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EMPLOYEE EMPLOYEE RELATIONSRELATIONS

ASSOC PROF DR NORLIDA ASSOC PROF DR NORLIDA KAMALUDDINKAMALUDDIN

IntroductionIntroduction

Human resource ?Human resource ?

Employee relations a term that Employee relations a term that relatively recent years become relatively recent years become commonly used to indicate a commonly used to indicate a particular area of subject matterparticular area of subject matter

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What is employee relations / What is employee relations / industrial relations?industrial relations?

??ArgumentsArguments

!!

Blyton and Turnbull [1994] Blyton and Turnbull [1994] Why they have chosen to use the term employee as Why they have chosen to use the term employee as

opposed to industrial opposed to industrial

Industrial relations Employee relations

•Became associated with trade unions, collective bargaining and industrial action

•Encompass the dominant service sector which in many countries employs more than 70% of the workforce such as more women working and more part-time, temporary and fixed term contracts

•Had too strong a tendency to view the world of work as synonymous with the heavy extractive and manufacturing sectors of employment, sectors which were dominated by male manual workers working full time

•Include non-union as well as union scenarios and relationships

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Marchington and Wilkinson [1996]Marchington and Wilkinson [1996]

Discuss this differences and suggest term Discuss this differences and suggest term employee relations has emerge for 3 employee relations has emerge for 3 reasons:reasons:– Usage, fashion and slippageUsage, fashion and slippage– It is increasingly used by personnel practitioners It is increasingly used by personnel practitioners

to describe that part of personnel and to describe that part of personnel and development concerned with the regulations development concerned with the regulations [collective and individual] between employer and [collective and individual] between employer and employeeemployee

– There are actual and real differences of focus, There are actual and real differences of focus, with employee relations tending to focus upon with employee relations tending to focus upon management and issues alone management and issues alone

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DefinitionDefinition Employee Relations involves the body of work Employee Relations involves the body of work

concerned with maintaining employer-employee concerned with maintaining employer-employee relationships that contribute to satisfactory relationships that contribute to satisfactory productivity, motivation, and morale.   Essentially, productivity, motivation, and morale.   Essentially, Employee Relations is concerned with preventing Employee Relations is concerned with preventing and resolving problems involving individuals which and resolving problems involving individuals which arise out of or affect work situations.arise out of or affect work situations.

Employee relations consist of all those areas of Employee relations consist of all those areas of human resource management that involve human resource management that involve relationships with employees-directly or through relationships with employees-directly or through collective agreements where trade unions are collective agreements where trade unions are recognisedrecognised

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Concepts of employee relationsConcepts of employee relations

Relationship will be concerned with Relationship will be concerned with the agreement of terms and the agreement of terms and conditions of employment and with conditions of employment and with issues arising from employment.issues arising from employment.

Employee relations practices include Employee relations practices include formal processes, procedures and formal processes, procedures and channels of communicationchannels of communication

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The HRM approaches to employee The HRM approaches to employee relationsrelations

A drive for commitmentA drive for commitment An emphasis on mutualityAn emphasis on mutuality The organisation of complementary forms of The organisation of complementary forms of

communication, such as team briefing, alongside traditional communication, such as team briefing, alongside traditional collective bargainingcollective bargaining

A shift from collective bargaining to individual contractsA shift from collective bargaining to individual contracts The use of employee involvement techniques such as The use of employee involvement techniques such as

quality circles or improvements groupsquality circles or improvements groups Continuous pressure on quality-TQMContinuous pressure on quality-TQM Increased flexibility in working arrangementsIncreased flexibility in working arrangements Emphasis on teamwork'sEmphasis on teamwork's Harmonisation of terms and conditions for all employeesHarmonisation of terms and conditions for all employees

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Elements of employee relationsElements of employee relations

The formal and informal employment policies and practices The formal and informal employment policies and practices of the organisationof the organisation

The development, negotiation and application of formal The development, negotiation and application of formal systems, rules and procedures for collective bargaining, systems, rules and procedures for collective bargaining, handling disputes and regulating employmenthandling disputes and regulating employment

Policies and practices for employee involvement and Policies and practices for employee involvement and communicationscommunications

The philosophies and policies of the major players in the The philosophies and policies of the major players in the industrial relations scene: the government of the day, industrial relations scene: the government of the day, management and through trade unionsmanagement and through trade unions

The legal frameworkThe legal framework The number of institutions such as the Advisory, arbitration The number of institutions such as the Advisory, arbitration

service and the employment tribunalsservice and the employment tribunals

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Advantages of maintaining good Advantages of maintaining good employee relationsemployee relations

Reduced absenteeismReduced absenteeism Improved morale and motivationImproved morale and motivation Harmony in organizationHarmony in organization Attract good talentAttract good talent Lesser attrition-reduced cost on training, Lesser attrition-reduced cost on training,

less cost of retentionless cost of retention Responsible for increase in productivityResponsible for increase in productivity Open to organizational changesOpen to organizational changes Shared learning and continues improvementShared learning and continues improvement

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Significance of good employee Significance of good employee relationsrelations

Employee attitudes and commitment are Employee attitudes and commitment are strongly associated with orgn performancestrongly associated with orgn performance

And managers see employee voice as And managers see employee voice as contributing to performance via better contributing to performance via better employee contributions and productivity employee contributions and productivity gainsgains

The informal climate of involvement and The informal climate of involvement and consultation appears to be more strongly consultation appears to be more strongly associated with employee satisfaction and associated with employee satisfaction and commitment .commitment .

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contcont

Mechanisms use for employee voice Mechanisms use for employee voice ---2 way communication, project ---2 way communication, project teams and joint consultationteams and joint consultation

The major constraints on employee The major constraints on employee voice are lack of skills and voice are lack of skills and enthusiasm by mgrs and employeesenthusiasm by mgrs and employees

The psychological contract ---The psychological contract ---employees trust , fairly treated etc…employees trust , fairly treated etc…

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How is employee relations How is employee relations organised?organised?

??

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What do people with employee What do people with employee relations responsibilities need to relations responsibilities need to

know?know? Understanding collective labor lawUnderstanding collective labor law Knowing how representative Knowing how representative

structures workstructures work Awareness of general employment lawAwareness of general employment law Facilitation and communication skillsFacilitation and communication skills Negotiation skillsNegotiation skills Understanding how to develop trust Understanding how to develop trust

and respectand respect

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contcont

Personal qualities- objectivity, Personal qualities- objectivity, robustness, confidence to tell senior robustness, confidence to tell senior people what they thinkpeople what they think

Awareness of employee attitudesAwareness of employee attitudes Business knowledgeBusiness knowledge

Management relationship to Management relationship to employee relations employee relations

Organizations are collective bodies of Organizations are collective bodies of individuals engaged in a common individuals engaged in a common purpose through individual and group purpose through individual and group efforts. Channelizing human energies efforts. Channelizing human energies in a predetermined desirable direction in a predetermined desirable direction is not possible unless harmonious is not possible unless harmonious relations are maintained among relations are maintained among organizational membersorganizational members. .

Management relationship to Management relationship to employee relations employee relations …Contd.…Contd.

Relationship among employees Relationship among employees provides the context in which provides the context in which organizational roles assigned to organizational roles assigned to members are performed, team spirit members are performed, team spirit inculcated, expectations clarified, inculcated, expectations clarified, conflicts resolved and shared norms of conflicts resolved and shared norms of behaviour developed.behaviour developed.

Management relationship to Management relationship to

employee relations …Contdemployee relations …Contd.. Maintenance of harmonious relationship Maintenance of harmonious relationship among employees across the vertical and among employees across the vertical and horizontal levels of the organization is horizontal levels of the organization is thus a necessary condition for enabling thus a necessary condition for enabling organizations to move towards excellenceorganizations to move towards excellence..Despite the significance of healthy Despite the significance of healthy employee relations, there are occasions in employee relations, there are occasions in the life of every organization when the life of every organization when relationships are strained, particularly relationships are strained, particularly between the management and the between the management and the individual employee.individual employee.

Management relationship to Management relationship to employee relations employee relations …Contd.…Contd.

The management has certain The management has certain expectations of the employees in terms expectations of the employees in terms of standards of behaviour and of standards of behaviour and performance, code of conduct, desirable performance, code of conduct, desirable actions and behaviour which are made actions and behaviour which are made known to the employees through formal known to the employees through formal or informal, written or verbal means.or informal, written or verbal means.Failure to meet these expectations or Failure to meet these expectations or deviations from the laid down norms of deviations from the laid down norms of behaviour on the part of the employees behaviour on the part of the employees leads to the problem of indiscipline.leads to the problem of indiscipline.

Management relationship to Management relationship to employee relations employee relations …Contd.…Contd.

In such situations, the management must In such situations, the management must initiate action to ensure that an initiate action to ensure that an employee’s behaviour is in conformity employee’s behaviour is in conformity with their expectations.with their expectations.Likewise, the employees also have Likewise, the employees also have certain expectations of the management certain expectations of the management in terms of their conditions of service, in terms of their conditions of service, working environment, satisfaction of their working environment, satisfaction of their variety of needs, freedom of expression variety of needs, freedom of expression and operation and equitable, just and fair and operation and equitable, just and fair treatment which are often made known treatment which are often made known to the management through various to the management through various means of upward communication.means of upward communication.

Management relationship to Management relationship to employee relations employee relations …Contd…Contd..

In such situations, the management must In such situations, the management must initiate action to ensure that an employee’s initiate action to ensure that an employee’s behaviour is in conformity with their behaviour is in conformity with their expectations.expectations.Likewise, the employees also have certain Likewise, the employees also have certain expectations of the management in terms of expectations of the management in terms of their conditions of service, working their conditions of service, working environment, satisfaction of their variety of environment, satisfaction of their variety of needs, freedom of expression and operation needs, freedom of expression and operation and equitable, just and fair treatment which and equitable, just and fair treatment which are often made known to the management are often made known to the management through various means of upward through various means of upward communication.communication.

Management relationship to Management relationship to employee relations employee relations …Contd.…Contd.

Failure on the part of the management to Failure on the part of the management to meet those expectations leads to what is meet those expectations leads to what is called employee grievancecalled employee grievance..Thus both the problems of discipline and of Thus both the problems of discipline and of employee grievance are two sides of the employee grievance are two sides of the same coin. They result from the mismatch of same coin. They result from the mismatch of the expectations of the management and the expectations of the management and the employees and failure of one group to the employees and failure of one group to meet the expectations of the other. If the meet the expectations of the other. If the problems relating to discipline and employee problems relating to discipline and employee grievance are not properly managed, the grievance are not properly managed, the relationship is strained and harmony relationship is strained and harmony disturbeddisturbed..

Management relationship to Management relationship to employee relations …Contd. employee relations …Contd.

The strained relationship affects adversely The strained relationship affects adversely the productivity, efficiency and effectiveness the productivity, efficiency and effectiveness of the total organizationof the total organization..Yet another set of factors leading to strained Yet another set of factors leading to strained relationship is the stress that employees relationship is the stress that employees experience in carrying out their day-to-day experience in carrying out their day-to-day affairs. Failure to meet one’s own affairs. Failure to meet one’s own expectations in terms of career goal, expectations in terms of career goal, achievement and challenge, life goals, and achievement and challenge, life goals, and self-esteem may lead to stress among the self-esteem may lead to stress among the individuals.individuals.

Management relationship to Management relationship to employee relations …Contd. employee relations …Contd.

The stress can be caused by several factors The stress can be caused by several factors some of which are extra organizational in some of which are extra organizational in nature while others arise from organizational nature while others arise from organizational policies and structures, work pressures, policies and structures, work pressures, group pressures, quality of interpersonal group pressures, quality of interpersonal relationship and nature of job. Stress leads relationship and nature of job. Stress leads to anxiety and tension which in turn affects to anxiety and tension which in turn affects relationship among employees. Productive relationship among employees. Productive capacities of individuals under stress and capacities of individuals under stress and their ability to establish meaningful their ability to establish meaningful relationship with others are considerably relationship with others are considerably reduced.reduced.

Management relationship to Management relationship to employee relations …Contd. employee relations …Contd.

The problems relating to discipline, The problems relating to discipline, grievance and stress are of continuing grievance and stress are of continuing nature in the life of any organization. nature in the life of any organization. Moreover, being basically human problems, Moreover, being basically human problems, they are complex in nature in that they they are complex in nature in that they cannot easily be predicted and controlled by cannot easily be predicted and controlled by conventional managerial actions or by legal-conventional managerial actions or by legal-judicial process. What is required is a new judicial process. What is required is a new set of skills-counselling skills-the use of set of skills-counselling skills-the use of which can go a long way in resolving those which can go a long way in resolving those issues on a continuing basis. Counselling issues on a continuing basis. Counselling then becomes an important managerial and then becomes an important managerial and personnel function.personnel function.

Your Task Group Presentation

– 1. Employee relations impact on business performance [Aslinda & Zuhair]– 2. Is employee relations in practice more reactive or

proactive? [Nik & Wan]– 3. Employee relations practitioner is an employee

champion [Arlina & Adi]– 4. The role of social values in employee relations – the

concept of fairness [Nurliyana, Syezreen & Fauziah]

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