1. Lecture 6 Employee relations
HRM for MBA Students
Lecture 6
Employee relations

2. Learning outcomes
Understanding and evaluating the main explanations given for conflict in organisations
Understanding the nature of negotiations in the context of employee relations
Understanding the purpose and nature of both grievance and disciplinary procedures
Familiarity with the process of traditional collective bargaining and agreements
Familiarity with the main forms of industrial action
Understanding the nature of ‘new employee relations’
Understanding the concepts of employee engagement and employee voice

3. Employee relations
The policies and practices an organisation uses in dealing with its employees
Also, the systems of rules and mechanisms by which organisations and employees interact with each other
The term covers both collective relations and policies and procedures which operate at small-group or individual level – eg disciplinary or grievance procedures

4. Grievance and discipline
Most managers would agree that it is inevitable that there are issues concerning grievances and discipline in most, if not all, organisations
Employers (managers) and employees (workforce) both have legal rights and responsibilities
They also both have informal expectations of each other

5. Employees’ expectations
That employers will treat them reasonably, fairly and consistently
That action will only be taken against them on the basis of just cause and after proper and thorough investigation
Employees will feel they have a right to pursue a grievance if these expectations are not met

6. Employers’ expectations
That employees will perform their duties and tasks in a satisfactory manner in accordance with their legal obligations and the organisational policies and procedures
That, if the employees’ performance is not satisfactory, employers have the right to take appropriate action – which could include disciplinary action

7. The employment relations process
The employment relationship is usually seen by both sides as an ongoing relationship which should survive the resolution of any particular dispute, whether individual or collective
If grievance and disciplinary cases are dealt with properly, we assume that employee dissatisfaction should be reduced and motivation increased, with consequent improvements in individual, team and organisational performance

8. The employment relations process (cont.)
Good grievance and disciplinary procedures typically are set in stages, and on the basis that issues should be dealt with as close to their origin as possible
The general principle is always to deal with issues at the lowest level possible given the nature of the inappropriate behaviour

9. Negotiation is defined as:
a process for resolving conflict between two parties whereby both modify their demands to achieve a mutually acceptable compromise.
Kennedy et al (1984, p.12)

10. Conditions needed for collective bargaining
Both management and the workforce must be organised: this implies the existence of trade unions or some other sort of association representing the employees
Formal recognition of the trade unions or other employee association(s) by management
Mutual agreement to negotiate in good faith and to keep the agreements that are reached

11. Characteristics of the negotiating process in employee relations
The parties are not involved in a one-off negotiation and usually want to continue working together after the negotiation or bargaining has been completed
The negotiation is usually about more than one issue – eg basic pay and some aspect of working conditions or some other benefits
Negotiations are conducted by representatives from each side and so agreements reached by them will require endorsement from the wider parties
Each side must establish its priorities, strategies and tactics before the negotiations start
Once an agreement has been reached, there is joint responsibility to make it work

12. Negotiation MANAGEMENT’S BARGAINING RANGE EMPLOYEES’ BARGAINING RANGE
(via trade union or staff association)
Ideal settlement point
Target point
Resistance point
Bargaining parameters

13. Some types of collective agreements
Single-union recognition
Partnership agreements
New-style agreements

14. Dispute resolution: arbitration, conciliation and mediation
a third party, the arbitrator, reviews and discusses the negotiating stances of the disagreeing parties and makes a recommendation on the terms of settlement which is binding on both parties
Conciliation
a third party (eg ACAS) attempts to get the two parties to agree on terms. Conciliators do not make recommendations
Mediation
a third party makes recommendations which the parties are not bound to accept

15. Informal employee relations processes
Managers should always remember that within that formal framework of negotiation, bargaining, etc , informal employee relations processes are taking place continuously, whenever a line manager or team leader is handling an issue in contact with an employee representative, an individual employee or a group of employees

16. Industrial action
The sanctions which employees may resort to if bargaining or negotiation does not produce an acceptable result
Informal industrial action is represented mostly by individual, unorganised forms of action such as:
high labour turnover
poor time-keeping
high absenteeism
withholding of effort
inefficient working
time-wasting
sabotage
complaints

17. Formal industrial action
Working to rule
Go-slow
Overtime ban
Strike (withdrawal of labour)
Sit-in (occupation of workplace)
Work-in (occupation of workplace and attempt to keep it operating without management)

18. The ‘new employee relations’
In general [the employee relations
agenda] is no longer about trade unions.
There is more emphasis on direct communication, managing organisational change and involving and motivating staff. Issues about work–life balance and the war for talent reflect a changing workforce with changing expectations.
The CIPD (2005)

19. The ‘new employee relations’ (cont.)
... but employee relations skills and competencies are still critical to achieving performance benefits. The focus now needs to be on gaining and retaining employee commitment and engagement.
The CIPD (2005)

20. Employee engagement
[Employee engagement] ‘can be seen as a combination of commitment to the organisation and its values plus a willingness to help out colleagues (organisational citizenship). It goes beyond job satisfaction and is not simply motivation. Engagement is something the employee has to offer: it cannot be “required” as part of the employment contract.’
‘Employers want engaged employees because they deliver improved business performance’
The CIPD (2007)

21. Drivers of engagement
Involvement in decision-making – having opportunities to feed views ‘upwards’
Freedom to voice ideas, to which managers listen
Feeling enabled to perform well
Having opportunities to develop the job
Feeling that the organisation is concerned for employees’ health and well-being
Institute of Employment Studies

22. Employee voice
‘Upward problem-solving’ and ‘representative participation’ to increase the exchange of information between managers and employees
Replacing or supplementing traditional, indirect means of communication such as joint consultation
Seeking to promote engagement and higher performance at work