Industrial relations development can be based - Industrial Relations Management

  1. Labor is more than a commodity.That is, unlike inanimate factors of production such as machinery and raw materials, the work of human beings raises questions about the impact of work and work relations upon employees, questions that are societal concerns. Some industrial relations scholars (such as Roy J. Adams, in an 1992 article inLabor Studies Journal) take this assumption a step further in arguing that a society cannot be truly democratic if it does not provide mechanisms by which employees can influence their working lives, i.e., a means for industrial democracy.
  2. There are inherent conflicts of interest between employers and employees not only in terms of economic matters (e.g., wages versus profits), but also in terms of inherent friction in superior-subordinate relations.
  3. There are large areas of common interests between employers and employees despite their conflicting interests, and important interdependencies (e.g., firms need workers and workers need jobs). These compel employers and employees to resolve their conflicting interests for the sake of mutual benefits.
  4. There is an inherent inequality of bargaining power in most individual employer-employee relationships, and thus collective representation of employees (e.g., unions) is often necessary to establish true freedom of contract. That is, it is not sufficient to argue that since employer and employee are each legally free to establish or terminate an employment relationship, that they are then on equal footing.
  5. Pluralism—the notion that there are multiple competing interest groups in society, each with valid interests. Thus in the workplace and in the larger society the goals of workers, employers, and society should be accommodated in an equitable balance. This contrasts with the often implicit assumption in business areas that the goals of the firm or its shareholders are supreme. Similarly, it contrasts with economists' stress on efficiency as a supreme goal, although some labor economists (such as Richard B. Freeman and James L. Medoff, authors of What Do Unions Do?) have updated and expanded upon earlier arguments for the efficiency of collective voice mechanisms (e.g., collective bargaining and other forms of worker representation) relative to individualistic market mechanisms (e.g., the worker's choice to enter or exit an employment relationship).

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