Industrial Relations
Employment Relationship
Industrial Relations and HRM
Globalization and Industrial Relations
Industrial Relations in United States of America
Current Response to Globalization
The paper critically examines the effects of global trade expansion on national industrial relations and how USA has responded to the changing business environment to meet its economic targets.
In order to understand the impact on the national industrial relations from the rise in global trade we need to study the historical factors and the future projections that are shaping up the change in the industrial shift. 1990s saw an increasing demand for high technology goods and gave rise to an international competition which changed the nature and operations of the industries substantially. The production processes were altered in order to cater to this new demand across the world. The individual firms with low budgets had to increase their competitiveness in order to meet up with the requirements of the industry.
These industrial changes have put a great deal of pressure on the firms and the employers to formulate strategies and improve their processes. Therefore globalization has given rise to a much more strategic role to be played by the Industrial Relations internally in an organization. This has all led to a more significant role played by Human Resource Department to manage the resources of the organization efficiently.
The direct result of rapid globalization is the changing nature of the industrial relations all over the world. A new approach has arrived to cater the industrial trends and challenges faced at the time being, which is based on providing much more emphasis on the employment relations. The new approach is a combination of Industrial relations and human resource management practices. This approach helps in improving the flexibility of the workforce and increases the capabilities of its employees leading to much higher level of productivity which is necessary to meet up with the requirements of global trade. The global environment also demands a much more sophisticated path for communication and cooperation internally in the organizations. There must be a mutual trust amongst the workers, managers, employees, executives and stakeholders.
Universally different firms have adopted different methods and techniques to counter the challenges of globalization. The principles of globalization have not been universally the same or uniform. Industrialized countries have been affected in a different manner as compared to less developed countries. The PEST forces (Political, Economical, Social and Technological) forces also play a vital role in shaping up the industrial relations of a country. The new economic and business environment possesses a new situation for firms in United States of America.
Industrial Relations:
Industrial Relations are a field of multidisciplinary nature which is based on studying employment relations. It is often used interchangeably with employee relations which highlights its importance in the non-industrial sector as well. Industrial relations are a much broader version of human resource management on the other hand labor unions are a part of industrial relations. The concept of industrial relations emerged in the 19th century from USA, it was quickly picked up by many European countries but the practices were different in every region. The recent times have shown a decrease in the industrial relations as a discipline as it now has a negative correlation with the significance in trade unions.
Industrial relations comprises of three main parts, a) science building b) ethics c) problem solving. The science building phase deals with the social sciences and is based on understanding the relationships within an organization through comprehensive research. There are a lot of disciplines involved in the industrial relations including social history, human resource management economics, politics, law and many other areas, hence it is called a multidisciplinary subject.
Employment Relationship
Industrial relations in general assume that there is no such thing as a perfect competition in the labor markets. On the contrary the economic mainstream theory suggests that the employers have an upper hand on their employees and have a higher bargaining power. Industrial relations have defined that there a number of inherent conflicts between the employees and the employers which is a natural part of the relationships in an organization especially the employment relationship. The scholars are divided amongst their opinions on the issue of industrial relations and have proposed various methods and mechanism to shape up the employment relationships.
In case the labor markets are imperfect, the conflict of interest in the employment relationships is high and cases of workforce exploitation are high. To prevent this most of the scholars suggest that there must be an intervention...
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