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The notion of globalisation has grown with the increasing emphasis on strategic human resource management and its view that management should involve itself more with the people functions of the organisation. (Schuler and Macmillan, 2004, 2) An area of interest, though, is to what extent should devolvement occur, and specifically what functions should be devolved. The area of control is also of interest to HR and ER practitioners. Will they lose their power in the changes, or develop a more strategic stance. Finally, can strategic management be compatible with strategic human resource management? Initial research indicates that this is not necessarily the case.

According to Dunlop’s Model, the entire arrangement of various systems included by the industrial relations can also be named as a ‘System’, since almost every component of them ultimately impacts each of the others so that they make up a group of measures for dealing with a number of matters and are jointly accountable for carrying out various tasks.

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