Pluralism perspective views the organization being made up of two groups – Management and trade unions. Both of them are considered strong.

☛ It sees the conflicts over distribution of profits as normal and unavoidable.

☛ It believes that the role of management is more of persuading and co-ordinating

☛ Conflict is not viewed as a bad thing and is dealt with through collective bargaining

☛ Trade unions are viewed as legitimate representatives of employees.

The basic implications of this approach are:

☛ Union recognition is encouraged.

☛ Calls for an independent external arbitrator for resolution of conflicts.

☛ It calls for collective agreements to be negotiated with the trade unions

☛ Calls for appointment of IR specialists to advise managers in staffing and matters related to trade unions.