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Unit 2.6 Industrial/Employee Relationships - Coggle Diagram
Unit 2.6 Industrial/Employee Relationships
what is a trade/labour union?
an organization of working people with the objective of improving the pay and working conditins.
Why do workers join a union?
To ‘Power through solidarity’
For Individual industrial action
individual industrial actions are measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favor of employees
Because they provide legal support to employees who claim they haven't been treated right
trade union recognition:
when an employer formally agrees to conduct negotiations on pay and working conditions with a trade union rather than bargaining individually with each worker
In alot of countries it is not required for employers to recognize unions
Benefits from recognizing a union
Employers would be able to negotiate with one offer from the union rather than with individual workers. (Collective Bargaining)
collective bargaining: the negotiations between employees’ representatives (trade unions) and employers and their representatives on issues of common interest such as pay and conditions of work.
The union system could provide an additional, useful channel of communication with the workers – two-way communication.
Unions can impose discipline on members who plan to take hasty industrial action that could disrupt a business – this makes such action less likely.
The growth of responsible, partnership unionism has given employers an invaluable forum for discussing issues of common interest, these will lead to increased productivity, which should help to secure jobs and raise profits.
Action taken by employees and employers
Negotiations – and, possibly, agreeing to arbitration
Go slow – a form of industrial action in which workers keep working but at the minimum pace as demanded by their contract of employment
Work to rule – a form of industrial action in which employees refuse to do any work outside the precise terms of the employment contract. Overtime will not be worked, and all non-contractual cooperation will be withdrawn.
Overtime bans – industrial action in which workers refuse to work more than the contracted number of hours each week.
Strike action – the most extreme form of industrial action in which employees totally withdraw their labor for a period.
Unioins
Employers
Negotiations – these aim to reach a compromise solution.
Public relations – using the media to try to gain public support for the employer’s position in the dispute.
Threats of redundancies – might infame opinions on the employees’ side and could be looked upon as ‘bullying’ and lead to poor publicity for the employer.
Changes of contract – if employees are taking advantage of their employment contracts to work to rule or ban overtime, then new contracts could, when the old ones are due for renewal, be issued that insist on higher work rates or overtime working
Closure – closure of the business or the factory
Lock-outs – short-term closure of the business or factory to prevent employees from working and being paid.
Sources of conflict in the workplace
Poor communication: poor communication can result in a difference in communication styles or a failure to communicate. When employees fail to understand or accept the differences in each other’s personalities, problems arise in the workplace.
Different values: one cause of different values amongst employees is when a generational gap is present.
Competition: excessive workplace competition is a cause of employee conflict. Competition that is not properly managed for the good of the whole business can result in employees sabotaging efforts by other groups or not cooperating with them. This can create a hostile work environment, discouraging teamwork and promoting individualism.
Approaches to Conflict Resolution
Single Union Agreement: an employer recognizes just one union for purposes of collective bargaining
No- Strike Agreement: unions sign an agreement with employers not to strike in exchange for greater involvement in decisions that affect the workforce
Conciliation: the use of a third party in industrial disputes to encourage both employer and union to discuss an acceptable compromise solution
Arbitration: resolving an industrial dispute by using an independent third party to judge and recommend an appropriate solution
Strategies for implementing, managing and controlling change
Understand what change means:
Change management: requires firms to be able to cope with dramatic one-of changes as well as more gradual evolutionary. It is the planning, implementing, controlling and reviewing the movement of an organization from its current state to a new one.
Evolutionary or incremental change occurs quite slowly over time – obviously, incremental changes that are easy to anticipate tend to be the easiest to manage.
Dramatic or revolutionary change, especially if unanticipated, causes many more problems. In extreme cases, these dramatic changes might lead to totally rethinking the operation of an organization using a ‘clean slate’. This is called business process re-engineering.
Recognize the major causes of change:
technological innovation
macro economic changes
legal changes
competitors actions
Understand the stages of the change process:
Where are we now and why is this change necessary?
New vision and objectives: for substantial changes, a new vision for the business may be needed.
Ensure resources are in place to enable change to happen
Plan the timing of the change: workers should not be taken by surprise by change – this will increase their resistance
Involve workers in the plan for change and its implementation
Lead change, not just manage it
This means that:
New objectives need to be established that recognize the need for change
Resources – finance and staff – need to be made available for the change to be implemented.
Appropriate action needs to be taken – and checked on – to ensure that the planned changes are introduced
Leading change means:
dynamic leaders who will shake an organization out of its complacency and away from resistance to change (‘corporate inertia’)
motivation of staff at all levels of the organization
ensuring that acceptance of change is part of the culture of the organization
visible support of all senior managers who will help the change process to be accepted at all levels and within all departments of the business
Use project champions
A project champion is often appointed by senior management to help drive a program of change through a business.
project champion: a person assigned to support and drive a project forward and who explains the benefits of change and assists and supports the team putting change into practice
Use project groups or teams
Problem-solving through team-building’ is a structured way of making a breakthrough on a difficult change situation by using the power of a team.
Project groups should work with the manager responsible for introducing the change
project groups: these are created by an organization to address a problem that requires input from different specialists
Communicate: unless employees are kept up to date with the pace and scope of change then resistance will build against it.
Introduce initial changes that bring quick results
Focus on training
Sell the benefits
Always remember the effects on individuals: a ‘soft’ human resource approach will often bring future rewards in terms of staff loyalty when they have been supported and communicated with during the change process.
Check on how individuals are coping and remember to support them
Employee participation and industrial democracy
Participation at work by employees can take different forms:
Workers’ control over industry, perhaps linked to workers’ ownership of the business, e.g., producer cooperatives.
Employee or trade union directors on the company’s board of directors represent the workers’ approach to major company issues at the highest decision-making level.
Autonomous work groups and quality circles lead to employee participation in decision-making and help to avoid the ‘us and them’ environment.
Employee resistance to change
The managers and workforce of a business may resent and resist strategic change for any of the following reasons:
Interpretation of circumstances – fear of the unknown
Fear of failure: the changes may require new skills and abilities that, despite training, may be beyond a worker’s capabilities.
Self-interest – losing something of value
Misinformation – false beliefs about the need for change
Low tolerance – lack of trust
Inertia: many people suffer from inertia or reluctance to change