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IN
PRACTICE
Outline
1. Employee relations
a. Employee communication
b. Employee involvement
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1. Employee relations
Employee relations are a complex set of human resource practices and organizational cultures that seek to secure commitment and compliance with organizational goals and standards through effective communications, employee involvement, employee rights and managerial disciplinary action.
(Bratton & Gold 2007: 440)
Protect the interests of employees and employers Regulate and improve employee behavior and resolve differences Regulate the ways in which employers treat their employees
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1. Employee relations
Voice represents Articulation of individual dissatisfaction Purpose of voice To address a specific problem or issue with management To provide a countervailing source of power to management
Possible mechanisms/channels for voice Informal complaint to line manager; formal grievance procedure Recognition of trade union by employer; collective bargaining
Employee involvement and participation (e.g. upward problemsolving initiatives; suggestion schemes; attitude surveys; selfmanaged teams)
Potential positive/negative outcomes (Reinforced) loyalty to organisation/employee exit Partnership between management and employees/ non-recognition of union; anti-union management tactics
To seek Employee contribution improvements in to management decision- work organisation, making quality and productivity
To achieve longterm viability for the organisation and greater people added-value
Employee commitment and identification with aims of organisation; improved performance/disillusionment and apathy
Significant employee influence in decisionmaking/management lipservice to employee contribution;
works councils
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1. Employee relations
employers (chamber of commerce) employees (chamber of labor) farmers (chamber of agriculture) of trade unions)
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E.g. investment plans, financial position of company, staffing plans Downward (top-down) communication Upward problem-solving Horizontal communication
Face-to-face communication
Team briefing
Notice boards
Speak-up programs
Intranet
Channels for Putting individuals to raise relevant points with information management on a board concerning the (with post-its) organization and its plans and policies
House journals keep employees informed about the activities of the organization
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Grapevine
Informal communication network Stretches throughout the organization in all directions Based on social relationships, not on hierarchy Advantages
Disadvantages
Carry information rapidly Managers get to know the reactions of their subordinates on their policies Creates a sense of unity among the employees who share and discuss their views with each other (group cohesiveness) Etc.
Carries partial information at times The productivity of employees may be hampered Etc.
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Involvement of the workforce as a whole Influence of workers over their work and working conditions Direct
Individual employees are involved in decision-making processes that affect their everyday routines E.g. problem-solving teams or financial involvement Representatives or delegates of the main body of employees participate in the decision-making process E.g. European Works Council
Indirect
Establishing communication between employees/management /unions Maintaining peaceful and cooperative employment relations Ensuring that workers in different countries are all told the same information at the same time about transnational policies and plans
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Figure 1: Dimensions of employee involvement Source: Bratton & Gold (2007: 453)
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EI in decision-making processes, because the decisions impact workers lives Social responsibility to employees EI improves the quality of decision-making and productivity Change management Enhances employee commitment to organizational goals
Economic
Behavioral
If employees know the achievements of the organization and how this benefits them Management takes the trouble to explain what they are doing and why
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2. Union Management
Union management relations Address the collective aspects of the employment relationship Focus on
Relationship between organized labor and management The balance of power Amount of conflict underlying this relationship Extent to which pay and conditions of employment relationship are determined by collective bargaining Union acceptance strategy Union replacement strategy Union avoidance strategy
Management strategies
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2. Union Management
The strength of large numbers and negotiating skills of professional bargainers give unions an advantage over individuals Collective bargaining contracts limit managements ability to arbitrarily hire, promote, or fire Unions represent workers and define channels for complaints and concerns
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2. Union Management
Figure 3: Union membership in selected countries Source: Bratton & Gold (2007: 414)
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2. Union Management
50%
45% 42% 42% 38% 36% 35% 34%
Figure 4: Membership in the Austrian federation of trade unions Sources: GB & Statistik Austria (2011)
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3. Collective Bargaining
An institutional system of negotiation, administration, and
interpretation of a written agreement between two parties At least one of the parties represents a group that is acting collectively (union) Decisions are being made within union-management negotiating committees
Figure 5: Direct collective bargaining coverage in selected countries Source: Bratton & Gold (2007: 423
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3. Collective Bargaining
Participants
Large corporations HRM departments with industrial relations experts, corporate executives, and company lawyers Small companies President typically represents the company Union bargaining teams Officer of the local union, local shop stewards, and reps from the international/national union Government Watches to ensure rules are followed Financial institutions Set limits on the cost of the contract
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3. Summary
Employee voice is a catch-all term used for practices and processes by which employees can, either directly or indirectly, contribute to organisational decision-making There are four important dimensions of employee relations employee communication, involvement, rights and employee discipline Employee involvement occurs when employees take an active role in the decision-making process within the organization Unions are organizations of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining There is a decline in membership, union strength and influence Employees join unions to reach higher wages and benefits, greater job security and influence over work rules Collective bargaining is the process that regulates employment relations and should lead to a collective agreement
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Bibliography
Basic Literature
Bratton , J. & Gold J. (2007). Human Resource Management. Theory and Practice. 4 th ed. London: Palgrave Macmillan.
Supplemental Literature
Armstrong, M. (2009). Armstrongs Handbook of Human Resource Management. 11th ed. London: Kogan. DeCenzo, D.A. & Robbins, S.P. (2010). Human Resource Management. 10th ed. Hoboken: Wiley. Harzing, A. & Pinnington, A.H. (Eds.) (2011). International Human Resource Management. 3rd ed. London: Sage. Nieto, M.L. (2006). An Introduction to Human Resource Management. An Integrated Approach. London: Palgrave Macmillan. Wilton, N. (2011). An Introduction to Human Resource Management. London: Sage. York, K.M. (2010). Applied Human Resource Management. London: Sage.
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