Employment relations and management are not new concepts; they have existed throughout history, retaining their importance in organisations from ancient times to the present day. In Europe, ER emerged amid the industrial relations of the 1920s. At the time, the term industry only included manufacturing firms (Mather, 2018). However, the phrase has expanded to include non-manufacturing parts of the economy as well as manufacturing ones due to modernity. Thus, corporate and employee relations presently encompass all types of work.

Scholars studying industrial relations have identified three key management paradigms: unitarist theory, pluralism, and the radical perspective (Budd, 2020).  These three differ significantly, each with its unique perception of office interactions. The theories offer varied insights into workplace conflicts, labor unions, and employment regulations (Budd, 2018).

Pluralists view firms as powerful subgroups with different responsibilities and aims (Ackers, 2021). Unitarism views an organisation as a harmonic totality where management and staff work together to achieve goals (Cullinane, 2023). Marxism, often referred to as radicalism, represents a distinct radical perspective on societal issues. It explores the dynamics of a capitalist society characterised by conflicting interests between capital and labor.
The pluralistic approach, often adopted by unionised companies, emphasises a shared power dynamic between workers and business leaders (Ackers, 2021). This method aims to create a balance of authority between management and staff, with unions playing a vital role in this process. It recognises that conflict is a natural occurrence, contributing to creativity and growth (Kang & Sung, 2017). Mediation is viewed as a means to bridge the gap between employee needs and management expectations (Guest, 2017).

For example, at Bank Al Habib (BAHL), the pluralistic approach thrives, as trade unions serve as primary representatives for employees and play a key role in resolving conflicts. Employees have the option to join trade unions for collective bargaining purposes (McIlwee, 2020). While unions have the right to challenge management decisions, employers ultimately maintain decisive authority (Carstensen et al., 2022). Nevertheless, unions have proven instrumental in addressing conflicts, which has guided management strategies towards more effective conflict management (Van Buren III, 2022). By acknowledging that conflict is an inevitable part of a diverse workplace, BAHL fosters employee engagement and satisfaction, as individuals feel their voices are being heard and acknowledged. The pluralist approach facilitates positive employment relations, ensuring that power is balanced among the key parties involved, thereby preventing any one side from dominating negotiations (Budd, 2020).

The unitarist approach, in contrast, does not acknowledge the necessity of a third party, such as a trade union, in the relationship between management and employees, viewing this as an unwelcome interference (Kaufman et al., 2021). It posits that all individuals in an organisation share a common interest, suggesting that with effective management, operations can run smoothly (Greenwood & Van Buren, 2017). This perspective assumes that conflict is an anomaly, arising from troublemakers, poor communication, or inadequate management (Mather, 2018). A notable example of this was in 2022, when employees of Delivery Hero in Dubai staged a protest over pay that fell short of current living standards (Debre, 2022). Unfortunately, their demonstrations resulted in deportations and prosecutions, particularly since many of the workers were expatriates from Africa, India, and Pakistan (Debre, 2022). This situation reflects a broader trend, where power and authority predominantly lie with management, typical of non-unionised workplaces (Sheldon, 2015). In the Middle East, for instance, where trade unions are largely illegal, many organisations adhere to the unitarist approach. In these settings, Human Resources acts as a channel for managing employee issues, with the Employee Relations department addressing concerns while guiding employees through processes that align with organisational policies and labor laws (Williams, 2020). Decision-making tends to be centralised, and employee feedback is often overlooked when it comes to policy decisions. While there is a mechanism for sharing employee opinions, management rarely acts on their suggestions. Overall, in a unitarist framework, there is minimal interest in employee relations, as employees are viewed merely as resources for the production process, rather than as integral participants in policy-making and decision-making (Kaufman et al., 2021).