HRM & Industrial Relations

Chris Jarvis 1
HRM & Industrial Relations

Chris Jarvis 2
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.
Chris Jarvis 3
Comparative
HRM
Unitary Marxist Pluralistic
Labour
market
Social
action
Systems
Control over
labour process
Input Conversion Output
Conflict
differences
Institutions
& processes
Regulation
(rules)
Approaches to IR
Wider approaches
Evolution
Revolution
Cooperation
Conflict
Authoritarian
Paternalism
Chris Jarvis 4
Capitalist society
integrated group
common values,
interests, objectives

one authority /loyalty
irrational + fractional

coercion

intrusive
anachronistic
only accepted if forced
Unitary Pluralistic Marxist
Assume
Nature of conflict
Conflict resolution
TU Role
Post-capitalist society
Sectional groups - coalesce
different values, interests,
objectives

competitive authority /loyalty
(formal/informal)
inevitable, rational, structural

compromise + agreement

legitimate
internal, integral to workplace
accepted role in econ &
managerial relations
Capitalist
Division of labour/capital
social imbalance + inequalities -
power, wealth etc

inherent in econ. & social systems
disorder - precursor to change

change society

employee response to capitalism
mobilise, express class
consciousness
develop political awareness &
activity
Chris Jarvis 5
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
Chris Jarvis 6
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?

Chris Jarvis 7
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
Chris Jarvis 8
Control over labour process
transformation in inputs by labour using tools & methods.
Products, under capitalism, become exchangable, marketable
commodities. Relevance to banking, retailing, local govt etc ?
labour-capital relationship - essentially exploitative
(ownership, surplus value, logic of efficiency & savings,
structures of control.
Braverman - to achieve capitals 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
Chris Jarvis 9
Labour Market - how work is distributed within society
Issues
increase in womens 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 model
Pay = 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
labour
institutionalised labour market - wage floor, "going rate",
range (quartiles), collective bargaining vs. individual
negotiation.
Chris Jarvis 10
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.
Chris Jarvis 11
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
Chris Jarvis 12
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
Chris Jarvis 13
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
Chris Jarvis 14
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
Chris Jarvis 15
Development of Industrial Relations - 1
in restraint of trade - Tolpuddle Martyrs
late 19
th
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 & govt.)
Chris Jarvis 16
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
Govt non-intervention re- industrial restructuring but strengthening of
individual over collective rights. TU member decline. Competitiveness,
globalisation & and TQM. Managerial (HRM) resurgence.
Development of IR - post 1945
Chris Jarvis 17
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
Chris Jarvis 18
Government & Legal intervention
Managing the economy. Balance of Payments & IMF. Problem of
growth, industrial change & inflation. Govt - 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
Chris Jarvis 19
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
Chris Jarvis 20
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
(communication, 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.
Chris Jarvis 21
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.
Chris Jarvis 22
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,
regulated by & protected
Issues of I & C in industrial relations
Mgt claim right to deal with staff without intermediate TU
constraint (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
Chris Jarvis 23
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
Chris Jarvis 24
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
Chris Jarvis 25

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
Chris Jarvis 26
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 unions 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).

Chris Jarvis 27
TU Recognition Process
Claim for recognition
Management
policy
Recognition agreement
Recognition ballot
What %?
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 & employees
expectations
management rights to manageappropriate
scope & instutions of collective bargaining
role of representatives
Chris Jarvis 28
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
- Govt 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
Chris Jarvis 29
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
Chris Jarvis 30
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.
Chris Jarvis 31
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
stewards, 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
Chris Jarvis 32
What enables bargaining power?
Chris Jarvis 33
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,
briefing 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
Chris Jarvis 34
Employee participation
Worker directors
Bullock report
Works Councils

European pressure for Mgt to consult employee
representatives
collective redundancies, transfer of undertakings, health &
safety.
European Works Council Directive (1994)
EWC for information & consultation to be estabished in any
multinational organisation with at least 1000 employees
(including 150 in each of at least 2 member states)

HRM & Industrial Relations

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