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This Study Resource Was: Level Type of Explanation
This Study Resource Was: Level Type of Explanation
Overview Part 1
What is theory?
‘an attempt to account for given phenomenon, that is, to show what, how and/or why it is’
Theory helps understand the world of employment relations
Aims to explain all situations
Different types of theories e.g. Lewins ‘five levels’ of explanation
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Description An account of an event or phenomenon from a particular stand point, whether it
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is adopted consciously or unconsciously.
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Taxonomy A classification scheme designed for a particular purpose that groups together events
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or phenomena on the basis of similar characteristics.
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Model A simplification or representation of relationships between events or phenomena that is
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Law A statement of a relationship between two or more variables that inevitably produces
the same outcome, in terms of events or phenomena.
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Causal theory A complete answer to the ‘why’ question, which not only identifies the inevitable
relationships between variables but also provides an account of the process by which
one determines the other
(Lewins 1992, pp.19–27).
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Employment relations
‘formal rules and informal rules which regulate the employment relationship’
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BUS332 Week 2 Employment Theory and Context
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Substantive rules vs Procedural rules
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Substantive rules Procedural rules
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Govern the essential or material terms under Govern the processes or actions to be taken in
which employees sell their work response to different circumstances at work
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Examples:
Wage rates
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Grievance procedures
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Minimum Standards e.g. NES Modes of expected behaviour – open
door
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Rulemaking
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BUS332 Week 2 Employment Theory and Context
1. Unilateral rule-making
a. Creation and enforcement of rules by a single party
2. Bilateral rule-making
a. Joint creation and enforcement of rules by two parties
3. Multilateral rule-making
a. When three or more parties jointly make and enforce rules
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Agency explanations
exercising choice
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‘agency’
We must pay attention to the parties in rule-making in employment relations:
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o People
o Organisations
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BUS332 Week 2 Employment Theory and Context
Overview Part 2
Understanding values
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Taxonomy in ER
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Fox’s (1966; 1974) taxonomy in employment relations identifies three distinct sets of values about
the employment relationship:
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1. unitarism
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2. pluralism
3. radicalism
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Industrial conflict Conflict is pathological – results from: poor management, work of agitators
or employees who fail to grasp commonality of interests
Role of unions External ‘third parties’ that disrupt relationships and complete with management for
the loyalty and commitment of employees
Role of the state External force whose agencies are unwelcome, except to the extent that they
promote cooperation in the employment relationship
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BUS332 Week 2 Employment Theory and Context
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Employers and employees sometimes have different interests;
Conflicts are legitimate and can be accommodated by an appropriate network of procedural
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and substantive rules
Underlying social structure creates sectional groups in the ER
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Potentially brings these groups into conflict with each other as they seek to achieve their
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separate interests
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Diverse interest groups and multiple forms of loyalty and attachment
General Philosophy • Employment relationship always has the potential for conflict
• Employees and employers have different interests
Role of Management • to advance interests of the organisation
•
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Role of employees
• recognise legitimacy of management’s interests
Industrial conflict • An understandable and resolvable outcome of conflict of interest
inherent in the employment relationship
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seek compromise
Role of the state • important in creating policies and laws that protect ‘public interest’
• protect the weak in the employment relationship
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BUS332 Week 2 Employment Theory and Context
In Australia, Accord between ACTU and Labor governments during 1980s and 1990s can be
seen as practice based on pluralist values
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Aspect Radicalism perspective
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• Fundamental and inherent conflict of interest between workers
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General Philosophy
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and employers
• Conflict arises from the private ownership of the means of
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that results
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Role of Management • to control workers in order to produce profit
Role of employees • inevitably hold a subordinate and unequal position unless they
realise their situation and rebel
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important in ER
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BUS332 Week 2 Employment Theory and Context
Role of Management Provide strong leadership to advance interests • to control workers in order
Effectively define of the organisation to produce profit
organisational goals recognises separate
Ensure commitment of and legitimate
employees to role and interests of
organisational goals stakeholder groups.
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Roles of Employees To be loyal to the Advance their • inevitably hold a
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organisation and personal and sectional subordinate and unequal
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management interests position unless they realise
recognise legitimacy their situation and rebel
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interests
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Industrial conflict Conflict is pathological – results • An understandable • Inevitable outcome of an
from: poor management, work of and resolvable unequal employment
agitators or employees who fail to outcome of conflict of relationship reflecting an
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the employment
relationship
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Role of unions External ‘third parties’ that disrupt • Legitimate • represent employees in the
relationships and complete with representatives of struggle against employers.
management for the loyalty and employees
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maintain
responsibility and
seek compromise
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Role of the state External force whose agencies are • important in creating • to protect the interest of
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relationship
• constrain the
powerful
• promote a
compromise
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