6 Models of Industrial Relation Diagram

Introduction :

Model of industrial relations very from one country to another while other countries simply copy the model of others. In same countries modifications are made to suit their environment . 

1.  CLASSICAL MODEL

The classical model is based on Adam Smith's theory of laissez-faire which has its origin from Britain and later adopted in the United States of America. This model is based on the principles that collective bargaining is voluntary and therefore there shall be no state intervention or compulsory state intervention. Another example of the classical model of industrial relations is the scanlon plan  which was developed in the 1930s by Joseph scanlon. The scanlon plan is a productivity -based incentive plan that gives employees a share of the profits that they help to generate. This plan is based on the belief that employees are more likely to be productive if they have a stake in the company's success.

2. MODIFIED CLASSICAL MODEL.

This model is a modification of the classical model. In this model, the government intervenes in the activities of unions with respect to collective bargaining. Nigeria uses this after the civil war and it is still the practice in Nigeria today.

3.CO-DETERMINATION MODEL

Co-determination is a model of industrial relation that originated from Germany. But today many countries of the world such as Czech. Republic, Holland, Austria, Sweden, Denmark and USA practiced co-determination in their countries. It is system that allows for cooperation between management and workers in an organization. Example like, Germany in Germany, there are two levels of co-determination. Establishment level. Works council are elected by employees and have the right to be consulted on a wide range of issues, including working conditions, health and safety, and training. At the enterprise level, one third of the members of the supervisory board are elected by employees. This gives workers a significant say in the strategic direction of the company.

4.  FRENCH MODEL.

In the french model collective bargaining is undertaken merely to supplement the basic terms and conditions of employment laid down by a legal code called "Code du Travail" used in the former French colonies. Code du Travail is the rules and regulations laid down by the french government on labour matters.

5.     PATERNALISTIC MODEL   

The paternalistic model place a strong bond between the workforce and the management. That is, there is a strong relationship between the workers and management, This model is practiced in Japan. It is sometime called Japanese model of industrial relations. This is because a Japanese worker as well as employer considers their relationship as a life long bondage in an organization.  The Japanese has a good industrial relations system. One example of a paternalistic Model of industrial relations is the company town. Company towns were common in the United States during the late 19th and early 20th centuries. The employer would build a town to house their employees, and would provide them with all the necessities of life such as housing, healthcare, and education. The employer would also control the town's government and businesses.

6.  ADMINISTRATIVE MODEL

This model attempts to reconcile the overall interest of the state and it's planned economic development with the basic right and obligations of wage earners. The administrative model was socialist oriented. This model was practised in the former Soviet union. One example of an administrative model of industrial relations is the use of grievance procedures.

Grievance procedures are a formal way for employees to raise concerns about their working conditions or treatment by management. The procedures typically involve a series of steps such as informal discussions, mediation, and arbitration. The goal of grievance procedures is to resolve disputes between employees and management in a fair and efficient manner.

CONCLUSION ; 

The different model of industrial relations have evolved over time in response to the changing needs and circumstances of employers employees, and governments. Each model has its own strengths and weaknesses, and the most appropriate model for a particular country or industry will vary depending on a number of factors. However, the different model of industrial relations can provide valuable insights into the dynamics of employer-employee relations, and they can help to inform the development of policies and practices that promote cooper

Reference ;

• Here are some additional references that you may find helpful:

• Theories of industrial Relations by Michael Poole

• Industrial Relations: A critical introduction by Paul Edwards

• The oxford Handbook of industrial Relations edited by peter Ackers, Chris Smith, and Paul                              Thompson