Employee Relations - Part I[2]

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EMPLOYEE RELATIONS : 

EMPLOYEE RELATIONS

EMPLOYEE RELATIONS : 

EMPLOYEE RELATIONS Industrial Relations & Employee Relations IRs is a multidisciplinary field that studies employment relationship (Ackers, 2002) It is increasingly being called employee relations because of the importance of non-industrial relationships Industrial relations scholars have described three major perspectives that contrast in their understanding and analysis of workplace relations – unitarism, pluralism and radicalism.

EMPLOYEE RELATIONS : 

EMPLOYEE RELATIONS “All those areas of HRM that involves r/ps wit employees – directly and/or through collective agreements where trade unions are recognized.” (Armstrong, 2004)

EMPLOYEE RELATIONS : 

EMPLOYEE RELATIONS Employee Relations Employment Relationship Industrial Relations

EMPLOYEE RELATIONS : 

EMPLOYEE RELATIONS Employee Relations: Include formal processes, procedures and channels of communication. Concerned with terms and conditions of employment and with issues arising from employment. There will not be collective agreements or joint regulation. Move from collectivism towards individualism.

EMPLOYEE RELATIONS : 

EMPLOYEE RELATIONS FRAMEWORK – general introduction: elements of employee relations and concepts of industrial relations (the systems theory, collective bargaining, etc. APPROACHES – HRM as a new paradigm for employee relations PROCESSES – approaches and methods adopted by employers to deal with employees either collectively through trade unions or individually. EMPLOYEE VOICE – abilities of employees to influence the actions of the employer. COMMUNICATIONS – employee to employer and employer to employees.

EMPLOYEE RELATIONS : 

EMPLOYEE RELATIONS FRAMEWORK

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FRAMEWORK 1. THE ELEMENTS OF EMPLOYEE RELATIONS Formal & informal policies & practices The development, negotiation & application of formal systems, rules & procedures for collective bargaining, handling disputes & regulating employment Policies & practices for employee involvement & communications

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FRAMEWORK 1. THE ELEMENTS OF EMPLOYEE RELATIONS Formal & informal processes that happen in the form of ongoing interactions between managers & team leaders/supervisors as well as employee representatives & individuals. Industrial relations: government, management & trade unions – policies & philosophies

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FRAMEWORK 1. THE ELEMENTS OF EMPLOYEE RELATIONS Various parties with different roles: state, management, employers’ organizations, the trade unions, individual managers & supervisors, HR managers, employee representatives, employees. The legal system Operators of formal system: the bargaining processes, various procedural agreements & practices, etc.

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FRAMEWORK 2. INDUSTRIAL RELATIONS AS A SYSTEM OF RULES Industrial relations can be regarded as a system of rules regulating employment & the way in which people behave at work.

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FRAMEWORK 2. INDUSTRIAL RELATIONS AS A SYSTEM OF RULES The Systems Theory of Industrial Relations (Dunlop, 1958): Divided into four inter-related components namely: Actors Certain context An ideology A body of rules created to govern the actors at the place of work

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FRAMEWORK 2. INDUSTRIAL RELATIONS AS A SYSTEM OF RULES The Systems Theory of Industrial Relations (Dunlop, 1958): Actors are divided into three main groups: Hierarchy of management Hierarchy of non-management employees & their representatives (e.g., trade union members) Specialized govt agencies concerned industrial relations

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FRAMEWORK 2. INDUSTRIAL RELATIONS AS A SYSTEM OF RULES According to the Systems Theory of Industrial Relations (Dunlop, 1958): IRs is a system of ‘rules’ the role of any system is to produce the regulations & procedural rules that govern… how much is distributed in the bargaining process & how the parties involved relate to one another.

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FRAMEWORK 2. INDUSTRIAL RELATIONS AS A SYSTEM OF RULES The system is expressed via… Legislation & statutory orders, Trade union regulations, Collective agreements & arbitration awards, Social conventions, Managerial decisions, Accepted ‘custom & practice’ Thus the rules are the major output of the industrial relations. They come in varying degrees…

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FRAMEWORK 3. TYPES OF REGULATIONS & RULES RULES: 1. Substantive – Conditions under which people are employed Can have four sources – implied terms, legislation, agreements, custom & managerial rules & directives Therefore, they intend to settle the rights & obligations attached to jobs

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FRAMEWORK 3. TYPES OF REGULATIONS & RULES RULES: 2. Procedural – They govern how substantive rules are to be made & interpreted (e.g., personal grievances & procedural fairness) intended to regulate conflict between the parties to collective bargaining

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FRAMEWORK 3. TYPES OF REGULATIONS & RULES These rules can also be in the form of internal and external REGULATIONS: Internal – procedures for dealing with grievances, disciplinary problems & rules concerning the operation of the pay system & the rights of the stewards External – employment legislation, the rules of trade unions & employers’ associations, & the regulative content of procedural rules

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FRAMEWORK 2. INDUSTRIAL RELATIONS AS A SYSTEM OF RULES 3. TYPES OF REGULATIONS & RULES Critical Appraisal: the Systems Theory… Tries to explain why particular rules are established in a particular industrial relation system. Does not sufficiently take into account the distribution of power between management & trade unions, nor the impact of the state. It does not adequately explain the role of the individual in industrial relations.

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FRAMEWORK 2. INDUSTRIAL RELATIONS AS A SYSTEM OF RULES 3. TYPES OF REGULATIONS & RULES Critical Appraisal: the Systems Theory… Explain why particular rules in a particular industrial system. Does not take into account the distribution of power. Does not explain the role of the individual. With the changing business environment new actors (e.g., customers & community) also play important role in IR process & outcome. More emphasis on roles than people; thus ignores behavioural aspects like human motivations and preferences

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FRAMEWORK 4. COLLECTIVE BARGAINING The industrial relations system is regulated by the process of collective bargaining. It is the way of minimizing conflict in the workplace. Refers to a social process that ‘continually turns disagreements into agreements in an orderly fashion’ (Flanders, 1970). It involves determining conditions of work and terms of employment through negotiations between employers & employee representatives (trade unions). These bodies represent views of all members & try to negotiate their interests.

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FRAMEWORK 4. COLLECTIVE BARGAINING Aims to establish the agreed rules and decisions on matters of mutual concern (e.g., wages, working hours, safety conditions, leisure activities or training programs) to employees and trade unions by negotiation and discussion Aims to stop the causes of industrial disorder – preventive measures

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FRAMEWORK 4. COLLECTIVE BARGAINING It can be seen as a political relationship in which trade unions share industrial sovereignty or power over those who are governed, the employees (Chamberlain & Kuhn, 1965). It is a power relationship – power sharing between management & trade unions; recently the balance of power has shifted in the direction of management.

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FRAMEWORK 4. COLLECTIVE BARGAINING a). BARGAINING POWER: The extent to which the industrial sovereignty is shared by management with its trade unions depends upon the relative bargaining powers of the two parties. It refers to the ability to induce the other side to make a decision that it would otherwise not make (Armstrong, 2004)

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FRAMEWORK 4. COLLECTIVE BARGAINING a). BARGAINING POWER: Atkinson (1989): What creates bargaining power can be examined in terms of subjective assessments by individuals involved in the bargaining process; Each side can guess the bargaining preferences and bargaining power of the other side;

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FRAMEWORK 4. COLLECTIVE BARGAINING b). FORMS OF COLLECTIVE BARGAINING: Two Basic Forms – Chamberlain & Kuhn (1965): Conjunctive Bargaining – arises from the absolute requirement that some agreement may be reached so that the smooth working might continue Cooperative Bargaining – each party dependent on the other; each wants to win the support of the other in order to achieve its objective

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FRAMEWORK 4. COLLECTIVE BARGAINING b). FORMS OF COLLECTIVE BARGAINING: Two Forms - Walton & McKersie (1965): Distributive Bargaining – ‘complex system of activities instrumental to the attainment of one party’s goals when they are in basic conflict with those of the other party’ Integrative Bargaining – ‘system of activities which are not in fundamental conflict with those of the other party and which therefore can be integrated to some degree’

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FRAMEWORK 4. COLLECTIVE BARGAINING Advantages: Management need not spend too much of time on decisions Employees or trade unions have significant influence on the final decisions Employees get what they want, at least to an extent Disadvantage: It deprives the individual worker of his individual liberty/voice.

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FRAMEWORK 5. UNITARY & PLURALIST VIEWS Collective bargaining can be discussed from another viewpoint…from the perspective of Conflict Theory (Fox, 1966) CT attempts to describe different managerial approaches to IRs in the UK Three views regarding the relationship between the management & trade unions… Unitary View Pluralist View Radical View

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FRAMEWORK 5. UNITARY & PLURALIST VIEWS 1. Unitary View – Held by managements – the organisation is perceived as an integrated and harmonious whole with the ideal of “one happy family” It sees its function as that of directing & controlling the workforce to achieve objectives Management looks itself as rule-making authority

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FRAMEWORK 5. UNITARY & PLURALIST VIEWS 1. Unitary View – It has a paternalistic approach where it demands loyalty of all employees. The Japanese work practices is based on unitarist approach but with high emphasis on consensus making. Followed in NZ where the workforce and business enterprise are relatively small and loyalty to the management are preferred over individual achievement.

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FRAMEWORK 5. UNITARY & PLURALIST VIEWS 2. Pluralist View – Industrial organisation is a plural society. It is made up of powerful and divergent sub-groups, each with its own legitimate loyalties & with their own set of objectives and leaders. E.g. the two prominent sub-groups in the pluralistic perspective are the management and trade unions.

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FRAMEWORK 5. UNITARY & PLURALIST VIEWS 2. Pluralist View – Here the actors have a different goals but mutual survival dependency (e.g., stakeholder perspective) They have many related but separate interests and objectives which must be maintained in some kind of equilibrium (Fox, 1966). Balancing different interests/objective/goals becomes very important here.

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FRAMEWORK 5. UNITARY & PLURALIST VIEWS 2. Pluralist View – Industrial organisation has a triple personality (Drucker, 1951) – it is at once an economic, a political & a social institution. Economic – it produces and distributes incomes. Political – it embodies a system of government in which managers collectively exercise authority over the managed Social institution – where face-to-face relationships based on shared interests, sentiments, beliefs & values among various groups of employees take place.

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FRAMEWORK 5. UNITARY & PLURALIST VIEWS 2. Pluralist View – Reconciliation of Interests: the implications of this approach is that there has to be some process for reconciling different interests; can be achieved through formal agreements between management and trade unions The absence of these may indicate the management is adopting a unitarist philosophy.

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FRAMEWORK 5. UNITARY & PLURALIST VIEWS 2. Pluralist View – Consequently, the management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Here… The trade unions deemed as legitimate representatives of employees Conflict is not viewed not necessarily as a bad thing Conflict is dealt by bargaining When conflict is dealt successfully, positive changes happen.

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FRAMEWORK 1. THE ELEMENTS OF EMPLOYEE RELATIONS 2. INDUSTRIAL RELATIONS AS A SYSTEM OF RULES 3. TYPES OF REGULATIONS & RULES 4. COLLECTIVE BARGAINING 5. UNITARY & PLURALIST VIEWS

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FRAMEWORK