System Approach

Originated by Dunlop, being subjected to a variety of

interpretation, uses and criticism. However they do
not invalidate the systems approach but they
suggested accommodation and Refinement.
It is a broad based integrative model that sought to
provide tools of analysis to interpret and gain
understanding the widest possible range of IR facts
and practices and to explain why particular rules are
establish in particular IR systems and how and why
they change in response to changes affecting the
system.
This model sees IR as a subsystem of society distinct
from but overlapping, the economic and political

System Approach
Four interrelated elements: (ACIR)
1. Actors- management, non-managerial employees and
their representatives and specialize government
agencies concern with IR.
2. Context : influence and constraints on the decisions of
the actors which emanate from other parts of society,
such as technology, market, budgetary and the locus
of power in the society..
3. Ideology; beliefs within the system which not only
define the role of each Actor or groups of actors but
also define the view that they have of the role of other
actors in the system. If the view compatible-stable IR
system and other wise.
4. Rules; the regulatory framework, developed by a
range of process and presented in variety of forms

System of industrial
relations - 1
Dunlop - Actors, working within contexts
(environment), developing a body of rules,
held together by an ideology
System producing rules and system
governed by rules (production)
Naturally stable and orderly?
Emphasis on roles rather than people
Importance of environmental influences

System Theory (contd.)

Environmental
Forces
(i)Market or
Budgetary
Restraints

Participant
s
Union
Manageme
nt

(ii)Technology
(iii)Distribution of
Power in Society

Governmen
t

Outputs

Rules of
the
Workplace

System Theory : Actors

The main participants are
Workers and their organisations
Management and their
representatives
Government agencies

System Theory :Context

(Environment)
Three types of environments
Technological characteristics of workplace
(Technological sub-system)
The market or economic constraints
(Economic sub-system)
The locus and balance of power existing
in society
(Political sub-system)

System Theory : Output

Output is the result of interaction of
the parties/actors of the system
which is manifested in the network of
rules, countrys labour policy and
labour agreements etc. that facilitate
a fair deal to workers.