ee(s)- employee(s)
ABV 320 er(s)- employer(s)
org(s)- organisation(s)
Ch 1: Contextual analysis of the employment relationship
Employment(labour) relationship- study of relationships, work situation and working man, problems
and issues in modern industrial society and processes, structures, institutions unique to the
relationship that are placed in a social, political, economic and historic context.
What makes labour relationships different from other relationships?
• Economic base: since modern society is economically based, the identity of a person depends
on what economic activity you are engaged in/ what you do
• Negative attitudes: this derives from traditional attitudes to work and workers
• Impersonal nature: refers to the group context that ees and ers are placed
How can the employment relationship be improved?
o Mutual interest
o Mutual support
o Understanding trust
o Meaningful communication
o Shared goals and values
Who are the role players in an employment relationship?
1. Er and ee- roles of parties are largely assigned by customs& traditions, such as the er directs,
decides, and controls while ee execute the orders of the owner, take no part in decision-making
or planning, and are not concerned with the results of actions
2. The state as legislator- provide minimum legal protection to the parties in the relationship, and
when necessary, establish a framework for peaceful conduct
3. Trade unions- employment relationship can be described as a management-union relationship
or relationship between er org and trade union/s
Factors impacting interactions between the parties
Common interests and agreeing to corporate with one another-
• Common interest is the continued profitable existence
• Cooperation is needed for common interests to exist
• Parties are interdependent on each other
Level of conflict and emphasis placed on collective bargaining-
• Dysfunctional conflict is where parties are not cooperating, conflict is not handled in a proper
manner, and where it causes a worse situation
• Functional conflict is where cooperation exists that stagnation is prevented
Distribution of power between parties and type of power applied-
• Process of collective bargaining greatly relies on the use of power
• Amount of power depends on importance, scarcity, dependence, and non-substitutability
©Megan Meiring
, • Type of power: coercive, reward, legitimate, expert, and referent power
Own decision versus allegiance to collective-
• People are viewed as members of a particular group and not as an individual
• However, allegiance to the collective is identified by fellow ees to match the power that ers
withhold
• Tension can rise when ees have the need for recognition, satisfaction, and advancement, and
need to form part of the collective
Factors impacting and influencing the relationship
Intrinsic factors:
o Legislation
Law may establish machinery for peaceful resolution of conflict between parties
Delimit rights of both parties and even attempt to correct perceived power imbalances
o Mutual agreement
Parties may mutually agree on various rules and regulations which will benefit them
Mutually agreed roles can regulate interactions
o Ethical consideration: integrity, trust and fairness
Lack of an ethical code to which parties subscribe is evidence of a lack of trust. The
most common test of fairness is ‘reasonable man’
Criteria of fairness are:
▪ Reciprocity and balance between parties
▪ Equitable exchange of both substance and behaviours
o Customs and traditions
The manner in which people behave towards each other in a relationship as well as their
status and roles is influenced by custom and tradition
Extrinsic factors:
o Socio-political system
Relationship not in vacuum will be influence by society
Political ideology will determine type of labour relationship
o Societal influences
There is continual interaction between social relationship and employment relationship
Tensions in workplace will influence society at large
o Economic dispensation
Economic philosophy of a country will determine the type of employment relationship
and the role of collective bargaining in the system Free economy v planned economy
influence on especially Collective Bargaining
Free economy- economic system where private companies operate in competition and
are free from state intervention
Planned economy- economy in which production, investment, prices and income are
determined centrally by the gvt
©Megan Meiring
, o Trade unions
Ers may want to conduct his business in a manner which does not conform to the
objectives of the trade union and if such trade union has power or influence the er may
not be able to achieve his goal.
Technological development
Traditional approaches to the employment relationship
Dominant in SA
unitary approach radical approach pluralism
approach
• individualist in • free market • power should be
that it does not favours ER evenly
recognise the • power of er is distributed
necessity for always stonger • always conflict
collectives than ee btwn er and ee
• er/ managers are
there to manage,
and ee to work
Ch 2: Labour relations as a societal structure
Labour Relations System • Dispute settlement procedure
• Parties to relationship (er, ee, unions, & state) • Communication structures
• Processes (CB & workers participation)
• diff forms of protection to er and ee
• Legal system governing the relationship
• carrying degrees of compulsion
Ideological Basis
- set of beliefs that tend to justify morally a society’s social and economic relationships
- ideological poles:
1. Individualism- individual persons or groups in society are free to make their own choices
and pursue their own goals. They have little or no responsibility towards society
2. Communitarianism- individuals are shaped by society. It is acceptable to put yourself
first/consider your own interests but that should not be dominant
Individualism Communitarianism
Individual persons or groups in society are free to make Individuals are shaped by society
their own choices and pursue their own goals
Have little or no responsibility toward society Acceptable to put yourself first but not be dominant
Society has little or no obligation toward them The individual owes a duty to society
Society is secondary to individual Government duty to shape society
©Megan Meiring
ABV 320 er(s)- employer(s)
org(s)- organisation(s)
Ch 1: Contextual analysis of the employment relationship
Employment(labour) relationship- study of relationships, work situation and working man, problems
and issues in modern industrial society and processes, structures, institutions unique to the
relationship that are placed in a social, political, economic and historic context.
What makes labour relationships different from other relationships?
• Economic base: since modern society is economically based, the identity of a person depends
on what economic activity you are engaged in/ what you do
• Negative attitudes: this derives from traditional attitudes to work and workers
• Impersonal nature: refers to the group context that ees and ers are placed
How can the employment relationship be improved?
o Mutual interest
o Mutual support
o Understanding trust
o Meaningful communication
o Shared goals and values
Who are the role players in an employment relationship?
1. Er and ee- roles of parties are largely assigned by customs& traditions, such as the er directs,
decides, and controls while ee execute the orders of the owner, take no part in decision-making
or planning, and are not concerned with the results of actions
2. The state as legislator- provide minimum legal protection to the parties in the relationship, and
when necessary, establish a framework for peaceful conduct
3. Trade unions- employment relationship can be described as a management-union relationship
or relationship between er org and trade union/s
Factors impacting interactions between the parties
Common interests and agreeing to corporate with one another-
• Common interest is the continued profitable existence
• Cooperation is needed for common interests to exist
• Parties are interdependent on each other
Level of conflict and emphasis placed on collective bargaining-
• Dysfunctional conflict is where parties are not cooperating, conflict is not handled in a proper
manner, and where it causes a worse situation
• Functional conflict is where cooperation exists that stagnation is prevented
Distribution of power between parties and type of power applied-
• Process of collective bargaining greatly relies on the use of power
• Amount of power depends on importance, scarcity, dependence, and non-substitutability
©Megan Meiring
, • Type of power: coercive, reward, legitimate, expert, and referent power
Own decision versus allegiance to collective-
• People are viewed as members of a particular group and not as an individual
• However, allegiance to the collective is identified by fellow ees to match the power that ers
withhold
• Tension can rise when ees have the need for recognition, satisfaction, and advancement, and
need to form part of the collective
Factors impacting and influencing the relationship
Intrinsic factors:
o Legislation
Law may establish machinery for peaceful resolution of conflict between parties
Delimit rights of both parties and even attempt to correct perceived power imbalances
o Mutual agreement
Parties may mutually agree on various rules and regulations which will benefit them
Mutually agreed roles can regulate interactions
o Ethical consideration: integrity, trust and fairness
Lack of an ethical code to which parties subscribe is evidence of a lack of trust. The
most common test of fairness is ‘reasonable man’
Criteria of fairness are:
▪ Reciprocity and balance between parties
▪ Equitable exchange of both substance and behaviours
o Customs and traditions
The manner in which people behave towards each other in a relationship as well as their
status and roles is influenced by custom and tradition
Extrinsic factors:
o Socio-political system
Relationship not in vacuum will be influence by society
Political ideology will determine type of labour relationship
o Societal influences
There is continual interaction between social relationship and employment relationship
Tensions in workplace will influence society at large
o Economic dispensation
Economic philosophy of a country will determine the type of employment relationship
and the role of collective bargaining in the system Free economy v planned economy
influence on especially Collective Bargaining
Free economy- economic system where private companies operate in competition and
are free from state intervention
Planned economy- economy in which production, investment, prices and income are
determined centrally by the gvt
©Megan Meiring
, o Trade unions
Ers may want to conduct his business in a manner which does not conform to the
objectives of the trade union and if such trade union has power or influence the er may
not be able to achieve his goal.
Technological development
Traditional approaches to the employment relationship
Dominant in SA
unitary approach radical approach pluralism
approach
• individualist in • free market • power should be
that it does not favours ER evenly
recognise the • power of er is distributed
necessity for always stonger • always conflict
collectives than ee btwn er and ee
• er/ managers are
there to manage,
and ee to work
Ch 2: Labour relations as a societal structure
Labour Relations System • Dispute settlement procedure
• Parties to relationship (er, ee, unions, & state) • Communication structures
• Processes (CB & workers participation)
• diff forms of protection to er and ee
• Legal system governing the relationship
• carrying degrees of compulsion
Ideological Basis
- set of beliefs that tend to justify morally a society’s social and economic relationships
- ideological poles:
1. Individualism- individual persons or groups in society are free to make their own choices
and pursue their own goals. They have little or no responsibility towards society
2. Communitarianism- individuals are shaped by society. It is acceptable to put yourself
first/consider your own interests but that should not be dominant
Individualism Communitarianism
Individual persons or groups in society are free to make Individuals are shaped by society
their own choices and pursue their own goals
Have little or no responsibility toward society Acceptable to put yourself first but not be dominant
Society has little or no obligation toward them The individual owes a duty to society
Society is secondary to individual Government duty to shape society
©Megan Meiring
