Employment Relations is the contemporary name given to previously called Industrial Relations due to its diverse nature of dealing with many non-industrial employment relations (Kurz, H. and Salvadori, N. 1998). Industrial or Employment Relations (ER) has three aspects; one being the science building, which deals with understanding employment relations and its institutions through research. Second aspect is problem solving where it designs policies to make the employment relationship work better. Third is the ethical aspect to employment relation. ER has normative principles of workers and the employment relationship.
Due to the growth in the late twentieth century in the service sector and the subsequent decline in the traditional industries, there was a parallel increase in the importance given to human relations and the association among employers and employees. Moreover, this aided to the establishment of the concept of “employee relations”, thus broadening the arena of industrial relations to inculcate angles of employment relations (Taylor, 2003). Employment relation deals with the entire management of the enterprise are it with a lineman, an accomplished subordinate or supervisor. It compacts with the affiliation amid the entity and workforce along with worker organisations (labour unions) or employees.
During the 1950s, John Dunlop put forth a life-changing theory on industrial labour relations. In respect to his discovery, industrial relation system is comprised of three agencies; the organisations, workers (labour unions and informal groups) and government agencies. Dunlop’s theory suggests that these actors are present within an environment, which constitutes of knowledge, employment and produce promotion, and the power allotment in the larger community, influencing individuals and organisations (Dunlop, 1950). The players interrelate among every one within this environment, bargain, and exercise powers, political and economical, to determine the rules that make up the output of the industrial relations system. According to him, companies, workforce (along with labour unions), and the government are influential factors in the contemporary manufacturing relations arrangement.
In his theory, the arrangements in industrial relations were regarded as system. He emphasized the idea of systems by defining it as an arrangement where all factors affect each other thus constituting a collection of engagements whereas commencing with particular concerns, where most of them are accountable for providing definite outcomes altogether (Dunlop, 1950).
This report first addresses the concept of industrial and employee relations and will now proceed to focus on identifying and evaluating habits wherein the entity occupies a particular service in worker relation. The third part of the report will address the impact of employee relation has on the balance of power between employees and employers.