Convergence and divergent theory in industrial relationship

convergence and divergent theory in industrial relationship

Convergence happens in industrialized societies at different levels such as Divergence theory means coping with macro economic problems, developed. Globalization on Industrial Relations and Employment Careers. Converging globalization, followed by potential reasons for growing divergence. . Building on the institutional theory of DiMaggio and Powell (), a first. national and local divergence, or diversity, in industrial relations practices and outcomes. .. assumptions of both pluralist and Marxist theories of convergence.

As Industrial Relations focuses in the study of key forms of behavior focusing on the employment relationship a new field of personnel management was being formed.

Convergence and Divergence in Employment Relations - Oxford Handbooks

Industrial Relations was then viewed as the inquiry and Human Resource as a practice. Personnel management or Human Resource emerged as a fusion of Scientific Management and welfare work which then evolved with the emergence of human relations movement. Personnel management maintains the view that the root cause of labor problems and conflict between labor and management is not intrinsic in the defects of the capital market but in the organizational and administrative practices of the management.

Hence, labor problems are management problems and improved industrial relations is a responsibility on the part of the management. Both try to take forward the knowledge on the varying aspects of the employment relationship such as problems in the prevailing business practices as well as the working conditions faced by the workers.

Furthermore, both try to seek reforms in the workplace and achieve efficient employee-employer relations or employment relationships. Departure of Human Resource from the field of Industrial Relations The major point of disagreement between Industrial Relations and Human Resource is on the discussion on the most effective way to resolve labor problems and appropriate role to be played by the labor unions and collective bargaining. Moreover, it is deemed as the former is more concerned with the organized and unionized relationship in the workplace while the latter is centered in the individual work relationship of labor and management.

Human Resource believes that alternative forms of industrial democracy or joint representation other than having labor unions and collective bargaining could materially take forward both the interests of the workers and the management. Another point of contention between the two areas is on the view on improving the work and work relations of both workers and employers. In order to achieve the goals of Industrial Relations which are improved efficiency, equity and human well-being in the workplace industrial democracy, social justice and societal and institutional transformation should be employed.

convergence and divergent theory in industrial relationship

On the other hand, Human resource posits that achievement of those could be attained by creating an organizational climate that promotes a mutuality of interests between management and labor and high levels of job satisfaction and productivity among the workers. Convergence of IR and HR The field of industrial Relations and Human Resource are of the same view and analysis that there is a need for employment reformation.

They also maintain similar views on the essential elements of reform to achieve increased efficiency and those could be achieved through the means of improved production methods, motivation, supervision, and cooperation between management and workers, greater equity in pay, good working conditions among others. Both have recognized that in order to resolve the problems it is important to take into consideration the human factor in structuring and managing work.

The two schools of thought believed that the autocratic, master-servant type of employment relations between workers and the management should be replaced with the type that would foster decent and fair treatment to its workers such as appropriate representation rights and due process in the establishment. Moreover, the two fields believed that the basic institutions of capitalism, private property and free labor markets should be maintained as these elements are the underpinnings of work and employment in which both workers and employers are apparently part of.

Divergence theory is supported by the recent development in a variety of technology and organizational structure in different directions.

  • International Industrial Relations – Convergence and Divergence

Employment structure has been changed from industrial based to service based. Formation of subcontracting firms, increasing part time and white-collar jobs increased number of women in the labour market and worker-involvement work strategies are examples of such developments.

convergence and divergent theory in industrial relationship

Other divergent trends are growing heterogeneity between and within national ER systems and individualization within the work force. The individulisation trend has caused de unionisation in many countries with unions representing smaller proportion of the employees Labour movements caused fragmentation of many firms which tried to maintain organizational unity at the national and sectoral level.

Hence, unions faced more pressure to preserve continuity and organizational change along with innovations. Since the s, union density has increased in the Scandinavian countries while it declined in the UK, Australia and USA, in spite of having similarities in increasing trade, technological transfer and capital flows between them. The MIT project involving scholars from different countries re-examined ER among developing market economies DME and analysed arguments of Kochan, Katz and McKersie that changes in the American IR from late s had resulted in a key change in the managerial strategic choices con firm-level ER practices.

They suggested framework in the form of a matrix that included three levels of decision-making -macro, industrial relations system and the workplace- each level having independent effect on ER, and three parties such as employers, unions and government.

The rows of the matrix represented three levels and the columns, the key parties. The MIT project analysed the relevance of strategic choice framework across countries and the effect of competitive strategies on firm-level ER.

The Difference Between Convergence and Divergence Essay

The first stage of the project was identification and comparison of developments in different countries. The second stage examined industry- wise ER in these countries.

convergence and divergent theory in industrial relationship

Organizational work practices such as new work rules due to adoption of new technologies and competitive strategies, changes in patterns of skill acquisition and training, new remuneration systems for the employees, new practices on staffing, employment security and recruitment were studied.

Data was analysed country-wise and industry-wise to compare two hypotheses- one stressed on the importance of institutional structures that influence ER and the other on the range of strategic choices for international competition and technological changes. The result showed the importance of enterprise and management on strategic decision making in ER, need for flexible workforce and deployment of labour, trends in investments for skills and training development and the restructuring needs for unions.