chris jarvis 1 hrm & industrial relations. chris jarvis 2 hrm & industrial relations...
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Chris Jarvis 1
HRM & Industrial Relations
HRM & Industrial Relations
Chris Jarvis 2
HRM & Industrial Relations
Industrial Relations – defining the scope
male, FT, unionised, manual, “heavy” industries & public sector , restrictive practices, strikes & collective bargaining?
Employee relations - more diverse jobs: non-manual, female, PT, non-union, services, high tech, “new” business etc
Focus = regulation of employment relationship (control, adaptation, adjustment) - legal, political, econ, social, historical contexts. “Collective aspects”?
“operating within & outside the workplace concerned with determining & regulating employment relationships.”
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HRM & Industrial Relations
Comparative
HRM
Unitary MarxistPluralistic
Labourmarket
Socialaction
SystemsControl over
labour process
Input Conversion Output
Conflictdifferences
Institutions & processes
Regulation(rules)
Approaches to IR
Wider approaches
EvolutionRevolution
CooperationConflict
AuthoritarianPaternalism
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HRM & Industrial Relations
Capitalist society
integrated group
common values, interests, objectives
one authority /loyalty
irrational + fractional
coercion
intrusive
anachronistic
only accepted if forced
Unitary Pluralistic MarxistAssume
Nature of conflict
Conflict resolution
TU Role
• Post-capitalist society• Sectional groups - coalesce• different values, interests, objec
tives
• competitive authority /loyalty (formal/informal)
• inevitable, rational, structural
• compromise + agreement
• legitimate• internal, integral to workplace• accepted role in econ & manag
erial relations
• Capitalist• Division of labour/capital• social imbalance + inequalities - p
ower, wealth etc
• inherent in econ. & social systems• disorder - precursor to change
• change society
• employee response to capitalism• mobilise, express class consciousn
ess• develop political awareness & acti
vity
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HRM & Industrial Relations
Input-output model
convert potential for conflict into regulation
reconcile conflicts of interest through legitimate, functional processes & institutions
at the heart ....... collective bargaining
regulatory output Rules: unilateral, joint or imposed by government
substantial & procedural arrangements
within-the-organisation or external rules (law, national agreements)
varying degrees of formality
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HRM & Industrial Relations
Systems approach (Dunlop 1958)
IR - a social sub-system within the econ. & political systems
Components actors
contexts (influences & constraints on decisions & action e.g. market, technologigy, demography, industrial structure)
ideology - beliefs affecting actor views - shared or in conflict
rules - regulatory elements i.e. the terms & nature of the employment relationship developed by IR processes
Stable & orderly Unstable & disorderly?
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HRM & Industrial Relations
Social action (Bain & Clegg)
actor perceptions & definition of “reality” determine behaviour, actions, relationships
work orientation is as much a result of extra-organisational experience as experience within the workplace
structural factors may limit individual choice & action
bounded rationality - interrelated decisions may fix or significantly shift values, focus, roles or relationships.
instrumental & value-based considerations
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HRM & Industrial Relations
Control over labour process
transformation in inputs by labour using tools & methods. Products, under capitalism, become exchangable, marketable commodities. Relevance to banking, retailing, local gov’t etc ?
labour-capital relationship - essentially exploitative (ownership, surplus value, logic of efficiency & savings, structures of control.
Braverman - to achieve capital’s objectives - specialisation, standardisation, simplification, substitute technology for labour (Taylor), de-skilling? Critique?
Core + peripheral employees. Segmented labour markets
Job enrichment, empowerment & responsible autonomy
Personal control & bureaucratic control
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HRM & Industrial Relations
Labour Market - how work is distributed within society
Issues increase in women’s activity rates level + nature of unemployment, long vs. short-term jobs manufacturing service + globalisation vs. local market regulation strategies + dual labour markets
Economic labour market modelPay = price mechanism (SS/DD. elasticity & equilibrium) One market (same £ for all) or differentiated by skill, job, location
etc. assumes Pricing +
Work - disutility. Wages compensate for less leisure Marginal productivity gain from using one extra unit of labo
ur
“institutionalised” labour market - wage floor, "going rate", range (quartiles), collective bargaining vs. individual negotiation.
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HRM & Industrial Relations
Labour Market - social acceptance & hierarchies
Possible Issues Unskilled, semi-skilled & skilled. Blue-collar, white-collar.
Professionalisation. Other desire the same.
UK recognition of “engineers”
UK “class” system & differential access to education (private schools) & labour divisions.
Government interest Passive & active policies
Retirement age, unemployment benefit, training, job support
Who pays - via taxation or direct Er /Ee contributions?
Interventionist & corporatist approaches (state regulation)
Deregulation - free, flexible labour market, pay decided by “ability to pay”.
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HRM & Industrial Relations
Economic environment
UK de-industrialisation + manufacturing decline
increasing liberalisation, internationalisation & globalisation of trade
government management of economy e.g. Keynesian vs monetarism.
increasing inequality in wage distribution
industrial restructuring & introduction of new technologies
expansion of service sector
Participation rates in employment between 1966 & 1981
77.3 to 75.3% Overall
97.7 to 87.8% Men
55.4 to 61.5% Women
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HRM & Industrial Relations
Employment trends 1981-91
Male FT
PT
Total
Female FT
PT
Total
All
Manufacturing 1981 4242 69 4311 1342 395 747 6058
1991 3157 55 3212 1080 282 1362 4574
-26% -20% -26% -20% -29% -22% -25%
Services 1981 5460 601 6061 3752 3288 7040 13101
1991 5691 879 6570 4491 4249 8739 15309
+4% +46% +8% +20% +29% +24% +17%
Figures rounded to nearest ‘000
Source: Employment Gazette
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HRM & Industrial Relations
Social environment
industrialised, capitalist society
principles of freedom of thought, expression & association
Protestant work ethic
Welfare state vs. independence & expansion of individual opportunities
class & social mobility - manual to middle & professional
home & share ownership
unemployment, “haves & have nots”. NHS vs. private medicine
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HRM & Industrial Relations
Political environment
• internal organisational decision-making. Power-authority structures
• external governmental politics
• individual liberalist, laissez faire vs. corporatist, interventionist
• government responsibility for high employment
• privatisation (public vs private)
• TU role/protections & employer role/protections
• law & order
• European Union - national vs supra-national & conflicting political ideologies
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HRM & Industrial Relations
Development of Industrial Relations - 1
“in restraint of trade” - Tolpuddle Martyrs
late 19th c. TUs & collective bargaining confined to skilled trades & piecework. Industrial strength, mutual assurance, control over entry. Common interest in “local rules”. Employer interest in controlling wage competition
WW1 industry level bargaining uniformity in wage claims. 1916 Whitley Committee 70+ JICs set up 1918-21
20s & 30s recession, unemployment decline in TU membership, wage cuts and...!!!...more industrial action. Some JICs disbanded (industries facing foreign competition). Many survive (public utilities, Logov & gov’t.)
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HRM & Industrial Relations
1950s & 60s improvement in economic conditions ----> inc. TU membership & IR activity.
Pressure on industrial bargaining. Productivity problems. PIP. Shift to shop floor bargaining (stewards vs national officials).
Donovan Commission (1968) recommends reform of voluntary coll. bargaining. Pluralism & company agreements
1970s “IR tensions & confrontations” (3 day week, miners, Winter of Discontent, wage push inflation). Employment legislation to enhance worker rights & extend coll. bargaining. Voluntary incomes policy.
From early 80s recession Gov’t non-intervention re- industrial restructuring but strengthening of individ
ual over collective rights. TU member decline. Competitiveness, globalisation & and TQM. Managerial (HRM) resurgence.
Development of IR - post 1945
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HRM & Industrial Relations
Donovan Commission 1968 (majority & minority report)
IR improvement by reform & extension of voluntary collective bargaining
management initiative & TU agreement
develop formal company level agreements.
substantive terms & conditions, rights & obligations etc
procedural conduct of relationships, dealing with disputes/conflict;
about power & authority in organisations
management to embrace pluralism & joint participation
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HRM & Industrial Relations
Government & Legal intervention
Managing the economy. Balance of Payments & IMF. Problem of growth, industrial change & inflation. Gov’t - TU - Employer triangle.
Contrary to Donovan voluntarism Increased legal intervention
1969 “In Place of Strife” recommended law to deter destructive industrial action (“unofficial strikes”) bring orderliness into IR.
1971 Industrial Relations Act (failed) - more legal control over TU action & unofficial strikes. Unfair dismissal.
1974 “Social contract” & support for collective bargaining, stewards’ rights, disclosure of information, consultation, time off.
1978-79 Industrial democracy & Winter of Discontent
1979 steady, greater legal control & restrictions over TU activities
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HRM & Industrial Relations
Conservative legislation to limit TU activities
Employment Acts 1980 , 1982, 1988 & 1990
Trade Union Acts 1984 & Wages Act 1986
Employment Acts, Trade Union Reform Employment Act 1993
Employment Rights Act 1996 no statutory recognition procedure nor closed shop
no immunity from secondary industrial action
independently scrutinised ballots for industrial action
union officers responsible for unlawful actions & must repudiate
right NOT to be disciplined by union for not taking part in action
secret ballots for election of NEC officers
abolished Wages Councils (“price people back into jobs”)
early 80s confrontations: miners, Wapping P&)/NUS
extended rights to obtain redress individually
new realism - single union agreements
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HRM & Industrial Relations
New Realism?
management proactivity - neo-HRM, TQM & IIP.
Integration with business competitiveness, excellence, customer care.
bargaining structures shift from management-union (collective) to management-individual relationships (co
mmunication, empowerment, ownership)
multi- to single-employer. Sole-union recognition for flexible working
pay & working conditions emphasis flexibility & individual.
more temporary & part-time working
core/periphery staff with task-function & time flexibility.
performance-related pay (individual & team)
share ownership & profit bonuses
TUs on the defensive. 1979-1993 lose 4.5m members. Cooperative employer partnerships. Member services from credit to training.
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HRM & Industrial Relations
Concepts & Values in IR
fairness & equality (but fairness is relative & not constant) utilitarian or democratic
impersonal technical notion
reciprocity of the exchange, consistent with other exchanges, equality of treatment & consideration.
power to control, influence & modify versus legitimate authority French & Raven - 5 sources of power
reward, coercion, legitimised, referment, expertise
Morgan (more diffuse, implicit, pervasive) control of resources & systems; control of knowledge, information &
decision-making; use of organisational structures, rules & regulations; control of alliances, networks & counter-organisation
Magneau & Pruitt - reciprocal perception of power.
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HRM & Industrial Relations
individual negotiation vs combining against Er-Ee imbalance
Oversimplification to say Mgt-employee relationship = “individual” & Mgt-TU = “collectivism” .
Issue = degree to which the individual is or should be Feels in control, responsible, allied with or subordinated to, regul
ated by & protected
Issues of I & C in industrial relations Mgt “claim right” to deal with staff without intermediate TU const
raint (represent/regulate on joint basis)
Individual PRP vs. one package for all
individual “sees” his/her well-being deriving from own efforts vs.fraternalism (improvement through solidarity)
High trust - Low trust (Alan Fox - Beyond Contract)
Individualism & collectivism
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HRM & Industrial Relations
Trade Union Functions
Power - protect/support through strength in association - a countervailing force, pressure group. Note: bargaining leverage & member willingness to act together.
Economic regulation - maximise member returns within wage-work framework. Note: political nature of TU wage policy - comparability & differentials. Inflation & unemployment (cost-push & demand pull). Win bigger slice of national income.
Job regulation - establish a joint-rule making system to protect members from arbitary management action . Enable participation in decisions affecting their employment. Expand job opportuities?
Social change - express social cohesion, aspirations, political ideology & develop a society which reflects this? Institutionalise “class” & “conflict”? Dilemma of participating in government.
Member services - provide benefits/services to members
Self-fulfilment - assist individuals to develop outside their job domain & participate in wider decision-making processes
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HRM & Industrial Relations
Union character
expression of sectional/class consciousness ---> “socialist” society
social responsibility - exercise role in non-detrimental ways
business unionism - maximise benefits from employer relationships
welfare unionism - wider social, econ. & political involvement for all
political unionism - through political alliances
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HRM & Industrial Relations
Why do people join or NOT join trade unions?
Blue/white collar
Manual, clerical, technician, technologist, supervisor, manager
Heavy – light, old – high-tech. industry
Individualism vs. fraternal/collective
instrumental reasons for joining. Support in uncertainty
preference for cooperation with Mgt rather than conflict
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HRM & Industrial Relations
What is Recognition?
Mgt. formally accepts a TU (or TUs) to represent all/some employees & enters into joint determination of terms & conditions on a collective basis.
confers legitimacy & defines scope of union’s role
movement from unilateral management action to pluralism. TU has right to “exist & organise in workplace, support members & have shop stewards, challenge managerial action & bargain”.
rights to information disclosure & consultation (redundancy, transfer of undertaking, H & S & pensions).
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HRM & Industrial Relations
TU Recognition Process
Claim for recognition
Managementpolicy
Recognition agreement
Recognition ballotWhat %?
Bargaining unit (common interest, internal homogeneity)•characteristics of work group (skills, pay, jobs, dispersion)•TU membership %•collective bargaining arrangements•management structure & authority
Bargaining agent•independent•appropriate for all employees•effective/sufficient resources•representative
Degree of recognition•representative &procedural only•negotiating (some/all, joint or sole)•union membership agreement
TU & employee’sexpectations
•management rights to manageappropriate•scope & instutions of collective bargaining•role of representatives
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HRM & Industrial Relations
Recognition
Implications for Managers challenge & appeal against decisions. Slower processes
representatives as mediator of communications & may block
work to agreements, procedures with “rights” to be consulted
persuasion & negotiation to secure “consensus”
time off & protections for appropriate/legitimate TU activities.
Grunwick 1977 determined not to grant recognition & dismissed all employees who took action
Recognition & non-recognition often exist side by side
decline in membership & now 1998 Fairness at Work
- Gov’t proposals to enable employees to have a TU recognised by their employer where a majority of relevant workforce wishes it & to introduce statutory procedures for both recognition & derecognition
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HRM & Industrial Relations
Collective Bargaining
an institutionised system of determining terms & conditions of employment & regulating the employment relationship between representatives of Mgt & employees intended to result in an agreement which may be applied across a group of employees.
•decline in coverage 1980 - 90•collective agreements > union membership.
•public sector > private manufacturing > service•manual > white collar men > women
•53% firms in 1990•66% of FT workers (direct or indirect)
•Larger firms & public-sector organisations
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HRM & Industrial Relations
Models of Collective bargaining
Chamberlain & Kuhn conjunctive bargaining
mutual coercion - agreed truce - indispensible to each other - Lose-lose
cooperative bargaining
both accept neither will gain advantages unless the other gains too. Win-Win - willingness to concede - to increase size of cake
Walton & McKersie distributive bargaining
basic conflict over slice of the cake. Fixed-sum game - if you win, I lose.
integrative bargaining (common perception & acceptance of issue)
Mgt accept employee influence. TU accepts business responsibility.
Cooperate to increase cake. Adversarial- cooperative tension remains
intra-organisational bargaining.
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HRM & Industrial Relations
Content & Scope of Collective Bargaining
Substantive rules (economic matters) pay (basic, overtime, PBR, guaranteed payments.....bonuses???), hours
(37, 40, shifts, shorter week, flexi-time?) , holidays, fringe benefits (pension, sick pay, company cars?, BUPA?). Annual negotiations.
Procedural rules status quo (no change until disputes procedure exhausted). Shop stewar
ds, grievance, negotitating, disputes, redundancy, consultation, discipline?
Work methods/arrangements. The nature of work & how it is =carried out. Flexibility, multi-skilling, productivity, assignments, teams, use of contractors, operating procedures?
Bargaining levels National/Industry wide (multi-employer & TU Federations?)
Company-wide
Plant/shop level
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HRM & Industrial Relations
What enables bargaining power?
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HRM & Industrial Relations
Involvement & participation in decision making
industrial democracy (worker control) - little currency in contemporary market-driven economies
participation in decisions traditionally the prerogative of management equal power or management style/good-will? HRM & reaction against confrontation management
involvement to mobilise cooperation, talent & creativity Task participation: empowerment, cell technology, team working, briefin
g groups & quality circles, delegation, job enrichment & MbO joint problem-solving. McGregor Theory Y. Employee reports. 360 degree appraisal
financial particpation profit-related bonuses, share ownership schemes approved deferred share trusts SAYE to buy company shares employee share ownership plans
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HRM & Industrial Relations
Employee participation
Worker directors Bullock report
Works Councils
European pressure for Mgt to consult employee representatives collective redundancies, transfer of undertakings, health & saf
ety.
European Works Council Directive (1994) EWC for information & consultation to be estabished in any m
ultinational organisation with at least 1000 employees (including 150 in each of at least 2 member states)