industrial relations - 21_22 june g. p. electronics
TRANSCRIPT
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Business
Implicationsof
Industrial
Relations
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Relations
Industrial Relations in Past -Phase I Management’s policy towards labor : Autocratic, Authoritarian
ispute settlement not amicable
!o trace of "ollecti#e Bargaining Recourse to unconstitutional means - $isit courts for see%ing &ustice
Multiple litigations - isputes not
e'peditiously resourced Agitational approach of wor%men
through loc%outs
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Management Actions ( )tatus* Phase I
Retrenchment of labour force
Pending labour matters -
+ribunes, igh "ourts ()upreme "ourt
"ontinued industrial unrest
nions * !o recognition.role
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Industrial Relations in Past -Phase II "ompanies negotiated /abour matters with
union
Ma&or settlement - 0)igning an Agreement1234 to 254 wage rise
"ollecti#e bargaining - new method ofresol#ing disputes
6ld method of unilateral decisions -discarded
"ommittees formed to resol#e mattersthrough mutual negotiation
7n#ironment of Ad&ustment ( Accommodation
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Industrial Relations in Past -Phase III
8contd9 Mgmt’s recognition of new union Mutual negotiations but at hea#y
cost
)ettlements led to increase in wagecost beyond e'pectation Pragmatic approach of Mgmt Paying initial wage led to increased
production >?@3’s Mar%ed by industrial peace
8producti#e peace
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Industrial Relations in Past -Phase III
8contd9 )igning of settlements Introduction of new methods -
roup wor%ing, le'ibility
Resistance to accept - ighlycontro#ersial
Mass #iolence amongst laborerscaused in&uries ( hospitali
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Achie#ements on IR ront *Phase I$ Mar%ed increase in producti#ity
Restoration of discipline
"onstructi#e in#ol#ement of wor%men into certain Mgmt issues
Reduction of manpower by way of natural separations ( $oluntary
)eparation )chemes )ustained producti#e peace all
o#er
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)ummary - Phase I$
/itigations continue
Producti#ity stagnant
Manpower increasedisproportionate to returns
$iolent inter union ri#alrypredominant
/ac% of uni#ersally acceptedleadership at unit le#el
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IR )trategy
7'pression of enterprise’s capacityto de#elop sound IR mgmt plan
IR )trategy in#ol#es : e#elopment of Policy statement eCne responsibilities Identify resources for
implementation Minimi
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)teps * Ris% Management
Assessment Issues related to enterprise ( IR en#t9
Ris% analysis
Ris% resource planning
Action plan ( Mgmt9 measures
"ontingency planning - Minimi
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Ris% Analysis
ighimpact
Moderateris% )pecify IRmanagementmeasures
Ma&or ris% e#elop
IR ris% action
plan
/ow
impact
Minor ris%
Accept
Moderate
ris% )pecify IRmanagementmeasures
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Measurement, 7#aluation
( Re#iew Procedures for IR Mgmt9
Records:
IdentiCcation iling
Retrie#al
Retention
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Internal Re#iew 7stablish internal Mgmt9 system
7nsure e=ecti#e
implementation of IR )trategy( Pro&ect IR Plan
Aims in continual impro#ement
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IR unctions
About how people are treated
7nterprise’s decision * long -term #iew
Achie#ement of goals
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IR unctions
Pluralistic in outloo%
"o#ers relations b.w :
7mployer ( employee 8theindi#idual relations
7mployers ( unions
7mployers, 7mployees ( )tate8collecti#e relations
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IR ocus
"ollecti#e aspect of relations labor law, collecti#e bargaining
Indi#idual grie#ance handling,dispute settlement
!ot in team-building - con;icting with union loyalty
Rules go#erning employment
relationship prescribed by )tate laws Balancing. minimi
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Basic ob&ecti#es of IR
7=icient production of goods (ser#ices
etermine terms of employment,
in interests of employer,employees ( society
7stablishment of mechanisms for
communication, consultation (cooperation
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Basic ob&ecti#es of IR
A#oidance ( settlement ofdisputes where possible throughnegotiation
Pro#ide social protection whereneeded
7stablish harmonious relations
b.w employers, employees,organi
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eterminants for )trategic Approaches
6f +rade nions - !ew )cenario
RM’s focus - 7nhance enterprisecompetiti#eness
7nterprises will depend on people’ss%ill ( producti#ity
nions in#ol#ement in consultation
mechanisms for new RM initiati#es
nion’s focus
enterprise le#el problem ( issues
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eterminants for )trategic Approaches
8contd9 nions to be e'posed to +rg9 Prgs9 inRM issues
nion’s need - /ong-term perspecti#efor "hange Mgmt
79g9 erman unions ( wor%s councilsha#e a structure of incenti#es,including employment security,
e=ecti#e representation, (participation, continuing retrainingin broad s%ills, which gi#es them along-term perspecti#e in plant
bargaining
t i t f )t t i
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eterminants for )trategic Approaches
8contd99
nion cooperation depends on mgmt9attitudes
Management strategy
6pen to union not a#oidance nions to recogni
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eterminants for )trategic Approaches
8contd99 IR means of maintaining industrial peace
IR a#oids ( settle con;icts, disputes
nions to be acti#e in area of con;ict
a#oidance, not only resolution 79g9
RM practiced in unioni
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eterminants for )trategic Approaches
8contd99 IR future - Rele#ance more at macro le#elissues
7nterprise le#el . plant le#el bargaining
ormulating o#erall IR policy elimiting boundaries of action for two
other parties
Pro#iding a measure of social
protection through labour law ( &udicial bodies
Pro#iding necessary framewor% for twoparties to function
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eterminants for )trategic Approaches
8contd9 IR to open its doors to other
disciplines *
industrial sociology, 6B (
psychology - not only byeconomics ( law
uture of IR may depend on
capacity to de#elop morecollaborati#e relations, mo#e awayfrom ad#ersarial ones
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+rade nionsH Role -Importance +he free trade union mo#ement
democratically elected by wor%ers( accountable to their
membership nions are critical
power to deny human resource
necessary for generation of proCts nion’s capacity to stri%e is ultimate
threat to in#estor class
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+rade nionsH Role *Importance 8contd9 Pay attention to areas
i#ides trade unions ( theirallies
"ompetiti#e mar%ets ma'imi
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+rade nionsH Role *Importance 8contd9 esign a grand bargain
istinction b.w rights ( standards
Jages ( beneCts depends on what
enterprise can pay /e#el of minimum wage depends on
economic de#9 le#el of country
Reach an agreement 7nforceable labor rights ine'change for commitments oflong-term de#elopment
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Roots of Management+hin%ing Many of most successful ( widely
used strategy tools today : framewor% cost cur#es structure conduct
Performance 8)"P model "oncept of sustainable
competiti#e ad#antage
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Bringing iscipline to)trategy 0)trategy is handful of decisions
that :
ri#e.shape most of company’s
subseFuent actions Are not easily changed once made
a#e greatest impact on whether
company’s strategic ob&ecti#esare met
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andful decisions
)electing company’s strategicposture
Identifying source8s ofcompetiti#e ad#antage
e#eloping business concept
"onstructing tailored #aluedeli#ery systems
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+wo "oncepts of
"orporation
)B "ore "ompetence
Basis forcompetition
"ompetiti#eness oftoday’s products
Inter-Crmcompetition tobuild competencies
"orporate structure Portfolio ofbusiness related inproduct * mar%etterms
Portfolio ofcompetencies coreproducts (businesses
Resource allocation iscrete businessesare the unit ofanalysisK capital isallocated businessby business
Businesses (competencies arethe unit of analysis:top managementallocates capital (talent
$alue added of top
management
6ptimi
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Industrial RelationsRelations between management ( union or
between representati#es of employees (representati#es of employers
My boat attitude : et out if you do notli%e
)hared boat attitude : Je sail together9 onot roc% it
6ur boat attitude : 6ur own commonenterprise9 /et us &oin in our e=orts
to better it
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