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Lesson 6: Current Practices,


Problems and Development
I. Labor Organizations and Unionism
II. CBA
III. Safety and Health
IV. Process of Organization Development
V. HR management practices and environment in
foreign countries
VI. Future Roles of HR Professionals

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I. Labor Organizations
and Unionism
a. Labor Organization
b. Why Employees Join Unions
c. Labor Union
d. Unionism in the Philippines
e. Union’s Contribution and Effects

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a. Labor Organization
The law defines “labor organization” as “any
union or association of employees which exists in
whole or in part for the purpose of collective
bargaining or of dealing with employers
concerning terms and condition of employment.”
(Art. 212 Labor Code Book 1 Rules 1 Sec. 1)
The term “employees” in the definition
includes any person in the employ of the
e m p l o y e r. T h e t e r m s h a l l n o t b e l i m i t e d t o t h e
e m p l o y e e s o f a p a r t i c u l a r e m p l o y e r, u n l e s s t h e
Labor Code so explicitly states.

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a. Labor Organization
The definition also indicates the principal
purpose of a labor organization which is
collective bargaining. This preferential mode of
resolving industrial disputes (Art. XIII Sec. 3
Constitution) is corollary to the right of self -
organization. It infers the existence of a labor
organization and denotes its role in fostering
industrial peace. Without this right, a labor union
will have no voice or power to express the
w o r k e r ’ s i n t e r e s t b e f o r e t h e e m p l o y e r, r e n d e r i n g i t
inutile. With it, workers are able to negotiate with
employer on the same level and with more
persuasiveness than if they were to bargain
individually and independently for their respective
conditions. 4 4
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a. Labor Organization
The other purpose of a labor organization
suggest that these should be lawful. The term
“dealing with employers” in the definition is
broad enough to cover concerted activities,
including the right to strikes. But the
constitution qualifies the exercise of this right
t o b e p e a c e f u l , a n d i n a c c o r d a n c e w i t h t h e l a w.

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b. Why Employees Join Unions
There is no single answer to the question
of why employees join a union, but it is
generally correct to state that employees join
unions to satisfy needs that are important to
them. Needs and their importance differ among
individuals, some of these are the following:

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b. Why Employees Join Unions
• Job Security – Union has a union shop
clause in the contract and workers must
join to keep their jobs.
• Satisfy needs for affiliation – Unions
provide social interaction bringing people
together with similar interests and goals.
• For a safe and healthy place to work
• Provides a communication link to
management – This link enables them to
express dissatisfaction and disagreements
about the job, management, and other
issues.
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b. Why Employees Join Unions
• For economic advancement and elimination
of unfair conditions – most union members
believe labor union should be credited for
having created many economic benefits, longer
vacations, and others. Members also believe
that labor unions protect them against unfair
and discriminatory treatment by management.
• Due to job dissatisfaction – indicates that
worker job satisfaction is strongly associated
with both the level of union organizing activity
in the firm and the actual support of union
representation among employees. If workers
a r e d i s s a t i s f i e d w i t h i s s u e s a b o u t p a y, j o b
s e c u r i t y, a n d s u p e r v i s o r y p r a c t i c e s , t h e y a r e
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likely to unionize.
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b. Why Employees Join Unions
• Union instrumentality – perceived ability
of the union to provide important benefits to
the workers. The decision to organize a
union is thus based on whether employees
believe that they will be better off with a
union than without one.

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c. Labor Union
A labor union can be defined as an
organization of employees that uses collective
action to advance its members’ interests in
regards to wages, benefits, working conditions,
and other terms and conditions of employment.
The impact of unionization on
p r o d u c t i v i t y, p r o f i t a b i l i t y, a n d e m p l o y e e
attitudes can be positive or negative
depending on the circumstances. The presence
of a union significantly alters several HR
activities.

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c. Labor Union
Unions typically try to extend their
influence into other areas of management
aside from wages and benefits such as
establishment of work standards, scheduling of
work, subcontracting, and the introduction of
new equipment and methods which
management claims as exclusive management
prerogatives.
Whether an employer succeeds in
maintaining exclusive control over these
prerogatives depends on the relative strength
of each side in collective bargaining and on
the resolution of other conflicts, such as
grievances, strikes, and lockouts. 11 11
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d. Unionism in the Philippines
Unionization and labor action have
dwindled. According to the Bureau of Labor and
Employment Statistics, one of the department
bureaus of DOLE, if one will look at the
percentage of labor union members to total
wage and salary workers, there is a notable
decline from 30.7% in 1982 to 29.5 in 1993
down to 10.6% in 2009.
But for labor leaders and those who are
active in the movement, they claim that the
prevalent practice of contractualization has
been main culprit in the reduction of union
membership on a national scale.
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e. Unions’ Contributions and effects
To t h e E m p l o y e e
Improvement of working rules, protection from
t h e e m p l o y e r, a n d i n c r e a s e i n j o b s e c u r i t y
The grievance procedure negotiated by the
union assures an employee full and just
consideration of his/her complaint.
Better terms and conditions of employment
through bargaining collectively with
management.

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e. Unions’ Contributions and effects
To t h e E m p l o y e r
 Lost the power to set wages without prior
discussion with the union
 Limited power to terminate or discipline
employees
 Union may provide management with useful
information about the status of employee
morale
 Cooperation in the grievance procedure can
prevent minor complaints from growing into
major issues.
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II. CBA
a. Collective Bargaining Agreement
b. Collective Bargaining Process

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a.
ClickCollective
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title style Agreement
A r t i c l e 2 11 o f t h e L a b o r C o d e a s e m e n d e d
by RA 6715 provides among others… It is the
policy of the State… to promote and emphasize
the primacy of free collective bargaining and
negotiation, including voluntary arbitration,
mediation, and conciliation as modes of settling
labor or industrial disputes.
Collective Bargaining Agreement (CBA) is
a system for governing relations between
representatives of employers and employees
through bilateral negotiations to reach mutual
agreement about employment terms.

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a.
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It consists of management and union
representative coming together to reach an
agreement that will be acceptable to their
constituents. The process can be smooth and
uncomplicated if both parties are willing to
negotiate cooperatively to reach an agreement.
U n f o r t u n a t e l y, h o w e v e r, t h e p r o c e s s i s u s u a l l y
extremely complex and time consuming.

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b.
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• When a party desires to negotiate an
agreement, it shall serve a written notice
upon the other party with a statement of its
proposals. The other party shall make a reply
thereto not later than ten (10) calendar days
from receipt of such notice;
• Should differences arise on the basis of such
n o t i c e a n d r e p l y, e i t h e r p a r t y m a y r e q u e s t f o r
a conference which shall begin no later than
ten (10) calendar days from the date of
request.

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b.
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• If the dispute is not settled, the Board shall
intervene upon request of either or both parties or
at its own initiative and immediately call the parties
to conciliation meetings. The Board shall have the
power to issue subpoenas requiring the attendance
of the parties to such meetings. It shall be the duty
of the parties to participate fully and promptly in the
conciliation meetings that the Board may call;
• During the conciliation proceedings in the Board,
the parties are prohibited from doing any act which
may disrupt or impede the early settlement of the
disputes; and
• The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their
c a s e t o a v o l u n t a r y a r b i t r a t o r. 19 19
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III.Safety and Health


a. Safe Working Conditions
b. EC Benefits for Work-related Contingencies
c. Rights to Safe and Healthful Conditions of Work
d. Occupational Safety and Health Act (OSHA)
e. OSH Standards
f. Aims of OSH Standards

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a. Safe
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Employers must provide workers with every


kind of on-the-job protection against injury, sickness,
or death through safe and healthful working
conditions.
Jobs may be hazardous or nonhazardous.
Hazardous jobs are those which expose the employee
to dangerous environment elements, including
contaminants, radiation, fire, poisonous substances,
biological agents and explosives, or dangerous
processes or equipment including construction,
mining, quarrying, blasting, stevedoring, mechanized
farming, and operating heavy equipment.
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b. EC
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Master title Work-related
Contingencies
The Employees’ Compensation Program is the tax-
exempt compensation program for employees and their
dependents created under Presidential Decree No. 626
which was implemented in March 1975. The benefits
include:
• Medical benefits for sickness/injuries
• Disability benefits
• Rehabilitation benefits
• Death and funeral benefits
• Pension benefits
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c. Occupational
Click to edit Master titleSafety
style and Health Act
With the Occupational Safety and Health Act of 1970, Congress
created the Occupational Safety and Health Administration (OSHA) to ensure
safe and healthful working conditions for working men and women by setting
and enforcing standards and by providing training, outreach, education and
assistance. Safety refers to the physical or environmental conditions of work
which comply with prescribed Occupational Safety and Health (OSH)
Standards and which allow the workers to perform the job without or within
acceptable exposure limit to hazards. Occupational safety also refers to
practices related to production and work process. Health means a sound state
of the body and mind of the workers that enables the worker or employee to
perform the job normally.
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d. OSH
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OSH Standards are mandatory rules and


standards set and enforced to eliminate or reduced
occupational safety and health hazards in the
workplace.

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d. toAims
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OSH Standards aim to provide at least


the minimum acceptable degree of protection
that must be afforded to every worker in
relation to the working conditions and dangers
of injury, sickness, or death that may arise by
reason of the worker’s occupation. The
provision of OSH Standards by the State is an
exercise of the police power, with the intention
of promoting the welfare and well-being of the
workers.
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IV. Process of Organization


Development
a. Process of Organization Development
b. Normal OD Process
c. Why is OD Process Important?

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a.
ClickProcess of Organization
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Organization Development (OD) is a planned approach to improve
employee and organizational effectiveness by conscious interventions in those
processes and structures that have an immediate bearing on the human aspect of
the organization.

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b. Normal
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Problem Identification – The first step in OD process involves understanding


and identification of the existing and potential problems in the organization. The
awareness of the problem includes knowledge of the possible organizational
problems of growth, human satisfaction, the usage of human resource and
organizational effectiveness.
Data Collection – having understood the exact problem in this phase, the
relevant data is collected through personal interviews, observations and
questionnaires.

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b. Normal
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Diagnosis – OD efforts begin with diagnosis of the current situation. Usually, it is


not limited to a single problem. Rather a number of factors like attitudes,
assumption, available resources and management practice are taken into
account in this phase. There are four steps in organizational diagnosis.
• Structural analysis: Determines how the different parts of the organization are
functioning in terms of laid down goals.
• Process analysis: Process implies the manner in which events take place in a
sequence. It refers to pattern of decision making, communication, group
dynamics and conflict management patterns within organization to help in the
process of attainment of organizational goals.

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b. Normal
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• Function analysis: This includes strategic variables, performance variables,


results, achievements and final outcomes.
• Domain analysis: Domain refers to the area of the organization for
organizational diagnosis.
Planning and implementation – After diagnosing the problem, the next phase
of OD, with the OD interventions, involves the planning and implementation part
of the change process.
Evaluation and feedback – any OD activity is incomplete without proper
feedback. Feedback is a process of relaying evaluations to the client group by
means of specific report or interaction.

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c. Why
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• It will provide better impact in achievement towards an organization's goals


• Increasing trend to maximize an organization‘s investment in its employees
• Organizations need to “work smarter” and apply creative ideas
• Employees expect more from a day’s work
• Customers demand continually improving quality

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V. HR management
practices and
environment in
foreign countries
a. International Human Resource Management
b. Need for IHRM
c. Difference between IHRM & Domestic HRM
d. HRM in a Global Environment
e. IHRM Practices 32
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a. International Human
Resource Management
• Simple definition is ‘the process of managing people in
international settings’
• Scyllion (1995) defined IHRM as ‘the HRM issues and
problems arising from the internationalization of
business, and the HRM strategies, policies and
practices which firms pursue in response to the
internationalization process’
• IHRM is the management of HR in business operations
in at least 2 nations.
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b. Need for IHRM


• Managing expatriates
• Globalization has forced HRM to have international
orientation
• Effectively utilize services of people at both the
corporate office and at the foreign plants.

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c. Differences between
IHRM & Domestic HRM
IHRM Domestic HRM
• Address a broad range of • Address a narrow range of
HRM activities HRM activities
• HR issues relate to • HR issues relate to
employees belonging to more employees belonging to
than one nationality single nationality
• Greater involvement of HR • Limited involvement of HR
manager in the personal life manager in the personal life
of employees of employees 35
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c. Differences between
IHRM & Domestic HRM
IHRM Domestic HRM
• Greater exposure to risks in • Limited risks in domestic
International assignments assignments
• Has to manage several • Limited external factors to
external factors such as deal with
government regulations of
foreign country

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d. HRM in a Global
Environment
• The environment in which organizations operate is rapidly
becoming a global one.
• Foreign countries can provide a business with new markets.
• Companies set up operations overseas because of lower
labor costs.
• Technology makes it easier for companies to spread work
around the globe.

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d. HRM in a Global
Environment
• Global activities are simplified and encouraged by trade
agreements among nations.
• As these trends and arrangements encourage international
trade, they increase and change demands on human
resource management.
• Organizations need employees who understand the
customers and suppliers in foreign countries.
• Organizations need to understand the laws and customs that
apply to employees in other countries.
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e. IHRM Practices

• International staffing
• Pre-departure training for international assignments
• Repatriation
• Performance management in international assignments
• Compensation issues in international assignments

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V. Future Roles of HR
Professionals
a. 6 tasks for the future
b. 5 determining roles for HR in the future

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a.Master title style
6 tasks of the future
• Managing Talent: assessing quantitative and
qualitative needs for talent, managing the talent
pipe-line.
• Managing Demographics: managing the loss of
capacity and knowledge, managing the ageing
workforce
• Becoming a learning organization: choosing a
learning strategy, boosting the number of on-the-job
development programs, measuring the return on
investment.

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a.Master
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title style the future
•Managing work-life balance: determining what
people need, building programs that afford flexible
working hours, enhancing corporate social
responsibility
•Managing Change and cultural transformation:
determining and shaping desired behaviors, ensuring
top-management support.
•Getting the fundamentals right: mastering people
processes, delivering on recruiting and staffing,
transforming HR into a strategic partner.

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b. 5 determining
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HR in the future
Role 1: The Architect
HR no longer owns the people processes. Instead, HR becomes a
facilitator or even an architect. By creating the right context in which
people can be successful, HR will deliver its greatest contribution. In
that sense HR is working on culture, organization, processes and
environment. The processes are not HR’s, they belong to the
company. Let’s also not ignore the CEO’s increasing interest in
people, leadership and culture. The CEO (or the board) is the owner
of people processes. HR takes on the role of architect. HR will
create organizations in which leadership, cooperation, innovation,
entrepreneurship, … can develop.

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b. 5 determining
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HR in the future
Role 2: The Artisanal and Digital Expert
But to be able to take on the role of architect, HR needs know-how.
In the recent past HR became a generalist, but in future we will
become experts, or craftsmen. Instead of being a generalist, HR will
offer top-notch expertise about the people side of the company.
Apart from the more traditional, artisanal know-how, HR will have to
master the digital know-how: Social Media, HRIS, Employee Self
Service, … HR will need to incorporate knowledge and practices
from other disciplines into its own discipline: marketing, finance,
service management, … Learning from others is a great opportunity
for HR.

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b. 5 determining
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HR in the future
Role 3: The Coach
But HR should be aware of reification of people. In the quest for a
spot at the board table we might have lost the contact to people. HR
needs to be(come) more empathic. Empathy means to listen, try to
understand and act upon that understanding. And why should HR
not introduce kindness, compassion and humanity into the corporate
DNA? It’s like we need to rediscover the human being behind the
employee ID again. This is not an appeal for meaningless softness.
Business needs to be human in order to help people to be
successful. HR becomes a coach of the organization, its
management and its employees. In the future it will be the employee
that will determine and evaluate a company’s people strategy.
Coaching is a way of individualization of the people strategy.
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b. 5 determining
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HR in the future
Role 4: The Data-Strategist
Like any other discipline, HR is oriented towards results. HR will
work on becoming evidence-based. That entails not only looking for
data to assess HR interventions, but also planning interventions
based on available scientific insights. There is not much big data in
HR today. However, by analyzing the data we have, we might be
able to shape the future of our profession.

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b. 5 determining
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HR in the future
Role 5: The advocate
HR leaves the backbench and becomes an advocate of the
importance of people processes and results. The people strategy is
a part of the company strategy. HR people are gaining influence
through their know-how, there fact-based approach and their
proactive contribution to the business results. Any business decision
has an impact on people and any business strategy depends on the
quality of the people who execute it.

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By: Pagas, Petal Marie C.


Mislos, Jerad V.
Lopez, Krisgen Gert
Mintalar, Stephen John
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