Human Resources Management Prof R K Singh AIMA Centre for Management Education Prof R K Singh/AIMA CME

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

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

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

eHR 01: Collective Bargaining 4. 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

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

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

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

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

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

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

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 Bargaining Workers’ 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

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

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

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

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

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

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

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

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

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

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

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

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

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

Employee Empowerment: Three Levels 1. 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 customer Improving service delivery Innovating continuously Increasing productivity & Gaining the competitive edge. Prof R K Singh/AIMA CME

Employee Empowerment : 4 Cs 1. 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

Employee Empowerment : 4 Cs 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

Future of HRM “9 Need-to-knows” for HR Managers Performance Improvement Restructuring Organization Change Globalization Groups and Teams Action Learning Inter Time-shift Power-shift -W. Warner Burke Prof R K Singh/AIMA CME

1. Performance Improvement Two Kinds of Actions are Needed: Understand/Expand more- “Measurement of Performance” and 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

Enhancers of High Performance High congruence between Job Requirements and Individual Skills and Abilities to enhance Motivation, and- in- turn, Performance. Congruence between Organizational and Individuals’ Objectives Learning more about the complexities of Performance Improvement Relationship between Pay and Performance is temporary Prof R K Singh/AIMA CME

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

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

4. Globalization Implications of Globalization on HRM activities and HR Professionals “Globalization : The Business of Mindset and Behaviour Change” Prof R K Singh/AIMA CME

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

6. Action Learning Action 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

6. Action Learning HR 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

Inter-organizational relations (Collaborations, Mergers, Acquisitions) 7. Inter : Interpersonal, Intergroup, Interorganizational Behaviour/Conflict : Issues Strong need of employees to interact with each other for work and social reasons Greater reliance on groups and teams with more emphasis on cross team activities Inter-organizational relations (Collaborations, Mergers, Acquisitions) Knowledge, Skill development in Conflict Management, Co-operation, and Negotiation Relationship Management Prof R K Singh/AIMA CME

8. Time-shift Harder and longer work hours Craming more activities into the limited work time Blurring of time on-the-job and off-the-job Implications: Supervisors and Managers need to be tolerant of the work and personal life, provided productivity and quality of performance do not suffer Need to be recognized for our efforts in achieving the results Prof R K Singh/AIMA CME

9. Power-shifts Micro level Power-shifts: Organizational More openness in organization because so many employees have access to information about the organization and its performance Technology has made a difference in the shifts of Power, so are, Changes in organizational structure (Flatter Hierarchies & Broader Span of Control), and The trend towards the virtual and the knowledge-based organization. Prof R K Singh/AIMA CME

Macro level Power-shifts: (Multi-organizational, Societal and Global) Domestic Companies to MNCs Power-shift from developed to Developing Countries Growing Power-shift/Divide between Rich and Poor Implications: 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. Prof R K Singh/AIMA CME