¢ Changes
in labor relations within an organization are often affected by management
practices.
¢ The
scientific management school (best represented by F. Taylor) viewed the worker
as a mere cog in the organizational structure.
¢ Since,
according to Taylor, the worker does not possess creative ability let alone
intelligence and wisdom, the elements of a human-oriented management system
which promotes sound industrial relations such as communication, consultation
and participation, found no place in the theory.
¢ The
hallmarks of organizations based on this model are centralized and clear lines
of authority, a high degree of specialization, a distinct division of labor,
numerous rules pertaining to authority and responsibility, and close
supervision.
¢ This
concept of management can be seen as an ideal breeding ground for an industrial
relations system based on conflict rather than on cooperation
¢ The
opposite theory, appropriately styled the human relations school, proposed by
Douglas McGregor who gave an impetus to the development of a management theory
which focused on the human being as part of an enterprise which, in turn, was
viewed as a biological system, rather than as a machine.
¢ Human
relations, trust, delegation of authority, etc. were some of the features of
this theory.
¢ The
present trend in labor relations and human resource management is to place
greater emphasis on employee involvement, harmonious employer - employee
relations and mechanisms, and on practices which promote them.
¢ One
of the important consequences of globalization and intense competition has been
the pressure on firms to be flexible.
¢ Traditional
assumptions that efficiency is achieved through managerial control, technology
and allocation of resources have given way to the view that efficiency is the
result of greater involvement of employees in their jobs, teams and the
enterprise.
¢ Organizations
which have made this shift tend to reflect the following characteristics:
¢ Few hierarchical levels;
¢ Wide spans of control;
¢ Continuous staff development;
¢ Self managing work teams;
¢ Job rotation; commitment to quality;
¢ Information sharing;
¢ Pay systems which cater to performance rewards and not only payment for
the job;
¢ Generation of high performance expectations;
¢ A common corporate vision; and
¢ Participative leadership styles.
¢ At
its inception, the labor market was dominated by the classical economics view
which espoused free and unregulated labor markets.
¢ This
laissez-faire capitalism led to social injustices and inequities since labor
did not have the power to bargain with employers on terms which even approached
a degree of equality in bargaining strength.
¢ In
more recent times industrial relations has been influenced by other social
sciences such as organizational psychology and behavior.
¢ Traditionally
economics and law were two main influences on industrial relations, which led
to a concentration on macro level industrial relations, and therefore on
unions, government and collective bargaining.
¢ Organizational
behavior has been influenced by psychology which centers on the individual, and
by social psychology which focuses on relationship between people and on group
behavior
