HUMAN RESOURCE MANAGEMENT IN PRACTICE

Employee Relations and Union Management

MMag. Almina Bei

Department of Human Resource Management

Winter Term 2011

10 January 2012

Department of Human Resource Management

2/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

Outline

1. Employee relations

a. Employee communication

b. Employee involvement

2. Union Management

3. Collective Bargaining

4. Summary

Department of Human Resource Management

3/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

1. Employee relations

Employee relations are a complex set of human resource practices and organizational cultures that seek to secure commitment and

compliance with organizational goals and standards through effective

communications, employee involvement, employee rights and

managerial disciplinary action. (Bratton & Gold 2007: 440)

Purpose of employee relations

Protect the interests of employees and employers

Regulate and improve employee behavior and resolve differences

Regulate the ways in which employers treat their employees

Department of Human Resource Management

4/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

1. Employee relations

Voice represents Purpose of voice Possible mechanisms/channels for voice

Potential positive/negative outcomes

Articulation of individual

dissatisfaction

To address a specific

problem or issue

with management

Informal complaint to

line manager; formal

grievance procedure

(Reinforced) loyalty to

organisation/employee exit

Employee contribution

to management decision-

making

To seek

improvements in

work organisation,

quality and

productivity

Employee involvement

and participation (e.g.

upward problem-

solving initiatives;

suggestion schemes;

attitude surveys; self-

managed teams)

Employee commitment and

identification with aims of

organisation; improved

performance/disillusionment

and apathy

Expression of collective

organisation

To provide a

countervailing

source of power to

management

Recognition of trade

union by employer;

collective bargaining

Partnership between

management and employees/

non-recognition of union;

anti-union management

tactics

Mutuality and co-

operative workplace

relations

To achieve long-

term viability for the

organisation and

greater people

added-value

works councils

Significant employee influence

in decision-

making/management lip-

service to employee

contribution; Table 1: Employee voice Source: adapted from Dundon et al. (2004)

Department of Human Resource Management

5/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

1. Employee relations

Employee relations in Austria

System of cooperation (Social and Economic Partnership Model)

Representatives of employers (chamber of commerce)

Representatives of employees (chamber of labor)

Representatives of farmers (chamber of agriculture)

Unions (federation of trade unions)

Government

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6/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

1a. Employee communication

Exchange of information about the organization

E.g. investment plans, financial position of company, staffing plans

Downward (top-down) communication

Upward problem-solving

Horizontal communication

Face-to-face

communication

Team

briefing Notice boards

Speak-up

programs Intranet

Magazines and

newsletters

Communication

between the

manager and

the employee

Teams

present,

receive and

discuss

information

Putting

relevant

information

on a board

(with post-its)

Channels for

individuals to raise

points with

management

concerning the

organization and its

plans and policies

Internal e-

mail

systems

House journals keep

employees informed about

the activities of the

organization

Table 2: Selected methods of communication Source: adapted from Armstrong (2011)

Department of Human Resource Management

7/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

1a. Employee communication

Grapevine

Informal communication network

Stretches throughout the organization in all directions

Based on social relationships, not on hierarchy

Advantages Carry information rapidly Managers get to know the reactions of their subordinates on their policies Creates a sense of unity among the employees who share and

discuss their views with each other (group cohesiveness) Etc.

Disadvantages Carries partial information at times The productivity of employees may be hampered Etc.

Department of Human Resource Management

8/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

1b. Employee involvement

Involvement of the workforce as a whole

Influence of workers over their work and working conditions

Direct

Individual employees are involved in decision-making processes that

affect their everyday routines

E.g. problem-solving teams or financial involvement

Indirect

Representatives or delegates of the main body of employees

participate in the decision-making process

E.g. European Works Council

Establishing communication between employees/management /unions

Maintaining peaceful and cooperative employment relations

Ensuring that workers in different countries are all told the same information

at the same time about transnational policies and plans

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9/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

1b. Employee involvement

Figure 1: Dimensions of employee involvement Source: Bratton & Gold (2007: 453)

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10/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

1b. Employee involvement

Reasons for introducing EI schemes

Moral

EI in decision-making processes, because the decisions impact

workers lives

Social responsibility to employees

Economic

EI improves the quality of decision-making and productivity

Change management

Behavioral

Enhances employee commitment to organizational goals

If employees know the achievements of the organization and how this

benefits them

Increases trust in management

Management takes the trouble to explain what they are doing and why

Department of Human Resource Management

11/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

2. Union Management

Union management relations

Address the collective aspects of the employment relationship

Focus on

Relationship between organized labor and management

The balance of power

Amount of conflict underlying this relationship

Extent to which pay and conditions of employment relationship are

determined by collective bargaining

Management strategies

Union acceptance strategy

Union replacement strategy

Union avoidance strategy

Department of Human Resource Management

12/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

2. Union Management

Reasons for employee participation in unions

Higher wages and benefits

The strength of large numbers and negotiating skills of professional

bargainers give unions an advantage over individuals

Greater job security

Collective bargaining contracts limit managements ability to arbitrarily hire, promote, or fire

Influence over work rules

Unions represent workers and define channels for complaints and

concerns

Department of Human Resource Management

13/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

2. Union Management

Figure 3: Union membership in selected countries Source: Bratton & Gold (2007: 414)

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14/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

2. Union Management

34% 35% 36%

38% 42%

42%

45%

50%

Figure 4: Membership in the Austrian federation of trade unions Sources: GB & Statistik Austria (2011)

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15/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

3. Collective Bargaining

An institutional system of negotiation, administration, and

interpretation of a written agreement between two parties

At least one of the parties represents a group that is acting

collectively (union)

Decisions are being made within union-management negotiating

committees

Figure 5: Direct collective bargaining coverage in selected countries Source: Bratton & Gold (2007: 423

Department of Human Resource Management

16/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

3. Collective Bargaining

Participants

Large corporations

HRM departments with industrial relations experts, corporate

executives, and company lawyers

Small companies

President typically represents the company

Union bargaining teams

Officer of the local union, local shop stewards, and reps from the

international/national union

Government

Watches to ensure rules are followed

Financial institutions

Set limits on the cost of the contract

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17/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

3. Summary

Employee voice is a catch-all term used for practices and processes by

which employees can, either directly or indirectly, contribute to

organisational decision-making

There are four important dimensions of employee relations employee communication, involvement, rights and employee discipline

Employee involvement occurs when employees take an active role in the

decision-making process within the organization

Unions are organizations of workers, acting collectively, seeking to promote

and protect its mutual interests through collective bargaining

There is a decline in membership, union strength and influence

Employees join unions to reach higher wages and benefits, greater job

security and influence over work rules

Collective bargaining is the process that regulates employment relations

and should lead to a collective agreement

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18/18 Almina Bei HRM in Practice Winter Term 2011 Employee Involement and Relations (10 January 2012)

Bibliography

Basic Literature

Bratton , J. & Gold J. (2007). Human Resource Management. Theory and Practice. 4th ed. London:

Palgrave Macmillan.

Supplemental Literature

Armstrong, M. (2009). Armstrongs Handbook of Human Resource Management. 11th ed. London: Kogan.

DeCenzo, D.A. & Robbins, S.P. (2010). Human Resource Management. 10th ed. Hoboken: Wiley.

Harzing, A. & Pinnington, A.H. (Eds.) (2011). International Human Resource Management. 3rd ed.

London: Sage.

Nieto, M.L. (2006). An Introduction to Human Resource Management. An Integrated Approach.

London: Palgrave Macmillan.

Wilton, N. (2011). An Introduction to Human Resource Management. London: Sage.

York, K.M. (2010). Applied Human Resource Management. London: Sage.