AbstractA model of industrial relations is developed distinguishing between rule making—the central purpose of collective bargaining—and the subsequent steps of rule implementation, rule maintenance and rule adaptation. A further step is identified as rule breaking or rule avoidance, indicating the incompleteness of the rule-making-application-maintenance process. The reasons for rule breaking are examined focusing on pressures exerted in the production system and the underlying philosophy of negotiation as a satisficing rather than optimising activity. The role that formal control systems can play in making the industrial relations system more effective is examined. A distinction is drawn on the one hand between strategic planning, management control and operational control and on the other hand between three levels of feedback from the control system to the industrial relations system. The object of controls is seen firstly to encourage rule maintenance, secondly to aid rule adaptation and thirdly to assist in the strategic planning and design of the industrial relations system.