This essay explores and discusses the employment relationship while considering the value of a systems approach to industrial relations and the fact that individuals view issues from a particular frame of reference.

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This essay explores and discusses the employment relationship while considering the value of a systems approach to industrial relations and the fact that individuals view issues from a particular frame of reference.

The employment relationship is developed on an inter-related basis involving economic, social and legal dimensions of wider society (Fells, 1989). Organisations are subject to the economic conditions in which they operate. Employers rely on the availability of suitable labour to perform the work of the organisation and although viewed as a commodity by the employer, significant investment in the development of the employee can be lost or unused should the employee decide to leave or remain unmotivated. The unavailability of suitable labour can lead to segmentation of the labour market and a division of labour at the workplace. The division of labour is the breaking down of work into its smallest components in order to achieve effective specialisation, minimal worker discretion and the most efficient output (Sutcliffe and Callus, 1994). This division of labour can have far reaching implications for the management and the organisation, including the control and motivation of the workforce.

The legal dimension is concerned with the law of contract between an