HRM IIB

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HRM IIB

• The Three Perspectives on Industrial Relations
  and Management Style of IR

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Overview of the Lecture

• Explain the three views on industrial relation
• Unitarist perspective
• Pluralist perspective
• Radical perspective

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Introduction

• In developing a theory of industrial relations
  various approaches or perspectives have been
  identified.
• Important to remember that these are analytical
  categories and not predictive models.
• No single perspective is correct, they all
  emphasise a different aspect of IR.

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Introduction

• Unitarism emphasis the organisation as a coherent
  team united by a common purpose.
• Pluralism sees the organisation as an
  amalgamation of separate homogeneous groups
  within some kind of dynamic equilibrium.
• Radical perspective is based on class analysis
  and class conflict in society.

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Unitarism

• In terms of this approach the organisation is
  seen as a single entity, with a single authority
  and a loyalty structure.
• The organisation has a common set of values,
  interests and objectives shared by all members of
  the organisation.
• Managements right to manage is seen as legitimate
  and rational.

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Unitarism

• Any opposition to managements right to manage is
  seen as irrational.
• This view sees no conflict between employers and
  employees since both are partners to the common
  aim of production and profit.
• All employees strive for greater productivity in
  order that all can share the rewards.

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Unitarism

• This means that each worker does his or her best,
  accepts their place in the hierarchy and follow
  the appointed leader.
• Conflict is seen as irrational and antisocial.
• Conflict is seen to be caused by agitators.
• If conflict exist it is the fault of employees
  and not management.

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Unitarism

• Trade unions are intrusions from outside
  competing with management for the loyalty of
  workers.
• Trade unions has a negative effect on the
  prerogatives of management.
• Trade unions redirect the loyalty of employees
  away from management.

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Unitarism

• Many businesses promote unitarism because
• It legitimises managements authority.
• It emphasises managements right to rule.
• Employees promote the interest of management.
• That any challenge to management is misguided and
  subversive.

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Pluralism

• This perspective sees the organisations as being
  composed of individuals who come from a variety
  of distinct sectional groups with each having its
  own interests, objectives and leadership.
• The organisation is seen as multi-structured in
  terms of groups, leadership, authority and
  loyalty.

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Pluralism

• The organisation thus has to manage tension and
  competing claims in order to maintain a
  collaborative structure.
• Conflict is accepted as inevitable due to the
  existence of different interest groups.
• Conflict is limited due to the interdependence of
  parties for economic survival.

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Pluralism

• Unions and management will use interactive
  mechanism to settle disputes.
• Negotiations and collective bargaining are
  important mechanisms for the settlement of
  disputes.
• Employers recognise trade unions as part of the
  labour scene.

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Pluralism

• Trade unions recognise managements role within
  the enterprise.
• Management do not place restrictions on what is
  being negotiated and bargained for.
• Trade unions are recognised as organisations
  capable of communicating workers needs and aims
  to management.

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Pluralism

• Pluralism recognises that the organisation is in
  a dynamic state of tension due to competing
  interests.
• Institutions and processes must be in place in
  order to manage the conflict.
• Due to the interdependence of the parties
  destructive conflict is to a large extent avoided.

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Radical Perspective

• This approach has its source in the works of
  Marx.
• Class conflict is the source of change in
  society.
• Class conflict arises out of the distribution of
  and access to economic power.
• Principle conflict is between those who own
  capital and those who supply labour.

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Radical Perspective

• Societies, social and political institutions
  favour capitalist.
• Working class have unequal access to educational,
  economic, political, and other social
  institutions.
• Social and political conflict is an expression of
  the underlying economic conflict in society.

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Radical Perspective

• Organisations reflect wider society and the
  division is between owners and non-owners of the
  productive system.
• Managements main aim is profit, and control
  over work is enforced by management towards that
  aim.
• Industrial conflict is a natural part of the
  system.

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Radical Perspective

• All conflict stems from the division in society
  between those who own and manage the means of
  production and those who sell their labour.
• Conflict is thus natural to the capitalist system
  and gets reflected in the organisations.

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Radical Perspective

• Trade unions are seen as part of the class
  struggle.
• Trade unions should link their activities to
  political parties to achieve fundamental change
  in society.
• Collective bargaining is seen as a way of
  co-opting trade unions into the capitalist system.

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Management Strategy

• Why should management have a strategy?
• That which differentiates management, as a
  group, from other roles in the organisation, is
  that, through formal authority structure of the
  organisation, they represent, make decisions and
  act on behalf of the organisation as an entity
  Michael Salamon

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Management Strategy

• Employers like unions are major actors in IR
• Shape the path of IR within firm and nationally
• IR strategy is connected to
• Union strength
• Political and social objectives of unions
• Need to regulate conflict
• Sensitivity to market competition

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Management Strategy

• British studies have shown
• Firms have no IR strategy
• Management tends to react rather than deal with
  issues proactively
• Fire-fighting tactics the norm in IR
• Constraints and choices influences strategy
• Constraints limitation on power, resources
• Choices cultural values of management

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Management Strategy

• An organisational value based on Unitarism will
  lead to a IR strategy that
• Suppresses unions leads to conflict
• Avoids unions thru comprehensive HRM also leads
  to conflict
• A strategy based on Pluralism
• Union accommodation collective bargaining
• Union cooperation participation, development

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Management Strategy

• Bendix
• Identifies various styles of IR management
• Fox developed 5 types of relationships
• Traditional unitariast by both employers and
  employees
• Management is resistant to unions and wants to
  win at all times
• Sophisticated modern both parties adopt a
  pluralist perspective

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Management Strategy

• Both parties accept each other collective
  bargaining is institutionalised, procedures
  established to regulate behaviour
• Sophisticated paternalistic style management
  wants a pluralist approach but employees adopt a
  unitarist approach
• Paternalism prevails and employees are motivated
  by good human resources management

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Management Strategy

• Conflict challenge style management stuck in
  unitarist style and employee are pluralist.
  Employees place demands and management refuses to
  acknowledge such demands
• Standard modern style ambivalence on both sides.
  Management is aware of pluralist approach but
  adopts a unitarist style. Employees occasionally
  make demands but dont rock the boat

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Management Strategy

• Purcell 6 possible managerial styles
• Traditional style, also autocratic unitarism.
  Management wants to maximise profits and labour
  costs are kept low.Employees have no job
  security, management is autocratic and conflict
  is suppressed
• Paternalistic style company cares for the
  employee who knows his place in the hierarchy,
  communication and motivation but no unions

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Management Strategy

• Sophisticated human relations style unions are
  actively avoided but there is promotion and
  development of the individual thru sophisticated
  HRM such as higher wages, training development
  and good communication
• Bargained constitutionalism accept unions to
  contain conflict, bargaining on narrow range of
  procedural issues

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Management Strategy

• Management retain its right to manage make
  decisions, unions treated fairly if remain within
  constitutionally established relationship, unions
  help maintain discipline and order reduce
  conflict
• Modern paternalistic style effort to build
  constructive relationship thru consultation,
  briefing groups set up to deal with IR as well as
  operational issues paternalistic in style in
  that management share to gain commitment

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Management Strategy

• Sophisticated consultative style management
  shares all aspects of organisational training
  with unions, but reserves the right to make final
  decisions, uses teambuilding, quality circles,
  profit sharing and share ownership schemes
• M Finnemore using same research has reduced the
  typologies to 4 models

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Management Strategy

• Autocratic Unitarism and union suppression
• Company looks to maximise profit
• Labour cost kept to a minimum no unions
• Management controls the emplm. relationship
• Unions are aggressive org. and against the co.
• Strategy to suppressive union development
• Used extensively in SA during apartheid and with
  collusion of police

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Management Strategy

• Sophisticated paternalistic unitarism and union
  avoidance
• Use sophisticated HRM systems to undermine union
  support
• Aggression and confrontation is avoided
• Strategies used to discourage unions
• Wages higher than market rates
• Investment in training and career development

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Management Strategy

• Stabilise employment and avoid retrenchments
• Communication and information sharing
• Effective grievance procedure
• Weed out workers who are pro-union
• Social functions to develop company identity
• Elite core of permanent workers with benefits
• Peripheral group of casual part-time workers
• In-house workers association for consultation

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Management Strategy

• The above mentioned strategy has been used
  effectively in the USA
• Unionism has been in decline and 15 of the
  workforce is unionised
• Strategy might not work in SA because of strong
  tradition of unions
• Companies may not have resources to implement
  benefits to satisfy employees

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Management Strategy

• Adversarial pluralism and collective bargaining
• Since 1970 companies have to deal with the
  reality of trade unions in SA
• Due to vulnerability to strikes, consumer
  boycotts and international pressure companies had
  to accept the presence of trade union

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Management Strategy

• In this strategy the company
• Accepts the freedom of association
• See unions as a necessary interest group to the
  workplace
• See shop stewards as a way of communicating with
  workers
• Accept the rights of unions to bargain
  collectively

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Management Strategy

• Uses collective bargaining on a win-lose basis
• Accepts the right to strike and lockout
• Emphasis is on workplace rule and procedures to
  regulate conflict
• Use labour law to enforce compliance to
  procedures and agreements
• Attempt to restrict range of items to be
  negotiated
• Maintain prerogative to run the business

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Management Strategy

• Consultative pluralism employee participation
  and cooperation
• Groups have different interest at the same time
  there is a common interest in the survival of the
  firm
• Employee participation and union/management
  cooperation seen as creating a stable business
  environment

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Management Strategy

• Business objective of profit is maintained
• Satisfaction of employees are assured
• Emphasis on WCM and strategic planning
• WCM produces goods at a price and quality that is
  competitive on the world market
• Calls for flatter org. and workers who are
  accountable for their own performance
• Core jobs add value and other jobs are
  peripheral part-time, casual

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Management Strategy

• Emphasis is on development of HR thru education,
  multi-skilling, and career paths
• Less top down supervision and greater worker
  control
• Full information disclosure and joint decision
  making with the unions
• Implementation of performance based incentive
  schemes
• Unions adopt flexible accommodation

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Management Strategy

• Historically in SA as unions developed,
  companies
• Used aggressive union bashing tactics
• Unions responded by using legislation to protect
  rights
• Collective bargaining arose but emphasis on
  rules, procedures, legal enforcement of
  agreements, adversarial bargaining
• Subsequently participation and cooperation

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Next Lecture

• History and development of industrial relations
  in South Africa.