Management

Industrial relations refer to processes and outcomes involving employment relationships. In another words, industrial relations is a discipline concerned with all aspects of the employment relationships. Thomas, A (1992) indicates that “people are our most important assets, all aspects of people at work’’. Which means a particular set of phenomena associated with regulating the human activity of employment.

Industrial relations (IR) was common used in Britain and North America during the 1920s, and it has been joined by Human Resource Management (HRM) since the 1980s. Before the industrial revolution, there are many family workshops instead of factories which is operating in the market. Therefore, the employment relations are mainly from relatives and apprentice, so that there are less conflict existed in this employment relation and it is easy to deal with less people in a small group. Since the industrial revolution, there were many large scale factories appeared, and it is accompanying with a series of problem such as unreasonable working hours and payment on employees. These conflicts has potential risks on social stability. Thus, at the early of the 19th, industrial relations derived from the conflict in employment relations.

Human Resource Management perceives employees as most valuable assets for any organizations. The aim of Human Resource Management is to make most use of human resource to achieve the goal of a company. Legge (1991) indicates HRM has forced a reevaluation of the scope and nature of industrial relations as a field of study. More specific, HRM makes industrial relations to consider more rather than only for unions and management.

Although industrial relations and HRM are two different fields, industrial relations concern about aim of relieving and solving compare with HRM aims to motivate and improve the performance of workers. Both industrial relations and HRM are in the same context, which are affected by the economic,...