There are three factors that influence the behaviour of organisations, the individuals that interact with employment relations, managers, employees and the state. The state, defined, is the government chosen at the time that puts into practice polices and legislations. As (Bain and Clegg, 1974) state that, employment relationship is the employer acquiring knowledge of government rules and keeping up to date with new rules and altering of rules that have an effect on its employees. The basic objectives of the government is to uphold employment, to keep price stabilized and to secure the exchange rate, however each one can effortlessly conflict with the other. Government objectives are approached at dissimilar angles as each party has diverse approaches to how objectives should be achieved.
Prior to Margaret Thatcher [1979] James Callaghan lead a Labour government, "He came with a long and thorough experience of Parliament, the Labour Party and the trade unions." refer to appendix page 1& 2 James Callaghan valued and comprehended to trade unions, which possibly could have added to his lack of control over unions. James Callaghan Labour government encountered extensive difficulties. From 1974, Britain was going through a period known as the' winter of discontent' which comprised of prevalent strikes by local authority trade unions, ordering a rise in pay. James Callaghan was observed as powerless and ineffective to the strikes and strength to control inflation. This lead to James Callaghan convening an untimely general election, Callaghan was consequently conquered in 1979.
Thatcher was elected in 1979, the British economy was in a poor state, and ,'Thatcher' was