- Employer and employee relations
- Good relationships are necessary as poor working relationships lead to low morale, conflict, and perhaps even strike action/rioting
- Negotiations and collective bargaining
- Negotiations
- Bargaining process wherein two parties try to get a mutually acceptable agreement
- Collective Bargaining
- Negotiations between managers and employee representatives (usually union representatives)
- Not an industrial action, but failure here could cause more problems
- Compromise is necessary on both sides
- Employees are usually represented by labor unions
- Organization of worker members
- Increases bargaining power of employees
- Makes it easy for employer to communicate to a collective
- Provides legal and financial support
- Goal is better employee conditions, legislation, pay, etc.
- Three levels of negotiations:
- Management negotiations (regarding internal business functions)
- Commercial negotiations (w/ different organizations)
- International negotiations
- Six stages of negotiations:
- Preparation, proposal, debate, bargaining, closing, review
- Different views/approaches on negotiations:
- Avoidance – avoid problems, might mean issues aren’t solved
- Level playing ground – parties must be equal to have negotiations
- Winner takes all – one wins, one loses
- Win-win
- Success of negotiation depends on:
- Experience, power of union, state of economy, demand for labor, media opinion, government involvement and degree of substitution (ability to replace labor with capital intensive production)
- Negotiations
- Methods by employees to achieve objectives
- Goal is to reduce a business’ productivity to increase union’s bargaining power
- Negotiations/collective bargaining (as seen above)
- Go-slow/slowdowns
- Work at the minimum required amount by contract
- Effective when in high seasonal demand
- Work-to-rule
- Work at the minimum required amount by rules
- All rules and regulations are strictly followed
- e.g. not taking calls during lunch breaks
- Overtime ban
- Strike action
- Refusal to work
- Illegal without prior notice
- May coincide with a walk-out
- Methods by employers to achieve objectives
- Objectives include reducing costs, increasing productivity, and staff morale
- Negotiations/collective bargaining (as seen above)
- Public relations
- Deals with media to make the business look good
- Build goodwill
- Lockout
- Employer version of strike action
- Divides unions by pitting workers who want to work vs. those who don’t
- Threat of redundancy
- Still considers employment rights
- Change of contract
- Closure
- Conflict
- Hinders productivity, reduces morale, causes internal politics, etc. etc.
- May be good since it helps address problems
- Conflict isn’t bad, depends on how it is managed
- Sources:
- Needs and wants – when they are not met
- Perceptions – when communication is inadequate
- Incompatible values, abuses of power, feelings
- Approach depends on concern for personal outcomes and other’s outcomes
- High concern for personal outcome causes win-lose
- High concern for others causes surrender
- Low concern for either causes avoidance
- High concern for both causes collaboration
- Moderate concern for both causes compromise
- Conflict resolution
- Resolving conflicts successfully (if everyone is satisfied)
- Approaches:
- Conciliation
- Use an independent arbitrator
- “Caucusing” – separate meetings with arbitrator
- Conciliators encourage compromise and make legally binding agreements
- Arbitration
- Like above, except arbitrator makes the decision, like a judge
- Industrial democracy/employee participation
- Involve employees in decision making
- Uses motivation theories
- Makes for cooperative employees less likely to strike (win-win)
- No strike agreements
- Single-union agreements
- Employer agrees to only bargain with one union
- More convenient
- Consultation (w/ employees)
- Litigation (lawsuits)
- Likely to cause win-lose
- Realistic expectations
- Avoidance
- Likely to cause lose-lose
- Conciliation
- Change management
- Processes and techniques used to plan, implement, and evaluate change
- Change includes: new products, restructuring, new policies, mergers, etc.
- Forcing change might cause problems, while no change means no progress
- Factors/sources of change
- Customers – changing tastes, expectations, demand for better products
- Competition – need to stay competitive and evolve
- Management – stay on top of market trends, employee motivation, etc.
- Exogenous Factors – change in fashion, state of economy, etc.
- Technology
- Government
- Resistance to change
- According to John Kotter, there are 4 main reasons:
- Self-interest > Corporate Objectives
- Misunderstandings (uncertainties and “if it isn’t broke…”)
- Different assessments of situation
- Low tolerance for change
- Ambivalence may also be an issue
- According to John Kotter, there are 4 main reasons:
- Reducing impact of change
- Change Approaches Model by Kotter
- Deals with resistance to change
- Six approaches:
- Education and communication
- Establishes trust, eliminates misunderstanding, etc.
- Participation and involvement
- Link to Mayo and Herzberg theories of motivation
- May be time consuming
- Facilitation and support
- Retraining, counseling, etc.
- Negotiation and agreement
- Compromise, incentives, amendments in contract, etc.
- Manipulation and co-option
- Convert thinking to be pro-change
- May backfire
- Explicit and implicit coercion
- Education and communication
- John Storey
- 4 different approaches to managing change:
- Total imposed package – changes are just implemented
- Imposed piecemeal initiative – change done gradually
- Negotiated total packages – negotiate with employees before implementing
- Negotiation piecemeal packages – negotiate with employees then slowly implement
- 4 different approaches to managing change:
- Iceberg Model
- Two levels of change:
- Top level: cost, quality, and time
- Bottom level: People/stakeholders
- 4 groups in the bottom level:
- Opponents (- behavior, – attitude)
- Promoters (+ behavior, + attitude)
- Hidden opponents (+ behavior, – attitude)
- Potential promoters (- behavior, + attitude)
- Attitudes are shaped by management of perceptions; behavior is affected by management of power and politics
- Two levels of change:
- Change Phases Model by Kotter
- 8 reasons why change management fails:
- Too much complexity
- No support from staff
- No clear vision
- No communication w/ stakeholders
- Obstructions to vision
- Does not focus on small continuous changes
- Declare success too soon
- Ignore corporate culture
- 8 reasons why change management fails:
- Change Approaches Model by Kotter