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Nexus between Labor and Management
No Time for Complacency
1
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MH 2
Human Resource Management
McClean
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MH 3
What is HRM?
HRM functional definition
Is a set of interrelated functions and processes
whose goal is to attract, socialize, motivate,
maintain, and retain employees
HRM goal-based definition
aims to improve the productive contribution of
individualswhile simultaneously attempting to attain
other societal and individual employee objectives
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MH 4
Important termsHuman resource:Knowledge, skill sets, expertise of employees, the adaptability,
commitment and loyalty of employees.
Ski l ls :The individual abilities of human beings to perform a piece of work.
Resource:The stock of assets and skills that belong to a firm at a point of time
Capabi l i ty :The ability of a bundle of resources to perform an activity; a way of
combining assets, people and processes to transform inputs into outputs.
Core com petencies:Activities that the firm performs especially well whencompared to its competitors and through which the firm adds value to its goods and
services over a long period of time.A unique capability in the organization that
creates high value and that differentiates the organization from its competition.
Competi t ive advantage:It comes from a firm's ability to perform activities more
distinctively and more effectively than rivals. To attain competitive advantage, firmsneed to add value to customers and offer a product or service that cannot be easily
imitated or copied by rivals (Uniqueness).
Value:Sum total of benefits received and costs paid by the customer in a given
situation.
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MH 5
Important termsProductivity: The quantity and quality of work relative to resources
used, often expressed as a ratio of output / input. A measure of
organizational performanceEfficiency:An input measure of the cost of resources
Effectivenes:An output measure of goal accomplishment.Organization:A collection of people working together to achieve a
common purposeOrganization purpose :To provide society with good and services
Mission Statement:A description of the organizations purpose, goals,values and priorities.
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MH 6
What is Industrial Relations?
The making and administering of the institutions and rulesof work regulation
Socio-industrial conflict (in all its forms) and its resolution
Explicit and implicit bargaining between employees andemployers
A particular set of phenomena associated with
regulating the human activity of employment
Industrial relation is the study of employment andlabor market. It assesses factors that shapesemployer, government and workers relationship inenterprises, industries and across labor markets
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Concept of Industrial Relations
Concept of Industrial Relations:
Industrial Relations comprises of two terms:IndustryandRelations.
1. Industryrefers to any productive activity in which anindividual (or a group of individuals) is (are) engaged.
2. Byrelationswe mean the relationships that exist withinthe industry between the employer and his workmen.
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Evolution of HRM
Each slice relates to workforce responsible for businessproductivity not attainable in a state of chaos. Hence theimportance ofIR
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HRM serves 3 primary entities:
The organization Society
Individual employees and
What Does HRM Do?
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Another aspect of human resource managementrelates to the influence of organized labor.
Labor unions are organizations to which workersbelong that deal with employers on the workers
behalves. Labor unions act as bargaining agents,negotiating legal contracts that affect manyaspects of human resource management.
The foundation of any labor and managementrelationship is collective bargaining, which is
the process of negotiating, administering, andinterpreting labor contracts.
Labor-Management Relations
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Industrial dispute
An industrial dispute may be defined as a conflictor difference of opinion between managementand workers on the terms of employment.
It is a disagreement between an employer and
employees' representative; usually a trade union,and other working conditions and can result inindustrial actions.
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Industrial dispute
MH 12
When an industrial dispute occurs, both theparties, that is the management and theworkmen, try to pressurize each other. Themanagement may resort to lockouts while the
workers may resort to strikes, picketing orgheraos.
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Organs with Conflicting GoalsThere are different types of organizations:1.Big organization, small organization, local or
international.2. They constitute of 3 main actors: Shareholder- represented by management, association of
employers. Always to gain as much profit andproductivity.
Employees- being represented by trade unions. To getgood salary and good working conditions
Government; being represented by specializedgovernment agencies concern with workers, enterpriseand their relationship. Try create industrial harmony
Each of the actors above always conflicting between oneanother in order to achieve their objectives.
3. Besides the above 3 main actors, in the present contextacademicians have also considered another actor whichcan also influence the nature of IR i.e Stakeholders.
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Conflict
Conflict result from industrial and organizationalfactors.
1. Different roles ofmanagement and employees
Mgrs responsible for efficiency, productivity and
profitability Employees: more of personal terms (better pay,
good working conditions and good job security).
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Personalities who cause conflict
Aggressive
Passive
Absentee
Error prone Negative attitude
Chatterbox
Do nothing
Unreliable
Time waster
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ORGANIZATION AS AWORKPLACE
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MH 1717
Dealing with Office Politics and Resolving Conflict
Office politics cause significant problems for the IR managerand the organization, including: Politics inhibit productivity Politics stifle creativity Politics cripples teamwork
Overt negative politics alters communication
Basic indicators of overtly political behavior include: Double-talk Backstabbing Power mongering Victim role Game playing
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MH 18
Aligning Organizational GoalsFocusing mission and value
Vision
Alignment
Mission
Vision
Mission
ASK: Whether bond between HR and IR becoming healthy?
CHAOS ProductivitySubstandardPerformance
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MH 19
Growth
Competition
Prosperity
Success
Competent Employees
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Resolution
MH 20
Promotion of measures ofsecuring & preserving amity& good relationship between
workmen & employerInvestigation and settlement
of dispute between employer& workmen, workmen &
workmen, employer &employer as well asassociations of employers &workmen
h i b
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MH 21
Aligning employees to a common sets of objectivesderived from the mission and value statements,
Mitigation of risk by devising appropriate SuccessionPlanning Strategies,
Identification of top-performers and non-performers,
Continuous measurement of the effectiveness of
leadership and employee satisfaction, Increasing employee engagement through appropriatemeasures,
Aligning compensation to performance,
Adjustment of recruitment and training to competencygaps,
and specifying well-defined Job Descriptions which mapto the organization structure . These become the basis ofRecruitment, Goal Setting, Training, Performance Evaluation
and Career Development.
Shaping a Robust Nexus: HR-IR
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MH 22
Job Satisfaction..
Workplace support (flexible schedules, etc)
autonomy
meaningfulness
opportunities for learning & advancement job security are highly related to job satisfaction
pay and benefits have little effect on jobsatisfaction.
E l E t (R h)
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MH 23
Employee Engagement (Reseach)
At least four studies agreed on these eight key drivers.
Trust and integrity how well managers communicate and 'walk thetalk'.
Nature of the jobIs it mentally stimulating day-to-day?
Line of sight between employee performance and companyperformance Does the employee understand how their
work contributes to the company's performance? Career Growth opportunitiesAre there future opportunities for growth?
Pride about the company How much self-esteem does the employeefeel by being associated with their company?
Coworkers/team members significantly influence one's level of
engagement Employee development Is the company making an effort to develop
the employee's skills?
Relationship with one's manager Does the employee value his or herrelationship with his or her manager?
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MH 24
Research Workforce engagement
characteristics:
Satisfaction Understanding Contribution
Alignment Retention
Workforce Engagement Metrics
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MH 25
1) An expressed intention to remain with anorganization2) The variety of skills and competencies their jobrequires3) The organization's commitment to satisfyingcustomers4) The amount of cooperation within and acrossfunctions5) Consistent communication regarding roles andexpectations6) Training to improve their contributions to the
organization7) Freedom and discretion in their jobs and access toresources and information8) Competent, expert managers who are open to ideasof their employees
Factors Influencing EmployeeSatisfaction and Engagement
A h t E l E t
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MH 26
Research-10 effective approaches for improving employeeengagement:
1. Rewards and Recognition2. Human Capital Infrastructure3. Learning Management4. Knowledge Management5. Performance Appraisal
6. Workplace Design7. Employee Relations8. Career Development9. Human capital strategy
10.Recruiting
Approaches to Employee Engagement
Employee engagement, or worker engagement, is a businessmanagement concept. An "engaged employee" is one who is fully
involved in, and enthusiastic about, his or her work, and thus willact in a way that furthers their organization's interests.
T Th th t C
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MH 27
An analysis of employee responses to opinion
surveys in Asia
A job security 1B enough help and resources 2
C friendly, helpful co-workers 3D interesting work 4E good working conditions 5F enough authority 6G good wages 7H opportunities to development 8
I enough information 9J full appreciation of work done 10K competent supervision 11L clearly defined responsibilities 12
Top Themes that ConcernEmployees Satisfaction Most
E i Ch ll
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MH 28
Economic Challenges
Two related challenges:
Global trade international trade and competitionwith other markets
Need for productivity Improvement
More output with equal (or less) input
HR Implications Need to contribute to international competence of
workers (via training, etc.)
Potential workforce reductions can result in job
insecurity and negative effects on workers
C l W k E i t
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MH 29
Complex Work Environment
Industrial society is a complex and dynamic society
(consist of group, societies and institution) they areinterrelated, however have different attitudes andperceptions. They are also being influenced by externalenvironment.
We cannot ignore the working aspect of humanbeing, as working hour dominate most of our time.
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MH 30
HR Management
Only 2 imp. Parties employeeand employer
Objectives, policies, procedureand programs of human resourcesand implement them
Individual employee contactswith the immediate superior.Grievance and disciplinary
procedures are resorted to, tosolve the employee-employerconflicts.
Reformulates the objectives,policies etc ,based on industrialconflicts which are the outcomeof unsound industrial relations.
HRM is the overall managementof all resources includingworkers, staff, executives, Topmanagement and even suppliers
and customers.
Industrial Relations
Relationship between workforce& management
The implementation of HRMpolicies results in IR.
There are four important partiesnamely employees, employer,trade unions and government
The sound IR contributes to the
organizational goals. Theunsound IR result in industrialconflicts demanding for changeand reformulation of HRMobjectives and goals
Employees contact even the topmanagement as a group.
Collective bargaining and formsof industrial conflicts are resortedto solve the problems
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MH 31
Industrial Relations
Industrial relations are governed by the system of rules and
regulations concerning work, workplace and workingcommunity
The main purpose is to maintain harmonious relationsbetween employees and employer by solving their problemsthrough grievance procedure and collective bargaining.
Trade Unions is another important institution in theIndustrial relations. Trade unions influence and shape theindustrial relations through collective bargaining.
Industrial relations are the relations mainly betweenemployees and employers
These relations emphasis on accommodating other partiesinterest, values and needs. Parties develop skills of adjustingto and cooperating with each other.
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MH 32
Industrial Relations
Industrial relations has become one of the most delicate and
complex problems of modern industrial society. Industrialprogress is impossible without cooperation of labor andharmonious relationships. Therefore, it is in the interest of allto create and maintain good relations between employees(labor) and employers (management).
The main purpose is to maintain harmonious relationsbetween employees and employer by solving their problemsthrough grievance procedure and collective bargaining.
Trade Unions is another important institution in theIndustrial relations. Trade unions influence and shape the
industrial relations through collective bargaining.
Industrial relations are the relations mainly betweenemployees and employers
These relations emphasis on accommodating other partiesinterest, values and needs. Parties develop skills of adjusting
to and cooperating with each other.
Competitive edge will largely depend on
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Learning is not compulsory
neither is survival!W Edward Deming
Competitive edge will largely depend onknowledge workersability to perform
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