session 1 introduction to cer
TRANSCRIPT
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INSTITUTE FOR INTERNATIONALMANAGEMENT & TECHNOLOGY
Introduction to
Management of Industrial Relations
Dr. Kalpana Maheshwari
24 September 2013
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MANAGEMENT & TECHNOLOGY What is Employment Relations?
The administering of the institutions and making rules
of work regulation
Socio-industrial conflict (in all its forms) and itsresolution.
Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
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Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to o rganisations
Approaches to industr ia l re lat ions
Social action
Wider approaches to indus tr ial relat ions
Perspectives on employment relations
Labour market Comparative
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MANAGEMENT & TECHNOLOGY Unitary perspective
Assumptions Capitalist society
Integrated group of people within the work organisation
Common values, interests and objectives
Nature of conflict and its resolution Irrational and aberrant Frictional and personal
Coercion or paternalism
Role of Trade Unions
Intrusion from outside Historical anachronism
Management only forced to accept trade unions in economic
relations
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MANAGEMENT & TECHNOLOGY The Unitary perspective explained
There is one best way of doing things, andtherefore anyone who disagrees is wrong
The productive enterprise has objectiveswhich are in the interests of all associatedwith it(Burchill, p3)
Stresses common purpose and harmony:often ideas of team-working, commitmentto the enterprise HRM.
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MANAGEMENT & TECHNOLOGY Unitarism and conflict
Conflict is seen as pathological, and caused by
Ignorance: so institute training
Bad communications: improve them
Troublemakers and deviants: requires discipline at
work and strong law
Outside agitators: get rid of them
Trade unions are either oppositional, or pointless
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MANAGEMENT & TECHNOLOGY Pluralist perspective
Assumptions Post-Capitalist society Coalescence of sectional groups within work organisation
Differing values, interests and objectives
Competitive authority/loyalty structures (formal & informal)
Nature of conflict and its resolution Rational and inevitable Structural and institutionalised
Compromise, negotiate and agreement
Role of Trade Unions Legitimate and accepted in both economic and
managerial relations
Internal and integral to organisation
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MANAGEMENT & TECHNOLOGY The Pluralist perspective explained
This view acknowledges divergentinterests within society and theorganisation(Burchill, p4)
Not all parties at work share the samegoals: slimming down the firm meanspeople lose jobs: pay rises affect profits
Does not seek to overthrow capitalism, butto contribute to its management
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MANAGEMENT & TECHNOLOGY Pluralism and Conflict
Conflict is normal and inevitable, in society andat work
Worker organisations may not be liked, but are
legitimate
Mechanisms for resolving conflict include Disciplinary and grievance procedures
Disputes procedures
Collective bargaining is THE pluralist concept
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MANAGEMENT & TECHNOLOGY Marxist perspective
Assumptions Capitalist society
Division between labour and capital
Imbalance and inequalities in society (power, wealth etc)
Nature of conflict and its resolution Inherent in economic and social system Industrial conflict part of wider social conflict
Disorder precursor to change in society
Role of Trade Unions Employee response to capitalism
Expression and mobilisation of class consciousness
Develop political awareness and activity
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MANAGEMENT & TECHNOLOGY The Marxist perspective explained
Society is essentially divided into two classes
those who own the means of production, and
those who do not(Burchill, p5)
Labour is regarded as a factor of production,
and profit is made through its exploitation
Trade unions are a defence against exploitation,
through worker unity
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Adapted from Salamon 2000:6
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MANAGEMENT & TECHNOLOGYMeaning
Relations between management and workers and the role of
regulatory mechanism to resolve any dispute.
Parties to IR
Employers & their Associations
Employers & their Associations
Government (Regulatory Body)
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IR System Concept:
A Causal Model Representation
Contexts
Rules or
OutcomesProcesses
Ideology
Actors
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MANAGEMENT & TECHNOLOGY IR Systems Concept (Dunlop 1958)
Major Elements
Actors (workers, unions, mgmt, government)
Contexts (labor and product markets, technology,
community)
Processes (unilateralism, individual bargaining,
legislation, adjudication, CB)
Ideology(minimal shared beliefs; the glue that gives
systems stability)
Rules (broadly defined) or Outcomes (pay, benefits,
work rules, working conditions, job satisfaction,
industrial democracy, peace and conflict, productive
efficiency)
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MANAGEMENT & TECHNOLOGY Factors affecting industrial
relations.
Institutional factors
Economic factors
Social factors
Technological factors Psychological factors.
Political factors.
Enterprise-related factors.
Global factors.
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MANAGEMENT & TECHNOLOGY Approaches to industrial
relations.
Psychological approach
Sociological approach
Human relation approach Socio ethical approach
Gandhian approach
System approach
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MANAGEMENT & TECHNOLOGY Human relations approach
Physiological needs Food, water, clothing, shelter etc.
Security needs or safety needs Physical security
Financial security Job security
Social needs Companionship
affection
Egoistic needs Desire of self-esteem and
Esteem from others.
S O O H t IR d H
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MANAGEMENT & TECHNOLOGYHow to manage IR under Human
relations approach
Management has to design a suitable
motivational strategy to provide
environment for their optimum need
satisfaction, required for maintaining goodhuman relations in the organizations,
which in turn also leads to good industrial
relations.
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MANAGEMENT & TECHNOLOGY Socio-ethical approach
This approach is not widely accepted
It holds that industrial relations to great extentdepends on ethics of the people involved in it.
For maintenance of good Industrial relations boththe labour and management should realize theirmoral responsibility and greater understanding ofeach others problem
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MANAGEMENT & TECHNOLOGY Socio-ethical approach contd..
The goal of labour management relations is
ensuring maximum productivity, leading to rapid
economic development
This goal can be achieved by adequateunderstanding among employers, workers and the
government, of each others role in industry and
willingness among parties to co-operate as partners
in the industrial system.
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MANAGEMENT & TECHNOLOGY Role of manager under
socio-ethical approach
Development of a code of ethics and a
management philosophy for industrial
relations.
This philosophy should be firm but fair,
tough but tender and hard but human.
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MANAGEMENT & TECHNOLOGYGandhian approach to
industrial relations.
This approach of industrial relations is
based on the following concepts:
Truth
Non-violence
Aparigraha
Non-co-operation
trusteeship
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MANAGEMENT & TECHNOLOGY Gandhian approach - contd
Worker has right to strike
This right has to be exercised in a just cause, and ina peaceful and non-violent manner
It should be resorted to only after the employer fail
to respond to their moral appeals Disputes between employers and laborers are to be
resolved through non-violent means.
Non-co- operation amounts to peaceful strikes
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MANAGEMENT & TECHNOLOGY Principles of Aparigraha
Individual does not have any right to hold
or use wealth in disregard of the interest of
society
The character of production is to be
determined by social necessity rather than
by personal whims or greed.
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MANAGEMENT & TECHNOLOGY Trusteeship
There is no room for conflict of interest
between the capitalist and labourers.
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MANAGEMENT & TECHNOLOGY Characteristics of Indian labor
Social composition
Sex composition of workers
Emergence of tribal labour
Heterogeneity of labour Lack of differentiated class character
High rate of absenteeism and labour turnover
Migratory character Instability and village nexus
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Concepts and values
Employment relations are concerned with subjective, value judgementsabout concepts for which there are no universally accepted criteria.
Most of the important issues and debates in industrial relations centrearound:
Power & Authority and inequality
Fairness & Equity
Individualism & Collectivism
Integrity and trust
Rights and responsibility
Control and personal autonomy
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Queries??
24 September 2013