MANAGEMENT & INDUSTRIAL RELATIONS

MANAGEMENTS GROWING ROLE IN IR

Reflects long-term shift in workplace power Increased privatization Technological change Downsizing and restructuring

EVOLUTION OF MANAGEMENT IR PRACTICE

Personalized Control Technical Control Bureaucratic Control Commitment as a Control Strategy

SEARCH FOR ALTERNATIVES

Concession bargaining

Two-tier wage systems Shifts of employment outside firm Increase use of temporary and casual workers Substitution of machinery for labour Increasing employees productivity by increasing their loyalty and commitment to firm

CURRENT MANAGEMENT PRACTICE

No single model of management practice currently prevails Small number of firms adopted progressive HRM

CURRENT MANAGEMENT PRACTICE (cont.)

Key trends Downsizing Restructuring Decline in number of IR/HR staff and change in work More strategic role for HR and IR Responsibility for IR/HR shifted to line managers Limited change to collective bargaining

TWO TYPES OF HRM

Approaches from strategic choice theory Disposable workplace approach

Competitive advantage by minimizing labour costs Layoffs Two-tier wage systems Little interest in employee-involvement

TWO TYPES OF HRM (continued)

High-road approach

Differentiation strategy Niche markets High product quality Ability to develop new products quickly Heavy emphasis on training & development Increased employee involvement Flexible forms of work organization

TWO TYPES OF HRM (continued)

High-road approach (continued)

Seek to provide employees with positive motivation Focus on learning and performance improvement Provide generous benefits Fundamental change in managers role

Facilitative Help team members to solve problems

TWO TYPES OF HRM (continued)

Closer look at progressive HRM

Not as widely adopted

Employers response to change relatively conservative

TWO TYPES OF HRM (continued)

Progressive HRM likely to be adopted

Larger, more established firms HRM more formal and visible in larger firms International competitive pressures

TWO TYPES OF HRM (continued)

Benefits of progressive HRM

Core of loyal and committed employees Significantly better financial results Lower unit costs Higher profits and market share Lower quit, grievance, and customer complaints

TWO TYPES OF HRM (continued)

Barriers to adoption of progressive HRM

Direct cost to employers Flies in face of short-term business orientation Must be a sophistication and willingness to change Necessitates power-sharing--managers AND unions

Patterns Of Work Place Practices

Low Wage Pattern

Strong managerial Control Vertical Hierarchy Low wages High Turn Over Strong Anti Union Drive

Patterns Of Work Place Practices

HRM Patterns

Corporate Culture extensive Communication Directed Teams Above Average Wages Individualized Career Development Union Substitution

Japanese Work Place pattern

Standardized Procedures Problem solving teams High pay linked to seniority & Performance Employment stabilized Enterprise Unionism

Joint Team Based Pattern

Joint Decision Making Semi Autonomous work groups Hi pay with pay for knowledge Career development Union & employee involvement

NEW CHALLENGES FOR TODAYS MANAGERS

Need to increase training

Workplace training has not kept pace with increased globalization and technological change Business firms will have to increase efforts significantly if competing internationally

NEW CHALLENGES FOR TODAYS MANAGERS (continued)

New IR/HR role

Strategic Coach to line managers Training line managers in people responsibilities Training line managers in labour relations and conflict resolution