HRMG 3200 Labour Relations Responses to Changing Workplace 2024 PDF

Labour Relations Responses to the Changing Workplace HRMG 3200 BCIT 2024 The traditional workplace.  Traditional Labour Relations System, 1945-1980 Economic environment fairly stable Tayloristic work principles common Lack of trust between 2 side...

Labour Relations Responses to the Changing Workplace HRMG 3200 BCIT 2024 The traditional workplace.  Traditional Labour Relations System, 1945-1980 Economic environment fairly stable Tayloristic work principles common Lack of trust between 2 sides reflected in complex C.A.’s (“job control unionism”) Unions took initiative in bargaining  Scientific Management (Taylorism) Assumptions: Concern for Production People dislike work Pay is more important than job content Managers must simplify work tasks Managers must closely supervise & control employees Workers will produce up to standard if pay is decent & they are closely controlled  Job Control Unionism 1. Narrow job definitions 2. Employees communicate through the union 3. Emphasis on the grievance system (for communication purposes) 4. Distrust of teams  Job Control Unionism (cont.) 5. Seniority is the basis for job allocation 6. Distrust of employee involvement 7. Pay linked to job titles, not to firm’s performance 8. Unions protect jobs by limiting management authority  importance of collective agreement work rules  High commitment and low commitment H.R. strategies.  Changes to the Traditional L.R. System, since 1980s Economic changes (free trade; less govt. regulation of business) favourable to management shifted initiative in labour relations to management Strategic Choice Framework: different firms will choose different responses to these changed economic conditions  2 Basic Types of Labour Relations/Human Resource Management (HRM) Strategy: High Commitment and Low Commitment  2 Types of HRM Strategy Competitive business Competitive business strategy: strategy: Cost leadership Differentiation Compete on price Compete on quality & Emphasize low costs innovation Emphasize quality HRM Strategy: Low HRM Strategy: High Commitment Commitment Lower wages Higher wages Lower skill levels Highly-skilled employees Layoffs; outsourcing High Performance Work Building employee & Model: employee union trust/commitment involvement; team-based not too important work; training Trust & commitment critical  Which HRM strategy is better for labour relations? The High-Performance HRM strategy is sometimes associated with better labour relations However, some firms using this strategy seek to avoid or weaken unions These firms attempt to show employees that unions are not needed for them to enjoy good wages & employment terms  union substitution Moving from Taylorism to greater employee participation in workplace decision making. What the high-commitment, high-performance workplace looks like.  Traditional Management Practices Management practices to create workplace efficiency (hiring based on educ./training, promotion based on seniority, work done according to rules, etc.). Implemented by HR department, or via a collective agreement. Found in “traditional” large firms & public sector organizations. Pluralist approach.  Unitarist Practices Management practices that seek to create a cooperative labour-management relationship. Practices include: good pay, fair treatment, and employee participation / involvement programs. Unitarist approach.  Enter: The New HRM 1. Hiring – emphasis on employee values/attitudes 2. Performance – continuous measurement 3. Career planning 4. Training – “soft skills” 5. Continuous learning 6. Pay & promotions – based on performance  Enter: High Performance Model 1. Job redesign: Job enlargement Job rotation Job enrichment Work done through self-directed teams  Enter: High Performance Model 2. Employee involvement: Quality circles, problem solving groups Information sharing Town hall meetings Labour-management joint committees  Enter: High Performance Model 3. Complementary HRM practices: Strengthen job security Extensive training, multi-skilling Profit-sharing Hiring / onboarding emphasizes employee values/attitudes Pay-for-knowledge Unitarist Approach to Unions If the firm is not unionized: 1. Complaints viewed as concerns / problems, not conflict. 2. May establish a “company union” (union substitution). 3. Union substitution may prevent a real union, or may increase interest in a real union. Unitarist Approach to Unions However, if the firm is unionized: 1. Try to establish a cooperative, “partnership” relationship with union 2. More integrative, interest-based bargaining 3. Some say a union can even strengthen the high performance model High Performance Practices & Corporate Performance Mixed results Consensus: a positive relationship What comes first: high performance practices or good corporate performance? What actually causes good performance: high performance practices or HRM practices? Union-mngt. relations affect success High Performance Practices & Workers Mixed results High performance practices combined with traditional practices reduce fatigue and increase empowerment, satisfaction, & commitment – but only in unionized workplaces Participation is most important high performance practice High Performance Practices & Unions Union leaders are expected both to support cooperation with employer and to continue to advocate for employee interests If union leaders can achieve this, union member support increases Adoption of Innovative Practices Innovative practices include: Information sharing with employees (50% of firms) Flexible job design (30%) Employee suggestion plan (30%) Problem solving teams (25%) Self-directed teams (10%); etc. However, only a minority of firms adopt innovations in a comprehensive manner (as opposed to a one-at-a-time, piecemeal approach) Who adopts innovative practices? Larger firms more likely to adopt innovations Firms facing some sort of “crisis” (business; financial; union-management relationship) more likely to adopt innovations Unionized firms with good labour relations more likely to adopt innovations than those with poor labour relations, and nonunion firms Potential problems to consider when adopting employee participation and other innovative HRM practices. Barriers to the Adoption of Employee Participation 1. History of poor labour relations  adversarial culture 2. Financial cost of implementing innovative practices (changing old systems) 3. Short-term mindset that views investment in employees as costly & views labour cost reduction as better strategy  Barriers (continued) 4. Lack of necessary skills on part of managers, union officials & employees regarding change 5. Knowledge gap – union officials often less knowledgeable than managers about innovations 6. Managers (esp. lower/middle levels) not prepared to share power with employees  Barriers (continued) 7. Union officials who think role of union is to oppose management, not to “co- manage” workplace 8. Union officials who think employee participation & other innovations are adopted to weaken the union (or will result in fewer workers doing more work, or speeding up the pace of work) Success factors in implementing union-management collaboration  Success factors in implementing union-mngt. collaboration 1. Mngt. & union are equal partners in planning, introduction, & oversight of innovations (e.g., by use of a joint committee) 2. Innovations should not replace or weaken collective bargaining, grievance procedure, or employees’ attachment to union 3. Be careful when introducing innovations during or just after layoffs (or other crisis)  Success factors (continued) 4. Collaborative efforts often involve a long, slow process. Keep expectations realistic 5. Prepare to deal with opposition from: some supervisors/middle managers; some union officials; some employees 6. Keep all parties informed about changes to minimize uncertainty Prospects for the future.  Prospects for the Future As employees become more educated & less tolerant of authoritarian management styles  a greater need for employee involvement in workplace decision making  Prospects for the Future More managers & union officials will have requisite skills for workplace innovations & collaboration with one another For unions to appeal to younger & more educated workers, they will have to develop policies that combine protection of employee interests with support of innovations  A labour relations lesson “In good labour relations, the union acts as a workplace consultant.” -- Anil Verma Appendix  Levels of Employee Involvement  High level – Employees have complete decision making authority for their work area High (e.g., self-directed teams)  Moderate level – Employees offer recommendations to Moderate their manager; manager may (or may not) follow these recommendations  Low level Low – Employees provide information to manager, but may not know for what purpose the manager is using the information Levels of Union Involvement in Management Decision Making 1. No involvement (other than legally-mandated collective bargaining) (very common; many workplaces) 2. Information sharing (explaining decisions to union) (very common) 3. Consultation (union’s opinion is considered before decisions made) (somewhat common) 4. Joint committees (union & middle-mngt. jointly recommend solutions to senior managers which may or may not be accepted) (somewhat common) 5. Co-determination (union & mngt. have equal say on selected matters such as: service delivery; production, quality, cost control, etc.) (rare) Which option is closer to your view of people in the workplace?  Theory X The average person has an inherent dislike of work and will avoid it if possible. Because of this, most people must be controlled, directed, or threatened with punishment to get them to make an adequate effort toward reaching organizational goals. The average person prefers to be directed, avoids responsibility, has relatively little ambition, and wants security above all else.  Theory Y Effort in work is as natural as play and rest. Most people want to be self-directed and self- managed and will try to achieve organizational goals they believe in. Under proper conditions, the average person not only accepts responsibility but seeks it out. Most people have a relatively high degree of imagination and creativity and are willing to help solve work problems. The intellectual potential of the average person is only partly utilized in the workplace.