HUMAN RESOURCE MANAGEMENT

IN

PRACTICE

Employee Relations and Union Management

MMag. Almina Bei

Department of Human Resource Management

Winter Term 2011 10 January 2012

Department of Human Resource Management

Outline
1. Employee relations
a. Employee communication

b. Employee involvement

2. Union Management 3. Collective Bargaining 4. Summary

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Department of Human Resource Management

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)

Purpose of employee relations

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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Department of Human Resource Management

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

Expression of collective organisation

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;

Mutuality and cooperative workplace relations

Table 1: Employee voice Source: adapted from Dundon et al. (2004)

works councils

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Department of Human Resource Management

1. Employee relations

Employee relations in Austria

System of cooperation (Social and Economic Partnership Model)

Representatives of Representatives of Representatives of Unions (federation Government

employers (chamber of commerce) employees (chamber of labor) farmers (chamber of agriculture) of trade unions)

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1a. Employee communication

Exchange of information about the organization

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

Magazines and newsletters

Communication between the manager and the employee

Teams present, receive and discuss information

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

Internal email systems

House journals keep employees informed about the activities of the organization

Table 2: Selected methods of communication Source: adapted from Armstrong (2011)

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Department of Human Resource Management

1a. Employee communication

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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Department of Human Resource Management

1b. Employee involvement

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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1b. Employee involvement

Figure 1: Dimensions of employee involvement Source: Bratton & Gold (2007: 453)
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Department of Human Resource Management

1b. Employee involvement

Reasons for introducing EI schemes Moral

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

Increases trust in management

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Department of Human Resource Management

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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Department of Human Resource Management

2. Union Management

Reasons for employee participation in unions Higher wages and benefits

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

Greater job security

Influence over work rules

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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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Department of Human Resource Management

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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