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Prof R K Singh/AIMA CME 1
Human Resources Management
Prof R K SinghAIMA
Centre for Management Education
Prof R K Singh/AIMA CME 2
eHR 01: Collective Bargaining
Collective Bargaining is a procedure by which the terms and conditions of workers are regulated by agreements between their bargaining representatives and employers.
Collective Bargaining may take place at the national, industry or enterprise level.
Prof R K Singh/AIMA CME 3
eHR 01: Collective Bargaining
Characteristics/Features :
1. Collective :
It is collective in two ways. One is that all workers collectively bargain for their common interests and benefits.
The other is that workers and management jointly arrive at an amicable solution through negotiations.
Prof R K Singh/AIMA CME 4
eHR 01: Collective Bargaining
2.Equal Strength :
Both parties bargain across the table from a position of equal strength. It is industrial democracy at work.
3.Flexible :
Collective Bargaining requires flexibility by both the parties as it’s a give & take process.
Prof R K Singh/AIMA CME 5
eHR 01: Collective Bargaining4.Voluntary :
Both workers and management come to the negotiating table voluntarily in order to have a meaningful dialogue on various troubling issues.
5.Continuous :
It’s a continuous process which includes implementation of the agreement and also further negotiations.
Prof R K Singh/AIMA CME 6
eHR 01: Collective Bargaining
6.Dynamic :
It’s a dynamic process because the way agreements are arrived at, the way they are implemented, the mental make-up of parties involved keeps changing. As a result, the concept itself changes, grows and expands over time.
Prof R K Singh/AIMA CME 7
eHR 01: Collective Bargaining
7.Power Relationship :
In the process of collective bargaining, management tries to retain its control on workplace matters and unions attempt to strengthen their hold over workers without serious dilution of their powers.
8.Bipartite Process :
The employers and the employees negotiate the issues directly without involving any third party.
Prof R K Singh/AIMA CME 8
eHR 01: Collective Bargaining
9. Representation :
The employer/Management of the organization negotiates with representatives of employees’ union/s who are authorized to bargain with employers on work-related matters.
Prof R K Singh/AIMA CME 9
eHR 01: Collective Bargaining
Objectives of Collective Bargaining :1.To settle disputes/conflicts relating to
wages and working conditions.
2.To protect the interests of workers through collective action.
3.To resolve the differences between workers and management through voluntary negotiations and arrive at a consensus.
4.To avoid third party intervention in matters relating to employment.
Prof R K Singh/AIMA CME 10
eHR 01: Collective Bargaining
Context & Coverage of Collective
Bargaining Agreements :
1. Wages and Working Conditions
2. Work Norms
3. Incentive Payments
4. Job Security
5. Changes in Technology
6. Work Tools, Techniques and
Practices
Prof R K Singh/AIMA CME 11
eHR 01: Collective Bargaining
7. Staff Transfers and Promotions
8. Grievances
9. Disciplinary Matters
10. Health and Safety
11. Insurance and Benefits
12. Union Recognition
13. Union Activities/Responsibilities
14. Management Rights
Prof R K Singh/AIMA CME 12
Types of Bargaining:1. Conjunctive/Distributive Bargaining: The parties try to maximize their respective gains.2. Co-operative Bargaining:Realization of surviving in difficult times by both
parties.3. Productivity BargainingWorkers’ wages and benefits are linked to
productivity.4. Composite Bargaining:Bargains for wages goes one step further
demanding equity in matters relating to work norms, employment levels, manning standards, environmental hazards, sub-contracting clauses, etc.
Prof R K Singh/AIMA CME 13
eHR 01: Collective Bargaining
Stages of Collective Bargaining:
1. Negotiation, and
2. Implementation
Steps involved are:
1. Identification of the problem
2. Preparing for negotiations
3. Negotiation of agreement
4. Implementation of contract
Prof R K Singh/AIMA CME 14
Pre-requisites of Successful Collective Bargaining:
1.Unanimity Among Workers :Before entering into negotiations, there must
be unanimity among workers. At least the representatives of workers should be able to present the opinion or demands of majority of workers or else, the management can take advantage of diverse demands of the workers.
2.Equal Strength Of Both The Parties : Should always be a ‘give and take’ process and should not be a ‘you give & we take’ or ‘you bargain and we collect’ process.
Prof R K Singh/AIMA CME 15
eHR 01: Collective Bargaining
3. Positive Attitude : Both parties should have mutual trust, confidence and respect for each other and also show willingness to settle matters through negotiations.
4. Representative Authority:
The representatives of both parties should fully understand and be clear about the problems and their implications. They should be given the required authority in the process of negotiation like altering minor terms and conditions, if necessary.
Prof R K Singh/AIMA CME 16
eHR 01: Collective Bargaining
Recommendations of National Commission on Labour (1969):
1.Government intervention in industrial relations, particularly in the settlement of industrial disputes, should be reduced gradually to the minimum possible extent.
Compulsory adjudication of disputes should be used only as last resort.
Prof R K Singh/AIMA CME 17
eHR 01: Collective Bargaining
2. Trade unions should be strengthened both organizationally and financially by amending the Trade Union Act of 1926
-Make Registration of Unions Compulsory,
-Enhance the Union Membership Fee,
-Reduce the Presence of Outsiders in the Union Executive and Among the Office-bearers and
-Increase the Minimum Number of Members in Respect of the Union Applying for Registration.
Prof R K Singh/AIMA CME 18
eHR 01: Collective Bargaining
3.Legal Provision may be made either by a separate legislation or by amending an existing enactment for :
-Compulsory recognition of trade unions and certification of unions as bargaining agents
-Prohibition and penalization of unfair labour practices
-Bargaining in good faith by both employers and unions-Conferring legal validity and legitimacy on collective agreements (e.g. Maharashtra Recognition of Trade Unions &
Prevention of Unfair Labour Practices Act, 1972)
Prof R K Singh/AIMA CME 19
eHR 01: Collective Bargaining
4. Intensification of worker’s education for building up internal union leadership and making workers more knowledgeable and conscious about their rights and obligations.
This may help to de-politicize unions and also reduce union rivalry.
5.The idea of one union for one plant or one industry should be popularized and made a reality
Prof R K Singh/AIMA CME 20
eHR 01: Collective Bargaining
6.The Government should declare its policy to allow and encourage the parties to settle their conflicts and disputes through bipartite consultation and negotiation consistent with public safety and interest of the society in general.
Implementation of these recommendations may further help the promotion of collective bargaining process in the country.
Prof R K Singh/AIMA CME 21
Collective Bargaining in India : Pre-Independence
Trade Unions occupied the centre stage after 1900
In 1918, Gandhiji, as the leader of the Ahmedabad Textile Workers’ advocated the resolution of conflict through collective bargaining agreements.
After Second World War, the legal steps taken by the government revived interest in the Collective Bargaining once again
The legislative measures included the setting up of a machinery for negotiations, conciliation, and arbitration.
Basic conflicting issues concurring wages and conditions of employment were sought to be resolved through voluntary means.
Prof R K Singh/AIMA CME 22
Collective Bargaining in India :Post-Independence
With the spread of trade unionism, collective bargaining agreements became popular
A large majority of disputes were resolved through this mechanism.
Most agreements were concluded at the plant level
In centres like Mumbai and Ahmedabad, industry level agreements were quite common
The agreements took place in industries such as chemicals, petroleum, tea, coal, oil, aluminum etc
In ports and docks, banking and insurance collective agreements- at the national level.
Prof R K Singh/AIMA CME 23
Employee Empowerment Vs Delegation:
Empowerment is a core concept of the new management model. In the new-generation adaptive organization, delegation is replaced by empowerment, and responsibility by ownership.
Authority and responsibilities are formal aspects of organizing. They are based upon organizational properties and not individual capabilities.
Empowerment and ownership are social aspects of organizing. They are based on efficacy and initiatives, and not just on roles and requirements. They belong to people.
Prof R K Singh/AIMA CME 24
Employee Empowerment Vs Delegation:Delegation is an old idea used in the traditional
management model. The idea was to make sure that responsibility and authority were equal for every job at the same level.
When delegation was implemented correctly, people had the authority that they needed to execute their responsibilities.
Limitations of this approach: Assigning authority does not mean that someone has the ability, motivation, and understanding necessary to perform.
Prof R K Singh/AIMA CME 25
Benefits of Employee Empowerment :
1. The organization : Harness individual talents to the full. Changes the managers’ mind-set and leaves them with more time to engage in broad-based thinking, visioning and nurturing.
2. The department/team: Becomes more enthusiastic, active and successful. Facilitates teamwork and harnesses collective power of employees.
3.Employees :Entrusted new responsibilities and are stretched beyond what they previously thought they could achieve. Releases the individual wisdom, creativity, and energy of employees.
Prof R K Singh/AIMA CME 26
Employee Empowerment: Three Levels1.ENCOURAGING employees to play a more
active role in their work.2. INVOLVING employees in taking
responsibility for improving the way that things are done.
3.ENABLING employees to make more and bigger decisions without having to refer to someone more senior.
Organizational Benefits: Getting closer to the customerImproving service deliveryInnovating continuouslyIncreasing productivity & Gaining the competitive edge.
Prof R K Singh/AIMA CME 27
Employee Empowerment : 4 Cs1.COMPETENCE :The power which competence
provides grants to the manager keeps him free from feeling threatened by his subordinates. He not only disseminates the relevant competencies to his subordinates but also regularly exposes his subordinates to new competencies.
2.CONVICTION : The force of conviction is purely internal to people. The manager has his own set of convictions about the benefits of empowerment and will go all out to see his conviction fructify.
Prof R K Singh/AIMA CME 28
Employee Empowerment : 4 Cs
3. CHARACTER : Empowering managers are more concerned with their character than their reputation. Character is what they really are while reputation is merely what others think they are. They do not hesitate to take the blame on themselves in case of genuine mistakes.
4. CANDOUR : Empowering managers depend upon candour to draw the power to empower. They are free from prejudice and malice and are crystal clear in their dealings. They do not disguise and exaggerate but remain objective in approach. They share with their subordinates information and ideas, experiences and thoughts and hide nothing from them.
Prof R K Singh/AIMA CME 29
Future of HRM“9 Need-to-knows” for HR Managers
1. Performance Improvement2. Restructuring3. Organization Change4. Globalization5. Groups and Teams6. Action Learning7. Inter8. Time-shift9. Power-shift -W. Warner Burke
Prof R K Singh/AIMA CME 30
1. Performance Improvement
Two Kinds of Actions are Needed:1. Understand/Expand more- “Measurement of
Performance” and 2. Learn more about the direct and indirect
enhancers and inhibitors of high performance.
Performance Measurement in terms of :-Customer Satisfaction-Internal Business Competencies-Innovation and Learning (Continuous Improvement)
Prof R K Singh/AIMA CME 31
Enhancers of High Performance
1. High congruence between Job Requirements and Individual Skills and Abilities to enhance Motivation, and- in- turn, Performance.
2. Congruence between Organizational and Individuals’ Objectives
3. Learning more about the complexities of Performance Improvement
4. Relationship between Pay and Performance is temporary
Prof R K Singh/AIMA CME 32
2. Restructuring(Downsizing, Re-engineering, BPR/
Business Process Redesign)
Understand the consequences of restructuring
Make restructuring systematic and part of a larger strategic effort to minimize its negative effect
Assessment of the effectiveness of TQM, Downsizing, and Re-engineering
Prof R K Singh/AIMA CME 33
3. Organization Change
Organization Change : Role of HR Managers
Understanding the,
-Change Process
-Stages of Change
-Management of Change
Prof R K Singh/AIMA CME 34
4. GlobalizationImplications of Globalization on HRM activities and HR Professionals
“Globalization : The Business of Mindset and Behaviour Change”
Prof R K Singh/AIMA CME 35
5. Groups and Teams
Understanding the distinction between a Group and a Team
A Group may be nothing much more than an assemblage whereas a Team is a group with a common and challenging goal and members behave interdependently.
Prof R K Singh/AIMA CME 36
6. Action LearningAction Learning is combining the solving of
actual problems in real time in the organization with learning about,
- How to work together better
- How to solve problems more effectively
- How to improve the learning process in
general- that is,
“Learning about Learning”
Prof R K Singh/AIMA CME 37
6. Action LearningHR Practitioners needs to learn
Action Learning because,
It reduces significantly the time between Learning and Application
Provides useful feedback to organizational members on their Behaviour and Performance.
Prof R K Singh/AIMA CME 38
7. Inter : Interpersonal, Intergroup, Interorganizational Behaviour/Conflict : Issues1. Strong need of employees to interact
with each other for work and social reasons
2. Greater reliance on groups and teams with more emphasis on cross team activities
3. Inter-organizational relations (Collaborations, Mergers, Acquisitions)
4. Knowledge, Skill development in Conflict Management, Co-operation, and Negotiation
5. Relationship Management
Prof R K Singh/AIMA CME 39
8. Time-shift1. Harder and longer work hours2. Craming more activities into the limited
work time3. Blurring of time on-the-job and off-the-
jobImplications:1. Supervisors and Managers need to be
tolerant of the work and personal life, provided productivity and quality of performance do not suffer
2. Need to be recognized for our efforts in achieving the results
Prof R K Singh/AIMA CME 40
9. Power-shiftsMicro level Power-shifts: Organizational1. More openness in organization because
so many employees have access to information about the organization and its performance
2. Technology has made a difference in the shifts of Power, so are,
3. Changes in organizational structure (Flatter Hierarchies & Broader Span of Control), and
4. The trend towards the virtual and the knowledge-based organization.
Prof R K Singh/AIMA CME 41
Macro level Power-shifts:
(Multi-organizational, Societal and Global)1. Domestic Companies to MNCs2. Power-shift from developed to Developing
Countries3. Growing Power-shift/Divide between Rich
and PoorImplications:
Its essential that the HR Practitioners be discerning about the use of Power and its consequences, e.g. Distinguishing between mere compliance on the part of employees and Intrinsic Motivation and Commitment.