Submitted in partial fulfilment of the requirements for the degree Master of Management in Public Policy (MMPP) in the Governance School, Faculty of Law, Commerce and Management, University of the Witwatersrand / It is human nature to pursue happiness. This pursuit of happiness is in many cases obtained through hard work. People work in order to provide for their families and they obtain satisfaction if their families are happy with their provision. It is thus never an employees’ motive or desire to be dismissed from work or have bad relations with his/her employer. It is important to minimize conflicts between employers and employees in any country because it helps reduce the socio-economic problems that these conflicts may foster in societies. Governments use labour laws and policies to manage labour disputes. However, if these policies do not seem to be achieving what they are supposed to then that may suggest policy failure. This study looked particularly at the effectiveness of institutions dealing with labour dispute resolution in Lesotho. The purpose of the study was to establish reasons for why, despite all the legal frameworks relating to labour relations in Lesotho, there seems to be an escalation of disputes. It was found that lack of public participation, especially of employees and employers, in the formulation and implementation of policies, laws and regulations relating to labour relations leads to the escalation of disputes. This simply means that involving stakeholders in issues that affect them from the onset can reduce the level of disputes because the majority would have understood what labour relations entails. A qualitative study was used and data was collected through one-on-one semi-structured interviews with 31 participants, focusing on people who are mostly affected by labour relations in Maseru, the capital of Lesotho. The participants were chosen purposively to suit the study being undertaken. However, data collection was a limitation to this study because it was difficult for the researcher to secure appointments with participants. The study made the following recommendations: it is through the effectiveness of institutions that labour disputes can be reduced, especially Ministry of Labour and Employment (Department of Labour), Directorate of Dispute Prevention and Resolution (DDPR), labour court, and labour appeals. However, the social partners, especially trade unions and employers’ organizations, also play a critical role in ensuring wellfunctioning labour relations are in place. / MT2016