The Introduction of Industrial Relations.pptx

8/14/2019 The Introduction of Industrial Relations.pptx

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Industrial Relations

BSMH 5033

Zulkiflee in DaudUniversiti Utara Malaysia


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INDUSTRIAL RELATIONS DEVELOPMENTThe common variable that all organizations must cope with is change. The environment is

dynamic and is continuously change, so managers, trade union and other participants in

industrial relations have to cope with dispute over what is appropriate in the changedcircumstances. (Salamon, 2000)

- The development of IR has to be dynamic in line with the organizationaldevelopment. For instance, presently many organizations were lookingtowards product and service diversity. Hence, the demand for specializeemployees have been increased and the relationship between employer andemployees becoming more complex for example compensation structure,organizational climate etc.).- Changes in sociological aspects were also influencing IR development.Now organizations were no longer implementing master and slaveapproach. The acceptance of industrial democracy has been increased. Themanagement is no longer unilaterally making decision particularly onworking procedure. The participation and involvement concepts have beenimplemented widely.- The construction and amendment of employment and employment relatedacts have affected the IR development.


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Government plays a vital role through statutory provisions indetermining labor supply for example age, salary, working hours,compensation, etc.Government also has to support economic development bycontrolling unemployment rate and maintaining industrialharmony.Roles of government in labor market:1. Passive labor policy Government will take actions inrecession for instance giving cost of living allowance tosupport people during their period of unemployment andretrain unemployed workers.2. Active labor policy in this policy the government involvedirectly in managing labor market for example determiningtraining needs and implementing job support progr m thatwill effect the level and the structure of labor market.


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FOCUS IN INDUSTRIAL RELATIONSAccording to Blyton and Turnbull 1954), industrial relations werefocusing on collective aspect that evaluate 2 main subjects:1. Employees social welfare2. Social pressureTherefore in managing industrial relations, managers are not onlypredicting organizational effectiveness but also controlling employees,resolving conflict identifying employees needs maintainingharmonious working environment and determining employeescompensation parallel with their work.


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EconomicsMarketTechnologyEmployment level

PoliticsPolitical partiesLegislativeGovernment

SocialPoverty rateLevel of educationClass of community

I R1. Institusi2. Character

3. Procedure

4. Topic

Experiencespast)Future Planning

Context in industrial relations


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The effect of time period on industrial relations-

Time period plays an important role in industrial relationssystem. The present consequences may be due to results frompast actions or future assumptions. For example conflictsconfront by an organization may be due to the consensusdecided in the past and these conflict will affect organizationsoperation in the future.

- Context in time period1. The existence of problems in present may be from the decisionmaking result made in the past and its resolution may create aconflict in future.2. The behavior, aims and relationship among actors in industrialrelations system are resulted from their experiences in past.


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IR INVOLVES 4 MAIN SUBJECTS1. INSTITUSI refers to any parties that directly involve in industrialrelations. For example trade union, employers association andindustrial court.2. CHARACTERS refers to individual involves directly in industrial

relations. For example Human Resource Department manager andofficers, Minister of Human Resources Ministry, officers inIndustrial Relations Department MOHR and arbitrator.3. PROSEDUR refers to process and procedure used in industrial

relations. For example grievance procedure, disciplinary procedure,collective bargaining procedure and procedure to perform industrialactions.4. TOPIK refers to subjects discuss in industrial relations. For examplesalary, working hours, employment contract, picket and strike.


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PERSPECTIVES IN INDUSTRIAL RELATIONSIndustrial relations can be discussed in various aspects, eitherfrom the aspect of sociology, politics, economics and legislative.Industrial relations system is not influence by any fundamentalbecause this system encompass with individuals andorganizations who believe in various opinions and values.Therefore, this system is electic. Meaning, parties involve inindustrial system are free to choose from any sources. The mostimportant thing in industrial relations in resolving any conflictexisted in organization and maintaining harmonious workingenvironment mutually.Green 1991) indicates that there is no universal perspective thatcan define industrial relations clearly. But, each perspective helpsdefining industrial relations system.3 perspectives in industrial relations including:1. unitary, 2. pluralist and 3. marxist.


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UNITARY PERSPECTIVE This perspective assumes that units in an organizations havethe same interest, objectives and values. Organizational structure in this perspective is singleauthority and loyalty In this perspective, organization will not recognize theestablishment of union. An autocratic leadership is used by organization to resolveany disputes.


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PLURALIST PERSPECTIVE This particular perspective is opposite from unitary perspective This perspective assumes that employer and employees have thedifferent objectives and interests. Therefore, this perspectiverecognize the existence on industrial conflicts. Conflicts are rooted from organizational structure, compensationstructure and working environment. This perspective recognizes union to represent employees to voicetheir dissatisfactions. Organization with this perspective always collaborate with unionin conflict resolution process. So that all conflict resolution resultswill be mutually accepted.


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MARXIST PERSPECTIVE This perspective is more towards capitalist. According to Hyman1975) in capitalist, a production system is belongs toorganization and getting profit is the main aim. Therefore, themanagement have their right to control production processes inorder to maximize organizational profit. This perspective recognizes the existence of conflict. Conflict isimportant as an agent for change. This perspective believes that a conflict will exist if there is aimbalance in economic distribution in society. Social nature in a society is resulted from imbalance economicdistribution and pressure from dominant group. Social and political conflict are constructed from economicconflict in a society.


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INDUSTRIAL CONFLICTSPluralist and Marxist perspectives recognize the existence ofconflict.Conflicts can be resolved in 3 ways:1. Employer use his discretion in resolving conflict.2. Collaborate with employees or trade union.3. Social or political institutions help employers to determine

management system and the role of management inmanaging employees.


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To identify the existence of conflicts :1. Latent conflict This type of conflict is hard to identify. It

exist to a particular worker. Worker will file a complaint,absent, go-slow or even resign from the job.2. Collective conflict exist to a group of workers. We canidentify the existence of collective conflict if:a. a collective bargaining was conducted.b. an industrial action was taken by workers. For example strike and picket.c. an industrial action was taken by employer. For examplelock-out and retrenchment.

** note : employees retrenchment is not only shows industrialconflict. This procedure may be implemented due to economicrecession or organizational restructuring.


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Conflict can be resolved through:1. Legislative by referring to suitable acts, provisions orcourt cases.2. Functionala. unilaterally the management make decision

dominantly without discussing with employees. Theconflict may be related to companys rules andregulations or employment lawsuits.b. bilaterally the management will resolve conflict bynegotiating with employees in collective bargainingprocess.


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VALUES AND CONCEPTS IN INDUSTRIAL RELATIONSIR is not a subject that underpinned by any fundamental. There isno certain facts that can identify its objectives.Arguments in IR must be embedded with moral terminology.Concepts in IR must be identified technically with underpinned byvalue judgmentThere are no criteria in IR that can be accepted universally. There area lots of perceptions on IR concepts and there is no right or wrongon these perceptions.Individual or group of individuals have different opinions and viewson good or bad and right or wrong


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1. Justice vs Equity These concept and value are used to construct compensation

structure and level as well as employees termination anddismissal. There is no universal justice. Therefore, a set of rules andregulations has to be constructed. This set of rules andregulations become the fundamental to any decisions made by

any parties in order to uphold the concept of justice. Brown 1979) indicated that a concept of justice is an ideology tocover a mistake. This concept is use by parties to rationalize theirdecision. The concept of justice always related to equality where not allequality portray justice. For instance employees salary werediffer according to their job description and job specification. Butif we talk about justice, it must be equal. To implement justice, commitment from employer and employeesare needed.


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The concept of justice between pluralist, capitalist and marxistperspectivesCapitalist A dominant value was predicted by the successfulin competition between individuals. This competition may directto injustice. For capitalist, imbalance in competition is justbecause individuals are free to control their market andmaximize their profit. In monopoly environment, individualmay discard other individual from entering market.Marxist assumes that equality in rights and opportunities areimportant. If there is imbalance in macro level, this will effectsimbalance in micro level.Pluralist assumes that justice is uphold if the society agreethat justice was uphold.


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A concept of justice is used in the following situations:1. Used in resources allocation between groups or department inorganization.2. Identify whether the allocation of resource is consistence withother resources. In some situations, resources have to beallocated fairly regardless the importance of situation. In othersituations the allocation of resources have to follow the criticaldemand.3. The concept of justice is also happen in non-monetaryallocation. For instance balance in concerning employees

welfare.


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Justice can be divided into 3: Distributive justice allocation of resources must beequal among individuals or groups. Procedural justice any decision must be madethrough proper processes or procedures that wasmutually accepted by parties. Interactional justice any circumstances will beportrayed as justice if parties involved in the situationfeel that justice was uphold.


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2. POWER AND AUTHORITYThere are 2 interrelated concepts1. Authority is reached by power.2. Power is reached by authority.Koontz and ODonnel indicated that power will create authority.Hyman exhibited that power is an ability of individual or groupto control their physical and social environment and ability toinfluence others decision.


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Power can be defined by various aspects:1. Power is defined as an ability to control when an individualor a group can dominate a situation. This domination portrayspower.2. Power is meant as ability to influence and make a change on

decision-making process.Divided into 2 situations:a. Ability to influence the decision through treat fordisciplinary action.b. Ability to create an implicit influential that portray theimportance of certain facts so that these facts will beconsidered in decision-making process.


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Sources of power:1. Reward influencing others decision through compensation.2. Coercion influencing others decision through threat.3. Legitimized influencing others decision through positionin organization.4. Referment - using personal idea to influence others decision.5. Expertise using unique knowledge and experiences toinfluence others decision.


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Internal and external dimensions of PowerInternal individual or group use their advantages and strengthto construct power. For instance trade union use largenumber of member as its advantage to bargain withmanagement.

External individual or group use their networking with otherparties to create power. For example domestic tradeunion refers to national trade union to bargain withmanagement.


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AuthorityDefinitionRight to instruct an individual to implement a task Fox).Authority is a value that portray the utilization of power.The important aspect that has to take note in the utilizationof power is socialization process. For example socially, workershave to obey any instruction comes from head of department.Hence, head of department has an authority to instruct hisworkers to implement tasks with expected performance standard.


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Management right is created from socialization process.In industrial relations management right is calledmanagement prerogative. This prerogative is needed to controlemployees movement and productivity objectives.In confronting with managerial prerogative, employees willdecrease their autonomy relatively. Employees will not disobeymanagerial decision in implementing his prerogative as long asthe management implement his prerogative with bonafide.Section 13 3) of Industrial Relations Act 1967 has listedmanagerial prerogative.


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Section 13 3) of Industrial Relations Act 1967No trade union can include in its proposals for a collectivebargaining the following items: The promotion of any workmen. The transfer of any workmen. The employment of any workmen. The termination of any workmen. Dismissal or reinstate of any workmen. The assignment or allocation of tasks to any workmen.please refer to the particular section for further reading)


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3 implications of power and authority in Industrial Relations.1. The usage of power is unacceptable but the usage of authorityis acceptable power abuse).2. There is a conflict on loyalty among employees. Theywill be in dilemma to show their loyalty to his managementor to trade union as a union member.3. Employees right is in line with the implementation of powerand authority or his span of control.a. Employee has his right to demand a conducive working

environment through collective bargaining.


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3. INDIVIDUALISM vs COLLECTIVISMIn Industrial Relations we look into the freedom given toindividual and how far the needs of collective system.Usually,The relationship between employer and employee is in the formof individualism.The relationship between employer and trade union is in the formof collectivism.


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The concept of individualism and collectivism will determinethe pattern of communication. In individualism, unilateralcommunication will be used. Management will use his powerand authority to make decision. Dominating or even avoidancebecome styles that will be utilized in resolving conflicts.In collectivism, bilateral communication is conducted. Indecision making process, management will negotiate withemployees or their representative. Integrating and compromisingstyles of conflict resolution will be performed.


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4. RIGHT AND RESPONSIBILITYRight is defined as legal claim and entitlement from legislative,tradition and nature aspects.The concept of right.1. Free and entitlement this concept has give a positive impactwhere right is used as the fundamental of nature and wellaccept by the society. For example, freedom of speech.2 Immunity this concept of right sometime gives a negativeimpact where right is seen as an advantage to certain society.Individual or society who have immunity right may use itto eliminate their responsibility.


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In industrial relation, management right is translated asmanagement prerogative. This prerogative has to be used wisely sothat no unfair labor practice being performed. For example unfairdismissal or constructive dismissal.Responsibility is defined as duty and obligation.The definition brings 2 approaches of responsibility:1. It brings an obstacle to individual freedom. For exampletraining officer is responsible to conduct training but hehas no right to do any payment to training provider.2. It implies individual freedom. For instance, Human ResourceManager is responsible for maintaining employees KSAOs.Therefore, he has his right to give training to the employeesin order to achieve organizations objectives.


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Responsibility evolves from:1. Individual perceptions. For example, employees haveresponsibility to tidy their own table.2. Instruction from higher management. For example the

management will impose a penalty to employees who havea mess table. Therefore, the employees are responsible to cleantheir table.


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Right and responsibility are created from interaction between 2 parties. Inindustrial relations, right and responsibility involve in legislativeconstruction.3 issues in discussing right and responsibility:1. Must a right carry with it some equal and opposite responsibility?Employees have their right to strike. Must they perform this action iftheir demands are not fulfill or should their negotiate with themanagement first?2. Does the existence of a right imply a responsibility on the part of othersto ensure that the right can be exercised effectively?For example employees right to speech will be effective if the

management responsible conducting collective bargaining.3. Can responsibility in terms of accountability be raised only if there isthe right to control?For example, managers have responsibilities to manage their workers.Therefore they have their right to secure their workers well being. Butis this responsibility implies to unions leadership?


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5. INTEGRITY AND TRUSTIntegrity means individuals behavior based on their value andtrust.The quality of an integrity can be seen from the behavior thatembedded from a consistent set of value.If there is a conflict between ones value and the value of others hewill dismiss from the group.The most important thing in integrity and trust is how far anindividual can maintain his integrity.


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Usually trust exists between individual compare to between groupsor organizations. There are 3 types of trust in industrial relations:1. High-trust in this type of trust the management is ready toaccept ideas and opinions from its employees. Themanagement will use compromising and integrating style inmaking decision. In high-trust the management performsdecentralization.2. Low-trust this trust exist where controlling mechanism isformal. The management use its discretion in managingworkers. Dominating and avoiding styles are used in makingdecision. In low-trust, the management performs

centralization.3. Interpersonal trust exist when an individual trust with oneanother.In industrial relations, trust is rarely exist in competitivesituations.


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The Introduction of Industrial Relations.pptx