This course is designed to provide students of industrial relations with a sound theoretical foundation for understanding and managing the employment relationship. Four broad principles anchor the course: 1) The employment relationship is characterized by complex socio-economic exchange among the parties; 2) The goal of employment relations theory is not only to better understand people at work in employment situations but also to facilitate better policy-making; 3) Employment relationships can be viewed at different levels; and 4) Shifts in the global economy have created new pressures on employment relationships. To solve these emerging problems we need to draw on theories developed during the formative years of modern industry in the 20th century; we also need to modify these theories where ever they prove inadequate in explaining/understanding emerging issues and problems in employment relationships.