Employee Relationship Management

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Employee Relationship Management

LEARNING OBJECTIVES

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The objectives of this course are for students to learn : 

The basic concepts relating to ER/ IR and HRM



The role of TUs and collective bargaining.



Understand Industrial disputes and its settlement machinery.



The role of government and its functions



Positive employee relations’ approaches such as CP, QWL, WPM etc.

COURSE CONTENT

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The Importance of Studying IR, Human Resource Management and ER. 

Why is it important to study Industrial Relations, Human Resource Management and Employment Relations?



What relevance does it have on our daily lives as employees? Issues such as income of the household, living wage, affects on family life, education and health, working conditions, retirement age, etc.

COURSE CONTENT

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Workers Associations (Trade Unions) 

When and where did they emerge first?



Why employees form unions

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Types of Unions

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Trade Unions Act

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Union Subscription and various aspects

STUDENT PRESENTATIONS

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Each student has to give two presentations.

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One would be group presentation on topics: 

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INTUC, AITUC, CITU, BMS & Multiplicity of unions.

Second presentation will be individual presentation on topics relating to the below with respect to your SIP organizations: 

Career Planning, IR issues such as Trade unionism, industrial disputes, grievance handling and discipline issues, quality of W/L and worker participation issues

SIX NEXT PRACTICES IN HR

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By C.Mahalingam (Exec-VP and CPO, Symphony Services Corp.) 1.

From Employer Branding to employee advocacy

2.

From Workforce Management to talent management

3.

From Performance management to contribution Management by maximizing strengths

4.

From Individual Competencies to organizational capabilities for strategic advantage

5.

From The Process of employee engagement to the outcome of employee effectiveness

6.

From Leadership Bench to Leadership brand

Source: The Human Factor, July 2009, pg-62-64

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THE IMPORTANCE OF STUDYING INDUSTRIAL RELATIONS, HUMAN RESOURCE MANAGEMENT AND EMPLOYMENT RELATIONS. 

It affects our everyday life.



It affects the company- whether the company makes profit or goes bankrupt.



Workers

how much they earn and feed their family, income of the household, living wage, students education (how much your parents can pay for your fees) and health, retirement age, etc.



what conditions are they working under.

WHAT IS MEANT BY EMPLOYMENT RELATIONS (ER)?

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It is combination of Industrial Relations (IR) and Human Resource Management (HRM)

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It is a much wider concept to encompass both IR and HRM

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STRATEGIC IMPORTANCE OF EMPLOYEE RELATIONS

• Improve productivity & ensure implementation of organizational strategies • Reduce employment costs and help employees grow and develop

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FIVE KEY DIMENSIONS OF EMPLOYEE RELATIONS Employee Development

Employee Rights

Good Employee Relations

Employee Discipline

Employee Communication

Employee Counseling

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Open-Door Policy A policy of encouraging employees to come to higher management with any concerns.

WHAT IS INDUSTRIAL RELATIONS?

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WHAT IS INDUSTRIAL RELATIONS? 

Definition important—setting the scope of study.



Many attempts at definition: 





from job regulation to social relations at work.

Challenges to the discipline: 

rise of non-unionism



growth of human resource management (HRM)

A broad definition: ‘Industrial relations encompasses a set of phenomena, both inside and outside the workplace, concern with determining and regulating employment relationship’

WHAT IS INDUSTRIAL RELATIONS ?

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

An act or art of controlling human resources in employment.

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Also referred as human relations, labour relations, legal relations etc.

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Essentially : human relations – adjustment between humans.

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Two inseparable limbs.

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Interest apparently conflict but complimentary.

WHAT IS INDUSTRIAL RELATIONS? (CONT.)

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IR Covers: 

Collective Bargaining



Role of management, Unions and govt.



Industrial disputes and resolution



Grievances and discipline



Labour legislation

HISTORY OF INDUSTRIAL RELATIONS CONCEPT

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

Roots go back to Industrial revolution of late 18th and early 19th century.

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Before that the greater share of economic activity was in agricultural sector

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Impact of Industrial revolution: 

Mechanizations

 Mass

production at low cost

 Specialization  Higher

of functions

capital requirements

 Evolution

of entrepreneurial elite

 Unhygienic,  Increased

harsh working and living conditions

mobility of workers

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Human being pivot of this relationship: 1.

Broad drives in human nature : dignity, conscious of rights

2.

Complex emotions in success.

3.

Instincts of survival, security.

4.

Social instincts :





Wants to join others to secure common interests.

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Team work.

When these are satisfied, he is happy, Cooperative and productive. OTHERWISE : 

Morose,

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Aggrieved,

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Bitter/ Violent

DIFFERENCE BETWEEN TRADITIONAL IR AND EMERGING ER

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Dimension

Traditional

Nature of relations Pluralist

Emerging Unitarist

Contract

Emphasis on terms Beyond contract, of contract, defined innovative ways rules, contract

Union legitimacy

Unions are acceptable

Not considered desirable

Key relation

Labour Management

Customer focus

Pay

Standardised

Performance related

Job design

Division of labour

Team work

Conflict handling

Reactive

Proactive

Key people

PM/ IR specialists

Line people

DIFFERENT APPROACHES TO THE STUDY OF IR

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

There are three distinct ideological perspectives to origins and nature of industrial relations, each leading to a distinct approach/analytical tool to explain industrial relations: 1.

Unitary Approach

2.

Pluralist Approach,

3.

Marxist Approach

APPROACHES TO INDUSTRIAL RELATIONS

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Approaches to organizations

Unitary

Pluralistic

Marxist

Approaches to industrial relations

Input Conflict (differences)

Human resource management

Conversion Institutions and processes

Systems

Output Regulation (rules)

Control of the labour process

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Unitary Approach 

What is the unitary perspective? –

Assumption of a common purpose and shared goals, with no fundamental conflict of interest between labour and capital.

–

Conflict is an aberration, the result of: 

poor communications



poor management.



Unions are seen as an unwelcome intrusion:



Role for strong management.

UNITARISM

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







Assumptions about workplace relations - management and employees share common interest - one source of legitimate authority (management) Assumptions about workplace conflict - aberration, destructive, to be avoided - caused by poor management, dissidents, agitators or poor communication Assumptions about trade unions - a competing with management for employee loyalty. - an unwarranted intrusion in the workplace - create conflict where none would otherwise exist Assumptions about collective bargaining - creates and institutionalises unnecessary divisions of interest - serves to generate workplace conflict rather than resolve it

Unitary Approach (cont.)

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

What are the criticisms of unitarism? –

A narrow approach that neglects causes of conflict.

–

Fails to explain the prevalence of conflict within organisations.

–

Does not account for uneven distribution of power among employees and employers in the decisionmaking process.

A unitarist perspective: HRM (cont.) The analytical tools of HRM

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

HRM is the modern form that a unitarist approach to IR typically takes, that is: –



the management of the employment relationship primarily from the perspective of the employer.

This can be seen in the main focuses of HRM: –

plan human-resource requirements

–

recruit and select employees

–

train and manage employee performance

–

reward employees

–

dismiss or retire employees.

A unitarist perspective: HRM (cont.) The analytical tools of HRM (cont.)

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



The two main schools within the HRM approach are: 1.

‘soft’ HRM—‘developmental humanism’

2.

‘hard’ HRM—instrumental integration of employees into firm objectives.

‘Best practice’ approach vs ‘contingency’ approach.

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PLURALISM 

First, what is the pluralist perspective? –

Conflict is inevitable: competing interests between the parties.

–

Power is diffused among the main bargaining groups within the employment relationship: no-one dominates.

–

Trade unions are viewed as providing a mechanism that legitimates employees’ rights to bargain within the workplace.

–

The state is regarded as an impartial entity, whose primary function is to protect the ‘public interest’.

PLURALIST

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







Assumptions about workplace relations - managers and employees have different objectives - multiple sources of legitimate authority Assumptions about workplace conflict - inevitable, caused by different opinions and values, benefit to an organisation - avoid by accepting trade unions, include in decision-making Assumptions about the workplace role of trade unions - not the cause of conflict - are expression of diverse workplace interests that always exist - a legitimate part of workplace relations Assumptions about the role of collective bargaining - deals with problems on a collective basis - most efficient means for institutionalising employment rules - fairer outcomes by balancing employee and management power

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PLURALISM (CONT.)

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What are the criticisms of pluralism? –

Theory of pluralism is unclear.

–

Power is not evenly diffused: 



it is typically weighted towards management in the workplace.

pluralist thinking lends itself to the conclusion that there is a simple and straightforward set of processes that resolve conflict, and that conflict can be readily managed through rules, regulations and processes.

MARXIST APPROACH/ RADICAL PERSPECTIVE

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

What are the common features of Marxist perspectives? –

Fundamental and inherent conflicting interests between management and workers.

–

Uneven distribution of power between bargaining groups, within the workplace because of division within society.

–

Industrial conflict is thus synonymous with political and social unrest

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The role of trade unions—to challenge managerial control.

–

The state protects the interests of capitalists.

MARXIST APPROACH/ RADICAL PERSPECTIVE

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–

Trade unions are seen both as labour reaction to exploitation, as well as a weapon to bring about a revolutionary social change.

–

Marxists regard state interventions via legislation and the creation of Industrial tribunals as supporting management’s interest.

–

Consequently, employee participation, cooperative work culture and the like are not acceptable to the Marxists.

A MARXIST PERSPECTIVE: MARXISTISM (CONT.)

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

What are the criticisms of a Marxist perspective? 

Preoccupied with conflict: 



Capital is not homogenous: 



obscures any cooperation or shared goals between management and workers. competition among capitalists.

Under-estimates the independence of the state.

MARXIST

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







Assumptions about workplace relations  - reflects a wider class conflict between capital and labour  - reflects coercion of working class into dominant capitalist values  Assumptions about workplace conflict  - inevitable: capital seeks to reduce costs, workers seek fairer price for labour  - will only cease by revolutionary change in distribution of property and wealth  Assumptions about trade unions  - should raise revolutionary consciousness of workers  - should not limit action to improving material lot of workers - union leaders who accommodate management betray the workers  Assumptions about collective bargaining  - merely offers temporary accommodations  - leaves important managerial powers in tact

A MARXIST PERSPECTIVE: THE LABOUR PROCESS (CONT.)

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CLASS STRUGGLE AND CONTROL IN THE LABOUR PROCESS 

Marx argued that capital social relations are based on a fundamental divide between the Haves and the have nots



Labour possesses labour power—the potential effort that each employee offers.



Potential labour does not always equal actual labour.



Management’s task is to convert this labour power into actual work and effort, in order to make a profit.

A MARXIST PERSPECTIVE: THE LABOUR PROCESS (CONT.)

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CLASS STRUGGLE AND CONTROL IN THE LABOUR PROCESS.... 

This gives rise to the central theme within the labourprocess approach: How does management maximise the conversion of ‘potential’ labour into ‘actual’ labour? 

Labour is not always compliant in this process, resulting in conflict between management and labour.



As this relationship is open-ended, management seeks to establish methods for ensuring control, to maximise ‘actual’ labour effort.

THEORIES OF INDUSTRIAL RELATIONS (1)

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Human Relations Theory and Neo-Human Relations Theories    

 

Key proponents: Mayo, Maslow, McGregor, Herzberg Frame of reference: Unitarist  Focus: Workers’ social and psychological needs  Theory: a system of management, maximise output by meeting social and psychological needs of employees in the workplace. (i)   managers identify and satisfy employees’ social and psychological needs (ii)  employees seen as different to other production resources (iii)  employees organised into teams (iv) employees included in work allocation decision-making processes Result: worker morale maximised, motivated employees productive. Neo-Human Relations theories add individual satisfaction and motivation is through worker ‘self actualisation’ by ‘hierarchy of needs’

THEORIES OF INDUSTRIAL RELATIONS (2) 37

Systems Theory    

 Key proponent: Dunlop  Frame of reference: Pluralist  Focus: a general theory of industrial relations  Theory: industrial relations is a sub-system of wider society with four elements: (i)   actors: employers, employees, their representatives, government agencies (ii)  environmental contexts: technology, market, budgets, distribution of power (iii)  procedural and substantive rules governing the actors (iv)  binding ideology, common beliefs encouraging actors to compromise

THEORIES OF INDUSTRIAL RELATIONS (3)

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Labour Process Theory    

Key proponent: Braverman Frame of reference: Marxist Focus: Labour’s relationship with industrial processes Theory: improved technology and scientific management techniques are    



(i) de-skilling work (ii) fragmenting tasks (iii) centralising knowledge in management (iv) diminishing workers control of pace and conduct of work

Result: labour is increasingly alienated and exploited, leading to resistance by organised and unorganised industrial conflict.

THEORIES OF INDUSTRIAL RELATIONS (5)

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Scientific Management     

Key proponent: Taylor Frame of reference: Unitarist Focus: Use and control of labour Reference to industrial relations: Implicit Theory: system of management maximising output by greatest technical efficiency of work methods, achieved by: (i) unchallenged management powers to allocate work tasks (ii) managers relationship with employees is rational and objective (iii) managers treat workers impersonally and collectively (iv) work tasks reduced to basics for low-skilled, low-paid employees in assembly line production (v) employees are chosen to suits the tasks to be performed (vi) employees given training in best work methods (vii) employees motivated by incentive payment schemes

THEORIES OF INDUSTRIAL RELATIONS (4)

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Trusteeship theory   

Key proponent: Mahatma Gandhi Focus: non-violent industrial relations Theory: He insisted on recognizing each individual as a human being. Believed in non-violent means. Laid down rules for strike: The cause of strike must be just, not without grievance There should be no violence Non-strikers should never be molested. According to him, employees should regard themselves as trustees or co-owners and employees should also regard themselves as trustees and protect the mill and machinery and put them to better use.   



THREE PARTIES OF IR

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

‘Employer’ (Management)



‘Workers/Employees’ (Trade Unions)



The ‘State’ (Government). State plays 2 roles: 

Employer of Civil Servants



Supposedly a neutral body/third party???



Does industrial harmony between the three actors can be easily achieve particularly between employees and management?.



To moderate their conflict, the interference of the government is crucial. Government influence the relationship by introducing rules and regulations and some code of industrial harmony.

SUMMARY

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



The approaches to industrial relations highlights conflict between trade unions and employers: –

Need to move beyond this limited view.

–

Theory provides a guide to understanding the relationship between the parties in the employment relationship.

Three types of theories are introduced in this chapter: –

pluralist/neo-institutionalist

–

unitarist/HRM

–

Marxist/labour-process theory.