1. Strategies for CB at Enterprise Level
Arvind Shrouti,Option Positive

2. Arvind Shrouti,Option Positive
Existing Scenario
The State of Trade Unions
Density of Membership
Decline in Density of Trade Union Membership
Transfer of Jobs from Bargainables to Non-Bargainables
Sub Contracting
VRS
Contract, Casual, Temporary, Trainee, etc.
Arvind Shrouti,Option Positive

3. Arvind Shrouti,Option Positive
Changing Environment
Shift from Large Factories engaged in mass production to smaller ones producing for specialized markets.
Changing Consumer Taste which favor variety & not uniformity
Manufacturing activities involving low levels of skill are being shifted to regions where wages are low & Government policies more favorable.
Fast Technological Changes
Systems & Methods
Arvind Shrouti,Option Positive

4. The Mobility Of Capital
Industry has become global
Capital, Technology, Raw Materials & Managerial Expertise can all be moved easily from one place to another.
“Billions of dollars can be moved from one place to another in a few seconds with a few taps on the keys of a computer terminal.
Technology can be transmitted electronically in words, diagrams & codes in a matter of moments. Managers can be transported physically to the other side of the globe within 24 hours”. In comparison, Labour is completely immobile.
Arvind Shrouti,Option Positive

5. Arvind Shrouti,Option Positive
New Strategies
Managements have begun to deal with directly with workers in order to improve productivity.
The problem is not just high wage but the real issue is rigid union imposed rules which obstruct flexible use of labour.
Under the name of Productivity, increase in work intensity.
Committed labour force & not only cheap labour
HRM strategy
Arvind Shrouti,Option Positive

6. Arvind Shrouti,Option Positive
The Strike
The power of strike has been seriously eroded
Advance Technology, mobility of Capital, Transfer of Production, etc resulted in reduction of bargaining power
Difficult to go on strike
All other conventional TU strategies becoming out-dated.
Arvind Shrouti,Option Positive

7. Changing Character Of Work Force
Technological Changes have radically altered the composition of the Labour Force.
The need for manual labour declined
Reduced the need for well developed engineering skill
Knowledge workers
TU always viewed manual labour as their backbone
Employee profile shifted from manual work to white collar skills
Knowledge work- emerged as a major growth area
Difficult to organize such employees – good education & high pay, individualistic attitude, feel that they are part of management
TU failure to bring them in union strata.
Arvind Shrouti,Option Positive

8. Problems Faced By the Unions
Restricted to Collective Bargaining Rights, even in some cases no CB Rights
The difference between Real Participation & Cosmetic Participation
Arvind Shrouti,Option Positive

9. Observations & Experiences
The Old Methods
Collective Bargaining has been the only Relationship between Labour & Management
Management’s Demand – Productivity, Flexibility, work norms, etc.
Did Not Pose any threat to union & CB
Single Link (Management-Union)
Direct Link with workers- considered- anti union
Management was also not interested in such link
Arvind Shrouti,Option Positive

10. Observations & Experience
New Methods
Now Management is not only interested in cheap labour but interested in Committed labour force
Introduction of HRM to compete effectively
Arvind Shrouti,Option Positive

11. Arvind Shrouti,Option Positive
What Is Commitment?
Productivity
Flexibility in Learning New Skills
Capacity to identify & solve problems at work
Responsibility for the Company’s Goal
Quality has to be everyone’s concern
Arvind Shrouti,Option Positive

12. Arvind Shrouti,Option Positive
Some Issues due to HRM
The importance of Team Work
Flat Structures are more efficient
Change is a continuous process
Decentralize Decision-Making
Methods of Rewarding Employees
The importance of Training-leadership development.
Quality Circles
Failure of QC
Arvind Shrouti,Option Positive

13. Total Quality Management
Top Management is responsible for people
Changing the attitude of line managers
The internal customer
Line managers are responsible for putting HRM into practice
Arvind Shrouti,Option Positive

14. Is HRM Is A Threat To Trade Unionism & CB?
The Non-Union Strategy
Limiting Unions to Wage Bargaining
HRM appeals to individual
Can Unions Meet The Challenges?
Can Unions stop these changes?
The main weakness of the unionism – existence is built on management failure
Any change in management – comes as a threat
Arvind Shrouti,Option Positive

15. Search For Long Term Objective
Demanding More Money or solving every day grievances can not be the objective
“Industrial Democracy”
Not Collective Bargaining Right but Participative Rights
HRM gives only consultative rights & therefore limit the participation
Philanthropic to Stakeholder approach
Arvind Shrouti,Option Positive

16. Emotions to Rationality
Surveying Market pay and compensation Practices
How to analyze “Capacity to Pay” of the Company:
Economics of a firm (with the help of model developed by Option Positive)
Balance sheet analysis
Corporate analysis
Financial Analysis
Production Analysis
Costing
Productivity Analysis
Arvind Shrouti,Option Positive

17. Arvind Shrouti,Option Positive
THANK YOU
Arvind Shrouti
OPTION POSITIVE
Pune,INDIA
Arvind Shrouti,Option Positive