SHRM - Chap3

8/7/2019 SHRM - Chap3

1/32

Strategic Human Resource Management

Chapter: 03

Industrial Relations

8/7/2019 SHRM - Chap3

2/32

Group Members

Mohammad Jawad

Sana AliGillani

Nida Ali Raza

Fahim Alam

Bushra Tabbassum

8/7/2019 SHRM - Chap3

3/32

8/7/2019 SHRM - Chap3

4/32

IR & Strategic HRM

In the beginning, personnel management and IRwere considered separate functional entities

SHRM brought the two fields together in an

operational sense By aligning these spheres much more directly and

closely to the organization Relationship between IR and HRM is uneasy and

contested IR rules and regulations often set outside the

organization, interfere with the internal HRMpolicies and strategies

8/7/2019 SHRM - Chap3

5/32

IR & Strategic HRM (contd)

IR has a concern with the third parties HRM emphasis on direct relations between

individual employee and employer

HRM in both theory and practice is anti-union andexplicitly pro-management

Yet understanding IR and Regulatory frameworkremains important for the effective practice ofHRM

Especially in the countries having strong IR

history and vibrant union culture

8/7/2019 SHRM - Chap3

6/32

Concept & Meaning

Relationship between employees andmanagement in the day-to-day working of anindustry

But this concept has a wide meaning, IR is a setof functional independence involving historical,economic, social, psychological, demographic,technological, occupational, political and legalvariables.

According to Dale Yoder, Industrial Relations area whole field of relationship that exists becauseof the necessary collaboration of men and womenin the employment process of an industry.

8/7/2019 SHRM - Chap3

7/32

SHRM and the Bargaining Framework

Vision

Strategic BusinessPlan

Key Stakeholders

Dynamic

Environment

HRStrategy

HR Plans& Policies

Managing theEmploymentRelationship

Federal and StateBargainingFrameworks

DynamicEnvironment

8/7/2019 SHRM - Chap3

8/32

Features of IR

Industrial relations are governed by the system ofrules and regulations concerning work place andworking community

The main purpose is to maintain harmoniousrelations between employees and employer bysolving their problems though grievanceprocedure and collective bargaining

Trade Union is another important institution in the

industrial relations

8/7/2019 SHRM - Chap3

9/32

Features ofIR (contd)

Trade union influence and shape the industrialrelations through collective Bargaining

The Government-involves to shape the industrialrelations through laws, rules, agreements, awardsetc

The important factors of industrial relations are:employees and their organizations, employer andtheir associations and Government

8/7/2019 SHRM - Chap3

10/32

Objectives of IR

o To enhance the economic status of the workerby improving wages, benefits and by helping in

evolving sound budgeto To socialize industries by making the

government as an employer

o To provide an opportunity to the workers tohave a say in the management and decision-making

8/7/2019 SHRM - Chap3

11/32

Objectives ofIR (contd)

o To improves workers strength with a view tosolve their problems through mutualnegotiations and consultation with the

managemento To encourage and develop trade unions in order

to improve the workers strengtho To avoid industrial conflict and their

consequenceso To extend and maintain industrial democracy

8/7/2019 SHRM - Chap3

12/32

Sana AliGillani

8/7/2019 SHRM - Chap3

13/32

Industrial Relations in Australia

The dimensions of the existing Australian bargainingframework

I. The major parties/bargaining agents in IRII. The Legislation

III. The IR institutions

IV. The IR process

V. The instrument of regulation

8/7/2019 SHRM - Chap3

14/32

1. The Parties in IR

Unions and Union Movement

According to H.B. Higgins, unionism should be

fostered so that the employers did not have todeal with the individual complaints of eachemployee

By the end of the century, such support forunions and legitimate actors in IR has declined

Emerging HRM emphasized direct communicationwith the employees and individualization of theemployment relationship

8/7/2019 SHRM - Chap3

15/32

1. The Parties in IR (contd)

The causes of decline of unionism in Australia

may be grouped into two categories

Internal Cause: union themselves, their politicalalliance with Australian Labor Party

External Cause: changes in the volume, structureand nature of work, as well as management andgovernment strategies

8/7/2019 SHRM - Chap3

16/32


Unity and collective actions are the foundationconcepts of unionism

They may operate independently during thebargaining, it often shares power with otherunions

Despite the changed political, economic and socialenvironment, the union movement continues toplay an important role in Australian society andworkplace

8/7/2019 SHRM - Chap3

17/32


Employers in Australia formed associations torepresent them in multi-employer bargaining &before industrial tribunal

Employer have sought to alter their relations withemployees and unions

This is conducted through choosing specific HRMpolicies and strategies

In terms of social and psychological contracts

with employees, HR managers seek to gain eitherincreased compliance or greater organizationalcommitment

8/7/2019 SHRM - Chap3

18/32

8/7/2019 SHRM - Chap3

19/32

2. The Legislation WR Act 1996

It represented an institutional break or aparadigm shift

Formalized a new bargaining system enterprisebargaining

Reduced the role of AIRC and the scope of itsdecision, known as awards

Discouraged unions by prohibiting compulsoryunionism & made union access to workplace more

difficult Encouraged the establishment of smaller unions

and the formation of enterprise unions

8/7/2019 SHRM - Chap3

20/32

8/7/2019 SHRM - Chap3

21/32

Nida Ali Raza

8/7/2019 SHRM - Chap3

22/32

3. The IR institutions

AIRC remains and ironically, the WR Act alsoestablished a new institution Office of theEmployment Advocate (OEA)

The functions of AIRC include registration ofunions and employer associations

The over sighting and regulation of employmentissues

The making of industrial awards and the settlingof unfair dismissal claims

The main purpose of OEA is to facilitate themaking and filing of AWAs EA is to have particular regard to the needs of

workers in disadvantaged bargaining positions,assisting to balance work and familyresponsibilities and promoting better work andmanagement practices

8/7/2019 SHRM - Chap3

23/32

4. The Processes EB, CB & PB

Two key concepts, Collective Bargaining andArbitration

They have been the main processes used to

resolve conflict between employers and unionsand settle the terms & conditions of work

In Australia the arbitral powers of the industrialtribunals have become restricted

Emphasis is now placed on direct bargainingbetween the employers and employees, in

Australia this process is referred to as enterprisebargaining EB is negotiation that is focused at the workplace

level and does not necessarily involve unions

8/7/2019 SHRM - Chap3

24/32

4. The Processes EB, CB & PB(contd)

Pattern Bargaining: Imitation of collectivebargaining settlements by parties not directlyinvolved in the initial negotiations

Concession Bargaining: Unions agreeing to wagecuts or freezes or in other ways, such as workrule changes, giving back to employers previousgains

8/7/2019 SHRM - Chap3

25/32

5. The instruments of regulation

awards, certified agreements & AWAs

Awards are legally enforceable orders that set outthe minimum wages and conditions of employeescovered by them

Awards are legally binding documents that mustbe signed and dated and must specify acommencement date and period of operation

The outcomes of enterprise bargaining arecodified in instruments called certified agreements

the most common provision included in certifiedagreements are hours of work, training andperformance indicators

8/7/2019 SHRM - Chap3

26/32

8/7/2019 SHRM - Chap3

27/32

Fahim Alam

8/7/2019 SHRM - Chap3

28/32

HRM and Enterprise Bargaining

EB was first introduced in Australia To operate within the new bargaining

environment, the HR managers requires abilities

including contractual skills, negotiating skills andability to deal with more people and a morecomplex legal environment

Line managers and senior managers appear to besignificantly involved in employment matters asHR practitioners

From a SHRM perspective, bargaining provides anopportunity whether or not to use the bargainingframework to initiate high commitment model ormaintain high control

8/7/2019 SHRM - Chap3

29/32

IR in Pakistan

industrial labour force in Pakistan is organised inthe form of trade unions

employers have also organised themselves in the

institutions of Chambers of Commerce andIndustry with a view to protect their interest

basic law which plays an important role inpromoting sound labour-management relations isthe IR Ordinance, 1969

It is legally obligatory on the parties to enter intodirect negotiations in the first instance

8/7/2019 SHRM - Chap3

30/32

LaborCourt

Industrial disputes are resolved in the forum ofadjudication, called the Labour Court

Basic Functions:

adjudicate and determine industrial disputes

to enquire into the facts and adjudicate any matterrelating

to the implementation or violation of a settlement

to try offences under the Industrial Relations Ordinance

In the event of failure of bilateral negotiations, eitherparty to the dispute, may invoke conciliationproceedings by serving on the other party to thedispute a notice of strike or lock-out

8/7/2019 SHRM - Chap3

31/32

Summary

Managing the employment relationship hasbecome a critical aspect of strategic HRM

Understanding the IR system and bargainingframework are critical

Australia has moved away from the system basedon compulsory conciliation and arbitration and thecollective representation of the employees andemployers

The emphasis is shifted to EB and a reduced roleof third parties and increased emphasis on non-union agreements and individualizing theemployment relationship

8/7/2019 SHRM - Chap3

32/32

Summary (contd)

Role of HRM in such a complex, fluid, andcontentious environment is difficult

It highlights not only the conflicting roles of HRmanagers, as agents of the management and asadvocates of employees

But also the need to remain alert to changes inthe legislative and political contexts

Documents

SHRM - Chap3