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ER and employment relationship (The employment relationship why ER exist,…
ER and employment relationship
The employment relationship
why ER exist
Fundamental imbalance in power of ERP
employers w/ authority + control but workers not powerless
Definition of employment relationship (ERP)
connection with buy/sell labour
economic activity
authority
wage
Where the imbalance comes from
labour contract
authority (employer)
subordination (employee)
= parties not equal
Origin of employer authority and control (Berle & Means)
firm governance : way firm is controled & managed
property rights entitle control rights (employer decides)
justification : legal & financial
= firm only exists to serve its owners' interests
ER are a tool to balance out powers
provide means & solutions to reduce the imbalance
Both parties have leverage
owners' can have authoriy & control
workers also have resources
= authority/dependence & control/consent
Relative power: relevant concept (Dahl)
power is a
dynamic relationship between people
one's capacity to influence the behaviour of others
Actors, processes & outcomes of ER
a system of interwoven A, P & Rules
ER form a system
network of interwoven actors, processes & outcomes
constantly interact with one another = dynamic
Three categories of actors
labour : workers & unions
management : owners, employers, managers & organisations
government : local, national bodies, supranational organisations
A mediated relationship (Clegg)
interactions between employee & employer
network of intermediaries
System theory of ER (Dunlop)
ER substyme of larger social system
interactions between 3 actors (business, government, labour)
produce web of rules
under influence of economic, technological & sociopolitical factors
Contemporary concept of ER system (Lallement)
locations : company, branch, economic system
actors : employees, employers, government, representatives
processes : individual, collective
outcomes : rules, practices, custom
Analysis of ER rules: who; how; what
main process: rule-making (through negotiations)
outcomes : rules
Two categories of outcomes
rules
formal :ights, obligations (dual nature: laws & contracts)
informal : customs, practices
substance (ER) vs process (rule-making)
3 locations
national : agreements & law
branch : only companies of the industry
company : directly with management
Multiple approaches to the ERP
the contested dynamics of ER
Why different ways to approach the ERP?
diversty of common & adversarial interests
Diversity of interests (common or adversarial)
labour's interests : wages, benefits, safety, job security...
MGMT's interests : costs, productivity, profits, quality, control
public interests : peace, democracy, stability, health
What are the different approaches to ERP?
Unitarist perspective (Taylor)
harmony of interests
high wages & working conditions guaranteed by labor costs
Pluralist perspective (Folett)
conflit means difference
neutral judgement
without ethical prejudgment
Radical perspective (Hyman)
rules & regulations is too restrictive
relationship is necessary conflictual
conflict & change are inseparable