HRM-II Notes

Industrial Relationships: Factors Affecting IR

Economic Factors
•Working Conditions Institutional Factors
•Quality of Collective Bargaining
•Job security
•Health of relation among employees
•Wage and Salary
•Attitude and degree of accurate to work
•Bonus and Profit Sharing
•Concept of caste, color, creed and religion
Social Factors
•A supportive environmental structure Political Factors
•Improving the international relations
requires both economic and psychological
•Implementing international law
cost
•Implementation of Labor Law
•Social security
•Improving national political situation
Technology Factors
•Scientific Technique for production
•Right degree of Modernization
•Scientific Management
 Employer’s Role
• Employee-Employer Relation
• Labor Management Relation
• Industrial Peace and Productivity
• Aspects in Industrial Democracy
• Liaison Function
 Dunlop’s Industrial Relations System Model

Four key features

• Actors • Context
• Specialized governmental • Environmental factors that affect
agencies influence factors
• Hierarchy of managers and • market/budgetary constraints
their representatives • Workplace and work community
constraints
• Hierarchy of Workers
• distribution of power in the
• Shared Ideology target society
• Set of Ideas and beliefs held • Web of rules
by the actors • procedural
• Helps to bind or integrate the • substantive
system together
 Trade Unions
• Trade Union means any combination whether
temporary or permanent formed primarily for the
purpose of regulating the relations between
workspace and employers or between workmen and
workmen, or for imposing restrictive conditions on
the conduct of any trade or business
• Trade unions are formed to protect and promote the
interests of their members. Their primary function is
to protect the interests of workers against
discrimination and unfair labor practices.
 Reasons why Employees join Unions
• Compulsion
• Protection
• Social prestige
• Political beliefs
• Solidarity
• Tradition
• Pay and conditions
• Communication
• Health and safety
 Objectives
• Representation
• Negotiation
• Voice in decisions affecting workers
• Member services
– Education and training
– Legal assistance
– Financial discounts
– Welfare benefits
 Trade Union Functions
• Power
• Economic regulation
• Job regulation
• Social changes
• Member services
• Self-fulfillment
 Causes of Industrial Dispute
• Marxist Approach (power relationship between capital and
labour)
• Gandhian Approach (Communism without violence)
• Capitalistic Approach (profit maximization)
• Unitary Approach ( co-dependency of employees and employers)
• Pluralist Approach (Dispute resolvement)
• Social Approach (fight for power)
• Scientific Management Approach (Productivity)
• Human Relation Approach (economic, psychological and social
satisfactions)
 Causes of Strikes
• Dissatisfaction with company policy
• Salary and incentive problems
• Increment not up to the mark
• Wrongful discharge/dismissal of workmen
• Withdrawal of any concession or privilege
• Hours of work and rest interval
• Leaves with wages and holidays
• Bonus, profit sharing, provident fund and gratuity
• Retrenchment of workmen and closure of establishment
• Dispute connected with minimum wages
Measures for Improving Industrial Relations

• Worker’s Participation in Management

• Mutual Accommodation
• Sincere Implementation of Agreements
• Sound Personnel Policies
• Government’s Role
• Progressive Outlook
 Models of Collective Bargaining
• Conjunctive bargaining
• Cooperative bargaining
 Conditions for Successful Bargaining

• Freedom of association
• Stability of Union
• Recognition of Union
• Good Faith
• Mutual Respect
• Supportive Legal System
 Negotiation Breakdown
• Third party intervention
• Union strategies for overcoming breakdowns
• Management strategies for overcoming
breakdowns
 Ways to Settle Disputes
• Impasse: Settlement cannot be reached
• Impasse may be solved by these alternatives
– Conciliation (conciliator, who meets with the
parties both separately)
– Mediation (minimise the harm that can come from
disagreement)
– Arbitration (  to one or more arbitrators who make
a binding decision on the dispute, mostly courts)
Module 2
 Defense Mechanisms
• Moral Instruction: Framing own behavior in terms of serving a greater good
• Euphemistic Labeling: Using pleasant terminology to make own behavior
appear less harmful
• Advantageous Comparison: Contrasting own behavior with even more
harmful behavior of others
• Distortion of Consequences: distorting the repercussion of owns behavior
• Dehumanization: Devaluing and degrading the victim
• Displacement of Responsibility: attributing responsibility of own behaviors
to others circumstances
• Diffusion of Responsibility: Holding broader group or system responsible
for own behavior
• Attribution of Blame: Assigning responsibility for one’s behavior to the
victim themselves
 Key Concepts
• Corporate Reputation Risk
• Learned Helplessness
• Ethics and Organizational Performance
• Global Ethics
• Local Ethics
Module 3
 Employee Engagement
• Psychological Meaningfulness
• Psychological Safety
• Psychological Availability
– Goal Setting
– Psychological Contract
– Job Design
– Leadership
– Coaching
– Supervisor Support
– Training
 Positive Discipline
• Positive Reinforcement
• Negative Reinforcement
• Positive Punishment
• Negative Punishment
 Self-Directed Team
• Factor 1: Clear, Engaging Directions
• Factor 2: A Real Team Task
• Factor 3: Rewards for Team Excellence
• Factor 4: Basic Material Resources
• Factor 5: Authority to Manage the Work
• Factor 6: Team Goals
• Factor 7: Team Norms that Promote
• Strategic Thinking
 Team Change Mechanism
• Personal Changes
• Process Changes
• Structural Changes
Module 4
 Genetic/Biological
• Difference in brain structures
• Difference in brain functions
• Neuro-chemical differences
• Hormonal Influences
 The Business Side
• More consumers are women
• At least they influence buying behaviors
• Talent Crunch
• Different style of solving problems
• Enhanced creativity through diversity
• Balance high risk behavior
• Lower attrition and HR cost?
 Managing Transition
• Business Case
• Shared Vision
• Build Champions
• Communication
• Short Term Wins
• Rewards and Recognition
• Involve every layer
 Key Issues
• Worldwide Human Resource Planning
• Training and Development
• Performance Appraisal
• Compensation
• Housing (Complex problems at home and
overseas)
• Benefits Planning
• Taxation (Proliferation of new laws)
 Sources of Managerial Talent
• Home Country Nationals (Expatriates)
• Host Country Nationals (Native)
• Third Country Nationals (Non-Home/Host)
 Reasons of Expatriate Failures
• Inability of manager’s spouse to adjust to a different
cultural environment
• The manager’s inability to adapt to a different physical
or cultural environment. Other family-related problems
• The manager’s personality or emotional maturity
• The manager’s inability to cope with the
responsibilities posed by the overseas work
• The manager’s lack of technical competence
• The manager’s lack of motivation to work
 Training Issues
• Local Resources
• Less technical capabilities
• Apprenticeship Strength in Europe
• Management Development (US Leader)
• Language (English Need)
 International HRM Approaches
• Ethnocentric
• Polycentric
• Regiocentric
• Geocentric
 Cultural Barriers: Geert Hofstede
• Power Distance Index (PDI): Extent to which the less
powerful members in the organizations and institutions
accept and expect that power is distributed unequally
• Individualism Vs Collectivism (IDV): Degree to which
people in a society are integrated into groups
• Uncertainty Avoidance Index (UAI): Society’s tolerance
for ambiguity
• Masculinity Vs Femininity (MAS): Preference in society
for achievement, heroism, assertiveness and material
rewards for success
 Global Framework
• Segment the workforce
• Offer modular choices
• Define simple and broad rules
• Foster Employee- defined personalization