1. MANAGEMENT AND INDUSTRIAL RELATIONS
MGMT 329
MANAGEMENT AND INDUSTRIAL RELATIONS

2. MANAGEMENT’S GROWING ROLE IN IR
Single greatest change in IR field
Reflects long-term shift in workplace power
Increased privatization
De-regulation
Technological change
Downsizing and restructuring

3. EVOLUTION OF MANAGEMENT IR PRACTICE
Paternalistic
Coercive drive system
Scientific management
Welfare capitalist
Bureaucratic

4. SEARCH FOR ALTERNATIVES
Concession bargaining
Two-tier wage systems
Shifts of employment outside firm
Increase use of temporary and casual workers
Substitution of machinery for labour
Increasing employees’ productivity by increasing their loyalty and commitment to firm

5. SEARCH FOR ALTERNATIVES (continued)
Strategic choice
(Kochan, Katz and Mckersie (1986)
Transformation of Industrial Relations
changes in the 1950s and 1970s
decrease in union density
movement to developing countries
plant closures in industrialized countries
‘nonunion system’ replacing collective bargaining
anti-union activity

6. 3 CORE ELEMENTS OF STRATEGIC CHOICE
IR decisions made at three levels
business (strategic level)
collective bargaining
workplace
Effective strategies require 3 levels to operate in concert
designed to achieve a major goal
planned & executed from highest level
executed over longer term
likely to have significant impact on parties
Parties face a number of choices

7. IMPORTANCE OF STRATEGIC CHOICE
Sees employer as a change driver
Can explain current changes in unionization
Examines the role of strategy and choice among actors
focus on more than collective bargaining level
Can be used more effectively for nonunion IR

8. CURRENT MANAGEMENT PRACTICE
No single model of management practice currently prevails
Small number of firms adopted progressive HRM
Clearer indications as to conditions under which progressive HRM occurs

9. CURRENT MANAGEMENT PRACTICE (continued)
Key trends
Downsizing
Restructuring
Decline in number of IR/HR staff and change in work
More strategic role for HR and IR
Responsibility for IR/HR shifted to line managers
Limited change to collective bargaining

10. TWO TYPES OF HRM Arises from strategic choice theory
“Disposable workplace” approach
Competitive advantage by minimizing labour costs
Layoffs
Two-tier wage systems
Little interest in employee-involvement

11. TWO TYPES OF HRM (continued)
“High-road” approach
Differentiation strategy
Niche markets
High product quality
Ability to develop new products quickly
Heavy emphasis on training
Increased employee involvement
Flexible forms of work organization

12. TWO TYPES OF HRM (continued)
“High-road” approach (continued)
Seek to provide employees with positive motivation
Focus and learning and performance improvement
Provide generous benefits
Fundamental change in manager’s role
Facilitative
Help team members solve problems

13. TWO TYPES OF HRM (continued)
Progressive HRM likely to be adopted
Larger, more established firms
HRM more formal and visible in larger firms
More profitable firms
Firms’ union status has little effect

14. TWO TYPES OF HRM (continued)
Benefits of progressive HRM
Core of loyal and committed employees
Significantly better financial results
Lower unit costs
Higher profits and market share
Lower quit, grievance, and customer complaints

15. TWO TYPES OF HRM (continued)
Benefits of progressive HRM (continued)
Positive outcomes increase when progressive practices adopted as package
Labour-management climate and supportive work system more important to organizational performance than specific HRM
Downsizing during quality improvement initiatives reduces trust

16. TWO TYPES OF HRM (continued)
Barriers to adoption of progressive HRM
Direct cost to employers
Flies in face of short-term business orientation
Necessitates power-sharing--managers AND unions

17. TWO TYPES OF HRM (continued)
Barriers to adoption of progressive HRM will diminish
Difficult for developing countries to compete on basis of lower labour costs alone
Young people more educated
Young people less tolerant of bureaucracy and hierarchy
Young people want challenging and varied work

18. NEW CHALLENGES FOR TODAY’S MANAGERS
Need to increase training
Workplace training has not kept pace with increased globalization and technological change
Firms in developing countries will have to increase efforts significantly if competing internationally

19. NEW CHALLENGES FOR TODAY’S MANAGERS (continued)
Need for managers to develop cross-cultural communications and negotiation skills
Specific training in communications and negotiation skills appropriate for countries in which doing business
Pace and timing of negotiations can differ between countries
Increased foreign language training can help with diverse workforce in Turkey and TRNC

20. NEW CHALLENGES FOR TODAY’S MANAGERS (continued)
Recruitment and retention
Organizations have to hire large numbers of new employees
Decline in available people
Retention of older employees to avoid loss of institutional memory
May be difficult to motivate older employees

21. NEW CHALLENGES FOR TODAY’S MANAGERS (continued)
New IR/HR role
Strategic
Coach to line managers
Training line managers in “people” responsibilities
Training line managers in labour relations and conflict resolution