STAGE 1958: JOHN DUNLOP (Industrial Relation)

STAGE 1958: JOHN DUNLOP – INDUSTRIAL RELATIONS AS A SYSTEM

Dunlop Theory is a systems theory that has been developed by John Dunlop in 1958. The theory created or explained of the widest possible range of industrial relations as a system. The system is divided into two parts which are external and internal factors. The external and internal factors are known as actors, ideology, rules and environment whereas the external factors are culture system, political system, law and regulation system and also economic system.

Actors:

1)    Employee and their representatives (usually trade union members)

2)    Employers and their representatives

3)    Specialized government agencies concerned with industrial relation

Environment:

1)    Technology at workplace

2)    Market pressure and budgetary constraints that affect actors

3)    A complex web of rules

4)    The locus and distribution of power in the context of community/society

Ideology:

An idea and beliefs of the actors that causes them to be united and achieved what they desired for.

Law & regulation:

A rule or directive made and maintained by an authority.

How the theory influenced modern industrial relation?

The Dunlop theory influence the modern industrial relation in most of the aspects as it was considered as almost perfect theories on industrial relation on that period. We take the colonized countries for example. Countries like India, Malaya, Borneo and Singapore were colonized by the power of British. After gained independence, the IR systems in each country are applied differently although colonized by same power. The IR system in Malaysia is on the basis of historical element. The most powerful actor is the government. Same goes to the India, their system based on socialist but at the same time they used cast system in society. The most powerful actor in the India is the employers.