HRM & Industrial Relations

HRM & Industrial Relations
Chris Jarvis
Industrial Relations defining the scope
male, FT, unionised, manual, heavy industries & public sector , restrictive practices, strikes & collective bargaining? Employee relations - more diverse jobs: non-manual, female, PT, non-union, services, high tech, new business etc Focus = regulation of employment relationship (control,
adaptation, adjustment) - legal, political, econ, social, historical contexts. Collective aspects?
operating within & outside the workplace concerned with determining & regulating employment relationships.
Chris Jarvis
Unitary
Authoritarian Paternalism
Pluralistic
Cooperation Conflict
Marxist
Evolution Revolution
Approaches to IR
Input
Conflict differences
Conversion
Institutions & processes
Output
Regulation (rules)
Systems HRM Labour market

Chris Jarvis
Social action
Control over labour process
Comparative
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Wider approaches
Unitary
Assume
Pluralistic
Post-capitalist society Sectional groups - coalesce different values, interests, objectives
Marxist
Capitalist Division of labour/capital social imbalance + inequalities power, wealth etc
Capitalist society integrated group common values, interests, objectives
Nature of conflict one authority /loyalty irrational + fractional coercion competitive authority /loyalty (formal/informal) inevitable, rational, structural compromise + agreement legitimate internal, integral to workplace accepted role in econ & managerial relations inherent in econ. & social systems disorder - precursor to change
Conflict resolution
TU Role
change society employee response to capitalism mobilise, express class consciousness develop political awareness & activity
intrusive anachronistic only accepted if forced
Chris Jarvis
Input-output model
convert potential for conflict into regulation reconcile conflicts of interest through legitimate, functional processes & institutions at the heart ....... collective bargaining regulatory output

Rules: unilateral, joint or imposed by government substantial & procedural arrangements within-the-organisation or external rules (law, national agreements) varying degrees of formality
Chris Jarvis
Systems approach (Dunlop 1958)
IR - a social sub-system within the econ. & political systems Components

actors contexts (influences & constraints on decisions & action e.g. market, technologigy, demography, industrial structure) ideology - beliefs affecting actor views - shared or in conflict rules - regulatory elements i.e. the terms & nature of the employment relationship developed by IR processes Stable & orderly Unstable & disorderly?
Chris Jarvis
Social action (Bain & Clegg)
actor perceptions & definition of reality determine behaviour,

actions, relationships
work orientation is as much a result of extra-organisational

experience as experience within the workplace
structural factors may limit individual choice & action bounded rationality - interrelated decisions may fix or
significantly shift values, focus, roles or relationships.
instrumental & value-based considerations

Chris Jarvis
Control over labour process
transformation in inputs by labour using tools & methods.

Products, under capitalism, become exchangable, marketable commodities. Relevance to banking, retailing, local govt etc ? labour-capital relationship - essentially exploitative (ownership, surplus value, logic of efficiency & savings, structures of control. Braverman - to achieve capitals objectives - specialisation, standardisation, simplification, substitute technology for labour (Taylor), de-skilling? Critique? Core + peripheral employees. Segmented labour markets Job enrichment, empowerment & responsible autonomy Personal control & bureaucratic control
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Chris Jarvis
Labour Market - how work is distributed within society
Issues Economic labour market model

increase in womens activity rates level + nature of unemployment, long vs. short-term jobs manufacturing service + globalisation vs. local market regulation strategies + dual labour markets
Pay = price mechanism (SS/DD. elasticity & equilibrium)

One market (same for all) or differentiated by skill, job, location etc. assumes Pricing + Work - disutility. Wages compensate for less leisure Marginal productivity gain from using one extra unit of labour
institutionalised labour market - wage floor, "going rate",

range (quartiles), collective bargaining vs. individual negotiation.
Chris Jarvis
Labour Market - social acceptance & hierarchies
Possible Issues

Unskilled, semi-skilled & skilled. Blue-collar, white-collar. Professionalisation. Other desire the same. UK recognition of engineers UK class system & differential access to education (private schools) & labour divisions. Passive & active policies Retirement age, unemployment benefit, training, job support Who pays - via taxation or direct Er /Ee contributions? Interventionist & corporatist approaches (state regulation) Deregulation - free, flexible labour market, pay decided by ability to pay.
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Government interest
Chris Jarvis
Economic environment
UK de-industrialisation + manufacturing decline

increasing liberalisation, internationalisation & globalisation of trade government management of economy e.g. Keynesian vs monetarism. increasing inequality in wage distribution industrial restructuring & introduction of new technologies expansion of service sector
Participation rates in employment between 1966 & 1981

77.3 to 75.3% 97.7 to 87.8% 55.4 to 61.5% Overall Men Women
Chris Jarvis
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Employment trends 1981-91
Male FT Manufacturing 1981 1991 Services 1981 1991 4242 3157 -26% 5460 5691 +4%
PT 69 55 -20% 601 879 +46%
Total 4311 3212 -26% 6061 6570 +8%
Female FT 1342 1080 -20% 3752 4491
PT 395 282 -29% 3288 4249
Total 747 1362 -22% 7040 8739 +24%
All 6058 4574 -25% 13101 15309 +17%
+20% +29%
Figures rounded to nearest 000 Source: Employment Gazette

Chris Jarvis
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Social environment
industrialised, capitalist society principles of freedom of thought, expression & association Protestant work ethic Welfare state vs. independence & expansion of individual opportunities class & social mobility - manual to middle & professional home & share ownership unemployment, haves & have nots. NHS vs. private
medicine
Chris Jarvis
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Political environment
internal organisational decision-making. Power-authority structures external governmental politics individual liberalist, laissez faire vs. corporatist, interventionist government responsibility for high employment privatisation (public vs private) TU role/protections & employer role/protections law & order European Union - national vs supra-national & conflicting political ideologies
Chris Jarvis
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Development of Industrial Relations - 1
in restraint of trade - Tolpuddle Martyrs late 19 c. TUs & collective bargaining confined to skilled
th
trades & piecework. Industrial strength, mutual assurance, control over entry. Common interest in local rules. Employer interest in controlling wage competition WW1 industry level bargaining uniformity in wage claims. 1916 Whitley Committee 70+ JICs set up 191821 20s & 30s recession, unemployment decline in TU membership, wage cuts and...!!!...more industrial action. Some JICs disbanded (industries facing foreign competition). Many survive (public utilities, Logov & govt.)
Chris Jarvis
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Development of IR - post 1945
1950s & 60s
Donovan Commission (1968) recommends reform of voluntary coll. bargaining. Pluralism & company agreements 1970s IR tensions & confrontations (3 day week, miners, Winter of
Discontent, wage push inflation). Employment legislation to enhance worker rights & extend coll. bargaining. Voluntary incomes policy. From early 80s recession
improvement in economic conditions ----> inc. TU membership & IR activity. Pressure on industrial bargaining. Productivity problems. PIP. Shift to shop floor bargaining (stewards vs national officials).
Govt non-intervention re- industrial restructuring but strengthening of individual over collective rights. TU member decline. Competitiveness, globalisation & and TQM. Managerial (HRM) resurgence.
Chris Jarvis
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Donovan Commission 1968 (majority & minority report)
IR improvement by reform & extension of voluntary

collective bargaining management initiative & TU agreement develop formal company level agreements. substantive terms & conditions, rights & obligations etc procedural conduct of relationships, dealing with disputes/conflict; about power & authority in organisations management to embrace pluralism & joint participation
Chris Jarvis
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Government & Legal intervention
Managing the economy. Balance of Payments & IMF. Problem of

growth, industrial change & inflation. Govt - TU - Employer triangle.
Contrary to Donovan voluntarism Increased legal intervention

1969 In Place of Strife recommended law to deter destructive industrial action (unofficial strikes) bring orderliness into IR. 1971 Industrial Relations Act (failed) - more legal control over TU action & unofficial strikes. Unfair dismissal. 1974 Social contract & support for collective bargaining, stewards rights, disclosure of information, consultation, time off. 1978-79 Industrial democracy & Winter of Discontent 1979 steady, greater legal control & restrictions over TU activities
Chris Jarvis
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Conservative legislation to limit TU activities
Employment Acts 1980 , 1982, 1988 & 1990 Trade Union Acts 1984 & Wages Act 1986 Employment Acts, Trade Union Reform Employment Act 1993 Employment Rights Act 1996

no statutory recognition procedure nor closed shop no immunity from secondary industrial action independently scrutinised ballots for industrial action union officers responsible for unlawful actions & must repudiate right NOT to be disciplined by union for not taking part in action secret ballots for election of NEC officers abolished Wages Councils (price people back into jobs) early 80s confrontations: miners, Wapping P&)/NUS extended rights to obtain redress individually new realism - single union agreements
Chris Jarvis
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New Realism?
management proactivity - neo-HRM, TQM & IIP. Integration with business competitiveness, excellence, customer care. bargaining structures shift from

pay & working conditions emphasis

management-union (collective) to management-individual relationships (communication, empowerment, ownership) multi- to single-employer. Sole-union recognition for flexible working
TUs on the defensive. 1979-1993 lose 4.5m members. Cooperative

employer partnerships. Member services from credit to training.
Chris Jarvis
flexibility & individual. more temporary & part-time working core/periphery staff with task-function & time flexibility. performance-related pay (individual & team) share ownership & profit bonuses
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Concepts & Values in IR
fairness & equality (but fairness is relative & not constant)

power to control, influence & modify versus legitimate authority

French & Raven - 5 sources of power reward, coercion, legitimised, referment, expertise Morgan (more diffuse, implicit, pervasive) control of resources & systems; control of knowledge, information & decision-making; use of organisational structures, rules & regulations; control of alliances, networks & counter-organisation Magneau & Pruitt - reciprocal perception of power.
utilitarian or democratic impersonal technical notion reciprocity of the exchange, consistent with other exchanges, equality of treatment & consideration.
Chris Jarvis
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Individualism & collectivism
individual negotiation vs combining against Er-Ee imbalance Oversimplification to say Mgt-employee relationship = individual & Mgt-TU = collectivism . Issue = degree to which the individual is or should be
Feels in control, responsible, allied with or subordinated to, regulated by & protected
Issues of I & C in industrial relations
High trust - Low trust (Alan Fox - Beyond Contract)

Chris Jarvis
Mgt claim right to deal with staff without intermediate TU constraint (represent/regulate on joint basis) Individual PRP vs. one package for all individual sees his/her well-being deriving from own efforts vs.fraternalism (improvement through solidarity)
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Trade Union Functions
Power - protect/support through strength in association - a

Chris Jarvis
countervailing force, pressure group. Note: bargaining leverage & member willingness to act together. Economic regulation - maximise member returns within wage-work framework. Note: political nature of TU wage policy - comparability & differentials. Inflation & unemployment (cost-push & demand pull). Win bigger slice of national income. Job regulation - establish a joint-rule making system to protect members from arbitary management action . Enable participation in decisions affecting their employment. Expand job opportuities? Social change - express social cohesion, aspirations, political ideology & develop a society which reflects this? Institutionalise class & conflict? Dilemma of participating in government. Member services - provide benefits/services to members Self-fulfilment - assist individuals to develop outside their job domain & participate in wider decision-making processes
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Union character
expression of sectional/class consciousness ---> socialist society social responsibility - exercise role in non-detrimental ways business unionism - maximise benefits from employer relationships welfare unionism - wider social, econ. & political involvement for all political unionism - through political alliances
Chris Jarvis
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Why do people join or NOT join trade unions?
Blue/white collar Manual, clerical, technician, technologist, supervisor, manager Heavy light, old high-tech. industry Individualism vs. fraternal/collective instrumental reasons for joining. Support in uncertainty preference for cooperation with Mgt rather than
conflict
Chris Jarvis
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What is Recognition?
Mgt. formally accepts a TU (or TUs) to represent all/some

employees & enters into joint determination of terms & conditions on a collective basis. confers legitimacy & defines scope of unions role movement from unilateral management action to pluralism. TU has right to exist & organise in workplace, support members & have shop stewards, challenge managerial action & bargain. rights to information disclosure & consultation (redundancy, transfer of undertaking, H & S & pensions).
Chris Jarvis
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TU Recognition Process
Claim for recognition Management policy TU & employees expectations Bargaining unit (common interest, internal homogeneity) characteristics of work group (skills, pay, jobs, dispersion) TU membership % collective bargaining arrangements management structure & authority Degree of recognition representative &procedural only negotiating (some/all, joint or sole) union membership agreement Recognition ballot What %? management rights to manageappropriate scope & instutions of collective bargaining role of representatives Bargaining agent independent appropriate for all employees effective/sufficient resources representative
Recognition agreement
Chris Jarvis
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Recognition
Implications for Managers

challenge & appeal against decisions. Slower processes representatives as mediator of communications & may block work to agreements, procedures with rights to be consulted persuasion & negotiation to secure consensus time off & protections for appropriate/legitimate TU activities.
Grunwick 1977 determined not to grant recognition & dismissed all employees who took action Recognition & non-recognition often exist side by side decline in membership & now 1998 Fairness at Work
- Govt proposals to enable employees to have a TU recognised by their employer where a majority of relevant workforce wishes it & to introduce statutory procedures for both recognition & derecognition
Chris Jarvis
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Collective Bargaining
an institutionised system of determining terms & conditions of employment & regulating the employment relationship between representatives of Mgt & employees intended to result in an agreement which may be applied across a group of employees.
decline in coverage 1980 - 90 collective agreements > union membership. public sector > private manual > white collar manufacturing > service men > women
53% firms in 1990 66% of FT workers (direct or indirect)

Larger firms & public-sector organisations
Chris Jarvis
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Models of Collective bargaining
Chamberlain & Kuhn
Walton & McKersie

conjunctive bargaining mutual coercion - agreed truce - indispensible to each other - Lose-lose cooperative bargaining both accept neither will gain advantages unless the other gains too. Win-Win - willingness to concede - to increase size of cake distributive bargaining basic conflict over slice of the cake. Fixed-sum game - if you win, I lose. integrative bargaining (common perception & acceptance of issue) Mgt accept employee influence. TU accepts business responsibility. Cooperate to increase cake. Adversarial- cooperative tension remains intra-organisational bargaining.
Chris Jarvis
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Content & Scope of Collective Bargaining
Substantive rules (economic matters)
Procedural rules
pay (basic, overtime, PBR, guaranteed payments.....bonuses???), hours (37, 40, shifts, shorter week, flexi-time?) , holidays, fringe benefits (pension, sick pay, company cars?, BUPA?). Annual negotiations. status quo (no change until disputes procedure exhausted). Shop stewards, grievance, negotitating, disputes, redundancy, consultation, discipline?
Work methods/arrangements. The nature of work & how it is

National/Industry wide (multi-employer & TU Federations?) Company-wide Plant/shop level
=carried out. Flexibility, multi-skilling, productivity, assignments, teams, use of contractors, operating procedures? Bargaining levels
Chris Jarvis
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What enables bargaining power?
Chris Jarvis
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Involvement & participation in decision making
industrial democracy (worker control) - little currency in contemporary market-driven economies participation in decisions traditionally the prerogative of
management
involvement to mobilise cooperation, talent & creativity
equal power or management style/good-will? HRM & reaction against confrontation management
financial particpation profit-related bonuses, share ownership

schemes
Task participation: empowerment, cell technology, team working, briefing groups & quality circles, delegation, job enrichment & MbO joint problem-solving. McGregor Theory Y. Employee reports. 360 degree appraisal
approved deferred share trusts SAYE to buy company shares employee share ownership plans 33
Chris Jarvis
Employee participation
Worker directors Bullock report Works Councils European pressure for Mgt to consult employee
representatives
European Works Council Directive (1994)
collective redundancies, transfer of undertakings, health & safety.

EWC for information & consultation to be estabished in any multinational organisation with at least 1000 employees (including 150 in each of at least 2 member states)
Chris Jarvis
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HRM & Industrial Relations