1-2. Shrd. Nature of Tradl. IR & New 2 IR
description
Transcript of 1-2. Shrd. Nature of Tradl. IR & New 2 IR
-
111
1-2. Nature ofIndustrial Relations:
Traditional & ChangingPerspectives
Debi S. SainiProfessor & ChairpersonHRM Area
Management Development Institute, Gurgaon
2
The issues discussed in this presentation are:
1. Conflict dynamics & different approaches of IR Mgt.
2. Working of an IR system: Dunlops System Model
3. IR & related terms: IRLRER
4. Has Globalizations changed IR scene? How?
5. IR: ActorsIssuesInstitutionsProcedures
6. Traditional issues in IR
7. Frames of reference of IR: UnitaristPluralistMarxist
-
23
Two Main Components of this Course:
Management of Personnel/People(Systems, effectiveness, engagement, productivity)
Management of Industrial Relations (Conflict, interests, rights, peace)
Lately, the two perspectives are gettingmerged into an integrated HRM framework
4 4
The Roots ofIndustrial Conflict
-
3Peace Requires: Balancing of Business Needs & People Needs
High Earnings
Speed to Marketplace
Market Share
Product Quality
Customer Service
Customer Responsiveness
Low Costs
Efficiency/Productivity
Flexibility
Benchmarking
Responsive/Innovative
Future Oriented
Customer Satisfaction
Reward & gain sharing
Reasonable job security
Work-life balance
Flexibility
Empowerment
Welfare facilities
Social security
Learning Atmosphere
Respect for their Diversity
Growth opportunities
Recognition/ belonging
Participation/ Involvement
Management style
People Needs are Managed differently in
Different Orgs.
IBMTata Steel
Ballarpur IndustriesHero MotoCorp
NDPL
Business Needs People Needs
6
First know: Why Labour-Mgt. Conflict Occurs
Conflict is at the centre in organizational working
Why:
Industrial Conflict: a Complex & difficult issue
6
Difference in interests, values, goals, attitudes
-
47
Mgts. differently handle conflict:
Positive or Negative Meaning of Work
8
Work is interesting
Reflects good quality of life
Gives us meaning of life(WM feels: meditating/ bldg. a temple)
What does work mean to People: Two extremesPositive (win-win) Negative (loselose)
Sheer Drudgery/unpleasant
A way to kill time
Just a means to living
-
599
Can we think ofsome basic approaches to
managing employer-employee relations?
1010
Graziano: CEO killed Maruti-Suzuki HR Chief burnt
HMSI Violence 2005 Tata Steel (35 K workers; no strike since 1958) Classic Stripes: 3-6 best employer co.
How do we go about understanding these issues?
-
6 500 WM including contract WMMost are blue-collared
4 WM 25 yrs. ago (in 10 x 10): Built 44 acre campus in Vasai3 plants now: Mumbai; Vasai; Hardwar No Union
Kishore Musale Charitable Trust:
Main motto: dignity at work.Believes in: valuing every individual, giving people their due,
freedom, respect, opportunity backed by lots of training.
Classic Stripes (Mfg.): Come Out of Control Mindsethttp://classicstripes.com/manufacturing_plants.html
Won Safety & Environt. 2003 award (SIGA given to 5 cos. worldwide) Kaizen Training: 2 hrs per month
A relationship committee: Meets twice in a month
Has a library with trade journals, magazines & books
DM: 1/3 Women workers; also physically-challenged
Shares with employees a %age of its annual profits
Classic Stripes: Some HR Initiatives contd
-
7Tata Steel Ltd.: HRM Model
Sr. Mgt. work at less than 60% of market worth; dont leave
Meets need for dignity, stability, security: No strike since 1958
Participation, paternalism (kin employment), family focus
Ethical working
CSR creates a sense of pride in employees
Comparing two US Cos.: South West Comparing two US Cos.: South West && American AirlinesAmerican Airlines
On same day (May 2010): AG meeting of airlines: SWA & AA--AA meeting was picketed by AA Pilots Assn.--Southwest celebrated 37 yrs. of service by founder, Herb Kellehar
Paper carried picketing news; same paper carried an ad: Kellehar knew, knows & will always know that
the secret to bus. success, small or large, is to put people first.
Kellehar sees employees as my principal customer.
-
815 15
UnderstandingEmployee Relations& related Terms?
Employees as Individual (Market operates here)
Employees as collective(Class solidarity operates here i.e. Unions)
Org. needs: Employee retention & engagement, indl. peace in both situations
2 Sets of Concerns for Employer & Employee
-
9 ER & IR both deal with all aspects of employment relationsi.e. unionized & non-unionized [Today, Global focus: cooperationdecent work]But IRs key focus is unionized workers, & ERs key focus is individualized workers
ER: is ongoing relations-building process with employeesthrough HR practices & orgl. culture-bldg. effortsfor securing employee commitment/engagement
LR (labour Relations) focuses exclusively onemployment relations in a unionized environment (i.e. Unions & mgt.)
Employee Relations, IR & LR
18 18
What does good ER Involve: Research?
1. Dialogue & communication for trust & culture
2. Partnership through involvement & feeling valued
3. Proactive, not reactive efforts (Hero MotoCorp)
4. Employee rights, fairness, just grievance mgt.
5. Employee discipline (Tata Steel; Classic Stripes)
-
10
Employee Relations
Employee Communication
for Trust bldg.
Partnership& Employee Involvement
Employee Rights/fairness/Grievance mgt.
EmployeeDiscipline
Fig.: Key Dimensions of Employee Relations
ProactiveEfforts
Manifestations of Poor Employee Relations
Unionization
Poor Performance
Employee Absenteeism
Employee dissatisfaction & Turnover
Litigation
-
11
2121
What do youthink is meant by
Industrial Relations?
2222
Industrial Relations: Simply Speaking:
Industrial relations (IR)
is the process of rule making
that mediates between divergent interests
of capital and labour
-
12
2323
How can we view Industrial Relations
J. H. Richardson (Leeds University)
Industrial relations is
the art of living together
for purposes of production
ImportantSome
regulation is needed
inall relations;
State determines
the regulatory framework
2424
How can we view Industrial Relations contdHugh Clegg (Clegg & Flanders pioneers of Classical Oxford School of IR)
Industrial relations is a study of
workers and their unions,
employers and their associations,
and State & its institutions/agencies
concerned with regulation of employment.
Imp.: Different powers, roles, interests, duties of Actors
-
13
25
Is Globalization Syndromelinked to
Industrial Relations: How?
26
What Does Globalization mean?
Global movement of capital
Global movement of businesses
Driven by principles of free market economy
& less obstructed people movement
Across borders within companies
-
14
27
Globalization & Other Causes of Changes in Business1. GLOBALIZATION Syndrome
2. Information Revolution/Internet
3. New Technology
4. Emergence of Service Industry
5. HR Philosophy:
M. Thatcher has been named UKs most effective prime minister of the 20th centuryby BBC History Magazine 30 Aug, 2006, TOI
Globalization has led to: Internl integration of economies PSU reforms & privatization Collaborations & jt. ventures Dominance of market
rationality Decline of welfare state
Psychological Contract &Focus on: Employee Relations
28
What is meant by:IR Actors
IR InstitutionsIR Procedures
IR Issues
-
15
29
Focus of the Discipline of IRA. Characters (or actors) in IR
Union leaders
HR Managers
Conciliation Officers/ Mediators
Arbitrators/judges
Labour Courts/
Labour Lawyers/Management Consultants
Others
30
Focus of the Discipline of IRB. IR Institutions
(permanent form of custom or law)
UnionsEmployer associations State/Labour BureaucracyILCILOTribunal/Labour Court Labour lawHigher judiciary
-
16
31
Focus of the Discipline of IR cond
C. IR procedures (aim at: Procedural justice)
Bargaining/NegotiationConciliation ArbitrationAdjudicationReferenceProcedure for going on strikes/ lockoutsInquiries/Disciplinary procedure
32
IR is studied by many academic disciplines Economics
History
Law
Sociology
Political Science
Management
-
17
3333
What do you thinkare some of the key issues
in IR?
34
Traditional Problems/Issues in IR
1. Job satisfaction: Job designWorking conditionssupervision
2. Negotiating Wage/salary/VRS/bonus/benefits
3. Alienation & discontent
4. Grievance management
5. Trade union, strikes, lockouts
-
18
35
Traditional Problems in IR6. Industrial dispute settlement
7. Indiscipline, absenteeism & mobility
8. Labour Laws
9. Labour welfare/QWL
10. Communication
11. Joint consultation, participation, involvement
3636
Three Basic Approachesto looking at IR:
Pluralism, Unitarism, RadicalismWhat are these?
-
19
3737
Frames of Referencein Industrial Relations
& New Issues in IR
3838
Frames of Reference: Unitarism & PluralismUnitarism
1. Assumptions about InterestsCommon interest/objectives
2. Assumptions about conflictInevitable, destructive: Be avoided Caused by: Poor mgt/communication
3. Assumptions about trade unionsUnwanted intrusion
4. Assumptions about collective bargainingCB generates workplace conflictrather than resolve it
Pluralism1. Assumptions about Interests
Mgrs. & employees have: different objectives
2. Assumptions about conflictInevitableBe negotiatedCaused by difference of opinions/values
3. Assumptions about trade unionsNot the cause of conflict: Conflict inherentLegitimate part of workplace relations
4. Assumptions about Collective bargainingCB ensures fairer outcomes Balances employee & mgt. power
-
20
III. Marxist (Radical/ Critical) Perspective
Market economies are social arrangements created by historical forces
Private property is a social construct, not created by nature
Owners of capital accumulate capital; take all or most of it
Power of ownership & control cause WMs impoverishment
Classes struggle: for control of industry, economy & state
Differential access to education, media, government jobs
4040
III. Marxist (Radical) Perspective contd View of society based on post-capitalism is wrong
Capitalist profit is key influence on co. policy
Control enforced downwards by capitals agentsSurplus value generation by capitalist
Employees socialized into accepting status quo
Class conflict is the source of societal changeWithout conflict society will stagnate
Capitalism will collapse due to its inherent contradictions
-
21
4141
III. Marxist Perspective contd CB: limited accommodation of fundamental divisions
Unions/IR instts. deal with marginal issues
Law not independent referee
Industrial Justice: only if revolution
4242
How do we Conceptualizethe Different Workings of
IR System?
-
22
I. Traditional Pluralism(German Pharma)
II. Paternalistic Pluralism(Tata Steel/NDPL)
III. Ambivalent Pluralism(Most unionized cos.Maruti-Suzuki Ltd.)
IV. Repressive Pluralism(Simran Foods Ltd.)
V. Coercive Unitarism(Glaziano before the violence; SMEs)
VI. Ambivalent Unitarism(Or manoeuvredunitarism through law, shenanigans, paternalism, collusion with bureaucracy)
VII. Paternalistic Unitarism
(Most Indian SMEs, Flaxo Exports)
VIII. IBM type Unitarism(New Unitarism)
(Hero-Honda, Air Tel)
Eight Broad Typologies of IR Models
Debi Saini 2010
44
What can be Learnt from these two Sessions: Conflict in industry is inevitable, given different interests
Variegated models of IR are practiced by different organizations
IR is a system of rule-making about gains of & power in industry
IR concept is changing into employee relations in new era
IR focuses on actors, institutions, procedures
Unitarism & Pluralism are 2 broad approaches to IR
IR can be divided into 8 broad typologies