Managing People and Resolving Differences

1
Managing People and Resolving Differences

• Lecture 3
• HRM and the Promotion of Employee Voice,
  Involvement and Participation

2
Trends in Employee Relations

• Decline in Trade Union Membership
• 1979 58 of all workers were trade members
• 2002 26.6 of all workers were trade union
  members
• (1998) No union members were employed in 47 of
  UK workplaces employing more than 25 people
  (Cully et al 1999)

3
Trends in Employee Relations

• Traditional industrial relations (i.e. terms and
  conditions of employment determined through
  collective bargaining arrangements) remains
  predominant in public sector organisations
• In the private sector traditional forms of
  industrial relations system are in decline

4
Trends in Employee Relations

• Marked decline in industrial action
• Increased employment law protecting employee
  rights
• New focus is on regulatory practices in payment
  systems, training, employee involvement and
  participation

5
Background to Employee Consulation and
participation

• North America
• Social Chapter
• Workplace Social Partnership
• European Works Council (Fewer than 1 in 3
  companies covered by EWC Directive have such a
  body in place IPA 2004)

6
Employee Consulation and Participation in Practice

• Workplace trade union role restricted to
  grievance, discipline and health and safety (WERS
  1998)
• 30 of workplaces covered by a formal recognition
  agreement had no workplace reps
• In workplaces with 25 plus employees 3
  negotiated on recruitment selection and 6 on
  staffing, redeployment and work organisation
• Voluntary agreements covering consultation
  increased from 59 to 79 (TUC 2002)

7
EU Directive on Information and Consultation

• General Framework for IC through elected
  employee representatives Irrespective of union
  recognition or membership
• Issues covered include proposed job cuts,
  business expansion, changes to employment
  contracts and work organisation

8
EU Directive on Information and Consultation

• Will apply to all organisations with 50 or more
  employees whether unionised or not
• 75 of all employees in the UK and Northern
  Ireland

9
EU Directive on Information and Consultation
Transitional Provision

• 23rd March 2005 for companies with more than 150
  employees
• 23rd March 2006 for companies with 100-149
  employees
• 23rd March 2008 full application of the directive

10
EU Directive Enforcement Sanctions

• Member states must
• Provide appropriate judicial procedures for
  non-compliance
• Provide adequate penalties for non-compliance

11
Implications of EU Directive on Information and
Consultation

• Opportunity to establish good workplace practice
• Timely consultation with workers helps effective
  business management
• Information sharing could enhance high trust
  relationship between workers and management

12
Implications of EU Directive on Information and
Consultation

• In the UK public sector there is a lack of
  universal workplace institutions that can create
  a framework for the development of high trust
  relationships
• Will the directive facilitate more union
  involvement in strategic issues?
• How much business information can be safely
  communicated?

13
Key Questions Relating to Employee Involvement
and Participation

• How far should employees be involved in strategic
  decision making?
• Should involvement be through trade unions or
  direct?
• What form should involvement take?
• At what level should involvement take place?
• Which issues should be the subject of involvement?

14
Management Styles in Employee Involvement and
Participation (Prucell and Siisson 1983)

• Traditional Fire-fighting approach, employee
  voice not important, authoritarian hostile to
  union, owner managed
• Paternalist- unitarist, enlightened management,
  participation aimed at encouraging strategic
  alignment
• Consultative- Trade union recognition, problem
  solving, two way communication

15
Traditional Management Styles in Employee
Involvement and Participation (Prucell and
Siisson 1983)

• Constitutional Emphasis in formal agreements to
  regulate relationship between two powerful
  protagonists (public sector orgs)
• Opportunistic Large company devolving
  responsibility for employee involvement and
  participation subsidiaries, no common approach,
  emphasis on unit profitability

16
Forms of Direct Employee Involvement and
Participation

• Team Briefing
• Provides authoritative information at regular
  intervals,
• Highlights production targets, aligns
  organisational and employee objectives
• Provides scope for clarification and questions
• Promotes the role of supervisors and line
  managers as sources of information

17
Forms of Direct Employee Involvement and
Participation

• Quality Circles - Structured around groups of ten
  fifteen employees
• Can be used as problem solving groups
• Help increase the stock of ideas
• Encourage co-operation across functions and
  departments
• Legitimise change
• Provides a mechanism for employees to contribute
  their ideas and experience

18
Forms of Direct Employee Involvement and
Participation

• News Sheets in-house journals, news letter
• Attitude Surveys questionnaire introduced at
  regular intervals
• Useful for management to establish the level of
  staff morale, commitment etc
• Facilitates interdepartmental comparisons
• Need to be acted upon

19
Forms of Direct Employee Involvement and
Participation

• Team working/self directed groups based around
  groups of approx 12 members
• Form of worker control/autonomy

20
Arguments for Employee Involvement and
Participation

• Employees like to be involved and appreciate
  involvement initiatives
• Employee involvement initiatives improve
  commitment
• Involvement makes change easier for employees to
  accept
• Involvement increases levels of job satisfaction
• Employee involvement is associated with lower
  staff turnover