Industrial Relations - 21_22 June G. P. Electronics

8/17/2019 Industrial Relations - 21_22 June G. P. Electronics

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Business

Implicationsof

Industrial

Relations


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Relations

Industrial Relations in Past -Phase I Management’s policy towards labor : Autocratic, Authoritarian

ispute settlement not amicable

!o trace of "ollecti#e Bargaining Recourse to unconstitutional means - $isit courts for see%ing &ustice

Multiple litigations - isputes not

e'peditiously resourced Agitational approach of wor%men

through loc%outs


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Management Actions ( )tatus* Phase I

Retrenchment of labour force

Pending labour matters -

+ribunes, igh "ourts ()upreme "ourt

"ontinued industrial unrest

nions * !o recognition.role


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Industrial Relations in Past -Phase II "ompanies negotiated /abour matters with

union

Ma&or settlement - 0)igning an Agreement1234 to 254 wage rise

"ollecti#e bargaining - new method ofresol#ing disputes

6ld method of unilateral decisions -discarded

"ommittees formed to resol#e mattersthrough mutual negotiation

7n#ironment of Ad&ustment ( Accommodation


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Industrial Relations in Past -Phase III

8contd9 Mgmt’s recognition of new union Mutual negotiations but at hea#y

cost

)ettlements led to increase in wagecost beyond e'pectation Pragmatic approach of Mgmt Paying initial wage led to increased

production >?@3’s Mar%ed by industrial peace

8producti#e peace


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Industrial Relations in Past -Phase III

8contd9 )igning of settlements Introduction of new methods -

roup wor%ing, le'ibility

Resistance to accept - ighlycontro#ersial

Mass #iolence amongst laborerscaused in&uries ( hospitali


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Achie#ements on IR ront *Phase I$ Mar%ed increase in producti#ity

Restoration of discipline

"onstructi#e in#ol#ement of wor%men into certain Mgmt issues

Reduction of manpower by way of natural separations ( $oluntary

)eparation )chemes )ustained producti#e peace all

o#er


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)ummary - Phase I$

/itigations continue

Producti#ity stagnant

Manpower increasedisproportionate to returns

$iolent inter union ri#alrypredominant

/ac% of uni#ersally acceptedleadership at unit le#el


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IR )trategy

7'pression of enterprise’s capacityto de#elop sound IR mgmt plan

IR )trategy in#ol#es : e#elopment of Policy statement eCne responsibilities Identify resources for

implementation Minimi


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)teps * Ris% Management

Assessment Issues related to enterprise ( IR en#t9

Ris% analysis

Ris% resource planning

Action plan ( Mgmt9 measures

"ontingency planning - Minimi


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Ris% Analysis

ighimpact

Moderateris% )pecify IRmanagementmeasures

Ma&or ris% e#elop

IR ris% action

plan

/ow

impact

Minor ris%

Accept

Moderate

ris% )pecify IRmanagementmeasures


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Measurement, 7#aluation

( Re#iew Procedures for IR Mgmt9

Records:

IdentiCcation iling

Retrie#al

Retention


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Internal Re#iew 7stablish internal Mgmt9 system

7nsure e=ecti#e

implementation of IR )trategy( Pro&ect IR Plan

Aims in continual impro#ement


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IR unctions

About how people are treated

7nterprise’s decision * long -term #iew

Achie#ement of goals


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IR unctions

Pluralistic in outloo%

"o#ers relations b.w :

7mployer ( employee 8theindi#idual relations

7mployers ( unions

7mployers, 7mployees ( )tate8collecti#e relations


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IR ocus

"ollecti#e aspect of relations labor law, collecti#e bargaining

Indi#idual grie#ance handling,dispute settlement

!ot in team-building - con;icting with union loyalty

Rules go#erning employment

relationship prescribed by )tate laws Balancing. minimi


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Basic ob&ecti#es of IR

7=icient production of goods (ser#ices

etermine terms of employment,

in interests of employer,employees ( society

7stablishment of mechanisms for

communication, consultation (cooperation


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Basic ob&ecti#es of IR

A#oidance ( settlement ofdisputes where possible throughnegotiation

Pro#ide social protection whereneeded

7stablish harmonious relations

b.w employers, employees,organi


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eterminants for )trategic Approaches

6f +rade nions - !ew )cenario

RM’s focus - 7nhance enterprisecompetiti#eness

7nterprises will depend on people’ss%ill ( producti#ity

nions in#ol#ement in consultation

mechanisms for new RM initiati#es

nion’s focus

enterprise le#el problem ( issues


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8contd9 nions to be e'posed to +rg9 Prgs9 inRM issues

nion’s need - /ong-term perspecti#efor "hange Mgmt

79g9 erman unions ( wor%s councilsha#e a structure of incenti#es,including employment security,

e=ecti#e representation, (participation, continuing retrainingin broad s%ills, which gi#es them along-term perspecti#e in plant

bargaining

t i t f )t t i


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8contd99

nion cooperation depends on mgmt9attitudes

Management strategy

6pen to union not a#oidance nions to recogni


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8contd99 IR means of maintaining industrial peace

IR a#oids ( settle con;icts, disputes

nions to be acti#e in area of con;ict

a#oidance, not only resolution 79g9

RM practiced in unioni


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8contd99 IR future - Rele#ance more at macro le#elissues

7nterprise le#el . plant le#el bargaining

ormulating o#erall IR policy elimiting boundaries of action for two

other parties

Pro#iding a measure of social

protection through labour law ( &udicial bodies

Pro#iding necessary framewor% for twoparties to function


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8contd9 IR to open its doors to other

disciplines *

industrial sociology, 6B (

psychology - not only byeconomics ( law

uture of IR may depend on

capacity to de#elop morecollaborati#e relations, mo#e awayfrom ad#ersarial ones


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+rade nionsH Role -Importance +he free trade union mo#ement

democratically elected by wor%ers( accountable to their

membership nions are critical

power to deny human resource

necessary for generation of proCts nion’s capacity to stri%e is ultimate

threat to in#estor class


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+rade nionsH Role *Importance 8contd9 Pay attention to areas

i#ides trade unions ( theirallies

"ompetiti#e mar%ets ma'imi


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+rade nionsH Role *Importance 8contd9 esign a grand bargain

istinction b.w rights ( standards

Jages ( beneCts depends on what

enterprise can pay /e#el of minimum wage depends on

economic de#9 le#el of country

Reach an agreement 7nforceable labor rights ine'change for commitments oflong-term de#elopment


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Roots of Management+hin%ing Many of most successful ( widely

used strategy tools today : framewor% cost cur#es structure conduct

Performance 8)"P model "oncept of sustainable

competiti#e ad#antage


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Bringing iscipline to)trategy 0)trategy is handful of decisions

that :

ri#e.shape most of company’s

subseFuent actions Are not easily changed once made

a#e greatest impact on whether

company’s strategic ob&ecti#esare met


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andful decisions

)electing company’s strategicposture

Identifying source8s ofcompetiti#e ad#antage

e#eloping business concept

"onstructing tailored #aluedeli#ery systems


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+wo "oncepts of

"orporation

)B "ore "ompetence

Basis forcompetition

"ompetiti#eness oftoday’s products

Inter-Crmcompetition tobuild competencies

"orporate structure Portfolio ofbusiness related inproduct * mar%etterms

Portfolio ofcompetencies coreproducts (businesses

Resource allocation iscrete businessesare the unit ofanalysisK capital isallocated businessby business

Businesses (competencies arethe unit of analysis:top managementallocates capital (talent

$alue added of top

management

6ptimi


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Industrial RelationsRelations between management ( union or

between representati#es of employees (representati#es of employers

My boat attitude : et out if you do notli%e

)hared boat attitude : Je sail together9 onot roc% it

6ur boat attitude : 6ur own commonenterprise9 /et us &oin in our e=orts

to better it


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Documents

Industrial Relations - 21_22 June G. P. Electronics