaining would have little meaning were it not for the possibility of
a strike, with the attendant losses on both sides, since there would be little pressure on the
parties to modify their positions and reach agreements”.
The strike is the most frequently used form of IA. However there are other forms of
action, which need to be recognized. Secondly ‘industrial action is not the exclusive
domain of employees/unions but may also be instigated by management.
In our approach to the current study we shall adopt the following understanding of
industrial action as “any temporary suspension of working arrangements initiated
unilaterally by workers or management with the objective of exerting pressure within the
collective bargaining relationship.
Salamon concludes that the potential for IA is a constant, integral but generally quiescent
element in the negotiation process and it use confirms the relative bargaining advantage
between the parties and acts as an inducement to make concessions which will lead to an
acceptable solution.
The pluralist perspective of IR accepts the inherent conflict of interest in industrial
organizations, which is expressed through negotiation within established procedures and
institutions of collective bargaining without recourse to industrial action. This does not
mean that the conflict of interest is synonymous with the use collective industrial action.
In this section, we shall not only consider the functions and various forms of IA but we
shall also examine the contributing factors.
In general, conflict within social structures, such as industrial relations system may be
viewed from three perspectives:
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1. The expression of conflict of ideas and interests represent a direct challenge to
the internal order and stability of the social system. Without such order and
stability the social system may degenerate into anarchy and lawlessness. In this
view it is the expression of conflict that is perceived to be the problem to be
resolved. For example prior to 1991 the social order in Zambia was under the
direction of an authoritarian government. The opponents of the revolution feared
that without the established order under Kenneth Kaunda, Zambia would
degenerate into discord and chaos as experienced in the Congo following the
Belgian withdrawal and granting of independence. Indeed the solution to the
perceived problem in Zambia was to change the constitution and allow for
multiparty politics as a way of preserving the social order and avoiding what
happened in the Congo and elsewhere in Africa.
2. Conflict is a necessary prelude to the development of a new social order. For
example, what is currently happening in Zimbabwe explains this perspective
clearly. The existing government is bent on maintaining the status quo of
authoritarian policies and administration that have pushed the nation to economic
instability and social suffering. The Zimbabwean social order can only move to a
different level if and only if the existing status is overtly challenged and defeated.
In this case it is the social order that is perceived as the issue to be resolved.
3. The open expression of conflict is an important element in the maintenance of
stability within the social system. It provides the means for identifying and
balancing different interests within the social system. For example here in
Zambia, the recent elections of 2006 are a testimony to the open expression of
conflict of ideas and interests. Issues were identified that needed balancing. The
election results indicated that the urban population was in strong disagreement
with the policies and governance of the ruling political party. The current
government is balancing the expressed differences. It is not only in Zambia but
also in the US where George Bush is fighting hard to balance his party’s policies
with those of the Democrats. The point to note is that the open expression of the
conflict of ideas provides a maintenance function to the stability of an existing
social order.
Salamon explains that the latter functional perspective underlies the institutionalization of
conflict within IR. The growth of organized labour, and its consequent recognition by
both employers and the state through the development of collective bargaining
arrangements, has resulted in trade unions becoming an accepted part of the
‘establishment’ at both organizational and national levels. Thus both management and
unions have become joint managers of discontent within an IR system, which has selflimiting boundaries that distinguish permissible from subversive industrial disorder. The
strike is regarded as “the price paid for industrial self-regulation of conditions of
employment” and the means to expose the latent and inherent long-festering grievances
and achieve socially and economically desirable improvements. It can also be argued that
the development and reliance on the process of collective bargaining has diminished any
fundamental challenge to the status quo on the part of employees by persuading them to
accept the need for compromise, and by leading them to believe that gains can be made
within the confines of the present system.
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It is inevitable that industrial action is perceived as exclusively an employee or union
phenomenon since it is used frequently as an expression of dissatisfaction not only the
content of negotiation but also with the argument and verbal persuasion to resolve the
issue. A strike or any other form of industrial action is often seen as an irrational act
based on two beliefs: i) that any conflict of interest can and should, be resolved within the
recognized procedures and institutions of IR including reference to arbitration as an
alternative to the use of industrial action. The assumption in this logic is that there is a
logical and objective solution to a problem; ii) that the costs to employees of undertaking
industrial action exceeds any gain that may result from its use. Research has shown that
that strikes can involve employees in significant financial loss and hardship.
Industrial Action can also be perceived as rational social action: a calculative attempt to
obtain alterations in the work situation or the employment relationship. Even though the
ultimate function of industrial action is to support and strengthen the process of
establishing new and more favourable terms under which the employment relationship
may continue, its immediate purpose is to create temporary industrial disorder within the
existing employment relationship. All forms of industrial actions are weapons for
maximizing industrial disorder within one or both of the economic and authority
relationships in the organisation.
Forms of industrial action
Two forms of industrial action need to be distinguished: unorganized individual forms of
action such as absenteeism and turnover, and organized collective forms of action such as
strikes, work to rule and go slow. Both behaviours are expressing discontent and
dissatisfaction, and their difference lies in the intention behind them. Unorganized
conflict is reacting to the oppressive situation in the only way open to him as an
individual; by withdrawing from the source of discontent. Organized conflict on the other
hand is part of a conscious strategy to change the situation identified as source of
discontent.
Employee discontent is expressed in many ways through a variety of organized collective
action. Salamon gives details as follows: i) withdrawal of cooperation; this the
withdrawal of representatives form joint institutions such as joint consultation; excessive
use of the formal procedures; strict interpretation; and absence of flexibility on the part of
employees in resolution of work problems, ii) work to rule, strictly interpreting the duties
in the contract of employment, collective agreement, job description or other rules and
requiring precise instructions from management regarding the execution of work; iii)
overtime ban: the collective refusal to work outside normal contractual hours of work,
thereby affecting the rate of production; iv) go slow: working without enthusiasm and at a
lower level of performance/output than normal; v) strike: temporary withdrawal of labour
and stoppage of work and vi) work-in/sit-in: occupying the work place and possibly
continuing to work but denying management access to or control of the output thus
demonstrating that the plant is a viable concern and demonstrating that management is no
longer in control.
The strike form of industrial action is the ultimate and most favoured collective action.
By stopping work and leaving the workplace, employees demonstrate both the
importance of the issue in dispute and their solidarity.
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Industrial action can be categorized by reference to other factors: i) official and unofficial
– that the union assents or does not assent to action on account of whether it can
financially support the action or not, ii) constitutional and unconstitutional – action that
is in contravention of a close in the collective agreement or constitution of a union or
procedures by either management or the union is deemed to be unconstitutional and that
which follows the agreed procedure or is in line with established and agreed processes is
deemed to be constitutional, iii) demonstrative action – the principle intention is to
highlight the importance employees attach to the issue in dispute or to express
dissatisfaction with the progress of negotiation, iv) management’s use of industrial action
- an indirect response to actions initiated by employees a) to demonstrate ability to
impose unilaterally new working arrangements or terms of employment, b) to use
disciplinary action to force employee compliance, c) dispense with the services of
employees either on a temporary basis (lock out) or on a permanent basis (dismissing
employees and seeking to hire replacements) and d) use the ultimate sanction of closing
or threaten to close the organisation.
Influences on Industrial Action
All too often industrial action is attributed to either the presence of agitators in the union,
who instigate conflict and action for their own power aggrandizement or as part of a
deliberate design for social, economic and political revolution. Industrial action from the
social action approach is explained in terms of the structural factors but these must be
related to the motives, attitudes and perceptions of the participants. Thus there is no
single or simple causal explanation for the extent or distribution of industrial action.
Rather the structural factors interact with the aspirations of the participants to produce
decisions. The structural factors include the economic environment, industrial
environment and the industrial relations environment.
The aggregate strike rate can be correlated with the business cycle of expansion and
recession. During periods of expansion industrial is more likely to occur since workers
seem to inflict a telling blow on managements’ plans for maximum production and high
profits. During periods of recession unions are very reluctant to proceed with industrial
action: they are more on negotiating for concessions in case of ultimate redundancies.
6. Conciliation and Arbitration
Conciliation and Arbitration are intended primarily as adjuncts to the collective
bargaining process. Salamon explains that the establishment of formal systems and
institutions of conciliation and arbitration within the industrial relations system reflects
the fact that ‘most systems of labour relations presuppose the possibility of disagreement
and disputes’ between the parties involved. The two processes are available where the
parties to a negotiation fail to determine a solution on their own, that is, when they have
reached an impasse with no further prospect of movement by either side and, generally,
with no further levels of joint negotiating machinery to which the issue may be referred.
Therefore, the two strategies should be viewed principally as intervention strategies,
which utilise the involvement of an independent third party in the conduct of the
collective bargaining process. The intervention may be initiated by the parties
themselves (unilaterally or jointly) or by the state, through its delegated agency, as the
representative of external interests.
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However, the two strategies of conciliation and arbitration are fundamentally different in
their method of operation and, in particular in the relationship between the ‘third party’
and the other two parties. We now take a closer look at each of the strategies beginning
with conciliation.
Conciliation - Conciliation may be defined as a strategy wherein the ‘third party’
supports the direct bipartite negotiating process by assisting the parties to identify the
case and extent of their differences, to establish alternative solutions and their various
implications and to develop and agree a mutually acceptable settlement. The
responsibility for making decisions and reaching a solution still remains a joint one
between management and union – as it would if there was no intervention. The
conciliator acts as a medium for the continuation of the dialogue.
Arbitration - Arbitration, on the other hand, may be defined as a strategy wherein direct
negotiation between management and union is replaced with a process of adjudication,
which involves the third party in making a decision (award) between the two conflicting
positions. The arbitrator ‘is empowered to take a decision which disposes of the dispute’
and, therefore is not required to seek a direct reconciliation between the two parties; ‘the
parties lose their power over the settlement entirely’. It is the arbitrator’s decision, rather
than a joint decision of the two parties, which determines the settlement and he/she may
accept one or other of the positions put to him/her or, as is perhaps more often the case,
determine a point somewhere between the two positions.
Conciliation and by implication, arbitration is little more than ‘short-term’ crisis
intervention to aid the resolution of a dispute. But there is a third and perhaps more useful
intervention strategy which may be adopted – mediation.
Mediation - The term mediation is often used in two quite different ways: i) in the shortterm resolution of a particular dispute, it may be defined as a process in which the third
party is ‘more active in assisting the parties and going so far as to submit his own
proposals for settlement. As such, it is simply a sub-group process within conciliation,
differentiated only on the basis of the degree of initiative taken by the third party, because
it is still a fundamental requirement of the process that the outcome should be determined
and agreed by the parties themselves; ii) mediation may be viewed as a long-term
intervention strategy, and therefore qualitatively different to either of the normal
processes of conciliation or arbitration, which is concerned not only to resolve existing
conflict, but to plan for the prevention of similar conflict, and involves ‘helping with the
implementation of decisions at both the interpersonal and organisational levels’.
In this respect mediation is a form of organisational development intervention strategy
requiring the third party to act as a continuing consultant to both parties with the
objective of permanently improving relationship between management and union.
The Nature of Conciliation and Arbitration
The precise nature and role of conciliation and arbitration within the Industrial Relations
system depends primarily on two factors: i) the perceived relationship of these processes
to the ‘normal’ bipartite process of direct negotiation between management and union
(including the possible use of industrial action); ii) whether these processes are to be used
by the parties on a voluntary or compulsory basis.
It is perhaps inevitable that conciliation and arbitration are contrasted, as processes, with
the direct bipartite process of management/union, negotiation or, as intervention
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strategies into the negotiating process, with the parties own use of industrial action.
However, it is important not to lose sight of the fact that they are integral part of the total
collective bargaining system and not simply some form of external appendage to the
system.
This is most evident in the case of conciliation. The process of direct negotiation is
continued with its reliance on achieving compromise between the parties and the
necessity for the parties themselves to determine and agree the final settlement – but in a
different form and under a different title. Although arbitration involves a significantly
different and less direct process, it is nevertheless generally preceded by some form of
direct negotiation between the parties during which they have sought, through offers and
compromise, to resolve their differences and the parties will continue to seek to
influence, although not directly determined, the final outcome through the presentation
and argument of their case to their case to the arbitrator.
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Conciliation and Arbitration may often be used simply to bridge the final gap between the
parties or solve outstanding issues within an otherwise successful negotiation. Therefore,
the use of these intervention strategies, like the use of industrial action by the parties
themselves cannot be regarded as automatic evidence of the failure or breakdown of
collective bargaining because they are themselves part of that system. Their use is
indicative only of an inability of the direct negotiation process in a specific set of
circumstances, to resolve the differences between the parties and the desire of the parties
to pursue alternative strategies to secure a settlement
NEGOTIATION
Failure to reach
agreement
Involvement of ‘third
party’
Industrial action
Conciliation
Arbitration
Award
Continuation of negotiations
by the two parties
Basis for further
negotiation
Binding on
both parties
Solution
Source: Salamon M (1988) Industrial Relations
The merits of third-party intervention strategies of conciliation and arbitration, as
compared with the participants’ own intervention strategy of industrial action, may be
viewed from three different perspectives:
1. From an ends perspective (which emphasises the inherent requirement for the
collective bargaining system to achieve a resolution to disputes) they may be viewed
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as parallel, equal and alternative strategies – each available in the even of a
breakdown in negotiations and each capable of securing a settlement and the
continuation of the contractual relationship.
2. From a quality of means perspective (which places emphasis on the achievement of a
settlement through processes based on a joint and direct agreement and regulation)
arbitration may be regarded as subordinate and inferior to either conciliation or the
participants’ own use of industrial power to resolve their differences.
3. From an effect of means perspective (which places greatest emphasis on the
maintenance of industrial peace and the avoidance of disrupt within the industrial
relations system) the intervention strategies of conciliation and arbitration may be
perceived as preferable and superior strategies to the use of industrial action.
Conciliation may be defined as a strategy wherein the ‘third party’ supports the direct
bipartite negotiating process by assisting the parties to identify the case and extent of
their differences, to establish alternative solutions and their various implications and to
develop and agree a mutually acceptable settlement. The responsibility for making
decisions and reaching a solution still remains a joint one between management and
union – as it would if there was no intervention. The conciliator acts as a medium for the
continuation of the dialogue.
7. Importance of Industrial Action
The importance of voluntary and direct negotiations is reflected in a number of ways:
1. There is a general belief amongst all the parties that conciliation or arbitration should
not be used until the normal, jointly agreed negotiating and disputes procedures in the
organisation or industry has been exhausted.
2. Where third-party intervention is invoked there is a clear preference amongst
management and unions for conciliation rather than arbitration and there is no
automatic resort to arbitration if conciliation fails.
3. Whilst in the majority of cases where arbitration does take place it is invoked by a
joint request from the two parties, either side may be reluctant or even refuse to
accept, formally and in advance, to be bound by the outcome of the award. Thus,
arbitration may be used not to provide the final settlement but rather to provide a
fresh basis for further bipartite negotiations.
4. Conciliation may be invoked to circumvent an impasse in the negotiating process
created by the use of industrial action and thereby allow the negotiations to continue
albeit in a slightly different form.
Conciliation and negotiations
Conciliation plays a positive role in supporting the negotiation process. It can provide an
avenue for the maintenance of the negotiating dialogue:
1. It can provide an avenue for the maintenance of the negotiating dialogue at a time
when it would otherwise break down. There may be occasions, such as outright
refusal by either side to negotiate on a particular issue, where conciliation provides
perhaps the only possible means for establishing or maintaining contact between the
parties.
2. The introduction of a third party, who must be informed of the issues and viewpoints
involved in the dispute, requires both parties to set out their position in a reasoned and
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orderly manner. The act of having to prepare a ‘statement of case’ for the conciliator
or arbitrator may itself provoke a re-examination of the situation and movement in
position by either or both parties.
3. The conciliator or arbitrator, because he/she is independent and has not been involved
in the development of the dispute, is able to approach the issue with a fresh and
unprejudiced mind. He/she is able, having identified the common ground as well as
the points of difference between the parties, to indicate approaches, which may not
have been seen by the parties to the dispute.
4. The use of conciliation or arbitration may allow the proposal of a solution that has
been precluded by the mandates within which either or both of the negotiators have
been required to negotiate by their principals. Thus, the ‘blame’ for a solution outside
the original mandate can be shifted from the negotiators to the third party. It would
appear, however, that this role for conciliation and arbitration is generally perceived
as being confined to the ‘other side’.
Whilst conciliation or arbitration may be necessary to ensure the maintenance of the
collective bargaining relationship, it is important to realise that their use, particularly on a
frequent basis, may distort the relative bargaining power between the parties concerned.
It is significant that both management and trade unions may perceive the interventions of
conciliation or arbitration to be a weakening of their bargaining power.
Government policy on conciliation and arbitration
An examination of government policy towards conciliation and arbitration reveals three
distinct features:
1. To maintain industrial peace – Conciliation and arbitration play an important role in
the government policy of seeking to maintain industrial peace within the industrial
relations system. The government seeks to minimise the use of industrial action not
only by establishing and maintaining the facilities for conciliation and arbitration (at
public expense) but also by encouraging management and unions to avail themselves
for these facilities. In addition, the government has had the facility to take a more
direct role by itself initiating the processes of conciliation or arbitration in those
disputes, which it considers to be serious because of their effect on the economy or
the community. The ultimate success of conciliation or arbitration in this area
depends on their being perceived by management and unions as, in some way, more
fair and equitable processes for the resolving of differences than the use of industrial
power.
2. To influence the operation of the industrial relations system – The government seek
to use the availability of conciliation and arbitration as a way of influencing the
operations of the industrial relations system.
3. To influence the outcome of negotiations – The government have sought to use the
processes of conciliation and arbitration to directly influence the outcome of
negotiations.
Outside Court Settlement
Of late, an additional alternative to court settlement of dispute has been provided in the
form of outside court settlement of disputes. This avenue has been provided to relieve
pressure on the Industrial Relations Court (IRC). Prominent persons in the field of
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human resource management have been trained as assessors to enable out of court
settlements.
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PART 5 – MODERN DEVELOPMENTS
1. Deindustrialization
Deindustrialization is a process of social and economic change caused by the removal or
reduction of industrial capacity or activity in a country or region, especially heavy
industry or manufacturing industry. It is an opposite of industrialization. There are
multiple interpretations of what this process is. Cairncross (1982) and Lever (1991) offer
four possible definitions of deindustrialization:
1. Deindustrialization can mean a straightforward decline in the output of
manufactured goods or in employment in the manufacturing sector. This,
however, can be misleading because short-run or cyclical downturns may be
misinterpreted as long-run deindustrialization.
2. Deindustrialization can mean a shift from manufacturing to the service sectors, so
that manufacturing has a lower share of total output or employment. This may
also be misleading; however, as such a shift may occur even if manufacturing is
growing in absolute terms.
3. Deindustrialization can mean that manufactured goods comprise a declining share
of external trade, so that there is a progressive failure to achieve a sufficient
surplus of exports over imports to maintain an economy in external balance.
4. Deindustrialization can be defined as a continuing state of balance-of-trade deficit
(as described in the third definition above) that accumulates to the extent that a
country or region is unable to pay for necessary imports to sustain further
production of goods, thus initiating a further downward spiral of economic
decline.
Explanations for deindustrialization - Theories that predict or explain
deindustrialization have a long intellectual lineage. Rowthorn (1992) argues that Marx's
theory of declining (industrial) profit may be regarded as one of the earliest. This theory
argues that technological innovation enables more efficient means of production,
resulting in increased physical productivity, i.e. a greater output of use value per unit of
capital invested. In parallel, however, technological innovations replace people with
machinery, and the organic composition of capital increases. Assuming only labor can
produce new additional value, this greater physical output would embody a smaller value
and surplus value. The average rate of industrial profit would therefore decline in the
longer term.
Rowthorn and Wells (1987) distinguish between explanations of deindustrialization that
see it as a positive process of, for example, maturity of the economy, and those which
attribute deindustrialization to negative factors like bad economic performance. They
suggest that deindustrialization may be both an effect and a cause of poor economic
performance.
Pitelis and Antonakis (2003) suggest that to the extent that manufacturing is characterized
by higher productivity, this will lead, ceteris paribus, to a reduction in the relative cost of
manufacturing products, thus a reduction in the relative share of manufacturing (provided
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manufacturing and services are characterized by relatively inelastic demand). Moreover,
to the extent that manufacturing firms downsize through, e.g. outsourcing, contracting out
etc., this will reduce the manufacturing share without negatively influencing the
economy. Indeed, it will potentially have positive effects, provided such actions increase
firm productivity and performance.
Another possible explanation of deindustrialization concerns the structure of demand. As
incomes increase, demand is argued to shift in favour of services. Services are thought to
be characterized by income elasticity larger than unity, which means that the growth of
demand for services will tend to exceed that of income, leading to an increase in the
relative weight of services. This view, however, has not gained wide acceptance within
the community of economic theorists, often because such arguments tend to confuse
intermediate and final demands. Income-elasticity, in the microeconomic sense, relates to
the final preferences of consumers, not the supply chain decisions of business. It is the
latter, through the rapid recent expansion of business services that has been the dominant
counterpart to deindustrialization. Further, the microeconomic concept of income
elasticity implies no change in relative prices; a significant amount of the rising
proportion of nominal income spent on consumer services reflects marked changes in
relative prices, rather than volumes. Such views are supported by a range empirical
studies that fail to reject the hypothesis that the income elasticity for (final, consumer)
services is actually unity.
George Reisman (2002) identified inflation as a contributor to deindustrialization. In his
analysis, the process of fiat-money inflation distorts the economic calculations necessary
to operate capital-intensive manufacturing enterprises, and makes the investments
necessary for sustaining the operations of such enterprises unprofitable.
Institutional arrangements have also contributed to deindustrialization such as economic
restructuring. With breakthroughs in transportation, communication and information
technology, a globalized economy that encouraged foreign direct investment, capital
mobility and labor migration, and new economic theory's emphasis on specialized factor
endowments, manufacturing moved to lower-cost sites and in its place service sector and
financial agglomerations concentrated in urban areas (Bluestone & Harrison 1982, Logan
& Swanstrom 1990).
The term de-industrialization crisis has been used to describe the decline of
manufacturing in a number of countries and the flight of jobs away from cities. One
example is Detroit. Companies moved their production to other areas where wages and
standards were lower. In addition, technological inventions that required less manual
labor erased many manufacturing jobs.
Detroit and the auto-industry are highly regarded as the 'perfect' example of what deindustrialization can do to an area and its people. Today the area has many jobless
people, a high concentration of poverty, and noticeable racial isolation. When industry
was booming and the area was turned into a factory sort of town, things were good for the
people and workers. Presently, however, the factories are abandoned or the areas are now
prairie lands. Over one third of the residents live below the poverty line.
The population of the United States has nearly doubled since the 1950s, adding
approximately 150 million people. Yet, during this period (1950-2007), the of population
of the great manufacturing cities of the northeast have declined significantly in
population: Detroit, Cleveland, Pittsburgh, St. Louis and Buffalo, NY, have all lost nearly
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half their population in the past half-century. During the 1950s, the nation's twenty
largest cities held nearly a fifth of the US population. Today, in 2006, this proportion has
dropped to about one tenth of the population. Many small and mid-sized manufacturing
cities in the Manufacturing Belt experience similar fates. For instance the city of
Cumberland, Maryland declined from a population of 39,483 in the 1940s to a population
of 20,915 in 2005.
As Americans migrated away from the manufacturing centers, they formed sprawling
suburbs, and many former small cities such as Phoenix, Arizona have grown
tremendously in the last 50 years. For instance, in 2005, Phoenix has added 43,000
people, more than any other city in the US. However, Phoenix was barely in the top 100
cities in 1950 with a ranking of 99th and a population of 107,000. In 2005, the population
has grown to 1.5 million, ranking as the fifth largest city in the US.
The author of The African American Experience in Cyberspace explains that jobs left
cities the moment African Americans arrived. As African Americans began to populate
the inner cities, industrial production was moved to rural areas-leaving workers behind.
What was happening, the author explains, was that technology was making unskilled
labor unneeded, and jobs were being relocated to, not only other areas of the country, but
sometimes to third world countries which were far away..
2. Economic Restructuring & Impacts
Economic restructuring refers to the phenomenon of Western urban areas shifting from a
manufacturing to a service sector economic base. This transformation has affected
demographics including income distribution, employment, and social hierarchy;
institutional arrangements including the growth of the corporate complex, specialized
producer services, capital mobility, informal economy, nonstandard work, and public
outlays; as well as geographic spacing including the rise of world cities, spatial
mismatch, and metropolitan growth differentials.
Demographic impact - As cities experience a loss of manufacturing jobs and growth of
services, sociologist Saskia Sassen affirms that a widening of the social hierarchy occurs
where high-level, high-income, salaried professional jobs expands in the service
industries alongside a greater incidence of low-wage, low-skilled jobs, usually filled by
immigrants and minorities A "missing middle" eventually develops in the wage structure.
Several effects of this social polarization include the increasing concentration of the poor,
blacks, and Hispanics in large U.S. cities and distinct social forms such as the underclass,
informal economy, and entrepreneurial immigrant communities. In addition, the declining
manufacturing sector leaves behind strained blue-collared workers who endure chronic
unemployment, economic insecurity, and stagnation due to the global economy's capital
flight. Wages and unionization rates for manufacturing jobs also decline. One other
qualitative dimension involves the feminization of the job supply as more and more
women enter the labor force usually in the service sector.
Both costs and benefits are associated with economic restructuring. Greater efficiency,
job creation, gentrification, and enhanced national competitiveness are associated with
social exclusion and inclusion. The low-skilled, low-income population faces the loss of
opportunities, full participation in society, lack of access in labor market and school,
weak position in housing markets, limited political participation, and restricted socialcultural integration. Conversely, high-skilled, high-income professionals enjoy social
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inclusion with modern amenities, conveniences, social participation, and full access to
public resources.
Furthermore, sociologist William Julius Wilson argues that the deindustrialization of
manufacturing employment have exacerbated joblessness in the poor black community
correlating with a rise in single-mother households, high premature mortality rates, and
increasing incarceration rates among black males. With privileged African Americans
gaining professional upward mobility through affirmative action and equal opportunity
sanctions in education and employment, the less-skilled, less-educated African
Americans fall behind. This creates a growing economic class division within the black
community accentuated by global economic restructuring without government response
to the disadvantaged. Furthermore, Wilson asserts that as the black middle class leave the
predominantly black inner city neighborhoods, informal employment information
networks are eroded. This isolates poor, inner city residents from the labor market
compounding the concentration of poverty, welfare dependency, rise of unemployment,
and physical isolation in these areas.
City youth are also affected such as in New York City. The declines in education, health
care, and social services and the dearth of jobs for those with limited education and
training along with the decay of public environments for outdoor play and recreation
have all contributed to fewer autonomous outdoor play or "hanging out" places for young
people. This in turn affects their gross motor development, cultural build-up, and identity
construction. Children become prisoners of home relying on television and other outlets
for companionship. Contemporary urban environments restrict the opportunities for
children to forge and negotiate peer culture or acquire necessary social skills. Overall,
their ecologies have eroded in recent years brought about by global restructuring.
Institutional arrangements - When the 1973 oil crisis affected the world capitalist
economy, economic restructuring was used to remedy the situation by geographically
redistributing production, consumption, and residences. City economies across the globe
moved from goods-producing to service-producing outlets. Breakthroughs in
transportation and communications made industrial capital much more mobile. Soon, a
quaternary or producer services emerged as a fourth basic economic sector where routine
low-wage service employment moved to low-cost sites and advanced corporate services
centralized in cities. These technological upheavals brought about changes in institutional
arrangements with the prominence of large corporations, allied business and financial
services, nonprofit and public sector enterprises. Global cities such as New York and
London become centers for international finance and headquarters for multinational
corporations offering cross currency exchange services as well as buildup of foreign
banking and trading. Other cities become regional headquarter centers of low-wage
manufacturing. In all these urban areas the corporate complex grows offering banking,
insurance, advertising, legal council, and other service functions. Economic restructuring
allows markets to expand in size and capacity from regional to national to international
scopes.
Altogether, these institutional arrangements buttressed by improved technology reflect
the interconnectedness and internationalization of firms and economic processes.
Consequently, capital, goods, and people rapidly flow across borders. Where the mode of
regulation began with Fordism and Taylorization in the industrial age then to mass
consumption of Keynesian economics policies, it evolves to differentiated and
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specialized consumption through international competition. Additionally, in the labor
market, nonstandard work arrangements develop in the form of part-time work,
temporary agency and contract company employment, short-term employment,
contingent work, and independent contracting. Global economic changes and
technological improvements in communications and information systems encouraged
competitive organizations to specialize in production easily and assemble temporary
workers quickly for specific projects. Thus, the norm of standard, steady employment
unravels beginning in the mid-1970s.
Another shift in institutional arrangement involves public resources. As economic
restructuring encourages high-technology service and knowledge-based economies,
massive public de-investment results. Across many parts of the U.S. and the
industrialized Western nations, steep declines in public outlays occur in housing, schools,
social welfare, education, job training, job creation, child care, recreation, and open
space. To remedy these cutbacks, privatization is installed as a suitable measure. Though
it leads to some improvements in service production, privatization leads to less public
accountability and greater uneven in the distribution of resources. With this reform in
privatizing public services, neoliberalism has become the ideological platform of
economic restructuring. Free market economic theory has dismantled Keynesian and
collectivists’ strategies and promoted the Reagan and Thatcher politics of the 1980s.
Soon free trade, flexible labor, and capital flight are used from Washington D.C. to
London to Moscow.. Moreover, economic restructuring requires decentralization as states
hand down power to local governments. Where the federal government focuses on
mainly warfare-welfare concerns, local governments focus on productivity. Urban policy
reflects this market-oriented shift from once supporting government functions to now
endorsing businesses.
Geographic impact - Urban landscapes especially in the U.S. have significantly altered
in response to economic restructuring. Cities such as Baltimore, Detroit, St. Louis and
others face population losses which result in thousands of abandoned homes, unused
buildings, and vacant lots, contributing to urban decay. Such transformations frustrate
urban planning and revitalization, fostering deviance in the forms of drug-related activity
and vagrancy. Older, compact, industrial U.S. cities have been rendered obsolete. Urban
spaces become playgrounds for the urban gentry, wastelands for low-paid service
workers, and denizens for the underground economy. In some areas, gentrification
projects have caused displacement of poverty-stricken residents. Sunbelt cities such as
Miami and Atlanta rise to become key business centers while Snowbelt cities such as
Buffalo and Youngstown decline. Even housing markets respond to economic
restructuring with decaying housing stocks, escalating housing prices, depleting tax base,
changes in financing, and reduction in federal support for housing. Soon, spatial divisions
among wealthy and poor households exacerbate. Moreover, with the movement of bluecollared employment from central cities, geographically entrenched housing
discrimination, and suburban land use policy, African American youths in inner cities
become victims of spatial mismatch, where their residences provide only weak and
negative employment growth and they usually lack access to intrametropolitan mobility.
High-order services, an expanding sector in the industrialized world, become spatially
concentrated in a relative small number of large metropolitan areas, particularly in
suburban office agglomerations.
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Meaning - In cultural terms, economic restructuring has been associated with
postmodernity as its counterpart concerning flexible accumulation. Additionally, the term
carries with it three core themes: historical, radical rupture into post-industrial economic
order; priority of economic forces over social/political forces; and structure over agency
where the process is independent of human will, as it takes place according to economic
logic (Logan & Swanstrom 1990). In addition, economic restructuring demonstrates the
increasing complex and human-capital intensive modern society in Western nations.
Concluding remarks
In this course, we explored the concept of industrial sociology by examining the
foundations of industrial revolution and its impacts on society. We examined the
consequences, especially the negative impacts on society. We discovered that as
organisations pursued ways to be more effective they adopted scientific management
approaches which brought about further negative impacts on people working in
organisations. The reactions to these impacts are documented in Marx’s theories. As a
direct consequence of the negative impacts on people, we saw the development of trade
unionism as a way to counter the exploitive nature of capital.
Next we examined in detail the rise of industrial relations and its practice and processes
in modern organisations. The prospects for the future are that industrialisation will take a
much softer form incorporating economic restructuring and impacts on people, nature and
the environment.
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Examination Questions
JULY 2009
Question one (Compulsory)
Industrialization introduces a form of philosophical change, where people obtain a
different attitude towards their perception of nature:
a) Highlight the major factors that lead to successful industrialisation in a nation.
Give examples.
25%
b) Identify and explain the main changes in Zambian society brought/caused by
industrialisation.
25%
Question two
The Marxist perspective views scientific management as a capitalist management style
that is responsible for many industrial ills in society.
Discuss this observation.
25%
Question three
Discuss the consequences of the use of power and authority in industrial relations with
respect to organisational management.
25%
Question four
Explain how individualism and collectivism have developed and how they affect the
management of industrial relations.
25%
Question five
Highlight the underlying principles for collective bargaining and explain its purposes,
outcomes and significance in industrial relations.
25%
AUGUST 2009
Question one (Compulsory)
Work alienation is a consequence of the following trends in industry: level of
industrialisation, urbanism, narrowed job scope, bureaucratic reorganization and
technology.
Explain how work alienation arises from each of the trends.
25%
Question two
Explain Marx’s theories of exploitation and labour power in relation to capitalism and
modern industrial relations.
25%
Question three
Explain the labour relations framework as postulated by Dunlop and discuss the
implications in the Zambian context.
25%
Question four
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Trade unionism is a consequence of industrialisation. Discuss this statement
25%
Question five
Highlight the importance of the following in industrial relations:
i)
integrity and trust
ii)
fairness and equity
iii)
industrial action
iv)
joint consultation
v)
arbitration
25%
SEPTEMBER 2009
Question one (Compulsory)
Trade unionism is a consequence of industrialisation. With respect to Zambia
a) Explain the development progress of trade unions and its effects on the society
and industry
b) Discuss the functions of trade unions and highlight the major achievements and
failures.
25%
Question two
Explain the concepts and practical applications of social action and social partnership in
industrial relations.
25%
Question three
a) Why is communication important in managing industrial relations?
b) Identify and explain the main forms of communication industrial relations 25%
Question four
a) Discuss the role and objectives of industrial action.
b) Explain when it is appropriate to resort to i) conciliation ii) arbitration and iii)
mediation
25%
Question five
Write explanatory notes on the following concepts:
vi)
deindustrialization
vii)
exploitation
viii) the negative impacts of scientific management
ix)
joint consultation
x)
collective bargaining
25%
DECEMBER 2009
Question One (Compulsory)
The relationship between capital and labour has been the subject of much of Marx’s
thoughts and writings.
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Write explanatory on the following themes and highlight their effects on capital-labour
relations in the current era:
a) Exploitation
b) Human nature
c) Alienation
d) Labour power
(10 marks each)
Question Two
Consider the role played by trade unions today and:
a) Discuss the origins of trade unionism from the defensive and aggressive perspectives
(15 marks)
b) Explain the objectives of trade unionism in the modern era.
(15 marks)
Question Three
Frederick Taylor has been criticized for reducing a human being to a mere pair of hands.
Explain how the application of this notion developed into alienation and exploitation.
(30 marks)
Question Four
Consider the process of industrialisation in general and:
a) Discuss the factors that are conducive to industrialisation
b) Explain the positive and negative consequences of industrialisation.
(15 marks)
(15 marks)
Question Five
Explain the concept of deindustrialization and discuss how it can be successfully applied
in Zambia.
(30 marks)
Question Six
In today’s management of industrial relations two organisational processes are frequently
used to maintain good workplace relations: joint consultation and collective bargaining.
Explain how the two processes are used in maintaining relations.
(30 marks)
MAY 2010
Question One (Compulsory)
The focus of most assertions about exploitation of human beings is the socio-economic
phenomenon where people trade their labor or allegiance to a powerful entity, the state, a
corporation or any other private company.
With regard to this observation:
a) state the main tenets of the theory of exploitation
10%
b) what are Marx’s views on exploitation
10%
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c) explain the implications of neo-classical view and the new liberal view of
exploitation
10%
d) identify and explain the implications of exploitation in developing nations 10%
Question Two
Managers are frequently called upon to ensure harmony in the workplace and to maintain
good relations with workers: joint consultation and collective bargaining.
Explain how managers use the two processes to maintain relations.
30%
Question Three
Urbanisation and Trade unionism are direct consequences of industrialisation.
Identify and discuss the effects of each on our society.
30%
Question Four
Write an expose on Marx’s theories of human nature and alienation and how they affect
workplace relationships.
30%
Question Five
Discuss the effects of narrowed job scope, bureaucratic reorganization and technology on
workplace relationships.
30%
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