Unit1: Contextual analysis of the employment relationship

Question 1

What is labour/employment relationship concerned with?

Answer 1

Labour/employment Relations is concerned with people who, because of their mutual involvement in the work situation, have been placed in a specific relationship with one
another.

Question 2

How does employment relationship differs from other relationships?

Answer 2

• While it has similarities with other relationships, the employment relationship differs from other relationships in that it has an economic base, is often impersonal, and is marked by negative attitudes on both sides. As a result it may be more complex than other relationships.
• The major distinguishing feature of this relationship is the fact that it arises from the need for economic activity in society and from man’s need to work and to earn a living
  ■ The societal and individual importance of the relationship
  ■ The depersonalized and mostly collective nature of the relationship itself.

Question 3

How can labor/employment relationship be improved?

Answer 3

■ mutual interests
■ mutual support
■ understanding trust
■ meaningful communication
■ shared goals and shared values.

Question 4

True or false

The employment relationship is not multilayered
and dynamic.

Answer 4

False

The employment relationship is multilayered and dynamic. It changes as the status, needs, attitudes and perceptions of the parties change and as society itself evolves.

Question 5

True or False

Modern society is economically based.

Answer 5

True

Question 6

Why is attitudes to the employment relationships are not always positive?

Answer 6

• This originally arose from traditional attitudes to work and to workers
• From the problems which came with industrialization and mass production.

Question 7

Why don’t parties of the employment relationship do not usually display that sense of partnership, closeness and mutual commitment found in most other relationships?

Answer 7

This stems from the almost involuntary and impersonal nature of the relationship.

Question 8

True or False

An employee does not seek work with a particular employer because he likes that employer or because he is in any way committed to the undertaking, (although this may later occur).

Answer 8

True, Essentially, he takes a job and enters the relationship merely to fulfil other, more personal, needs.

Question 9

Are employers interested in the individuality of the worker or in his unique characteristics as a human being different from
all other human beings?

Answer 9

No, but merely in his ability to perform the work required

Question 10

Discuss the complexity of the labour relationship

Answer 10

• The relationship itself and the manner in which it is conducted are of immense importance to the individual and to society, yet both parties approach the relationship and each other with a certain amount of negativity and indifference. It is also a relationship in which perceptions of collectivity, from both sides, play an important role.
• The result is that personal identities are lost in the anonymity of the collective.

Question 11

How can the complexity of the labour relationship be solved?

Answer 11

Only the assertion of, and respect for, individuality can lead to personal satisfaction and meaningful relationships.

Question 12

How is the labor/employment relationship traditionally descirbed?

Answer 12

As a tripartite relationship between employers, employees and the State.

Question 13

What is a primary relationship?

Answer 13

Relationship between the employer and employee

Question 14

State the secondary relationship

Answer 14

The relationship with the State forms the secondary relationship

Question 15

Discuss the traditional employer and employee roles

Answer 15

Traditionally, the employer, owner or entrepreneur plans, decides, directs and controls, while the employee executes the orders of the owner, takes no part in decision-making or planning, and is not concerned with the results of his actions.

Question 16

Explain “employer prerogative”

Answer 16

Traditional employer and employee roles which are still accepted and upheld by most participants in the employment relationship,

Question 17

In most societies the State provides something.
Disclose them

Answer 17

At minimum legal protection to the parties in the relationship and, if necessary, establish a framework for the peaceful conduct of the relationship.

Question 18

Describe the employment relationship between the union as party to the employment/labor relationship?

Answer 18

The employment relationship is also, at times, described as a management-union relationship or, less frequently, as a relationship between an employer organisation and a union or unions.

Question 19

True or False

Unions played/play an important role in traditional labour/employment relations, but may not always be essential to the employment relationships

Answer 19

True

Question 20

State the various factors impacting on interactions between the Parties

Answer 20

The extent to which the parties acknowledge that they have common interests and agree to cooperate with one another:
■ The level of conflict in the relationship and the emphasis placed on collective bargaining
■ The distribution of power between the parties and the type of power applied
■ The degree to which participants, and union members in particular, are free to make their own decisions versus their allegiance to the collective.

Question 21

What are the common interests and interdependence of the tripartite relationships?

Answer 21

• The employer, in order to produce certain goods or services and to reap the intended profits, creates work for the employee who, in turn, accepts the work
  in order to gain remuneration, status and/or personal satisfaction.
• Consequently, both are interdependent, and both should be interested in advancing the work process to the highest possible level of efficiency as both will (or should) reap the benefits of continued profitability.

Question 22

Why is harmony and mutual support not present in employment/labor relationship?

Answer 22

■ First, employees in particular do not see themselves as having anything in common with the employer or manager, this view is the result of their traditionally assigned roles and behaviour within these roles, the negativity in the relationship, the polarisation between the parties and the perception of unequal reward.
■ Secondly, commonality of interest is often overshadowed by conflict in personal and group goals, values, interests and ideologies, and the situation is made worse by social and political conflicts which intrude on the work situation.
■ Thirdly, the employer does not see himself as dependent on a particular employee, but on the employee’s labour – which, from the employer’s perspective, he buys and relinquishes at will.
■ Finally, and most importantly, not enough emphasis is placed on processes and structures which promote cooperation in the workplace. Instead, the emphasis has fallen on the institutionalisation of conflict. This is true of both traditional theory and its implementation in practice.

Question 23

Discuss the potential for conflict in conflict and collective bargaining

Answer 23

The potential for conflict in the employment relationship is infinite. At its most basic level, conflict can be seen in disagreements about the division of profits and benefits.
Employees will want as much as possible in the form of wages, benefits and leisure, while the employer wants to maximise profits for payouts to shareholders, expansion and reinvestment.

Question 24

What does conflict centres in terms of potential for conflict?

Answer 24

■ Accountability structures
■ Flexibility and control
■ A conflict of personal values and goals, beliefs and ideologies.
■ Role and status definition
■ Decision-making powers

Question 25

True or False
Collective bargaining prevents one party to the relationship from pursuing his own interest at all costs, and thus prevents conflict from reaching unmanageable proportions.

Answer 25

True, but, it can be argued that too much emphasis is placed on collective bargaining as the most preferred method of resolving conflict

Question 26

What is the results of collective bargaining, particularly distributive bargaining?

Answer 26

• Compromise solutions and very often in a win–lose or lose–lose result.
• By contrast, it is generally accepted that integrative problem-solving, relying on a large measure of cooperation, is a far superior method of resolving conflict, since it usually results in a win– win solution, which is more universally acceptable

Question 27

True or False

The more dependent an employer is on an employee, the more power that employee will wield over him.

Answer 27

True

Question 28

True or False

The more important an employee or group of employees is to an organisation,
the less power will be wielded by those employees.

Answer 28

False

The more important an employee or group of employees is to an organisation,
the more power will be wielded by those employees.

Question 29

True or False

When jobs are scarce, employers wield more power

Answer 29

True

Question 30

True or False

When an employee cannot be replaced, he finds himself in a position of power.

Answer 30

True

Question 31

True or False

Power is constant or held by only one party

Answer 31

False

Power is never constant or held by only one party; it is continuously shifting from one party to another.

Question 32

How does the State hold power over the work relationship?

Answer 32

• Depending on its ideological orientation, the State may decide to interfere in the relationship and may thereby equalise power between the parties or tip the scales in favour of either the employer or employees.
• Thus it can be said that, despite the lesser role assigned to it, the State, if it chooses to interfere to a high degree, may have overarching power in the employment relationship

Question 33

Define manner (custom and traditions)

Answer 33

The manner in which the parties to a relationship behave towards each other, as well as their status and roles in the relationship, is often determined by custom and tradition.

Question 34

True or False

Custom and traditions have determined the roles of employment relationship but also accorded certain rights and duties to each party

Answer 34

True

Question 35

True or False

Managers assume a traditional prerogative and employees traditionally obey without question

Answer 35

True

Question 36

True or False

The influence of custom and tradition in societal structures is not strong, and any attempt to change traditional perspectives or hierarchies is not resisted.

Answer 36

False

The influence of custom and tradition in societal structures is strong, and any
attempt to change traditional perspectives or hierarchies is vehemently resisted.

Question 37

True or False

Too much reliance on custom results in stagnation and in a relationship that is out of touch with the world in which it exists.

Answer 37

True

Question 38

What can the law establish? (Legislation)

Answer 38

The law may establish machinery for the peaceful resolution of conflict between the parties, delimit the rights of both parties and even attempt to correct perceived power imbalances.

Question 39

True or False

In a free society the State, as legislator, can never presume to control all aspects of the employment relationship.

Answer 39

True

Question 40

Can we rely on custom and tradition to regulate the employment relationship?

Answer 40

No, because the relationship itself is often unequal and because the parties might engage in destructive practices to the detriment of society, it is usually regarded as necessary to establish a legal framework within which the labour relationship can be conducted.

Question 41

Are there any methods for employment relationship resort conflict? When custom and tradition and the imposition of legislation may be deficient.

Answer 41

The parties to the employment relationship also resort to mutually agreed rules and regulations as a basis for their interactions.
(Mutual agreement)

Question 42

How is a mutual agreement achieved?

Answer 42

• Agreement is achieved either by the process of collective bargaining or, in more sophisticated systems, by joint structures established for this purpose.
• The more the parties to a relationship can agree on rules, processes and substantive issues, the less they will have to rely on the assistance or jurisdiction of external instances.

Question 43

True or False

There has been a gradual realisation by business of the need to conduct
business along more ethical lines, a lot has been said regarding an ethical framework for the conduct of the employment relationship.

Answer 43

False

There has been a gradual realisation by business of the need to conduct
business along more ethical lines, but little is said regarding an ethical framework for the conduct of the employment relationship.

Question 44

How is lack of an ethical code to which both parties subscribe is best evidence?

Answer 44

The lack of trust which often permeates the labour relationship.

Question 45

How can trust be established in an employment relationship? (Ethical consideration: Trust, Integrity and Fairness)

Answer 45

■ Respect for the other party
■ Faith in the integrity of the other party
■ Due recognition of the value, power, ability and legitimacy of the other party
■ The assurance that neither party will abuse his position
■ Agreement that both will view situations from a balanced perspective, will not attempt any form of subversion, will keep their word and will act consistently in the light of their own beliefs and values.

Question 46

True or False

The parties often do ensure that they are behaving fairly is proof that ethical considerations do predominate in the employment relationship.

Answer 46

False

The fact that the parties often do not ensure that they are behaving fairly is further proof that ethical considerations do not predominate in the employment relationship.

Question 47

True or False

Concepts of fairness do differ from person to person, and perceptions of fairness need to be placed in the context of particular circumstances.

Answer 47

True

Question 48

Can certain neutral and universally accepted standards of farness can be postulated?

Answer 48

Yes

Question 49

What is the reasonable test? (The concept of fairness)

Answer 49

The question to be asked is whether others in the relationship, or an impartial judge, would regard the interaction as reasonable, and whether the party committing the action would deem it reasonable if it was committed against him

Question 50

How can fairness be achieved? (The concept of fairness)

Answer 50

■ There should be reciprocity and balance between the parties concerned
■ The party should not obtain all the benefits to the detriment of the other
■ There should be equitable exchange of both substance and behaviours
■ Both parties should receive equal treatment and equal consideration
■ The same criteria and judgements should apply to each
■ The treatment of persons should, as a whole, be consistent.

Question 51

Discuss the sociopolitical system

Answer 51

• No relationship functions in a vacuum.
• It is a product of time and place, and will be subject to influences from the wider society in which it exists. Conversely, the type of employment
  relationship established in a particular society will impact on that society.
• This interaction is demonstrated by the fact that the political system, based on a particular ideology, will largely determine the type of labour/employment relations system and influence the power balance between the parties.

Question 52

State the exception to the sociopolitical system

Answer 52

Individual employers and employees, as voters in the political system, are able to influence the policies of government and will have a say in the type of employment relations system established.

Question 53

What is societal influences

Answer 53

• In the social sphere, there is continual interaction between social relationships and employment relations
• Employees bring to the workplace perceptions established in their sub societies

Question 54

How can tension in the workplace influences the society? (Societal influences)

Answer 54

• Tensions arising in the workplace will be carried out to the wider society, either by individuals or by organized groups such as trade unions and employers’ organizations.
• If goodwill and cooperation predominate in the workplace, this may spread to society at large.

Question 55

What happens at the a micro level of societal influence?

Answer 55

At the micro level, problems experienced by the employee in his community – such as lack of housing, inadequate facilities, lack of transport and defective education – impact on the employment relationship or become issues in collective bargaining.

Question 56

Discuss the economic dispensation

Answer 56

• On both a macro and a micro level, will directly influence the conduct of employment relations. The predominant economic philosophy of a particular society – that is, whether it favours free enterprise or a planned economy – will largely determine the type of employment relationship and the role of collective bargaining in the system.
• Other factors, such as fiscal policy, economic growth and unemployment, also
  exercise a strong influence, particularly in collective bargaining.

Question 57

What do trade unions a direct result of?

Answer 57

Trade unions are the direct result of worker dissatisfaction with capitalist enterprise.

Question 58

Are trade unions protagonistic?

Answer 58

No, antagonistic

Question 59

When an employer favors a certain style and approach to the employment relationship.
Can the trade union circumscribed the employer’s style?

Answer 59

Yes, at a large extent be circumscribed by the amount of influence a trade union has in the enterprise.

Question 60

True or False

The government may tend to favour the employer party and the capitalist economic system then the trade unions and employees, but, in a democratic system, it cannot enact legislation without due reference to a strong trade union movement.

Answer 60

True

Question 61

Which types approaches to the employment relationship are identified by the traditional theory?

Answer 61

• The unitary approach
• The radical approach
• The pluralism

Question 62

Where does the unitary approach orginate?

Answer 62

This approach has its origins in classical liberalism, laissez-faire capitalism and the Smithian tenet of the ‘common good’.

Question 63

What is the unitary aproach?

Answer 63

• It is individualist in that it does not recognise the necessity for collectives.
• Employees are regarded as individuals who have contracted their labour to the employer in order to gain an assured income.

Question 64

What does the unitary approach hold?

Answer 64

■ The income of employees is assured only if the enterprise remains profitable
■ All parties should strive towards a common objective
■ Employers and employees share the same values
■ Both support free enterprise, respect authority and perform their allotted tasks diligently and with loyalty
■ Since the system aims at the common good, there should be no questioning of the individual’s place in this constellation
■ Employers or their managers are there to manage, and employees to work
■ The employer cares for his employees
■ Those who do well will be rewarded, just as those that do wrong will be punished
■ There is no real conflict of interest between employers and employees
■ Conflicts which do occur are the result of interpersonal friction or caused by troublemakers
■ Unions are unnecessary and cause friction as they compete with the employer for the loyalty of employees
■ Collective bargaining should not be encouraged.

Question 65

Explain the radical approach

Answer 65

The Radical Approach is based on Karl Marx’s theories regarding the ills of private ownership of the means of production and the position of the worker in the capitalist system

Question 66

What does the radical approach holds?

Answer 66

■ The capitalist economic system establishes political and legal structures which favour the employer
■ In this system the power of the employer is always greater than that of the employee
■ The employee is continually exploited
■ Conflict is inherent to the socio-economic system and not only to the employment relationship
■ Consequently, the structures established in the system will not resolve or ameliorate the conflict, but merely perpetuate it
■ Trade unionism may be necessary to conscientise the working class, but cannot achieve equality while operating within the system
■ At best, trade unions, through collective bargaining, can provide continual challenges to employers while working on the political front towards the overthrow of the capitalist system
■ A victory over capitalism is the only means to achieve an equitable dispensation.

Question 67

What is pluralism?

Answer 67

It rests on the conflict model of society, which proposes that, in order to prevent dominant groups from gaining absolute control and to contain conflict within manageable limits, power should be more widely distributed. It proposes ‘multiple centres of power and the give and take of bargaining between competing centres of power’.

Question 68

What does pluralism accept when applied to the labor relationship?

Answer 68

• There will always be conflict between employers and employees
  ■ The power of the employer inherent in the relationship can be balanced by the countervailing power of the collective
  ■ Conflict can be contained by ‘orderly’ collective bargaining
  ■ Because a common interest underlies the relationship, some form of compromise will always be reached
  ■ In the process, each party may apply power tactics to persuade the other of its point of view.