Chapter 22 Industrial Relations

Recap of Previous Lecture Types of separations Principles of Transfers Principles of Promotions

Separation Leaving of organization by employee is called separation Reasons: Voluntarily or Involuntarily Voluntary Involuntary Quits Retirement Discharges Layoffs Retrenchment VRS Rightsizing (restructuring) Reasons of Separation Guidelines to Manage Downsizing Decision to who stays and who leaves Delay and pay hikes Freeze hiring Restrict overtime Retrain or redeploy employees Engage part time employees Switch to job sharing Across the board pay cuts Early retirement schemes Keep morale of working employees Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, Pp

Lecture Overview Nature of IR Need for good relationship between management and workers Approaches to Industrial Relations Stakes of parties Proactive strategy to IR Role of HR department

Nature of IR Industrial Relations: “Concerned with the relationship between management and workers and role of regulatory mechanism to resolve disputes between employer and workers” “IR is concerned with the system, rules and procedures used by unions and employers to determine the reward for effort and other conditions of employment to protect the interests of the employed and their employers, and to regulate ways in which employers treat their employees” (p. 534)

Nature of IR IR covers 1)Collective bargaining 2)Role of management, unions and government 3)Mechanism of resolving disputes 4)Grievances and disciplinary policy and practices 5)Labour legislation 6)Industrial relation training

Importance of IR Moral dimension IR protect right of managers Handling disciplinary proceedings Fairness in practices and working relations

Approaches To IR Unitary approach Pluralistic approach Marxist approach Industrial Relations

Approaches To IR Unitary Approach Based on mutual cooperation, individual treatment, shared goals and team work Everyone gains when there is common interest and goals and promotion of harmony Conflict is destructive and unnecessary Direct negotiations with employees No need to involve government, and unions to resolve conflict

Approaches To IR Pluralistic Approach There is competing interests, management’s role is to act as mediator amongst competing interests groups Trade unions are representative of employee interests Concessions and compromised between management and unions Conflict between management and union is good for productive work environment and innovation Unions balance interest of employees and employer Government interferes in form of regulations to protect the right of society and employees Crux: Conflict is inevitable and needs to be contained with in the social mechanism of conciliation, collective bargaining, and arbitration

Approaches To IR Marxist Approach Conflict is inevitable but it is because of capitalist society Conflict is not because of competing interests of employees and management but division with in society between people who own resources and people who offer labour Industrial conflict is because of social and political unrest Trade unions are forum to react to capitalism exploitation and bring social revolution Trade unions make employees (labour) position more strong in capitalistic society All strikes are legitimate, fair and political Regard state interventions through legislation is to protect the owners

Parties to IR Employees Employees Association Government Employers Employers Associations Courts and Tribunal Employer- employee relations

IR Strategy 1) Reactive Strategy Resolve conflict when it arises and reach to uncontrollable level 2) Proactive Strategy Follow forward looking and well planned strategy to deal with IR Four main components of proactive IR strategy i) Communication ii) Relationships iii) Competence iv) Discipline and Conflict

Factors Affecting Employee Relationship Strategy Internal Factors 1.The attitude of management to unions and employees 2.The attitude of employees and unions to management 3.The attitude of employees to unions 4.The strength of unions 5.The extent to which agreed and effective procedures and rules exist within company to resolve disputes and handle disciplinary matters 6.The competence of managers to deal with employees issues External 1.Strength and effectiveness of employers’ associations 2.The pay and employment situations at local and national level 3.The legal framework in which IR operates

Role of HR Department in IR Motivated and competent workforce is responsibility of HR Through effective recruitment, work conditions, job designs, safety and health environment, training and compensation HR department satisfies employee and organization needs Through these efforts it contributes to quality of life of workers Workers with better quality of life less likely to resist, involve in disputes and go on strikes

Summary Nature of IR Need for good relationship between management and workers Approaches to Industrial Relations Stakes of parties Proactive strategy to IR Role of HR department Role of HR department

Chapter 23 Trade Unions

Lecture Overview Nature of Trade Unions Why employees join unions Factors leading to unionization Union tactics Tactics to remain union free Role of HR department

Trade Unions “Unions are volunteer organizations of workers or employers formed to promote and protect the interests through collective actions” (p, 549) Definition of Unions include 1.Combination of workers or employers 2.Could be permanent or temporary 3.Regulate relationships among workers, workers and employers or among employers Strategic Choices before managers 1.Allow unions or remain union free 2.If want to remain union free then what to do? 3.If allow unions what type of relationships want? 4.Tactics to negotiate with unions

Why Employees Join Unions 1.To protect against exploitation 2.Dissatisfaction (psychological contract) 3.Lack of power 4.Union Instrumentality

Factors Leading to Unionization Personality, interests, and preferences Expectations that work will fulfill personality, interests, and preferences i) employment contract ii) psychological contract Work situation Dissatisfaction with work situations Union instrumentality Unionization Satisfaction Influence of management Attempt to resolve situation independently Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 552

Strategic Choices for Unions 1. Bread and Butter vs Political objectives 2. Adversarial vs Cooperative Role 3. Traditional issues vs New Services Union Tactics 1. Organizing drive 2. Strike 3. Political patronage 4. Blackmail

Tactics to Remain Union Free Effective first line supervisors Effective personnel planning and selection Effective training and development Effective personnel research Healthy and safe work environment Effective employer and employee relationship Open communication Effective remuneration Union free Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 561

HR practices and Unions HR practices negate the existence of unions because of following reasons HR seeks employee relationships on individual basis (Pay and performance) HR attempts for socialization of workforce means harmony amongst workers and between management and workers, emphasize authority of management Training programs attempts to bring loyalty and pro management attitude Team based work environment Merit based selection and promotion