7/28/2019 Management & Industrial Relations

1/19

MANAGEMENT &INDUSTRIAL

RELATIONS

7/28/2019 Management & Industrial Relations

2/19

MANAGEMENTS GROWING

ROLE IN IR

Reflects long-term shift in workplacepower

Increased privatization

Technological change Downsizing and restructuring

7/28/2019 Management & Industrial Relations

3/19

EVOLUTION OF MANAGEMENT IR PRACTICE

Personalized Control

Technical Control Bureaucratic Control

Commitment as a Control Strategy

7/28/2019 Management & Industrial Relations

4/19

SEARCH FOR ALTERNATIVES

Concession bargaining

Two-tier wage systems

Shifts of employment outside firm

Increase use of temporary and casualworkers

Substitution of machinery for labour Increasing employees productivity by

increasing their loyalty and commitment tofirm

7/28/2019 Management & Industrial Relations

5/19

CURRENT MANAGEMENT PRACTICE

No single model of managementpractice currently prevails

Small number of firms adoptedprogressive HRM

7/28/2019 Management & Industrial Relations

6/19

CURRENT MANAGEMENT PRACTICE (cont.)

Key trends

Downsizing

Restructuring Decline in number of IR/HR staff and

change in work

More strategic role for HR and IR

Responsibility for IR/HR shifted to linemanagers

Limited change to collective bargaining

7/28/2019 Management & Industrial Relations

7/19

TWO TYPES OF HRM

Approaches from strategic choicetheory

Disposable workplaceapproach Competitive advantage by minimizing labour costs

Layoffs

Two-tier wage systems

Little interest in employee-involvement

7/28/2019 Management & Industrial Relations

8/19

TWO TYPES OF HRM (continued)

High-road approach Differentiation strategy

Niche markets High product quality

Ability to develop new products quickly

Heavy emphasis on training & development Increased employee involvement

Flexible forms of work organization

7/28/2019 Management & Industrial Relations

9/19

TWO TYPES OF HRM (continued)

High-road approach (continued) Seek to provide employees with positive

motivation Focus on learning and performance

improvement

Provide generous benefits

Fundamental change in managers role Facilitative

Help team members to solve problems

7/28/2019 Management & Industrial Relations

10/19

TWO TYPES OF HRM (continued)

Closer look at progressive HRM

Not as widely adopted

Employers response to changerelatively conservative

7/28/2019 Management & Industrial Relations

11/19

TWO TYPES OF HRM (continued)

Progressive HRM likely to be adopted

Larger, more established firms

HRM more formal and visible inlarger firms

International competitive pressures

7/28/2019 Management & Industrial Relations

12/19

TWO TYPES OF HRM (continued)

Benefits of progressive HRM Core of loyal and committed employees

Significantly better financial results Lower unit costs

Higher profits and market share

Lower quit, grievance, and customercomplaints

7/28/2019 Management & Industrial Relations

13/19

TWO TYPES OF HRM (continued)

Barriers to adoption of progressive HRM Direct cost to employers

Flies in face of short-term businessorientation

Must be a sophistication and willingness tochange

Necessitates power-sharing--managersAND unions

7/28/2019 Management & Industrial Relations

14/19

Patterns Of Work Place

Practices Low Wage Pattern

Strong managerial Control

Vertical Hierarchy Low wages

High Turn Over

Strong Anti Union Drive

7/28/2019 Management & Industrial Relations

15/19

Patterns Of Work Place

Practices HRM Patterns

Corporate Culture extensive Communication

Directed Teams Above Average Wages

Individualized Career Development

Union Substitution

7/28/2019 Management & Industrial Relations

16/19

Japanese Work Place pattern

Standardized Procedures

Problem solving teams

High pay linked to seniority &Performance

Employment stabilized

Enterprise Unionism

7/28/2019 Management & Industrial Relations

17/19

Joint Team Based Pattern

Joint Decision Making

Semi Autonomous work groups

Hi pay with pay for knowledge

Career development

Union & employee involvement

7/28/2019 Management & Industrial Relations

18/19

NEW CHALLENGES FOR TODAYSMANAGERS

Need to increase training

Workplace training has not kept pace

with increased globalization andtechnological change

Business firms will have to increase

efforts significantly if competinginternationally

7/28/2019 Management & Industrial Relations

19/19

NEW CHALLENGES FOR TODAYSMANAGERS (continued)

New IR/HR role Strategic

Coach to line managers Training line managers in people

responsibilities

Training line managers in labour relationsand conflict resolution