Four schools of thought about the employment relationship are as
follows
- Mainstream economics school
- Human resources management school
- Industrial relations school
- Critical industrial relations school
mainstream economics school of thought focuses on the economic
activities of self interested agents like workers and organization,
who interacts in competitive markets. efficiency, equity achieved
with the help of free market competition. Mainstream economics
school of though sees the imperfections in the competitive labor
market as the cause of labor problem. The solution is to make sure
the competition in the market by encouraging many workers and
employers, each with freedom to make their own choice about where
to work and who to hire.
The human resource management school of thought believes that labor
problems caused by poor management, Because the management policies
are responsive for the needs of workers , equity will also be
achieved. human resource management school of thought says that if
the organizations are following their school of thoughts of
effective management then workers will be satisfied and they will
not support unions. They believes that unions are unnecessary third
parties which prevents employees and employers from getting closer.
So the better management practice will help and encourage the
employee equity & voice.
The Industrial relations school believes that labor problem is
caused by the unequal bargaining power between the individual
employee and organization. So in order to overcome the labor
problem is to encourage the collective bargaining and independent
unionization , it will helps to equalize the imbalance in
power.
The critical industrial relations school sees the capitalist
institutions do not simply exist, but they are created by the
society, it focus on our attention on how dominant groups design
& control institutions to serve their own interests,
imperfectly because of resistance from competing group. They sees
the labor problem as action of class conflict & ability of the
ownership class in order to control the laws & rules of the
society to their best benefit. The solution for this can be found
by assuming worker control over the modes of decision making and
production in society