Employee and Industry Relations PDF

CHAPTER 06 EMPLOYEE AND INDUSTRY RELATIONS INTRODUCTON Employee relations is a complex concept that can be difficult to define. This chapter aims to break down the core elements of employee and industrial relations by examining the basics, variables, dynamics, and models involved. Perspectives wil...

CHAPTER 06 EMPLOYEE AND INDUSTRY RELATIONS INTRODUCTON Employee relations is a complex concept that can be difficult to define. This chapter aims to break down the core elements of employee and industrial relations by examining the basics, variables, dynamics, and models involved. Perspectives will be explored at both the individual and organizational level to understand the essence of this important aspect of company operations. EMPLOYEE RELATIONS VS INDUSTRY RELATIONS Over the past few decades, there has been confusion between the two terms. A debate regarding the nuances between the concept of "Employee Relations" and "Industry Relations" has continuously been contested. Many see the need to differentiate the two, others see that there are overlaps, and many see that these are linked together to the point that they can be used interchangeably (Blyton & Turnball, 1994). INDUSTRY RELATIONS FOR MANY: The term is synonymous and associated with collectives, such as mass movements of workers, trade unions, and others. It was also linked to "Industrial" work, such as the manufacturing sector, labor- intensive tasks, and factory work that are full-time. The tone of "Industrial Relations" were thought of to be more focused on "collective action," such as bargaining agreements. EMPLOYEE RELATION FOR MANY: The term revolves around a smaller subset of industries and goes beyond the collectives, such as trade unions. Are no longer just focused on factory work, manufacturing jobs, but now also includes the service sector/non-union entities, part- time, and contractual workers The term "Employee Relations" generally focuses on the restrictions and agreements between the industry to its workers in various levels of collectivization, as a union or as an individual. PSYCHOLOGICAL CONTRACT AND WHY IT MATTERS? An intangible agreement between both parties binds the relationship between the employer and their employee. This means that the relationship within the corporate structure to guided and predicated on a set of practice and expectation between them. EXAMPLES OF THESE NORMS ARE FOLLOW: Both parties observe fairness and transparency Employee impact and value are recognized and rewarded by their employer in various forms, such as benefits, tenure, or career growth. Both employer and employee will work toward the shared goal of growth that will be benefits for both parties based on shared values, mores, and vision. TYPES OF PSYCHOLOGICAL CONTRACT: 1. TRANSACTIONAL - Focuses on a transactional relationship between an employee and an organization. 2. TRANSITIONAL - Occurs during organizational changes or transitions, such as mergers, acquisitions, or restructuring. 3. BALANCED - Emphasizes a fair and equitable exchange between employees and organizations. 4. RELATIONAL - Focuses on building long-term relationships between employees and organizations. ADDING TO THE BROAD PRESCRIPTIONS ARE: Community building among peers Tenure and security Corporate mobility and promotions Humane treatment Work / life balance or integration Flexibility on tasks and processes The Industry also sets its standard on its employees in a cycle where both mutually benefit from their work engagement. Proactive and willing to learn Has the necessary skills and competence to work on designated tasks A team player willing to work with others focused on achieving the goals set by the organization Has the initiative to work on tasks with minimal supervision The challenge for both is to find the right compromise in reconciling many of their differences and instill a system that can operationalize and standardize practice. failure to meets at a compromise from both parties may mean addition opportunity and transactional cost. This dimension of knowing the psychological contract is essential in understanding the dynamics within organization. values such as justice, fairness, transparency, trust, dignity, and cooperation come into play in employee / employer dynamic. Job satisfaction is an instance where the dynamic is being studied. employee satisfaction is measured through surveys regarding various aspects of their jobs and each employee’s views regarding it. RELATIONSHIP ATTACHMENT: COMPLIANCE AND COMMITMENT COMPLIANCE: Compliance is a comprehensive program that helps institutions and their employees conduct operations and activities ethically; with the highest level of integrity, and in compliance with legal regulatory requirements. Etzioni (1975, 1997) developed an innovative approach to the structure of organizations that he calls compliance theory. He classifies organizations by the type of power they use to direct the behavior of their members and the type of involvement of the participants. Etzioni identifies three types of organizational power: coercive, utilitarian, and normative, and relates these to three types of involvement: alienative, calculative, and moral. COMPLIANCE: TYPES OF POWER COERCIVE POWER Coercive power uses force and fear to control lower-level participants. Examples of organizations that rely on coercive power include prisons, custodial mental hospitals, and basic training in the military. UTILITARIAN/ REMUNERATIVE POWER Utilitarian power uses remuneration or extrinsic rewards to control lower-level participants. Most business firms emphasize such extrinsic rewards. These rewards include salary, merit pay, fringe benefits, working conditions, and job security. NORMATIVE POWER Normative power controls through allocation of intrinsic rewards, such as interesting work, identification with goals, and making a contribution to society. Examples of such organizations are churches, political organizations, hospitals, universities, and professional associations. TYPES OF INVOLVEMENT Alienative Involvement Alienative involvement designates an intense, negative orientation. Inmates in prisons, patients in custodial mental hospitals, and enlisted personnel in basic training all tend to be alienated from their respective organizations.The main goal is to adherence to the organization’s values. Calculative Involvement Calculative involvement designates either a negative or a positive orientation of low intensity. Calculative orientations are predominant in relationships of merchants who have permanent customers in various types of business associations. Moral Involvement Moral involvement designates a positive orientation of high intensity. COMMITMENT Commitment can be defined as the emotional and psychological attachment an employee feels towards their organization. It is a measure of an employee’s loyalty, dedication, and engagement with their work and the overall goals of the company. COMMITMENT CAN BE SPLIT INTO TWO DISTINCT FORMS: Attitudinal Commitment - can be distinguished with the psychological bond of the employer and employee that is held by common norms and values. Behavioral Commitment - can be described as “going beyond expectations” or loyalty to the company. THE TWO SIDES OF THE COIN: COOPERATION AND CONFLICT COOPERATION AND CONFLICT: Fox (1966) identified that this "frame of reference" has three different frames, and these are "unitarist," "pluralist," and "radical/ Marxist" references, which were then expanded in the nineties with the inclusion of the feminist perspective. UNITARISM As the term suggests, it is a view that assumes that companies and their employees are like-minded and thus, share various commonalities, such as norms and aspirations. PLURALISM The difference between unitarism and pluralism is that pluralism looks into the diversity of individuals and acknowledges it. Therefore, it accepts the notion that there are differences in objectives, norms, and perspectives which then creates groups or unions. RADICAL/MARXIST Class and exploitation of workers are the central notions behind the Radical/Marxist perspective. It is understood in this perspective that: Labor + Technology + Capital = Goods and Services with (Surplus Value) INDUSTRY RELATION AS A SYSTEM J.T. Dunlop's concept of industrial relations as a system, introduced in 1958. Dunlop views industrial relations as a framework built on "Inputs, Processes, and Outputs." OUTPUTS: These are defined by substantive and procedural rules. Substantive rules, like wage agreements, emerge from negotiations, while procedural rules are the compromises made to maintain the system. These outputs are shaped by two types of rules: SUBSTANTIVE RULES: These are concrete rules, like hourly wages, PROCEDURAL RULES: These rules govern how decisions are made within the system. Procedural rules shape substantive rules. Substantive rules, such as how wages are negotiated, emerge from procedural interactions between parties. The outcomes of these interactions form the substantive rules that govern systems. Procedural rules vary based on culture, customs, ethics, organizations, and national differences. INPUTS ARE THE FACTORS THAT INFLUENCE THE SYSTEM. THREE KEY INPUTS: Actors *Laborers *Managers *Exogenous agencies ACTORS: This includes laborers, managers, and external agencies like government bodies. CONTEXTS: Economic and market influences shape industrial relations, as do technological changes that impact labor requirements. The importance of recognizing factors beyond the employee-employer relationship in understanding industrial relations. It highlights the role of: Third-party actors: These include market forces, technology, and other entities that influence the distribution of power within the labor chain.  Ideology: This refers to shared values, beliefs, and ideas that are reinforced across different hierarchies. A strong shared ideology contributes to a better working relationship and a more stable environment. Then focuses on Process Synthesis, explaining how inputs are transformed into outputs through processes like: Collective bargaining: This involves negotiations between parties to reach a consensus. Arbitration: This involves a third party mediating a resolution when parties cannot agree.  GROUP 09- BACC3 THANK YOU NAME MEMBERS: ASNIFAH BENITO SHARIE CUYOS ADLAON ANGLE ESCARPE KHAILLE DELA CRUZ