This approach is developed by J.T.
Dunlop. Dunlop considered the industrial system as the sub system of the
society and the development of industrial relations comprised of certain
actors, certain contexts, an ideology which binds the industrial relations system
together and a body of rules created to govern the actors at the workplace and
work community.
Industrial
relations is a sub-system of wider society with four elements:
(i) Actors:
employers, employees, their representatives, government agencies
(ii) Environmental
contexts: technology, market, budgets, distribution of power
(iii)
Procedural and substantive rules governing the actors
(iv)
Binding ideology, common beliefs encouraging actors to compromise