MG 315

EMPLOYMENT RELATIONS THEORY AND POLICY

SHIVANI PRASAD
S11186723
LAUCALA CAMPUS
 Pluralist theory – Dunlop’s theory
JOHN DUNLOPS SYSTEM THEORY

A thorough framework that explains the dynamics of employment relations in a particular nation
or region is Dunlop's system theory of employment relations. The interdependence of players,
the institutional framework, and the significance of the setting in which employment relations
operate are the major characteristics of this theory. The Dunlop Systems Theory in Industrial
Relations, in its simplest form, focuses on the structure and growth of relationships among the
three key players in labor relations (labor, management, and government), as well as on finding
consensus on a set of facts that either directly or indirectly affects labor, management, and
government. Dunlop claims that the employment relationship is more than just a business deal
between an employer and an employee; rather, it is a part of a larger social and economic
environment. The employment relationship is shaped through interactions between a few actors,
including the state, unions, employers, and employees, within this broader framework. Dunlop
stresses the significance of these players and how interdependent they are in determining how
work relations are shaped. Thus, this essay will elaborate more on the main features of Dunlop’s
system’s theory of employment relations and is this theory relevant to Pacific Island Countries.
System Model Theory by John Dunlop, published in 1958, is a contribution to pluralist theory.
According to the major characteristics of Dunlop's theory, the Industrial Relations system is a
unique subset of the Economic system and distinct from the Political system (Manumelwin,
2019). According to Dunlop, the goal of industrial relations is to explain how and why specific
rules are created and updated over time. The Political system and the Economic system coexist in
the sub-system, while the Industrial Relations system is a part of the Economic system. For
instance, the government of Nauru consistently holds general elections. The general elections in
Nauru are permitted by their political system every four years. Now, this specific political system
would permit the election of a political government into power; this political government would
be known as the mission government of Nauru and operate on its own political system.
Currently, the Political system and the Economic system coexist in parallel. There will always be
an input, a conversion step, and an output in the systems model based on Dunlop.
The state, which has three roles—executive role, legislative role, and jurisdictional role—plays
the three characters who make up the inputs. Employers, who are regarded as the management,
are the second actor. Management has the authority to join or establish employer groups. Based
on the Pluralist view, the third actor are the employees or workers, who have the right to
establish or join trade unions. These actors must now function inside the framework of an
organization. Consider the problems that are technological in nature. Organizations or
management that favor, instance, the introduction of new technology or changing technology.
The final component is ideologies. Ideologies are essentially the actors' ideologies; they are their
concepts derived from their beliefs. According to pluralist theory, there are several types of
people with various interests, and these interests are influenced by their ideologies and beliefs. .
The regulations are the other component.
These parties must cooperate within a regulated framework at the same time. The regulations of
the interaction must be provided by them. He also made statements regarding both procedural
and substantive norms, such as wage rates and deadlines for solving problems, or procedures.
Additionally, every one of these will take part in the conversion process. Executive, for instance,
covers administrative procedure, legal procedure, regulations, and rules. The third component of
conversion is the resources. For instance, industrial companies employ machinery to transform
raw materials into products, which are then transformed again using human resources. Finally,
there is the output (Anon, 2019). Dunlop's theory aims to offer "tools of analysis" to evaluate and
comprehend the broadest range of industrial facts and practices as a result. Like other pluralist
theorists, Dunlop was interested in upholding the stability and order of the workplace and
employment relations environment.
Furthermore, incredibly little has been written about IR systems in PICs, and Dunlop's IR system
model is rarely used to analyze employment ties in small island states. Samoa, Tonga, the Cook
Islands, Kiribati, the Solomon Islands, Vanuatu, and the Fiji Islands' industrial relations systems
are the subject of a descriptive analysis. Several PICs, like Samoa, presently work under
antiquated and lax labor laws, much of which is colonial in origin and does not comply with
International Labor Standards (ILS). Modernizing legal infrastructure in the employment sector
is essential for the Pacific region to achieve balanced economic, social, and political growth,
which emphasizes both economic efficiency and the wellbeing of the population. This is in
addition to encouraging good governance. Labor law needs to be updated and changed
significantly as a result of time and worldwide development (McDonald, 1997). Unions may be
viewed as unimportant in many PICs for a variety of reasons. Large subsistence and informal
sectors are common in PICs. Many Pacific Islanders will continue to have access to income
opportunities in the informal sector due to the high rates of population growth in tiny island
states and the limited increase in employment in the formal sector. PICs have smaller economies
than larger economies, therefore they are more dependent on foreign aid for development and
external markets for the supply of products and services.
Dunlop concluded by stating that employment and labor relations are a subsystem that coexists
with the political and economic systems and is made up of the four elements that make up the
input and must undergo a conversion process in order to produce the required output.
REFERENCES
Manumelwin (2019). Dunlop’s system theory (1958) – theories of industrial relations -
[online] Slideshare.net. Available
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industrial-relations-industrial-relations-manu-melwin-joy [Accessed 19 Apr. 2019].
Dunlop, J. T. (1958). Industrial relations system. New York: Holt
Sullivan, P. 2003, Labor Secretary John Dunlop Dies; Harvard Professor, Negotiator:
[FINAL Edition], Washington, D.C., United States Washington, D.C.
Roberts, M. 1993, "Dunlop's general theory, revised - Industrial Relations Syst: MLR",
Monthly Labor Review, vol. 116, no. 8, pp. 53.