SYSTEMS THEORY OF INDUSTRIAL RELATIONSIntroductionIndustrial relations is a multidisciplinary field dealing with the study of employment relations in union and non-union organizations. There are various theories of industrial relations, but the first and most influential theory was put forward by John Thomas Dunlop. Dunlop, as a labor economist, reshaped the work of sociologists and developed a system framework of industrial relations. He developed system theory which emphasizes the interrelationship of institutions and behaviors that helps understand and explain the rules of industrial relations. DefinitionAccording to John Dunlop - “An industrial relations system at any point in its development is considered to be composed of certain actors, certain contexts, an ideology which binds the industrial relations system and a set of rules created to govern the actors at the place of work and in the work community. »The concept of industrial relations for Dunlop is in many ways similar to that of an economic system. In an economic system, prices are the central problem and are explained in terms of supply and demand; In the industrial system, work rules constitute for Dunlop the central problem of industrial relations. According to Dunlop, the system consists of three main actors and their organization, the context or framework in which they interact, the common ideology held by the actors that binds them together, and a set of rules that govern the actors . Systems theory includes: employers, unions and government. The interaction and relationship between these actors creates the set of workplace rules that govern the workplace actors. These actors cannot act ind...... middle of paper ......tems Industrial relations theory has played an important role in not only understanding but also maintaining better industrial relations today which can be easily linked to the current market. .Works CitedSuffield, L. and Templer A. (2012). Labor Relations, PH Series in Human Resources Management, 3rd editionThomas, P., (1959, December 19), Towards a General Theory of Industrial Relations, The Economic Weekly, p1729Maimona, M., (2013), Sears Canada cuts 245 jobs, outsourcing of IT positions in India and the Philippines, retrieved August 20, 2009 from http://business.financialpost.com/2013/08/20/sears-canada-layoffs-india/Ingram, D., (nd), The Relationship Between Systems Theory and Employee Relations, from http://smallbusiness.chron.com/relationship-between-systems-theory-employee-relations-22465.html Dunlop, J.D., (1958), Industrial Relations Systems ,p.. 84.