MG315

ASSIGNMENT: 2
ESSAY
2023

Name: Gyatri Devi

Student ID: S11186376
Campus: Laucala
To begin with, as decades pass there was advanced development in employment relations.
Dunlop’s system theory is one of the versions of the Pluralist theory which gives a brighter
picture of employment and industrial relation. Additionally, the system was established by John
Dunlop in 1958, mainly to seek to resolve the economic conflict. It contained four elements: actors,
the context, a set of employment laws produced by the interaction of the actors, and a binding ideology.
Thus, this essay will highlight the main features of the Dunlop System theory based on
employment relations and whether is it relevant to the Pacific Island Nations.
Dunlop’s system theory of employment relations is comprised with having four main features.
First, the Actors in industrial and employment relations are the hierarchy of employers and their
representatives in supervision, where the managers may either be private public or a mixture in
varying proportions, and managers have no relationship to the ownership of the capital assets. A
hierarchy of employees (includes non-managerial workers) and also the workers may be
organized into various competing or complementary organizations such as any spokesman,
works council, trade unions and etc. The specialized government and public agencies (including
private agencies created by the first two actors) are concerned with employees, employers, and
their relationships. The state’s function under the industrial relations system can be so broad and
decisive or sometimes the state act as an invisible hand depending on the country’s legislation.
To add on, the first two hierarchies are directly related to each other such as the manager taking
full responsibility at the varying point to distribute the instruction, and the employees at each
corresponding level have a duty to fulfill and follow the instruction given by the higher-ups. The
third hierarchy acts as a supervisor and monitors the employee’s and the employer’s activities
under legal terms. For example, in the USA and Fiji, both the country’s government gets
involved in employment relations between managers and workers as under employment disputes
both states use the general court system (judiciary law) to resolve the issues. As for employer
and employee they are linked under industrial relations such as labor is the factor of production
for the final output, and to achieve accurate goal employer monitor, train, and instruct the labors
(Wood, et al., 2010).
Secondly, the context in the system, it’s when the employment relation occurs in the context of
society including the technical aspects of the organizations, market constraints (budgetary), and
how power is divided within the economy. Dunlop mentioned that the context influences society
as well as puts constraints on the decision-making and the action taken by the three key actors.
For example, there are organizations in the USA with the best technology in processing and
producing the product and completing the world market with a professional labor force.
Companies such as BAE System USA, Purple Drive Technologies, and CACI International. The
actors: employer, employee, and the USA state played their parts to represent their excellent
outcome as they improved the environment of employment relations. Pacific island nations such
as Fiji, Solomon Islands, Tuvalu, and Vanuatu are developing nations, these nations have a lower
level of context in the system of employment relations due to less exposure to new technologies,
and the labor force is declining cause of labor immigrant, as a result, the product market
condition is deteriorating and this has a great impact on the employment relations in the pacific.
For instance, the agriculture sector, fisheries, and timber industries. The developing nations also
face budgetary constraints (a national budget deficit) which aim lower the level of development
in employment relations. Generally, context is all about the issues of power in the society as a
whole which gives the authority to all three key actors to influence the environment with the use
of technological factors (Kaufman & Dunlop, 2002).
Thirdly, the ideology, Dunlop refers to different opinions and ideas of the key actors about the
role and legitimacy they have in employment relations. On the same note, if the opinion or ideas
are similar while the actors are performing their roles then there is a high chance of a stable
system in the employment relation environment or vice versa. For example, in New Zealand, all
three actors have a similar ideology for their current and future employment relation systems,
such as the actors’ aims to reduce the occurrence of Industrial Disputes and continue productivity
with a minimum of wastage. Where the employer (manager) keeps in mind to provide the best
facility where employees are satisfied and give their best toward work without losing any
materials. As for New Zealand Government, they invest which assists other actors’ ideas in
employment relations. In Fiji, employers’ (FIJI FOREST INDUSTRY) opinion streamlines
conflict resolution and even though an acceptable agreement between the employer and
employees has been achieved, performing their function in the production cycle. The trade union
(National Union of Workers) looks after the employee's welfare in the timber industry, such as
health, working conditions, forestry machinery, etc. The state (Fijian government) aims to
decline wastage with raise in timber production. An employment relations system requires these
ideologies to be enough consistent and compatible to allow for a common set of concepts and a
role that each actor can accept. Additionally, good employment relations thus help in minimizing
the wastage of labor and material resources (Rogowski, 2007).
Fourthly, the web of rules is a legal framework outlining the specifics and character of the
employment relationship. According to John Dunlop, the purpose of employment relations is to
establish the rules of the workplace and have managers carry them out and where employees
abide by those regulations. To add on, these rules are characterized by two different rules:
‘substantive’ and ‘procedural’ rules. Firstly, the substantive rule includes the issues faced in
employment relations such as pay, working conditions, job security, the production goal, and
level of satisfaction. Secondly, the procedural rule is the procedure that is used to decide these
issues such as collective or individual bargaining, arbitration, and unilateral management
decision. For example, during the recession period in a country like India, employees and their
union's bargaining power was diminished because of the high unemployment rate. Such as
unions might have a major impact on one system while having little to no impact on another. It’s
a substantive rule, where the economic factors affect the employment security in firms like
Byjus, Meesho, etc. To deal with this situation the management and the Indian government used
a procedural rule where they can make arbitration and policies such as reducing unnecessary
costs and training of employees. However, Vanuatu, the Marshall Islands, and Niue face many
challenges in the employment relation system such as meeting production goals and the
condition of the working environment. Due to lower development in the Pacific, the actors are
actively playing their role to overcome with policies and available resources. As a result, a
variety of factors govern the web of rules, which in turn varies from one country to another.
(Johnnie, 2000).
I believe Dunlop’s system theory of employment relations is relevant to the Pacific Island
nations. The reasons are as follows: the environmental; or external economic, technological,
political, legal, and social influences that have an impact on employment relationships. Also, the
key actors are to be considered while analyzing the management-labor interaction, according to
Dunlop’s model. The Pacific islands are mainly developing nations and Dunlop’s model will
assist the actors in identifying their roles which will build efficiency in employment relations. As
mentioned in the context in a system by John Dunlop, the Pacific island nation needs to get to the
best employment relation environment in the future. This model is straight to the point and aims
to overcome industrial relations issues by making policies and rules.
On the contrary, it is concisely evident that this theory discussed here has both its cons and pros.
This actually is dependable the on adoption manner in relation to the material proforma of the
operation of the chosen entity or organization. However, relative authorities also play a major
role in devising relevant but suitable regulatory policies for the surrounding conditions available.
Moreover, it also is clear that developing nations face a lot of difficulties and challenges with
their availability of resources to formulate a mere reliable policy in favor of everyone. Thus
performance and productivity may be very challenging and at the risk of not being able to
achieve their maximum level.
All in all the theory is altered to adapt according to the availability of the resources surrounding
them and this is very essential to write and regulating the necessary policy thus this varies from
one nation to another as per the needs and resources available for them.-
Bibliography
Johnnie, P. B., 2000. Methodological Issues of Dunlop's Industrial Relations Systems Theory.
JSTOR, 27(3), pp. 227-242.
Kaufman, B. E. & Dunlop, J., 2002. Reflections on Six Decades in Industrial Relations: An
Interview with John Dunlop. JSTOR, 55(2), pp. 324-348.
Rogowski, R., 2007. Industrial Relations as a Social System. JSTOR, 4(1), pp. 97-126.
Wood, S., WAGNER, A., GOODMAN, J. & ARMSTRONG, E., 2010. The Industrial Relations
System Concept as a Basis for Theory in Industrial Relations. Research Gate , 13(3), pp. 291-
308.