1. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Part 5 Special Topics in Human Resources

2. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Labor Relations Framework 14-2 Irwin/McGraw-Hill Competitive Challenges Goals - society - management - employees and union Goals - society - management - employees and union

4. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Labor Relations Framework 14-3 Irwin/McGraw-Hill Competitive Challenges Goals - society - management - employees and union Goals - society - management - employees and union Union Structure & Administration

5. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Labor Relations Framework 14-4 Irwin/McGraw-Hill Competitive Challenges Union Structure & Administration Union Membership & Bargaining Power Union Membership & Bargaining Power Goals - society - management - employee and union Goals - society - management - employee and union

6. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Labor Relations Framework 14-5 Irwin/McGraw-Hill Competitive Challenges Goals - society - management - employees and union Goals - society - management - employees and union Union Structure & Administration Union Membership & Bargaining Power Union Membership & Bargaining Power Union & Management Interactions - organizing - negotiating - administering Union & Management Interactions - organizing - negotiating - administering

7. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Labor Relations Framework 14-6 Irwin/McGraw-Hill Competitive Challenges Goals - society - management - employees and union Goals - society - management - employees and union Union Structure & Administration Union Membership & Bargaining Power Union Membership & Bargaining Power Union & Management Interactions - organizing - negotiating - administering Union & Management Interactions - organizing - negotiating - administering Goal Attainment - employees & unions - management - society

8. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Union Structure, Administration, and Membership 14-7 Irwin/McGraw-Hill National and International Unions Local Unions AFL-CIO National and International Unions Local Unions AFL-CIO

9. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Union Security 14-8 Irwin/McGraw-Hill Unions typically place a high priority on negotiating two contract provisions that are critical to its security or viability: A check-off provision Union membership or contributions a closed shop a union shop an agency shop Unions typically place a high priority on negotiating two contract provisions that are critical to its security or viability: A check-off provision Union membership or contributions a closed shop a union shop an agency shop

10. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Decline in Union Membership 14-9 Irwin/McGraw-Hill Structural changes in economy service sector growth Increased employer resistance global competition Substitutions with HRM concern for employees, flexibility Replaced by government regulation, laws EEO and other regulations offer protection Worker views Union actions Structural changes in economy service sector growth Increased employer resistance global competition Substitutions with HRM concern for employees, flexibility Replaced by government regulation, laws EEO and other regulations offer protection Worker views Union actions

11. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Legal Framework 14-10 Irwin/McGraw-Hill Wagner Act (NLRA) 1935 – Employer unfair labor practices other union-related activity union organizing joining a union going on strike Taft Hartley Act (1947) & Landrum-Griffin Act (1959) – Union unfair labor practices right-to-work laws allow members to exercise their rights Wagner Act (NLRA) 1935 – Employer unfair labor practices other union-related activity union organizing joining a union going on strike Taft Hartley Act (1947) & Landrum-Griffin Act (1959) – Union unfair labor practices right-to-work laws allow members to exercise their rights

12. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Union - Management Interaction: The Organizing Process 14-11 Irwin/McGraw-Hill Why employees join unions Process & legal framework Representation elections management tactics union tactics Why employees join unions Process & legal framework Representation elections management tactics union tactics

13. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Union - Management Interaction: Contract Negotiation Process 14-12 Irwin/McGraw-Hill Distributive bargaining (win-lose) Integrative bargaining (win-win) Management’s preparation Stages and tactics Bargaining Power, Impasses, and Impasse Resolution Distributive bargaining (win-lose) Integrative bargaining (win-win) Management’s preparation Stages and tactics Bargaining Power, Impasses, and Impasse Resolution

14. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Factors Influencing Management’s Willingness to Take a Strike 14-13 Irwin/McGraw-Hill Product Demand is strong Product Perishability is high Capital intensive Replacement workers readily available Multiple production sites Facilities are not very integrated Lack of product substitutes Product Demand is strong Product Perishability is high Capital intensive Replacement workers readily available Multiple production sites Facilities are not very integrated Lack of product substitutes

15. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Impasse-Resolution procedures: Strike Alternatives 14-14 Irwin/McGraw-Hill Mediation Arbitration Grievance Procedures

16. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Union - Management Interaction: Contract Administration 14-15 Irwin/McGraw-Hill Discuss grievance with supervisor. Grievance is put in writing to higher level manager. Steward and management representative meet. Appeal to top level / labor relations staff. Decision is put in writing. Arbitration for binding decision. Discuss grievance with supervisor. Grievance is put in writing to higher level manager. Steward and management representative meet. Appeal to top level / labor relations staff. Decision is put in writing. Arbitration for binding decision. Typical Steps in a Grievance Procedure

17. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Contributions to Organizational Effectiveness of Transformational Approaches to Labor Relations 14-16 Irwin/McGraw-Hill Dimension Pattern Traditional Transformational Conflict resolution Frequency of conflicts Speed of conflict resolution Informal grievance resolution Third & fourth-step grievances Shop-floor cooperation Formal problem-solving groups Informal problem-solving activity Worker autonomy & feedback Formal autonomous work groups Informal worker autonomous activity Worker-initiated changes in work Feedback on cost, quality & schedule High Slow Low High Low Fast High Low High

18. Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Measuring Effectiveness: Labor Relations Outcomes 14-17 Irwin/McGraw-Hill Strikes Wages and Benefits Productivity Profits and Stock Performance