Introducing Some Fundamentals of Employment Relations PDF

# Introducing Some Fundamentals of Employment Relations ## Chapter 1: Introducing Some Fundamentals of Employment Relations ### Background and Introduction South Africa's economy is weakened by high crime rates, inequality, unemployment, low growth and inefficient regulations. These challenges a...

# Introducing Some Fundamentals of Employment Relations ## Chapter 1: Introducing Some Fundamentals of Employment Relations ### Background and Introduction South Africa's economy is weakened by high crime rates, inequality, unemployment, low growth and inefficient regulations. These challenges are not unique to South Africa, but present problems for income- earning work, fairness and justice all over the world. The field of study of Employment Relations (ER) focuses on income-earning work and related issues of fairness and justice. The NDP (National Development Plan 2030) was published by the National Planning Commission in 2012 to: - Eliminate poverty and reduce inequality by 2030 - Grow an inclusive economy - Build capabilities - Enhance the state's capacity - Promote leadership and partnerships throughout society Minister Jeff Radebe, reflecting on the progress made in the NDP since its inception in 2012, emphasised the need for South Africa to strengthen discussion and seek common solutions and concrete actions addressing slow economic growth and poverty, ensured through partnerships with business, organised labour and all stakeholders. He stressed the importance of direct involvement of all role players in this process. ### The Evolution of ER The field of ER evolved from what was traditionally known as ‘industrial relations’. #### From Industrial Relations to Employment Relations: An Evolving Field of Study in Search of its Identity? The academic roots of this field can be traced back to the late 1800s and the early 1900s in Britain. The field of Industrial Relations (IR) is traditionally linked to developments after the Industrial Revolution. The roots of this field can be traced to ancient times. As the world grew and societies developed, slave labour became a major factor in wealth creation. There were many historical phases with distinctive periods: - **Early Nomadic hunting & gathering societies** - **Agricultural period** - **Classic civilisations period** - **Feudal system period** - **Merchant-capitalist system period** - **Industrial period** The Industrial Revolution intensified inequality, putting the "owners of wealth" (the industrial capitalists) into conflict with those who "sold" their labour (the workers). The workers perceived the relationship as unequal. Today, wealth distribution in capitalist societies and globally is generally viewed as unfair. ### Ideological, Theoretical Perspectives on the Conflict/Common-Ground Dynamics in Employment Relations #### The Pluralist Perspective - Assumes that the organisation is a coalition of individuals with diverse objectives, values and interests. - Individuals can combine into sectional groups with their own interests, objectives and leadership (formal or informal). - The different groups are competitive. - Competitive behaviour and conflict between managerial employees and worker groups are a source of tension. - Assumes that the conflict between management and labour is manageable. Trade unions are regarded as a mechanism for regulating conflict. #### The Unitarist Perspective - Assumes that the organisation is an integrated group of people with shared values, interests and purpose. - Management has the legitimate authority to manage. - Conflict is generally viewed as unnecessary. - Employees are expected to be loyal to management and their organisations. - Trade unions are viewed as unnecessary and dysfunctional. Management should take full consideration of the interests of employees in their decision-making. #### The Radical Perspective - Draws on intellectual traditions related to Marxist thinking. - Workers are oppressed for the sake of capitalist interests. - There is emphasis on the class struggle between the "haves" and the "have-nots”. - Trade unions play a role in addressing the malpractices of capitalism. #### Corporatism and Concertation - Corporatism is an extension of pluralism. - Often referred to as tripartite coordination or cooperation. - It incorporates principles of pluralism and democracy through social dialogue between employers and employees. - It hinges on the principle of interdependence between employers, employees and the State. - It values social dialogue and consensus-building interaction. #### Room for Alternative Perspectives or Ideologies? - Postmodernists would challenge the idea of seeking an objective truth. - The African perspective, with its emphasis on Ubuntu, has not been adequately recognised. - Ubuntu embodies deep notions of inclusivity, communal responsibility and shared interests. ### Decolonisation, Africanisation and Ubuntu in an Employment Relations Context * **Decolonisation** - It is a process of undoing colonialism. - Its goal is to decentre the dominant Euro-American ideology and cultural system and move toward a political or cultural system that contains many different centres of authority or control. * **Africanisation** - It means infusing the indigenous knowledge systems, which are based on sociocultural living experiences of African communities, into organisational practices. - It does not imply the exclusion of non-African persons whose beliefs and outlook subscribe to African philosophy. - It is not about race. It is about the recognition and revalidation of indigenous information to advance African identity, knowledge and wisdom. * **Ubuntu** - It is a traditional African concept that comes from the isiZulu and isiXhosa languages and can be roughly translated as "humanity towards others". - It embodies virtues that maintain harmony and the spirit of sharing among members of a society. - It implies an appreciation of traditional beliefs and a constant awareness that one's actions today are a reflection on the past and will have far-reaching consequences for the future. ### Modern Perspectives on Employment Relations #### A Contemporary South African Perspective on Employment Relations as a Field of Study The book adopts a primarily micro-economic perspective that seeks to improve the quality of employment relations to ensure social justice and to enhance organizational performance and competitiveness. It is essentially an interdisciplinary approach to provide insights from relevant perspectives. #### Societal Embeddedness of the Multidimensional Employment Relationship The roots of employment relations are embedded in the relationships between employers and employees. The field of study of employment relations is a complex and dynamic system of formal, informal, individual and collective relationships between employers, workers and the state. It is a central aspect of modern society, where organisations deliver products and services to the members of society. It is multidimensional with an economic dimension, individual and collective dimensions, formal and informal dimensions, and involves various "actors". #### Conflict Conflict in employment relations is a form of social conflict that often stems from competition or differences in values or needs. Conflict may be a positive force for change, growth and development. #### Power Power refers to the capability of an individual or group to control their physical and social environment, thus influencing decisions. #### Converging and Diverging Interests Employment relations is not only about conflict. There are also shared interests that require cooperation and consensus-building. #### Sociopolitical Dynamics The sociopolitical environment is influenced by political processes and legislation, which shapes the labour market and employment relations. Social movements also influence the political environment. The key stakeholder in this environment in South Africa is NEDLAC. #### Organisation-Related Factors - **General Management Factors**: Business decisions made by management have impacts on the dynamics of employment relations. - **Structural Factors**: How work is designed and organised influences employment relations. - **The Nature and Context of the Organisation**: Contextual factors such as the type, size and location of the organisation are also relevant to the nature and dynamics of industrial relations. #### Technological and Ecological Factors Technological developments affect how industries and work processes are designed and implemented. There are numerous implications for employment relations, including the emergence of new job opportunities. Ecological factors and issues of sustainability are increasingly important. ### 1.6 Approach and Structure of This Book This book takes an open-systems approach to employment relations as a field of study with various interacting variables. ### Case Study 1.1 Sipho and Lauren are debating the nature of Employment Relations. ### Case Study 1.2 Khalulu Bakery, a family-owned bakery and deli in KwaPhili is struggling with a high level of theft. A committee is formed to address this challenge. The committee includes Aprils, Mbatha and Van Niekerk. All three members have different perspectives on how to address the issue. ### Conclusion Employment relations are a multidimensional field of study that encompasses a wide range of dynamics. It is a field that is constantly evolving and adapting to changes in the external and internal environments. The key to building sustainable and effective employment relations lies in understanding these dynamics and developing constructive approaches to managing conflict and promoting collaboration.