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Basic Concept of IR

Definition (by: Filippos): The term industrial relation refers to all types of relations that exist in an industry , the employer and employees.

1-Step: in this stage employee has to sign an agreement.

2-Step: this stage express an organizational structure means to find your own authority there.

Definition (by: Richardson): Industrial relation include individual relation and joint consultations between employers and people at work the place of work, collective relations between employer and their organizations and the trade unions and the part played by the state in regulating those relations.

Description: Industrial relation means each employee has relation with their management. Joint consultant means negotiation of whole union.

Objectives of IR

1. Development & Promotion of Harmonics labor management relation:

building an objective which profitable and useful for both union and management.

2. Maintenance of Industrial Peace and Avoidance of Industrial Conflicts: this objective express that management and union have to work together smoothly, both parties have none problem, they try to avoid the occurrence of the conflict.

3. Establish Industrial Democracy Based on Labor Partnership: this objective express that through the democracy, in which each and every labor has the freedom of speech on any kind of issue in the industry.

4. To Raise the Level of Productivity: in this objective the productivity level is increased by efficient and effective system which should be very much supported to the company.

5. To Boost the Discipline and Moral of Workers: this objective of industrial relation is depending upon the moral, that moral is developed when management will listen the worker/labor and also listen the management.

6. To Increase Industrial Prosperity: this objective is made to industrial development with the cooperation of union and management.

7. To Improve Works a Lot with a View to Solve Their Problems Through Mutual Negotiation or Consultation with Management: this objective facilitates when any issue incurs that can be solved through negotiation.

Factors of IR

1. The Employer: employer invest the capital for earning profits, employer is key factor for maintaining the organization. Employer vary, it can be private employer, and government employer, and the nature of private and government employer also varies. In the private industries have lots of conflicts as compare to the government industries. Private industries need work, no disputes, no grievances, no shouting. Government industries have less care of profit.

2. Workman or union: union(labors) are allowed to expression, most of the times employer gives benefits to labor/employees. Due to the issue of an organization suffers many losses, union issue creates because they are uneducated. Collective thought of workman is called union. Union have legal body, they allowed to fight for right against employer.

Conditions of Good Industrial Relation

1. Past Records of Industrial Relations: conditions of good industrial relation depend upon if the past records between management and union is good help and impact to improve the future good relation, if the past records both parties are not better, it also will affect the performance of the organization.

2. Satisfaction of Economic Needs of Workers: basic needs of the labor should be fulfilled, such as food, shelter, clothes, and health, because these are very essential needs of labor, if these needs will be fulfilled, labor will be satisfied, and they will work more, that will help in building good industrial relation of an organization.

3. Off-The-Job Conditions of Workers: this condition helps to build good relation through what is the actual problem that is making the sick of labor? Such as having a problem in family of labor like any disease. So management what do they ask from the labors about their issues personally. This thing facilitates building a good industrial relation.

4. Negotiation Skills and Attitudes of Workers and Management: in this union what do they select the representatives on the basis of confidence, seniority, skills, education, experience who can negotiate with management, management also do.

5. Education, Training and Development of Workers: for building a good industrial relation this condition of education, and training are necessary for labors because it make them aware, confident, and help to know what is right/wrong, to know about policy and law of the organization for labors, these things facilitate in development of labors.

6. Interpersonal Relationship: this condition helps to build good industrial relation through when the relation of management with union, peer to peer, and strictly forbidden the aggressiveness of management with labors, because when the management will behave like this it will create a bad image of the organization and labor will leave the job. Nowadays, labors are very active in leaving and getting the job, so management should be careful in this case.

Causes of Poor Industrial Relations

1. Nature of Work: sometimes employees become dissatisfy, when work burden is increased and wages are not paid accordingly. And in the schedule there should be one or two leaves for labor without deducting their salary due to the leaves. This thing becomes the cause of poor industrial relation.

2. Political Nature of Labor Union: in the organization political interference also cause a poor industrial relation. In the organization there are many group concerned to various political parties (PPP, PMLN, PTI), so if the PPP/PMLN/PTI government is running it will focus and give more leniencies to their employees/labors as compare to other labors who are not concerned to that party in the organization, and they are not benefited.

3. Level Wages: this is also causes the poor industrial relation when the inflation is increasing day by day and their wages are not increasing, so the labor views for the management will be bad, that management is not increasing our salary.

4. Occupational Instability: it is also a main cause of poor industrial relation when the labor/employee are transferred from one place to another place, and from one designation to another designation, so it creates difficulty for the labors/employees.

5. Unhealthy Behavioral Climate: this cause also build poor industrial relation when the behavior of the management is not fair with workers/union. So workers want a healthy atmosphere by management in which they can respect the management rather than hating.

6. Unfair Practices: this main cause of poor industrial relation when management threatens the union that if you will strike and protest you will be kidnapped or your family members will not safe anymore, means management try to stop them from strike, or protest.

7. Outdated and Outmoded Laws: it also becomes the cause of poor industrial relation when the outdated laws, which are running since British Rule, still they are implementing on labor and while the time has changed. Therefore, laws should be implement according to modern age.

Effects of Poor Industrial Relations

1. Multiplier Effect: due the this the industry and economy is effected; in industry gap comes in the consumer and its products in the market.

2. Resistance to Change:due the poor industrial relation, change does not incur in the organization in the production process, working process, technological and non-technological.

3. Declines in Normal Working: due the poor industrial relation, the rest necessity comes in the body by the job, it decreases the productivity and demands increases.

4. Frustration and Social: sometimes due the noise, pressure and other reasons mind does not accept the work and want to take rest. Relations with management are better that will facilitate the labor to work well, if it is not that will frustrate the employees, bosss strictness make them frustrate. If the management is not sound, the loss will be face by the organization therefore, the social relations also affect the organizational performance.

Basic Concept of Conflict

a. Parties involved: it is necessary that in the conflict there should be two parties, high and low level, or opposite parties, or management and union.

b. Perceived threat: in this type of threat labor can go at any level, labor can threaten the management through various ways.

c. Needs, Interests, and Concerns: these three things become the cause of the conflict, which build conflict much strong.

Components of Conflicta. Conflict Must Involve at Least Two Parties: this component is very important for occurring the conflict of two parties. One party should be union and other management.

b. The Field of Conflict: this is also important component of conflict in which having the possible state of social system, and what is agenda (outlines for discussion), reason and purpose of conflict and its meeting.

c. The Dynamics of Situation: there should be adjustment of two parties.

d. The Building Model in Management Control:after negotiation and discussing the agenda, both parties come at the final state in which decision is made.

Two Views of Conflict

The BadThe bad view of conflict express that; on the basis of organizational structure that where is the problem and find it out. Two types of organizational structure i-structured and ii-unstructured. Due to these there are much chances of occurring conflict. Centralized (one authority) structure often creates conflict. Most the employees have not chance to share their views in decision making, this thing become the cause of conflict.

The GoodGood view of conflict is lies to functional conflict. -productivity (increase in output). If there is problem in the organization, they negotiate with other department on the issue and solve the issue. The Ugly

It is a situation which is not concluded. Something is going impossible you make it possible. For example, the misconception of authority; one side manager stands alone other side there is number of employees(labors) against the manager. Manager suppressed the situation

It is divided into strategies names are Ugly Strategies, it is further divided into four strategies that are expressed below.

1-Non-Action Strategy: it is the worlds dangerous strategy. It is the best strategy to solve the conflict. For example, Karachi Electricity Supply Company (KESC); on the violence and demonstrations of the labors, management did not take anyaction, they let employees whatever they do. After that, employees harmed the infrastructure of the company and vehicles, finally management present the report in the court of the destruction of vehicles etcetera; all those employees who demonstrated, harmed and demanded were dismissed/fired.

2-Administrative Orbiting Strategy: in this strategy management realize the problem but they do not want to solve it. Management just passing the statement that it would be solved. For example, on the increment of inflation, employees demand for the increment in their salary so finance manager states that we will increase your salary.

3-Secrecy Strategy: undisclosed meeting is convened at outside the organization in which the leader or the representative is called and negotiated and solved the problem/demands etcetera.

4-Law and Order Strategy: on the basis of legal obligations, management take the action on the conflict/issue/violence.

Sources of Organizational Conflict

1. Shared Resources: due to the shared resources conflict occurs and division is done equally.

2. Differences in Goals: when there is difference among the goal of one department to another department, it also causes the conflict, because both goals are not matching with one another.

3. Interdependence of Work Activities: individual department cannot achieve the goal of department until workers do not take part in working activities.

4. Differences in Value or Perceptions: difference in the values and perception of departments cause the conflict when they come to discuss in the meeting their ideas do not match.

5. Individual Styles and Organizational Ambiguities: everyone has its own style, workers way of working is varying with organizational ambiguities, if it does not match with working environment of workers and it creates ambiguities that occurs conflict.

How to Response the Conflict?

1. Emotional ResponsesIn this type of response, the management shows his/her aggressiveness, anxiety to union(labors) for building fear, because management has to response otherwise company will face loss. Management shows rigid and rude behavior to labors, because change in attitude brings great lead of loss.

2. Cognitive Responses

Workers are always worried about the organization; they think about the organization on issue such as conflict that what will be the outcome of it. Workers talk with management and its different manager, the management express different views about the conflict. Employees(workers) come to know that its effect will be negative/positive on the organization, one thing is connected to your opinion.

3. Physical Responses

Management act to show that they are in very critical condition. They begin to show some physical drawback such as higher level of stress due to conflict, workers think more about the state of management. Management (manager) is more educated; but labors are uneducated or less educated. So management threaten to labors that if you would take this action, then next time never come in my office/organization.

Process of Conflict Pondys Process

Latent conflict: in this conflict process sources of the conflict are present. Management promote his favorite employee.

Perceived conflict: in this employee perceive the conflict; and recognize that conflict is actually existing.

Felt Conflict: in this process employee completely know about the conflict and starts fighting with management for their rights.

Manifest Conflict: over and over attitude and aggressive, rude behavior of management; brings conflict between management and union.

Conflict Aftermath: in this process ways are found to solve the problem. Negotiation, between management and labor take place, both parties put their demands in front of each other and find solution and finally reaches at conclusion (result of discussion means final decision).

Methods of Managing the Conflict (3 ways described by Stoner)

1-Conflict stimulation: in first step/way where the situation of conflict is very low. To resolve the problem is necessary of having the conflict.

1.1-Bringing in Outsides: in this outside party means third party comes to solve the problem, they negotiate with management and union; they listen both partys agenda/demands and finally shake hands of both parties with each other. Third party discuss the problem individually with one party and second party and also states them the reason of coming of them in the organization that to solve the problem.

1.2-Going Against the Book: in this what happens that some people are excluded and new employees who come to deal with them(union), management change the way, and direct communicate with union on the demands, because middle man has the role of conflict.

1.3-Reconstructing the Organization: management change the structure (centralized/decentralized) of the organization, because of management thinks there is fault in the structure so in different designation of management employs new senior and experienced employees for knowing the actual reason of conflict.

1.4-Encouraging Competition: bonus scheme like this management begins announcing for the workers come and share their problems, for getting the benefit of bonus labor will express their grievances.

1.5-Selecting Appropriate Manager: one who can understand the problem of workers, manager should work like a leader, and having leadership qualities. Manager should work easily and honestly for the organization. In the industry if appropriate manager is hired/appointed, if he/she does not possess the managing quality, industry will have to face the losses. Being a manager should be patience, confident,leading qualities are not in you, will be fired from the designation, other will sit on your designation who has all these qualities should be in manager.

2-Conflict Reduction & Resolution Method: in this method management try to divert the attention of the labors(employees) from current issues to another issue, and conflict never go little down, it is never reduced. There are chances of solution, when management shows his dominance on workers it is used that workers ought not cry on anything, and fear dominancy is used to reduce the raised voice of workers.

3-Dominance and Suppression: in this through dominancy demands/voice of workers is suppressed.

3.1-Forcing: management their power imposes on workers. For example, a ship which have to come on port/harbor at 2pm but manager himself try to late the ship and it comes after 4 hours late on the port, but it is time to leave of labor, but manager order them till the full filling of ship you cannot leave the port, now labors are bound and they cannot go until the ship is filled completely.

3.2-Smoothing: it is the tactical way of resolution in which manager takes ones side, like manager says that he is with union, and he stands against the management for union. In this case manager has both partys information, he/she can make solution for them.

3.3-Avoidance: in this case manager avoid to make the decision while two groups are fighting each other, manager says he will make the decision in for coming days.

3.4-Majority Rule: in this the rule of majority is concentrated, that what majority is saying management has to accept them, cannot avoid it. Management has to make decision on one side. It is effective way of solving the conflict.

3.5-Compromise: this is the rule of adjustment; in which few steps union comes back and few steps management goes back, means both mutually agreed; both think that what is more important and what is less important. Union do not know that what is next, that management would accept our demand or not. If third party involved in decision-making for both parties is called Argutration.

3.6-Integrative Problem Solving: it is joint problem solving, all parties sit together and think about the problem solving techniques, and solve the problem. It is further divide into three categories;

i-Consensus: in this all are agreed on one solution; solution may be advised by anyone.

Ii-Confrontation: it is direct criticism of one party to another party. In this criticism third partys work is to judge both parties and says both parties openly share your problem here whatever they are. Third party by using their leadership skills and quality solve the problem/conflict.

iii-Partys Goals are there: inthis suppose, there two parties; one who demand for increasing their salary and second group demands for bonus, so management after studying both parties demands make a specific decision in which both parties are benefitted.

Industrial Disputes

Forms of Disputes

Usually, Conflict and disputes interchangeably used in the context. The dictionary definition of Disputes is: disagreement followed by opposition against something.

1. Strikes: a concerted stopping of work or withdrawal of workers' services, as to compel an employer to accede to workers' demands or in protest against terms or conditions imposed by an employer.

2. Lockout: the temporary closing of a business or the refusal by an employer to allow employees to come to work until they accept the employer's terms.

3. Layoff: the act of dismissing employees by employer, especially temporarily. Due the shortage of electricity/raw material or any other resources shortage in the organization.

4. Retrenchment: termination of the job due the strong reason. Suppose a labor is ill, the organization discontinue the job of the labors. It is possible when a labor is near at retirement so employer offer him early retirement with handsome amount of retirement pension of Rs.30 lacs, but most of the labors deny from this offer and want to work till they retire at 60s age. Usually, Managing Directors (MDs) are worked at the age of 65 years.

Forms of Strike

What is strike? Here is its simple definition: a group work stoppage to compel an employer to accede to workers' demands or to protest an employer's conditions.

1. Go-slow strike: a form of strike by workers in which they deliberately slow-down the phase of work/production in order to cause problem or till their demands are approved from their employers.

2. Stay-in-strike/Sit-down strikes/Pen-down strike/Tool down strike: a labor action in which employees come to work but do not do any work. It is an unofficial form of strike.

3. Lightning strike: it is also a labor action in which labors/employees burn the vehicles, office and other infrastructure for approving their demands from employer. It is also unofficial form of strike.

4. Work-to-rule strike: it is labors action in which employees/labors do no more than the minimum required by the rules of a workplace.

5. Hunger strike: a group of labors/employees protest by sitting without eating anything for 2,3 days for approving their demands from employer/management or against the condition of an employer/management

Methods for the Prevention and Settlement of Industrial Disputes

1-Collective Bargaining: it is a process of mutual negotiation between management and union on the issues of labors. Both management and union compromise with each other. Sometimes the demands of labors, management cannot afford, in this case collective bargaining facilitate the management to reduce few demands from union side, other are accepted. This is the most useful method in business organization.

2-Code of discipline: it the code in which management must be agree on some principles and union must be agree on some principles. Majority was agreed on this code of discipline and signed.

2.1-Management and Union Agree

a. No unilateral Action: one side action; organization becomes destabilized, union addresses that our demands must be approved, and management express that we have not any relation with union and its demands. Both agreed on it.

b. Existing Machinery with utmost Expectation: for solving the problem a panel is seated consist of two members of union and two members of management. Whenever conflict/problem is increased a committee is formed, after the formulation of committee, often problem/conflict is solved. Both agreed on it.

c. No Strike without Notice: union agreed that they cannot do any strike without notice. Union agreed on it.

d. Democratic Process for Negotiation & Condition: in this process everyone takes participation, even a peon has authorized to contribute for solving the problem/conflict through negotiation and conciliation. Both agreed on it.

e. No Coercion, Intimidation, Go-slow & Victimization: management/union not allow to threaten the management/union. Go-slow: to slow the work process by workers. Not allow to intimidation: mentally torture to someone. Victimization: blaming is not allowing to union and management each other, according to this code all agreed.

2.2-Management Agree

a. No increase in Workload: sometimes management misuse the authority like due the conflict, management increase the work burden until problem is solved. Management is prohibited, and agreed on this.

b. To Take Prompt Action with Implementation: management agreed on to rapid taking action of grievances of labors and implementation also required to settle the problem.

c. Conspicuous Places for Negotiation: management agreed on for meeting of union and management will at common place, not outside the organization e.g. restaurant/hotel. Management can take the notice against the in disciplinary (state/condition when labors chanting slogan against management on media).

2.3-Union Agree

a. Not to Increase the Physical Rule: physical attacks are not allowed on the property, assets and people (executives, directors etc) of an organization. Union agreed on it.

b. Not to Permitted Rowdyism: it is a situation of disorder or noisy, so union is not allowed to strike with noise, because noisy strike is illegal. Union agreed on the code.

c. Not to bound the Employees for Strike: union cannot force the employees/workers to participate in the strike. Union agreed on the code.

d. Neglect Unfair Practices: union is not allowed unfair practices such as threatening the management or kidnapping any executives. Union agreed on this rule.

Collective Bargaining

According to Harbinson: collective bargaining is a process of accommodation (making possible) between two institutions which have both common (not favor in management) and conflicting interests (not favor of a union).

Objectives of Collective Bargaining (CB)

1-To agree upon a contract acceptable union representatives, union members and the management: the objective of the objective is to make both parties agree and gather at one platform and developing the consensus, collecting different ideas from mutual understanding.

2-If 1/3 Majority is Available: this objective express that if the 1/3 majority of union or management is available meeting can be convened. For example, unions representatives are not present but other members of union 1/3 are present and management is presented in this case management can be convened the meeting. If unions representatives and members are present but managements representatives 1/3 are present but members are not present in this case union can be convened the meeting.

Types of Collective Bargaining

1-Procedural: this collective bargaining rules describe the two things, that how to govern on the behavior of the employees and many conflict in the organization are controlled by the rules. They just require to show their behavior as decided in procedural rule. Management has to respect everyone, and cannot say that subordinates are servant because of their low scale. Union behavior ought not be threatening the organizational structure (higher authorities), it is somehow right but in a manner and with legal way not illegally.

2-Substantive: in this rule management maintain the relationship with individuals. Management does not feel need to talk to entire group, they directly communicate those who are senior and representatives/leader of the union, they satisfy the leader/representatives, then representatives/leader will satisfy the group.

Three Kind of Relationship Regulated by Substantive

2.1-Economic or Market Relationship: in this kind of relationship management offer the complete package for union, that those who are senior will be awarded with bonus and leader will be rewarded more bonus or cash amount as compare to workers.

2.2-Governmental Relationship: sometimes dispute occurs for solving, in this case external party means government agents come to solve the dispute. By this way relationship between union and government become stronger.

2.3-Workplace Relationship: making the relationship with management and with peers (colleagues). Leader will be the part of the meetings (Annual General Meeting/Policy Promotion Meeting) and are empowered to improve the relationship at workplace.

3-On The Basis of Exercise There Are Two Types

1-Distributive Bargaining: in this sort of relation one party gets merits and other party face losses.

2-Integrative Bargaining: this is beneficial for both parties, have problem solving approach. Both mutually agreed that no loss no gain. Concept of productive bargaining is developed that no stakeholder will in loss.

Participants of Collective Bargaining

Employer

Small Scale Business/Firm: size of firm is minimum 20 and maximum 50 workers/employees.

Medium Scale Business/Firm: size of firm minimum 50 and maximum 100 workers/employees. Representatives like personal or HR manager deals along with legal assistance. It is registered kind of business. Legal matters are solved by legal advisor/assistance and whenever HR Manager negotiate with the union and manager identify the demands, are justified.

Large Scale Business/Firm: size of firm is more than hundred workers, and seven directors must be in board. They select their representatives such as Economic specialist, labor law specialist etcetera.

Employee

Departmental/local basis: (E.g. SUTA, 600 teachers)

Country wide: (E.g. FAPUASA, 25,000 teachers)

If the problem is not solved at low/local level, it is sent to the upper level.

Example: Sindh University Teacher Association (SUTA), and Federal of All Pakistan Universities Academic Staff Association. Few year ago an issue raised when Government of Sindh took notice that afterwards government will appoint the registrar and controller of the examination; when this issue raised by teachers of the University of Sindh, they protested and did strike but government did not listen anything. Thereafter, SUTA decided to present the issue in front of FAPAUSA; when this issue

listened by this, FAPAUSA took immediate action and passed the statement If Government of Sindh will not take notice back, we would boycott all Sindhs Universities classes. As a result, Government of Sindh took notice back and next morning at dawn; in the newspapers head-lines were that Government of Sindh has taken notice back. So this was the example of both country wide and local/departmental wise representatives; that if your voice is not listened at low level you can raise it with help of upper level if you are associated with any organization or party.

Process of Collective Bargaining

1. Organizing and Certification: there are some representatives in the organization, who talk with workers/employees to make a group, if it is certified union no one can challenge it; they can be senior members who look for that workers/employees are willing to join the union. What does management do here? Management is not in favor of making a union, they want to stop making union and try to dominated over.

2. Preparation for Negotiation: there two types of collecting the data, information, fact and figures from internal and external sources. Internal sources: data from data system, about employees, no. of management, no. of working hours etcetera. After collecting the information, fact and figures, representors make a plan that who will present the charter of demand and who will respond the charter of demand.

3. Negotiation: once representatives of union will formulate the facts and figures; they will negotiate properly. Strategy is logic to achieve the goal. All representatives should be well prepared. Negotiation begins when representatives present the list of demand; it should be strictly followed because management will argue with union and union have to be careful whatever union want to speak and steps union take.

4. Contract Administrative: on whatever union addressed should be agreed upon, this is the method that will represent the union; and implement on them. Union has to follow all the steps because words are recorded through meeting. Representatives should not hesitate/perplex/confuse whenever management try to threaten them.

Essential Conditions of Collective Bargaining

1. Careful Thought and Selective of Negotiation: negotiation team/group should be selected from different departments. Organization is diversified the department. This type of work is called professional development. Marketing personnel has expertise in this particular field like this all departments expert should be selected in negotiation. The quota of selection should like 20% from marketing department, 10% from HR department etcetera. Very senior employees are able to solve the problem with their experience with union and management. This is very crucial step in negotiation; if team is strong, 99% chances are of solving the conflict/problem.

2. Management Should Recognize Union: how the management recognize the union? Management understands that they respect the union, considered as unity of an organization. Strong union and progressive management can promote the environment of mutual confidence. Talent versus talent, skilled and effective participants always generate mutual confidence. Both parties already sign the contract/agreement to discuss, not to make conflict.

3. Bargaining Team Members Should Have Open-Minded: those who welcome the criticism are called open-minded; they allow other to criticize, and management always criticize opposite party. Experienced employees are the strength of union that assist them for approving their demands.

4. Homework On Agenda of Meeting: before coming in the meeting representors should get prepared, their agenda of meeting should be clearly written according to labor law, court of conduct, legally and have command/grip on.

5. Both Parties Should Grievances, Safety, And Hygiene Problem: both partys grievances should be addressed and listened carefully. Basic hygiene problems of employees are valued and managed.

6. Internal Union Democracy: it describes that union has not right to threaten, pressurize and influence workers for joining the union, workers have right to willingly join or not join.

7. Strikes/Lockout Should Be Resorted: if the problem is not solved through negotiation, final decision is to solve the problem through strike, lockout and protest.

Thank you for your attention.