1.

0 Introduction
This piece of work explores the fundamental concept of Employee and Industrial Relations.
This is a very essential role in the theory and practice of Human Resource Management, HRM.
The concept of workplace relations is presented in a two-way approachemployee relations and
industrial relations.
Employee and industrial relations are concerned with generally managing the employment
relationship with particular reference to terms and conditions of employment, issues arising from
employment, providing employees with a voice and communicating with employees (Armstrong,
2009: 875). Organizations deal with employees either directly or through trade unions or
employee organization.
Employee relations cover a wide spectrum of the employment relationship ranging from
recruitment issues to remuneration and employee development programs.
2.0 Employee Relations
Armstrong, (2009: 878), defines employee relations as the management and maintenance of the
employment relationship, which involves handling the pay-work bargain, dealing with
employment practices, terms and conditions of employment, issues arising from employment,
providing employees with a voice and communicating with employees. It consists of approaches
adopted by employers to deal with employees individually as opposed to industrial relations
which collectively deals with employees through trade unions. Industrial relations is dealt in the
ensuing sections of this piece of work.
2.1 Parties to the Employment Relation
Basically, there are three cardinal parties that are members to employee relationship. Farnham,
2000, as quoted by Armstrong, (2009), has identified the parties as comprising of the following
groups: 1) Employers and employees, 2) Trade unions and Employer Associations, 3) State
Agencies/ Authorities/government.
I will start with the government as principal party to this relationship. The government plays a
number of vital roles in shaping employee relations. These include being a major employer in its
own right that sets standards of good employee relations practice, and acting as a paymaster in
both the public sector and through private contractor services of employment, as economic
manager by influencing prices and wages, as a rule maker and legislator of employment rights
and standards, and as a peace maker by providing services such as conciliation and arbitration.
For instance, in the United States of America (USA), the following governmental institutions
deal with employment related issues: Federal Labor Relations Authority (FLRA), National Labor
Relations Board (NLRB). These were created by National Labor Relations Act (NLRA). This
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body files unfair labor practice, (ULP) charges against any employer does not follow the law in
the country.
In the United Kingdom (UK), the agencies that deal with industrial relations issues include: The
Advisory Conciliation and Arbitration Service, (ACAS), the Central Arbitration Committee,
(CAC), the Employee Appeal Tribunal (EAT).
A labor or trade union is an organization of workers formed to promote, protect and improve
through collective action, social, economic and political interests of its members (Okumbe,
2001:141). Trade unions have the traditional function of promoting and protecting the interests of
their members. They redress the balance of power between employers and employees. Trade
unions provide workers with a collective voice to make their wishes known to management and
thus bring actual and desired conditions closer together, (Armstrong, 2009: 894). According to
the same author, on the same page, this is applicable not only to terms of pay, working hours and
holidays, but also to the way in which the individuals are treated in such aspects of employment
as the redress of grievances, discipline and redundancy. Noe et al (2003: 566), states that labor
unions seek, through collective action, to give workers a formal and independent voice in setting
the terms and conditions of their work. An international organization that deals with labor related
issues is known as International Labor Organization, ILO). Other important union organizations
include: European Trade Union Confederation (ETUC) and International Trade Union (ITUC).
Okumbe (2001), provides three basic functions of industrial relations: ensures that both formal
and informal relationships and continuous interactions between management and trade unions
are handled amicably; facilitates the development and application of rules and procedures for
collective bargaining and disputes administration; ascertains that the different parties such as the
state, the management, trade unions, human resource managers, shop stewards, and employers
play their different roles efficiently for good industrial relations.
Employee representatives also known as shop stewards, are engaged in negotiating and
discussing issues of mutual concern with management, and attending work councils and joint
consultative committees. Other duties include settling disputes, resolving collective grievances
among others.
2.2 Purpose of Employee Relations
Armstrong, (2009:879), gives the ensuing statement to explain the essence of employee
relations:
The purpose of employee relations is to provide for effective and consistent procedures
for rule-making, consistency in dealing with employee relations issues, fairness,
processes that can affect and improve employee behavior or mechanisms to resolve
differences/disputes. The value-added outcomes that can result from good employee
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relations include improved morale and commitment, fewer grievances, productivity

increases and control of labor costs.
This vivid description of purpose, explains the existence of employee relations groups.
Moreover, Bernardin (2010:427), asserted that issues related to organizational justice and
practices related to employee discipline and grievances are major factors in the employee
relationship and have a great deal to do with why employees join unions.
2.3 Elements of Employee Relations
Armstrong, (2009), delineates numerous elements that are incorporated into the employee
relations framework. Some of these are listed below:

The formal and informal employee policies of the organization

The development, negotiation and application of the formal systems, rules and
procedures, for collective bargaining, handling disputes and regulating employment.

The bargaining structures, recognition and collective agreements and practices that have
evolved to enable the formal system to operate.

Policies and practices for employee voice and communication.

The informal as well as the formal processes that take place in the shape of continuous
interactions between managers and team leaders or supervisors on the one hand and
employee representatives and individuals on the other.

The philosophies and policies of major players in the industrial relations scene: the
government of the day, management and trade unions.

The legal framework.

A number of institutions e.g. employment tribunals

3.0 Industrial Relations

Dunlop, (1958), was quoted by Armstrong, (2009), as having propounded the Systems Theory
of Industrial Relations. This states that industrial relations can be regarded as a system or web
of rules regulating employment and the ways in which people behave at work. According to the
theory, the role of the system is to produce the regulations and procedural rules that govern how
much is distributed in the bargaining process and how the parties involved, or the actors in the
industrial relations scene, relate to one another. Industrial relations is concerned with formal and
informal relations, which exist between management, employees and trade unions (Okumbe,
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2001:141). According to Williams (2009: 216), industrial or employment relation is concerned

with understanding the relationship between the employers and employees, and in particular how
this employment relationship is regulated, experienced, and contested.
The system is expressed in many formal and informal guises: in legislation and statutory orders,
in trade union regulations, in collective agreements and arbitration awards, in social conventions,
in managerial decisions, and in accepted custom practice. The rules maybe defined and
coherent or ill-defined and incoherent. This rule based focus renders an industrial relations
system normative one where a norm can be seen as a rule, standard or a pattern for action that
is generally accepted or agreed as the basis upon which the parties concerned should operate.
There are a number of criticisms to systems theory of industrial relations. One of the major
critiques is given below: Schilstra (1998) was quoted by Armstrong (2009) as condemning the
focus on rules by theory as misleading. The theory fails to explain how such rules and procedures
are determined; he also added that such rule based focus neglects the aspects of conflict and
change.
3.1 Regulations and Rules
There are four essential types of regulations in industrial relations rules, namely: internal and
external regulation, substantive and procedural rules, collective agreements, and custom and
practice. Each of these categories of rules is expounded hereunder.
3.1.1 Internal and External Regulation
Internal regulation is concerned with procedures for dealing with grievances, redundancies, or
disciplinary problems, and rules concerning the operation of the employment relationship and the
rights of shop stewards. External regulation is carried out by the means of employment
legislation, the rules of trade unions and employers associations, and the regulative content of
procedural or substantive rules and agreements.
3.1.2 Substantive and Procedural Rules
Substantive rules settle the rights and obligations attached to jobs. Procedural rules are intended
to regulate relationships, especially those involving conflict, between the parties to the collective
bargaining, and when their importance is emphasized, a premium is being placed on industrial
peace.
3.1.3 Collective Agreements
A collective agreement is a formal agreement between management and trade unions dealing
with terms and conditions of employment or other aspects of the relationships between the two
parties.
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3.2 Collective Bargaining

Flanders (1970) as quoted by Armstrong (200), defined collective bargaining as a social process
that continually turns disagreements into agreements in orderly fashion. Collective bargaining is
a process in which representatives of two groups, usually the management and labor union, meet
and negotiate an agreement which specifies the nature of future relationships between them
(Okumbe, 2001: 150). Schuler (1987:574) defines it as a complex process in which union and
management negotiators maneuver to win the most advantageous contract. It is the
establishment by negotiation and discussion of agreement on matters of mutual concern to
employers and unions covering the employment relationship and terms and conditions of
employment. Chamberlain and Khun (1965) were quoted by Armstrong (2009) as identifying
basically two forms of collective bargaining: conjunctive and cooperative.
3.2.1 Conjunctive Bargaining
This form of bargaining arises from the absolute requirement that some agreementany
agreementmay be reached so that the operations on which both are dependent may continue. It
results in a working relationship in which each party agrees, explicitly or implicitly, to provide
certain requisite services, to recognize certain seats of authority, and to accept certain
responsibilities in respect of each other. In other words, it is a scenario where both parties are in
dire need and seeking to reach agreement.
3.2.2 Cooperative Bargaining
Cooperative bargaining is the one in which it is recognized that each party is dependent on the
other and can achieve its objectives more effectively if it wins the support of the other. It can be
segregated into distributive and integrative bargaining. Distributive bargaining refers to a
complex system of activities instrumental to the attainment of one partys goals when they are in
basic conflict with those of the other party. According to Noe et al (2003:592), distributive
bargaining is the part of the labor-management negotiation process that focuses on a fixed
economic pie. Integrative bargaining is defined as a system of activities which are not in
fundamental conflict with those of the other party and which therefore can be integrated to some
degree.
3.3 Issues of Collective Bargaining
Bernardin (2010) identifies four main areas on which collective bargaining focus:

Wage-related issuesdetermination of basic wage rates, cost of living adjustments,

(COLAs), wage differentials, overtime rates, wage adjustments & two-tier wage systems

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Supplementary economic benefitspension plans, paid vacations, paid holidays, health

insurance plans, dismissal pay, reporting pay, supplementary unemployment benefits,
(SUBs)

Institutional issuesrights and duties of employers, employees, and unions, union

security, check off procedures, employee stock ownership plans, (ESOPs), and quality of
work life programs, (QWL)

Administrative issuesseniority, employee discipline, and discharge procedures,

employee health and safety, technological changes, work rules, job security, and training

4.0 Views about Industrial Relations

There are two basic views expressed about the basis of the relationship between management and
trade unions in particular or employees in general. These two views are: unitary and pluralist.
4.1 The Unitary View
The unitary view is one typically held by management who see their function as that of directing
and controlling the workforce to achieve economic and growth objectives. To this end,
management believes that it is the rule-making authority. Management tends to view the
enterprise as a unitary system with one source of authoritymanagement and one focus of
loyaltyorganization.
The unitary view, which is essentially autocratic and authoritarian, has sometimes been
expressed in management as managements right to manage. The philosophy of HRM with its
emphasis on commitment and mutuality owes much to unitary perspective.
4.2 The Pluralist View
The pluralist view holds that an industrial organization is a plural society, containing many
related but separate interests and objectives that must be maintained in some kind of equilibrium.
In place of a corporate unity reflected in a single focus of authority and loyalty, management has
to accept the existence of rival sources of leadership and attachment. Drcuker (1951), was quoted
by Armstrong as presenting a triple personality of a business enterprise: it is at once an
economic, a political, and a social institution. Production and distribution of incomes
economic; a system of government where managers collectively exercise authority over
employees but also engage in intricate political relationshipspolitical; organizational
community (interests, beliefs, sentiments, and values of various groups)social.

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Pluralism regards the workforce as being represented by an opposition that does not seek to
govern. The view of pluralism is embraced by most organizations today away from autocracy
and authoritarianism.
5.0 Employee Relations Processes
Employee relations processes consist of the approaches, methods and procedures adopted by
employers to deal with employees either collectively through their trade unions or individually.
When talking about employee relations processes, we look at approaches, policy areas and policy
choices. These are discussed below.

5.1 Approaches
There are four main approaches to employee relations: adversarial, traditional, partnership, and
power sharing approaches. Adversarial approach is when the organization decides what it wants
to do, and employees are expected to fit in. Traditional approach refers to a good day-to-day
working relationship, but management proposes and the workforce reacts through its elected
representatives. Partnership approach is when the organization involves employees in the
drawing up and execution of organizational policies, but retains the right to manage. Power
sharing approach to employee relations refers to when the employees are involved in both dayto-day and strategic decision making.
5.2 Policy Areas
Several policy areas are identified in employee relations processes. These include, inter alia, the
following:

Trade union recognitionwhether trade unions should be recognized or de-recognized,

which union or unions the organization prefers to deal with, and whether or not it is
desirable to recognize only one union for collective bargaining or employee
representational purposes

Collective bargainingthe extent to which it should be centralized or decentralized and

the scope of areas to be covered by collective bargaining

Employee relations proceduresthe nature and scope of procedures for redundancy,

grievance handling and discipline

Participation and involvementthe extent to which the organization is prepared to give

employees a voice on matters that concern them

Partnershipthe extent to which a partnership approach is thought to be desirable

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The employee relationshipthe extent to which terms and conditions of employment

should be governed by collective agreements or based on individual contracts of
employment ( collectivism vs individualism)

Harmonization of terms and conditions of employment for staff and manual workers

Working arrangementsthe degree to which management has the prerogative to

determine working arrangements without reference to trade unions or employees
(includes job-based or functional flexibility)

5.3 Policy Choices

Policy options for organizations on industrial relations and HRM include four variants: the new
realism, traditional collectivism, individualized HRM, and the back hole. New realism aims at
emphasizing and integrating HRM and industrial relations. This integration leads to greater
flexibility, more multi-skilling, the removal of demarcations and improvements in quality.
Traditional collectivism option prioritizes industrial relations without HRM. It involves retaining
the traditional pluralist industrial relations arrangements within an eventually unchanged
industrial relations system.
Individualized HRM option focuses on HRM without industrial relations. The back hole is an
option that does not consider industrial relations. It is becoming prevalent in organization in
which HRM is not a policy priority for management but where they do not see that there is
compelling reason to operate within a traditional industrial relations system. When such
organizations are facing a decision on whether or not to recognize a union, they are increasing
deciding not to do so.
6.0 Employee Relations Strategies
This is a strategy that sets out how employee relation policy objectives are to be achieved. There
are various strategy areas among which the following are included:

Altering the forms of recognition, or de-recognition

Changes in the form and the content of procedural agreements

New bargaining structures, including decentralization or single-table bargaining

The achievement of increased levels of commitment through involvement or participation

Deliberately by-passing trade union representatives to communicate directly

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Increasing the extent to which management controls operations in such areas as flexibility

Developing a partnership, with trade unions, recognizing that employees are

stakeholders and that it is to the advantage of both parties to work together

Generally improving the employee relations climate to produce more harmonious and
cooperative relationships

7.0 Collective Bargaining Outcomes

These include procedural agreements, substantive agreements, single-union deals, new-style
agreements, partnership agreements and employee relations procedures. Procedural agreements
set out the methods to be used and the procedures or rules to be followed in the processes of
collective bargaining and the settlement of industrial disputes. Their purpose is to regulate the
behavior of the parties to the agreement, but they are not legally enforceable and the degree to
which they are followed depends on the goodwill of both parties or the balance of power
between them.
Substantive agreements set out agreed terms and conditions of employment covering pay and
working hours and other aspects such as holidays, overtime regulations, flexibility arrangements
and allowances.
Single-union refers to when a union representing all the employees puts on the role of full-time
union officials. The single-union deals concerns the agreements reached by such unions with the
employers on behalf of all the employees.
New-style agreements refer to agreements whose negotiating and dispute procedures are based
on the mutually accepted rights of the parties expressed in the recognition agreement. The
intention is to resolve any differences of interests on substantive issues between the parties by
regulations, with arbitration providing a resolution where those issues exist.
Partnership agreements are based on social partnerships. A partnership agreement is one in which
both parties agree to work together to their mutual advantage and to achieve a climate of more
cooperative and therefore less adversarial industrial relations. Key values of a partnership
include: mutual trust and respect, joint vision for future and means to achieve it, continuous
exchange of information, recognition of the central role of collective bargaining, and devolved
decision making.
Employee relations procedures are those agreed by management and trade unions to regulate the
ways in which management handles certain industrial relations and employment processes and
issues.

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8.0 Conflict
According to Okumbe (2001), conflict is the process in which individuals or groups feel that
other individuals or groups have frustrated or are about to frustrate their plans, goals, beliefs, or
activities. He identified three major types of conflict:

Goal conflictthis refers to a situation where a person or a group desires a different

outcome

Cognitive conflictthis is a scenario where a person or a group holds ideas or opinions

that are inconsistent with those of others

Affective conflictthis is when one groups emotions, feelings or attitudes are

incompatible with those of others.

9.0 Dispute Resolution

Dispute resolute resolution processes comprise conciliation, arbitration and mediation.
Conciliation is a process of reconciling disagreeing parties. It is carried out by a third party who
acts in effect as a go-between, attempting to get the employer and trade union representatives to
agree on terms.
Arbitration is a process of settling disputes by getting a third party, the arbitrator, to review and
discuss the negotiating stances of the disagreeing parties and make a recommendation on the
terms of settlement that is binding on both parties who therefore lose control over the settlement
of their differences. It is a procedure in which a neutral third party studies the bargaining
situation, listens to both parties and gathers information and then makes recommendations that
are binding on the parties (Schuler, 1987: 592).The arbitrator is impartial. Arbitration is the
means of last resort for reaching agreement.
Mediation is a form of arbitration, although it is stronger than conciliation. It takes place when a
third party helps the employer and the union by making recommendations which, however, they
are not bound to accept. According to Cascio (2010:528), mediation is a process by which a
neutral third party attempts to help the parties in dispute to reach a settlement of the issues that
divide them.
10.0 Conclusion
Needless to expatiate, human resources are the most important of all productive resources of any
enterprise. It is an active resource while other resources, such as capital, finance among many,
are inactive. It is the human resources that organize and put into productive work the rest of
factors of production. In this context, therefore, to mange human resources well is critical and
tantamount to organizational success.
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Management of human beingsthinking social beingsis the crux of human resource

management, HRM, as a discipline. One of the main functions of a human resources manager is
employee and industrial relations. Focusing on employee-employer relations, industrial
relations deals with all the processes that aim towards harmonization of the various parties to a
working environment, resolving any potential conflicts and keeping employees motivated. This
boosts the morale and commitment to work. The commitment to hard work in turn leads to the
achievement of the organizational goals and objectives. Cascio (2010:502) maintains that
harmonious working relations between labor and management are critical to organizations.
This explains why employee and industrial relations processes are very essential to any
organization.

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11.0 References
Armstrong, M. (2009). Armstrongs Handbook of Human Resource Management Practice,
11th ed. London: UK. Kogan Page
Noe, R. A. et al (2003). Human Resource Management, International Ed. USA: McGraw-Hill
Okumbe, J. A. (2001). Human Resources Management: An Educational Perspective. Kenya:
Educational Development and Research Bureau
Schuler, R. S. (1987). Personnel and Human Resource Management, 3rd ed. USA: West
Publishing Company
Bernardin, H. J. (2010). Human Resource Management: An Experiential Approach, 5th ed. New
York, USA: McGraw-Hill/Irwin
Cascio, W. F. (2010). Managing Human Resources: Productivity, Quality of Work life, Profits,
8th ed. New York, USA: McGraw-Hill/Irwin
Gilmore, S. and Steve Williams, (2009). Human Resource Management. New York, USA:
Oxford University Press

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