Employee Relations

Disciplinary Procedures

All disciplinary matters need proper investigations A disciplinary hearing should be held before any decision or action is taken Serious allegations may require employees to be suspended on full pay Issues such as absence or poor performance may require a different approach

ACAS Code of Conduct

All good disciplinary procedures should conform to ___?

Collective Agreements

Outputs of the 'collective bargaining' process (jointly agreed employment rules). These can relate to substantive issues (e.g. pay) or procedural issues (e.g. recognition or dispute resolution).

Partnership

Potential benefits of ___________: Order & stability in employee relations Communication & consultation Legitimisation of management ideas Greater range of ideas Rights to union membership

TU Functions

Power - protection & support for employee through collective strength Economic Regulation - maximising wages & conditions of employees through pay/work bargaining Job Regulation - participation in decision-making Political & Social Change - for members Member Services - providing benefits Self-Fulfilment - training & shop steward role (M. Salamon, 2000)

Procedural Agreements

'Regulate relations between the employer and the trade union concerned, they 'regulate the behaviour of the two parties to the agreement' (Farnham & Pimlott, 1995)

Total Quality Management

'a business discipline and philosophy of management, which institutionalises planned and continuous business improvement' (S. Hill, 1991) It can be seen as having the following characteristics: quality is defined as conformance to the requirements of the customer concept of customer is broadly defined use of appropriate performance measures TQM requires the involvement of all underpinned by continuous improvement (K. Legge, 2004)

Employee Involvement

'a participative style of management and a range of activities that are designed to increase employees' understanding of the organisation, utilise their talents, enable them to influence decisions and encourage their commitment to the organisation' ACAS 1990

Employee Participation

'a philosophy or style of management which recognises both the need and right of employees, individually or collectively, to be involved in areas of organisational decision-making beyond that normally covered by collective bargaining' (M. Salamon, 2000)

Employee Voice

'a whole variety of processes and structures which enable, and at times empower employees, directly or indirectly, to contribute to decision-making in the firm' (P. Boxall & J.Purcell, 2003)

Discipline

'action taken by management against an individual or group who have failed to conform to the rules of the organisation' (M.Salamon, 2000)

Industrial Democracy

'aims at changing the basic authority structures of enterprises, by legislating for employee representation on company boards' (D. Farnham & J. Pimlott, 1995)

Trade Unions

'an organisation which consists of workers of one or more descriptions, whose principle purpose includes the regulation of relations between workers of that description and employers or employers' associations' TULRCA 1992

Employers & Professional Associations

'any organisation of employers whose principal purpose includes the regulations of relations between employers and workers or between employers and trade unions'. (TULRCA 1992) www.eef.org.uk www.cbi.org.uk www.lge.gov.uk The British Medical Association (BMA)

Joint Consultation

'involving employees through their representatives in discussion and consideration of matters which affect or concern those they represent, thereby allowing employees to influence the proposals before the final management decision is made' (IPD / IPA 1990) Three models identified by D. Farnham & J. Pimlott (1995): Pseudo consultation Classical consultation Integrative consultation

Employee Relations Strategy

'long-term goals developed by management to preserve or change the procedures, practice or results of Industrial Relations activities over time' (Thurley & Wood, 1983).

Collective Bargaining

'the process by which pay, and other conditions of employment, are regulated jointly by an employer, or employers' association, and one or more trade unions. (Williams & Adams-Smith 2009)

Employee Relations

'the study of the regulation of the employment relationship between employer and employee, both collectively and individually, and the determination of substantive and procedural issues at industrial, organisational and workplace levels' (Rose, 2008)

Perspective on Collective Bargaining

'there is a new recognition of the role and importance of the individual employee. Traditional patterns of industrial relations based on collective bargaining and collective agreements seem increasingly inappropriate and are in decline' (Employment Department, 1992)

Single Table Bargaining

'where unions representing different groups of employees are brought together in a single negotiating forum' The main influences have been: harmonisation changes in work practices (blurring distinctions between blue collar and white collar workers) inefficient multi-union bargaining (Marginson & Sissons, 1990)

Best Practice Models: HRM

1 of the two types of strategy adopted by organisations: 'A distinctive approach to employment management which seeks to achieve competitive advantage through the strategic development of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques' (Storey, 1995)

Grievance

A charge by employees that management is not abiding by the terms of the negotiated labor-management agreement.

Impact of Recession

ACAS (2009) - Impact of ___________ Unemployment & redundancies Dispute Resolution Pay & hours of work Recruitment & skills Migrant workers Equality & diversity Stress, health & well-being

TU Recognition

Advantages of ________ Stable employee relations framework Structured method of representing employees Unrepresentative views can be filtered out Problems are raised before 'molehills become mountains'

Psychological Contract

An unwritten agreement that sets out what management expects from an employee and vice versa. Schein (1988) - Employees want to be treated fairly, some level of security and certainty, and employees have a need for satisfaction, fulfillment and progression. This psychological contact has changed over time in terms of the different expectations.

Elements of a Bargaining Structure

Bargaining Level: the level at which negotiations take place, e.g. industry or company. Bargaining Unit: the group of employees covered by a particular agreement; e.g. manual or clerical. Bargaining Scope: the subject matter which can negotiate; e.g. wages or working arrangements. Bargain Form: the manner in which bargaining takes place; formal or informal

TUs

Benefits for __________: Extensive information Greater influence over decisions More open management Maintenance of shop steward organisation Improved employee relations Promise of greater job security

Context of Employee Relations

Blyton & Turnball (2004) - 'Employee Relations do not take place in a vacuum. They are situated within, influenced by, and in turn impact upon many aspects of the work organisation. Other significant influences include the characteristics of the labour market, as well as the broader economic and political environment'

Guest's Theory of HRM

In HRM terms, the goals or outcomes are as follows: Strategic Integration Commitment Flexibility Quality Guest (1989, 1995)

The Employment Relationship

CIPD (2005) - conducted national surveys of employee attitudes and found that the centre of the _________ is 'employee trust, a sense of fairness and a belief that their employer has delivered on the implicit 'deal' between them'. Trust fairness and delivery are strongly associated with behavioural and performance outcomes such as employee commitment and intention to leave.

Partnership Agreements

Co-operation between management & Unions. Establishment of single status for all employees. Development of mutually acceptable pay review formulae. Farnham (2000)

Trade Union Congress

Collective voice of the UK trade unions to governments & international trade unions It attempts to influence the behaviour of its affiliated trade unions It is 'the central co-ordinating organisation of the trade union movement in the UK' (Gennard & Judge, 2010)

Social Context

Constructs such as changes in the population structure, changing attitudes around class and towards diversity and what this then implies affects EE relations.

Forms of Employee Involvement

Downward Communication: e.g. team briefings Upward Problem Solving: e.g. quality circles, TQM, suggestion schemes Task Participation: e.g. multi-skilling, team working Representative Participation: e.g. JCC's, company councils/advisory boards, worker directors; based on TU or employee representatives Financial Involvement: e.g. profit-sharing / share ownership schemes (M. Marchington & A. Wilkinson, 2008)

Employment & Labour Markets

Context affecting EE relations:- Changes in the structure of industry Growth in flexibility Changes in location of employment Unemployment & redundancies Self-employment Increasing participation of women in the workforce

Employment Law

Context affecting EE relations:- Recent trends include: Increasing individual rights (individualism) Reduced scope for industrial action (collectivism) Recognition procedure for trade unions European legislation, e.g. working hours Reform of the Employment Tribunal system

Flexibility

Context affecting EE relations:- The 'Flexible Firm' Time or Temporal Flexibility Numerical Flexibility Occupational or Functional Flexibility Geographical Flexibility

Global Markets & Global Capitalism

Context affecting EE relations:- Transplanting of employment practices (e.g. Japan) Intensification of competition Benchmarking of employment practices Technology

Contingency Model

Contingency models suggest approaches to managing people dependent on the organisation's business strategy, e.g.: Innovation Quality Enhancement Cost Reduction Schuler & Jackson (1987, 2001)

Criticisms of HRM and Guest

Criticisms: The problem of integration Flexibility versus commitment Individualism versus collectivism Flexibility versus a strong corporate culture Legge (2005)

Chaos Theory

Daft (1998) - stated that the world is complex and full of randomness and uncertainty, and the organisation needs to operate within the chaos that this creates. Daniels (2006) - in a recession it is important that organisations are able to respond to the unpredictable, and in doing this they need to be prepared to change the ways that they do things and who does them (e.g. HR - managers - employees). This chaos demonstrates the fragility of the employment relationship now and impacts upon employee relations.

TU Recognition

Disadvantages of _______ Resistance to change Time consuming or slow decision- making Lack of flexibility (IRS Employment Trends, 1995)

Pluralist Perspective

Employee and employer do not have common goals and conflict is accepted as a normal activity in the workplace. 'Stakeholder' concept whereby different 'stakes' or 'interests' must be reconciled. There is a positive role for TUs therefore there is a focus on rules/agreements.

Unitarist Perspective

Employee and employer share common goals in the workplaces thus conflict is not an normal event - 'shared' goals. TUs not particular needed - they are seen as competing for the loyalty of employees.

High Commitment HRM

Employment security & internal labour markets Selective hiring & sophisticated selection Extensive training, learning & development Employee involvement, information sharing & employee voice Self-managed teams & teamwork High compensation contingent on performance Reduction of status differential & harmonisation Pfeffer (1998) cited in Marchington & Wilkinson (2008)

Implementing EI

Implementing EI: Common problems identified: lack of continuity lack of middle-management support choice of inappropriate schemes degree of workforce scepticism (M. Marchington, 1993) Factors influencing success: more 'customising' of schemes need for integration with business objectives need for substantial support from senior management monitoring and review mechanisms

Drivers in Employee Enagagement

Involvement in decision making Freedom to voice ideas, to which management listen Feeling enabled to perform well Having opportunities to develop the job Feeling the organisation is concerned for the employees' health and well-being Institute of Employment Studies (2004)

Issues with best-practice models

Issues with best-practice models : Link between high commitment HRM and performance? Little consistency in the HR practices included in the 'bundle'. Assumes employers are able to take a long-term perspective. Easier to engage in high commitment HRM when labour costs form a low proportion of controllable costs. High commitment HRM may be 'situationally specific'. Growth in 'non-standard' contracts may mean 'flexibility' is not compatible with 'best-practice' HRM. Marchington & Wilkinson (2008)

Radical Perspective

Its members have common values but may differ on certain specific issues this is how the masses struggle for democracy. Rooted in Marxism where there is a fundamental conflict of interest between capital and labour --> Employee relations is basically the study of the processes of control over work relations (Hyman, 1975).

Types of 'Rule-Making' Processes (Rose, 2008)

Joint regulation - rules which govern the employment relationship Unilateral employer regulation - management impose terms and conditions Individual bargaining - individual contracts Joint Consultation - TU representation but management retain ultimate control Unilateral employee regulation - custom & practice, worker's control or profession

TUs

Limitations for __________: Terms defined solely by management Role of steward more complex Losing touch with membership Reduction in union commitment Gains from moderation 'meagre' Militancy recognises 'conflicting interests' between employer & employee (Sources : M. Marchington, 1994, Dr. J. Kelly, 1996)

TUs established in ERA 1999 - statutory recognition procedure

Main provisions (p.4) : Statutory procedure for the recognition of independent trade unions in organisations employing 21 or more workers, if that is the wish of the majority of the workforce.

Employee Involvement & Participation

Managerial objectives for _________ Changing attitudes Business awareness Motivation Employee influence/ownership Developing/avoiding relations with trade unions (H. Ramsay, 1996)

Bargaining Levels

Multi-Employer context: i.e. bargaining between employers and trade unions at a national level or industry level, to achieve a common approach to pay and conditions Single-Employer context: i.e. bargaining between management and trade unions within one company (can include corporate or company level or enterprise/plant bargaining) Decentralised Bargaining - a shift from Multi-Employer (national/corporate level) to Single-Employer (plant level)

Industrial TU Objective

Protection of employees and improvement of working conditions (UK). (Farnham, 2000)

Substantive Agreements

Regulate the jobs, pay and conditions of employees, they 'regulate the behaviour of parties to the individual contract of employment (i.e. employer and employee)' (Farnham & Pimlott, 1995).

Grievance Procedures

The aim of a _________ should be to settle a complaint fairly and in good time. It should be simple, in writing and be constructed into stages indicating who should hear it at appropriate levels, what should happen. There should be an outcome and a right to appeal. All of the above should be in accordance with the ACAS Code of Practice (2009). ACAS also advise that some organisations may wish to have separate procedures for handling _________ such as discrimination, bullying / harassment .

Employee Engagement (Best Practice Model)

The degree to which employees are fully involved in their work and the strength of their job and company commitment.

Management

The group of people in organisations who are collectively responsible for the efficient and effective running of the enterprises they manage; i.e. the authority system or the power group with responsibility for the efficient running of the organisation (Farnham, 2010).

TU Membership & Structure

The main categories of trade unions:- Occupational unions - craft, trade or occupation Industrial unions - industry regardless of craft, trade or occupation General unions - no limitations on recruitment, either occupational or industrial (Salamon, 2000) Alternative classification: 'open' and 'closed' unions without limitation or restricted to a particular trade or occupation (Turner, 1962)

Japanisation

The traditional model: lifetime employment career progression focus on the 'whole worker' ideology of loyalty & community 'incorporation' of employees company unions Hill (1981)

Atkinson's Model of the Flexible Firm (1984)

This model painted a heroic picture involving committed core employees being highly regarded, well-paid and with improved career prospects, and who offer in return functional flexibility, often through multi-skilling. On the periphery are the distanced externals: the 'atypical', 'non-standard' or 'non-core' workers (described in negative terms) with low security to ease the organisation's needs for adjustments to market forces (Rees &French, 2010).

Political TU Objective

To influence government in 3 policy areas (Europe - France & Italy): Economic: labour market, public spending Legal: individual and collective rights Social: pensions, state benefits and 'minimum wage' (Farnham, 2000)

Impact of Changes

Trade union membership has decreased from 13m (1979) to 6m (2010) (BIS). Strikes have reduced from 2080 (1979) to 92 (2010). Employment Tribunals have increased from 43, 243 (1990) to 236, 100 (2009). 'Less than 20% of employees actively engaged with their work; 20% actively disengaged' (Gallup Survey, 2001). 'Managerial & professional workers consistently more satisfied with their jobs than less skilled manual workers' (British Household Survey, 2001). Many employees suffered high rates of labour turnover with complaints of poor pay, excessive monitoring and health and safety problems (TUC Call Centre Survey, 2001). '10% of managers surveyed reported that they worked more than 61 hours per week, and a third that they worked more than 51 hours a week on average' (UMIST/IOM Project, 2000).

TU Organisation & Governance

Unpaid workplace representatives ('shop stewards') supported by full-time officials & paid Professional Union Officers.

Employee Voice

Valuing employee contributions Improved performance Improved managerial systems __________ arrangements often seen as a key element of Partnership Agreements.

Informal stage First formal warning, oral or written Final written warning Dismissal or other sanction Appeal

What are the 5 sanctions of a disciplinary?

Employers Associations

__________ tend to recruit members 'vertically', on an industry wide basis. Their main functions include: Negotiation of collective agreements with trade unions Dispute resolution, with individual members Advice and assistance on employee relations matters (e.g. law) Representation of members' views to the government and other agencies.