Discuss the historical background of Industrial relations

Industrial relations studies the relationship existing between employees and employers in an organization. It is characterized by management representatives, employee unions and procedures and policies which guide or regulate the interaction and relationship between them.

Industrial relations has its roots in in the industrial revolution which created the modern employment relationships. Labor problems arose such as low wages, long working hours and poor working conditions resulted in high employee turnover, violent strikes and a threat of social instability.

Industrial relations was developed in the 19th century as a middle ground between classicals economist and maxism by Sidney Webb and Beatrice Webb’s. Institutionally, International relations was founded by John R Commons at the University of Wisconsin in 1920. John Rockefeller Jr. financed progressive labor management relations after a bloody aftermath of a strike in one of a Rockefeller owned coal mine in Colorado.

Montague Burton also chaired industrial relations in at universities of Leeds, Cardiff and Cambridge from (1929- 1930).
By 1930, there was a rapid increase in membership of trade unions in the United States which resulted in violent labor management conflict as management opposed the trade unions. They led to incurring of heavy losses and reputation crisis due to the constant strikes and violence in the industries. After the World War II, the trade union membership intensified as the workers fought for better working conditions, better wages and safe places of work.

In 1945, Cornell University School of Industrial and Labor Relations was formed joining other 75 such schools which had been formed previously. In 1950, Industrial Relations was formalized as an academic discipline studied in more than Seventy five academic institutions.
Three theories relating to Industrial Relations were formed through its evolution.

Marxist Perspective.

There’s a constant clash between employer (capitalist) and the employee. The employer tries to maximize profits by paying the workers as little as possible while striving for a monopoly relationship. Workers on the other hand view themselves as vital components for productivity in the organization and demand or strive for a fair share of profits through formation of trade unions which will represent their interests.

Pluralist Theory

The relationship between the employer and employee ids viewed s one of conflict but not to such a large extent as that of Marxist approach. The two sides come together and negotiate to reach a middle ground which is applicable and upheld by both parties. Each party is satisfied and harmony ensues in the organization.

Unitary Theory

It’s a theory where the relationship between the employer and employee is of cooperation. Conflict is frowned upon and parties solve issues which may arise as fast as they may crop up. The two parties are in the same team and goals and objectives of the company are well known by all and hence they work towards achievement of this mutual goals. Decisions and suggestions are made by both the employers and employees.

Conclusion

However, modern organizations are leaning more into the Human Resource Function as opposed to Industrial relations functions to solve issues which may be affecting workers and any problems the management and employees may face. That being said, it is unreasonable to discredit the major role Industrial relations has played over the years and the amount of success Trade Unions have brought about. Employees in modern organizations have their interests and views taken into account and the relationship between employers and employees has improved drastically leading to high productivity in the organizations.

REFERENCES
Webbs, S. W. (1897). Industrial Democracy. London: Bombay Longman.
Zetlin, J. (1975, May). Industrial Relations Historical Background. The Economic History, 159-184.

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WanguiHinga answered the question on November 26, 2019 at 19:35