Question

state and explain the three most popular theories of industrial relations.support your explanation with their practical assumptions

20marks

Answer 1

The three most popular industrial relations theory is as below:

1. Marxist theory of industrial relations: In this theory, the industry is monopolized by few corporations and the corporation tries to make as much profit it can while it pays the lowest possible wage to workers, and at the same time workers tries to get the best possible pay through making the union. Examples are Pharmaceutical companies, which make the profit with the help of patents but do not give any additional wage because they are earning huge due to the patent.
2. The pluralist theory of industrial relations: Many companies adopt this model, where the employees are loyal to the union as well as company, the company does try to make a large profit but also pay slightly better wages to improve the productivity if we compare with the Marxist theory of industrial relation. The relationship between the employee and employers are very fine threaded and built around the mutual benefit. Examples are automobile companies.
3. Unitary theory of industrial relations: This theory is adopted by the small companies where the employer and employee are seen as a team and treated equally, they share the interest, loyalty, and value with the organization. A start-up organization is an example of such a unitary theory of industrial relations.