According to Hyman, the State refers to the role of political institution in socio-economic relations, which is distinctive and theoretical. Although, there is diversity of the definitions of the state, there is still some crossover among them by Weber, Skocpol. This overlap is in terms of legitimacy, community and domination. In Mann 's words, state power has become 'despotic '. Also, states are different as governments. The industrial relations have difficult relationships with the Stat. .
There are three movements in capitalist economies: the imposition constraint on the disruptive social consequences of market liberalism, and the deliberate unraveling of this regulatory web. There are also three contradicting functions of state activity to employment relation, which are accumulation, pacification and legitimization. The laissez- faire, the social state and the developmental state where three different types of state which shapes the regime of industrial relations, now turning to be the important advantage in the development of economy. The concept of corporatism was popular in industrial relations after 1970s. Unions and employers ' associations gained a privilege from macro- policy formulation. Since the 1980s, corporatist arrangements had become challenged. Trade unions had become weak, employers ' associations have been kept stable, and governments have slowly moved out from an old regime. The coming of
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