Tuesday, February 24, 2015

Explain Dunlop's theory of industrial relations.

John Thomas Dunlop developed a theory of industrial relationships. He worked as the US Secretary of Labor and is credited with groundbreaking ideas and advances in the understanding of industry and industrial relations.
His theory breaks down industrial systems into five groups or factors that all impact the industrial organization or system and helps to generate an output. By manipulating these five factors, you can either improve or decrease results and make changes in organizations. These factors all have various impacts, but any business or industrial complex can be analyzed using them and the outcome of tweaking the various factors can be reasonably well predicted.
The five factors are as follows: Individuals (this includes the employers and employees, as well as the government and anyone that impacts the business but is not a part of the exterior market), Technology (including exterior and interior technology, competitive technology, and the overall state of technology in the world at large), Market (the market is the vendors and customers for an industry, essentially the remainder of the supply chain), Power context (Power or influence of the organization in relation to its outside environment, and vice versa), and Ideologies (these are the beliefs and values of an industry).
The employees and workers in an organization obviously contribute to the industrial relationship, but so does the government. Policies and laws will affect how business is done, such as with NATO or NAFTA. Superior or inferior technology will affect the quality of production as well as how much it costs to produce it—and competitors with varying levels of technology will impact how well and how much you are able to produce. The market will necessarily dictate supply and demand. The power of an individual company will dictate how it navigates changing markets and how it can influence other factors or be influenced by them (think of Apple—it is powerful enough to introduce disruptive technologies and reinvent the entire market, and other companies typically have to play catch up). Ideologies will impact how a company does business—if they don't value the ecosystem, they will be much more willing to dump coal ash into local estuaries, for instance—which will be cheaper in the short term than recapturing and recycling waste, but can lead to lawsuits and other financial burdens.

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