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Changes in
World of Work
and new pointers in IR
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New Developments
in
Industrial Relations
Shifts from
IR to Employee Relations
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1. Changing role of state2. Unions in crisis (bldg. cooperation)
3. New actors in IR: e.g. Consumers/society
4. Emergence of Cooperative bargaining
5. Emphasis on performance-related pay
6. Pressures on labour law rigidity
7. Changing role of ILO: Decent work
8. Employers Primacy on flexibility
9. IR impacted by HR philosophy
New Developments in Employee Relations
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1. Changing Role of State
Welfare state: inefficient
Government as facilitator
Social justice to market & trickle down
Changed labour policies of states:
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2. Union-dilution is Major Agenda: Causes
Shift: adversarial to cooperative IR:
Also called Individualized IR
States primacy to productivity
Service orgs.: white/gold-collar WM
Declining core; rising periphery WM
Influence of HRM Philosophy
Employment of labour law consultants
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Country 1970 1980 1990 1997 2003
Austria 63.6 59.6 56.2 46.6 35.2
Denmark 62.6 87.8 88.9 89.9 75.5
France 21.0 17.1 9.2 8.6 5.8
Germany 37.7 40.6 38.5 33.4 22.2
Italy 38.5 49.0 39.2 38.0 47.1
Netherlands 39.8 39.4 29.5 28.9 23.9
Norway 57.9 64.4 70.3 71.3 63.0
Spain - 13.8 16.8 15.1 11.5
Sweden 66.6 78.2 82.4 86.4 78.0
UK 48.5 54.5 38.1 30.2 25.9
Tab. 1: Percentage of Trade Union members among TotalWorkforce in Selected Industrialized Countries
Source: Accessed on 12 January, 2006 from Cornell Institute of Industrial Relations (IR) Statistical Record on Trade union
Membership at http://www.ilr.cornell.edu/library/downloads/FAQ/UNIONSTATS2002.pdf
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3. New Actors in IR
1. Multilateral IR: consumer/society
2. New issues:
Customer Creation and sustenance
Protecting environment
Gender issues
Safetypromotion
Child labour abolition
3. Medias role in new issues
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4. Emergence of Cooperative Bargaining1. Shift: industry level to unit level CB
2. Squeezing ofbargaining zone
3. Pressure: fear of corp. incompetence
Earlier: fear of corporate power
4. New clauses: Productivity linkage
Wage/benefits cut
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5. Emphasis on Performance-related Pay (PRP)
Flexible pay
Cost saving: a big concern
Competencies & results are imp.
Knowledge pay in high-tech. industries
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6. Pressure on Labour Law Framework
Pressure on Legislature
Do not allow union militancy; co. have to compete globally
Flexible workforce: withdraw Ch-VB of IDA
Keep away law of Employee Participation
Respect sanctity ofmanagers rights
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7. Change in ILOs Agenda
ILOs desire foradaptation, renewal, change
From adversarial C.B. to sophisticated compromise
Securing decent work for women and men everywhere
Common purposeFor all three social partners
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8. Flexibility: Key in New EraWhat is labour flexibility?
The ability to adjust the size and
mix of labour inputs
in response to
changes in product demand
so that organization doesnt have
excess labour
Hard and Soft issues in Flexibility
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9. HRM Philosophy & Psychological contract
It is a philosophy of people-mgt: Identify & enforce behaviour
Aims: Competitive advantage
Focus on new interventions
PM & IR merged to produce positive energy
HRM strategy is the Single most imp. Consultancy Area
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Practicing of
a Developmental Agenda
for promoting New IR
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Neo-Unitarism through Union Substitution
Union
Substitution attempts
Through Progressive
HR
EmpEmp Involvement,Involvement,
empowermentempowerment
Att ractiveAtt ractive
Reward strategyReward strategy
CultureCultureBuilding, flexibilityBuilding, flexibilityIndividual diversityIndividual diversity
MaximizeMaximize
opportunitiesopportunities
DesignDesign
satisfying jobssatisfying jobs
StrategicStrategic
SelectionSelection
Investment inInvestment in
HRD for WMHRD for WM
& managers& managers
Make workplaceMake workplacefunfulfunful & implement& implement
Fair s tandardsFair s tandards
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What Should HR Do to Promote Cooperative IR
Know:
--Context & challenges of new IR
--Key new principles affecting employee relations
--New Practices needed to implement these principles
Behave
--Do the things that lead to sustainable cooperation
Integrated agenda
--Integrate the agenda of SHRM & IR mgt together
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Towards Developing Strategic IR
Two main dimensions
I. Competency-building amongst mgt. & union
Management (at different hierarchical levels)
Unions
II. New Approach to Developing Processes (fostering OCTAPACE)
Openness
Confrontation
Trust
Autonomy
Proactivity
Authenticity
Collaboration
Experimentation
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Re-orienting the Top Management
CEOspersonal predisposition is critical
His beliefs about unionPeople policiesIR policiesMgt.
De-humanization often seen especially in larger bureaucracies
Top mgt. shapes org. culture: Through: beliefs, actions, styles
Development of top management shouldaim at:
Becoming aware of biases & prejudices
Learning to treat IR as important managerial business
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Developing Middle Management
I. Its competency-building will include:
1. Knowledge about new issues in IR2. Understanding customs/practices in dealing with WM/union
3. Knowledge about the legal framework ofIR
4. Knowledge of history of union & its leadership
5. Knowledge about new economic environment/practices
II. Skills
1. Skills in diagnosing the problem
2. Skills in grievance resolution
3. Skills in negotiation
4. Skills in communication and inter-personal relations
III. Attitudes
1. Orientation to positiveproblem-solving
2. Positive belief-system about existence of union (if one exists)
3. Faith in participative decision-making
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Development of Union Leadership
This requires sensitizing them to various issues:
General economic and industrial environment
New technology
Competitors and theirHR practices
New compulsions of mgt. & need for flexibility
Need for democratization within trade unions
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Implementing HR Agenda for Workers
Creating developmental climate in general
Communication & internationalization HR values/goals
Involve unions in cooperation with workers
Continuously communicating the HR action areas: EI
Create HR architecture to implement intentions
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What can one learn from this presentation?
New order is emerging in IR: called employee relations
IR shifting from adversarialism to neo-pluralism or neo-unitarism
Shift from shenanigans to trust & cooperation
Along with traditional issues, new issues have emergedin IR
Flexibility is one of the most salient concerns of cos.
Governments new eco. agenda is moving from social justice to growth
New world of work has led to union-substitution strategies
HRM strategy: for top mgt.middle mgt.unionworkers