Designing a Dynamic Model of Labour/ Industrial Relations through Decent Work Approach

Document Type : Research Paper

Authors

1 Ph.D. Student in Business Administration of Yazd University & Faculty Member of Chabahar Maritime University, Yazd, Iran.

2 Associate Professor, Business Administration Department, Yazd University, Yazd, Iran

3 Associate Professor, Industrial Management Department, Yazd University, Yazd, Iran

4 Assistant Professor, Business Administration Department, Yazd University, Yazd, Iran

Abstract

 
Extended Abstract
Abstract
So far, several theoretical models have been designed in labour/industrial relations with the claim of universality, but their implementation in the context of a country's industry is still uncertain. Accordingly, the main aim of this research is to design a native model based on System Dynamics for labour/industrial relations with the focus on the components of decent work as the concern and need in the modern world of industry. So, initially, with the extensive study of theoretical literatures and conducting several in-depth interviews with experts, the components of the native model of labour/industrial relations were identified, and then the Causal Loop Diagram and Stock and Flow Maps were drawn and formulated to identify the relationships. The validity of the model was also confirmed. Drawn upon the experts’ opinions on the importance of exogenous variables such as the trust level, the try to obtain resources and the Intensity of social and collective relations expansion, the scenarios for these variables and their impact on key endogenous variables such as the conflict rate, the compromise probability, the status of Province's industry, and the rest were evaluated. The results show the significant impact of the exogenous variables on other endogenous variables in the model.
Introduction
 The term ‘industrial relations’ refers to all existing relations between employee, employer and the government. They aim at providing peace and tranquility, reducing unrest and hostile relations, and ultimately achieving real rights of the parties. Industrial relations are broad relations whose complex dimensions are taken into consideration, by the experts, through different models which are claimed to be universal and comprehensive. On the other hand, the important issue is that the industrial relations system must comply with the unique conditions of the relevant community and the changes in time and environmental conditions. This phenomenon is as true for the political and economic history in Iran. The present research was then based on the premise that the industrial relations should be considered a dynamic system so that they can be both effective and efficient in any environment with various variables. The other aspect of the present research is concerned with ‘decent work’ which is one of the most significant, essential and serious international issues concerning work, production and industry in the modern world today. The introduction and importance of decent work, outlined by the International Labor Organization (I.L.O), is highlighted by the majority of the countries. Thus, understanding the criteria for the decent work and the effort used in indexing, implementing and applying the related matters in labour relations and specially employee-employer relations can definitely lead to sustained and effective interests in the sectors of industry, services and business for any country, particularly Iran.
The present research is motivated by the significance of the decent work, the need to reexamine the current models of labour / industrial relations in an attempt to introduce a dynamic model which can comply with various variables to offer necessary forecasts for different conditions in the interests of the stakeholders.
Case study
In this research, the statistical population includes all major actors or stakeholders who work in industries in Yazd province.
Materials and Methods
In this study, System Dynamics (SD) modeling was adopted to conceptualize and to model the complex of Labour/Industrial Relations. The present research is quasi-experimental and developmental by nature. The statistical population includes all major actors or stakeholders who work in industries in Yazd province. 45 actors were selected judgmentally as the statistical sample. In this study, Stermann’s (2000) system dynamics method was used.
Discussion and Results
Questions and a time horizon of 100 months were introduced. At the second step, the causal loop diagram and the stock and flow map were developed according to the experts’ opinions. At the third step, the current relationships between the variables in the industrial relations were formulated according to the experts’ opinions and the quantitative/ qualitative data. At the fourth step, the validity of the model was obtained through standard methods. Finally at the last step, drawn upon the experts’ opinions and the exogenous variables in the model, three scenarios were introduced.
Conclusion
The aim of the present study was to design a dynamic model for the industrial relations with an emphasis on decent work. To this end, significant steps were taken by reviewing the existing literature on industrial relations, examining the operationalization of industrial relations in Iran, collecting experts’ opinions, and the employment of system dynamics. After identifying the effective variables in the industrial relations process with the help of the sources, the five common steps for Esterman’s SD method were used. Three scenarios were introduced and studied: 1. Increase of trust level among the members and actors in the labour/ industrial relations, 2. Modification of tries to obtain resources, and 3. Expansion of social and collective relations.

Keywords


1-Baron, J. A. (1988). "The Employment Relations as Social Relations". Journal of the Japanese and International Economics, 2: 492-525.
2-Bordbar, Gh. & Habibi, M. (2013). "Comparative study of a number of decent work indicators". Political-Economic Journal, 292: 208-225. (In Persian)
3-Brown, J. A. (2000). "Competing ideologies in the accounting and industrial relations environment". British Accounting Review, 32: 43–75.
4-Caspi, A. & Kastiel, R. (2006). Industrial relations in the Middle East, In Global Industrial Relations, Edited by Morley, M. J.; Gunnigle, P & Collings, D. G.. 1st Ed. New York; Routledge.
5-Cooke, F. L., Xu, J. & Bian, H. (2019). "The prospect of decent work, decent industrial relations and decent social relations in China". The International Journal of Human Resource Management,
6-Etebarian, A. & Bagheri Khorasgani, H. (2015). "Investigating the Factors Affecting Creating Conflict between Workers and Employers". Labor and Society Journal, 180: 35-48. (In Persian)
7-Findlay, P. & Thompson, P. (2017). "Contemporary work: Its meanings and demands". Journal of Industrial Relations, 59(2): 122–138.
8-Holly, W. H.; Jennings, K.M. & Wolters, R. S. (2009). The Labor Relations Process. 9th Ed. USA; South-Western.
9-Howe, J. (2017). "Labour regulation now and in the future: Current trends and emerging themes". Journal of Industrial Relations, 59(2): 209-224.
10-Ibsen, C.L. and Tapia, M. (2017). "Trade union revitalization: Where are we now? Where to next?". Journal of Industrial Relations, 59(4): 510-537.
11-I.L.O. (2018). Building Trust in a Changing World of Work. OECD.
12-Kamali, M. (2018). Forecaste Sales of Cinema Sheds with SD Approach. A Master Thesis, Yazd University, Iran. (In Persian)
13-Kanti Bala, B.; Mohamed Arshad, F. & Mohd Noh, K. (2017). System Dynamics: Modelling and Simulation. Singapore; Springer.
14-Khanbashi, M & Bostanmanesh, Gho. (2015). "Decent work and human resource". Journal of work and society, 182: 26-34. (In Persian)
15-Kurubetti, A & AshaNagendra, A. (2014). "Industrial Relations at Cummins India Limited". Procedia Economics and Finance, 11: 86 – 94.
16-Mathur, M. R. (2001). Industrial Relations in Private Sector in Haryana. PhD Thesis, K. K., Maharshi Dayanand University, Rohtak (India).
17-Naderi, A. (2013). "The role of social trust in Labor and employer relations". Journal of work and society, 158: 41-44. (In Persian)
18-O’Reilly, A. (2007). The right to decent work of persons with disabilities. 1st Ed. Geneva; International Labour Office.
19-Salamon, M. (2000). Industrial Relations: Theory and Practice. 4th Ed. Great Britain; Prentice Hall.
20-Sophia N, J. & Ye Kim, Sh. (2019). "Decent work in South Korea: Context, conceptualization, and assessment". Journal of Vocational Behavior, 115.
21-Sterman, J. D. (2000). Business Dynamics Systems Thinking and Modeling for a Complex World. USA; McGraw-Hill.
22-Zahedi, Sh. (2013). Industrial relations. Iran; Daneshgahi. (In Persian)
23-Zohoori, Gh. (1999). Labour Realations (Theories and Processes). 1st Ed. Iran; Mir Publication. (In Persian).