HRM 7 Industrial Relations PDF

Preview

Summary

Download HRM 7 Industrial Relations PDF

Description

HRM 7 – Industrial Relations Outline of session -

What is industrial relations? Theories and explanations of industrial relations Trade union representation Non-uniform representation Non-union forms of employee participation

What is Industrial Relations? “A set of phenomena… concerned with determining and regulating the employment relationship…” Salamon (2000) - The regulation of the employment contract - The type of rules used - How the rules are formulated - The conflicts generated

How does an employment contract differ from other contract types? -

The worker is in a weaker position than the prospective employer in making an employment contract By accepting an offer of employment, a worker comes under the authority of an employer Labour differs from all other commodities in that it is enjoyed in use and is embodied in people – the owner of labour needs to persuade workers Nature of contract: open

Authority and Market Relations -

Effort: Reward Discipline: Obedience At the heart of IR is the effort reward dilemma: management wants maximum effort for minimum pay, whereas workers want maximum pay for minimum effort The reconciliation of the diametrically opposed views is what IR is all about

Approaches to Industrial Relations

Unitarist Perspective The essence of task (scientific) management lies in the fact that the control of the speed problem rests entirely with management. (Taylor, 1903) -

-

-

Based on the assumption that the organisation is, or should have: o An integrated group of people o A simple authority or loyal structure o A set of common values, interests and objectives Enables management to legitimise its authority, by regarding the interests of management and employees as being the same that management manage in the best interests of the entire organisation Reassures management by confirming that the blame for conflict can be placed with employees (conflict is pathological)

Limitations -

It fails to recognise the existence of differing interests between management and labour The explanation for the existence of a countervailing (counteracting) force, whether in the form of an individual, group or trade union, rests on the failure to understand the objectives of management.

Pluralist Perspective -

The organisation comprises groups of individuals and these groups have their own aims, interests and leadership. These aims and interests often conflict and compete with those of other groups and give rise to tensions which have to be managed

Limitations -

It believes the existence of democracy which ensures that individual rights are recognised It relies on the existence of a common set of rules and procedures which guide behaviour in the workplace It depicts the differing parties to the employment relationship as possessing a rough equivalence of power and influence, competing for power on the basis of similar levels of influence

Marxist/Radical Perspective -

Draws on Marxist analysis of employment relationship borgiose Deeply critical of capitalist society and its system of production and distribution Views industrial relations in social, political and economic terms

Summary of Approaches

o

arbitration service (ACAS) Department of Business, Enterprise and Regulatory Reform

Environmental Contexts -

Nature of technology Systems of production regime State of product market State of labour market Locus of power in wider society

Ideology -

A set of beliefs ‘shared’ by the actors Defines the role of each actor Binds the system together If the views of the roles (i.e. the ideology) are compatible, then the system is stable; if not, then the system is unstable

Processes -

Bargaining Conciliation Arbitration Law making

Outputs – why must there be rules? -

Because there is an inherent conflict of interests between profits and wages Because the power of capital and labour has to be restrained and balanced Because the wider society needs to be protected from industrial conflict

Criticisms of IR Systems Theory -

Fails to provide an explanation of conflict A static view of industrial relations Fails to take account of influenced action Concerned with protecting the status quo Key authors o Gill palmer (1983) o Thomas Kochan (1984)

Changes to the IR contexts -

-

The election of Mrs Thatcher’s conservative government in 1979 represented a turning point in British politics as the new administration embarked upon a broad social programme that was aimed at the promotion of individualism, self-reliance and private enterprise The changes to the IR contexts are characterised by the tradition from: o Collectivism to individualism o Confrontation to cooperation o Pluralism to unitarism

Trade Union Representation

Decline of Trade Unions -

Decline of manufacturing plants which had been the traditional stronghold of TU’s Failure of unions to attract female and service sector employees (also foreign workers) Heightened market competition increased managers’ reluctance to recognise Trade Unions for fear of higher wages Consequences: o Declining wages premium for union members o Increase in work intensity and job stress o Decline in employer provided training o Rising wage inequality in the workplace

Future of unionization and industrial action -

Statuary union representation recognition: Central Arbitration Committee (CAC), conditions apply (>21 members, location, group, etc.) Most large organisations (e.g. amazon, mcdonalds, etc) resist TU formation (organisation of labour) by employing US consultants Considerable increase in employment legislation since late 1970’s TUA becomes law – protecting society from undemocratic industrial action

Non-Union forms of Employee Voice -

-

-

Direct employee participation is the central common concept in theories of ‘new forms of work organisation’. o Important for employees’ physical health and psychological well being o Important for employees’ work motivation and organisation commitment Direct participation Task Discretion o The extent to which one can control his or her own job tasks o To what extent can employees (realistically) influence how hard they work; deciding what tasks you are to do; deciding how you are to do the task; deciding the quality standards to which you work? Organisational participation o The extent to which one can influence wider organisational issues that affect his or her own work o Consultation meetings, suggestion schemes, briefing groups, etc. (are they taking seriously? Is there a legal

Union Representation and Direct Employee Participation -

-

Union representation o Competition among workers o Successfully raising wage levels, job security, training provision and working conditions o Accused by employers for increasing labour market inflexibility and hindering productivity (red-tape) Direct participation o Emerged against the background of increased market competition and growing emphasis on performance quality o Increase employee job satisfaction and organisation commitment o Real voice mechanism or ideological manipulation? o Institutional insulate workers from market forces...