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Transcript of SHRM - Chap3
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Strategic Human Resource Management
Chapter: 03
Industrial Relations
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Group Members
Mohammad Jawad
Sana AliGillani
Nida Ali Raza
Fahim Alam
Bushra Tabbassum
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IR & Strategic HRM
In the beginning, personnel management and IRwere considered separate functional entities
SHRM brought the two fields together in an
operational sense By aligning these spheres much more directly and
closely to the organization Relationship between IR and HRM is uneasy and
contested IR rules and regulations often set outside the
organization, interfere with the internal HRMpolicies and strategies
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IR & Strategic HRM (contd)
IR has a concern with the third parties HRM emphasis on direct relations between
individual employee and employer
HRM in both theory and practice is anti-union andexplicitly pro-management
Yet understanding IR and Regulatory frameworkremains important for the effective practice ofHRM
Especially in the countries having strong IR
history and vibrant union culture
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Concept & Meaning
Relationship between employees andmanagement in the day-to-day working of anindustry
But this concept has a wide meaning, IR is a setof functional independence involving historical,economic, social, psychological, demographic,technological, occupational, political and legalvariables.
According to Dale Yoder, Industrial Relations area whole field of relationship that exists becauseof the necessary collaboration of men and womenin the employment process of an industry.
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SHRM and the Bargaining Framework
Vision
Strategic BusinessPlan
Key Stakeholders
Dynamic
Environment
HRStrategy
HR Plans& Policies
Managing theEmploymentRelationship
Federal and StateBargainingFrameworks
DynamicEnvironment
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Features of IR
Industrial relations are governed by the system ofrules and regulations concerning work place andworking community
The main purpose is to maintain harmoniousrelations between employees and employer bysolving their problems though grievanceprocedure and collective bargaining
Trade Union is another important institution in the
industrial relations
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Features ofIR (contd)
Trade union influence and shape the industrialrelations through collective Bargaining
The Government-involves to shape the industrialrelations through laws, rules, agreements, awardsetc
The important factors of industrial relations are:employees and their organizations, employer andtheir associations and Government
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Objectives of IR
o To enhance the economic status of the workerby improving wages, benefits and by helping in
evolving sound budgeto To socialize industries by making the
government as an employer
o To provide an opportunity to the workers tohave a say in the management and decision-making
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Objectives ofIR (contd)
o To improves workers strength with a view tosolve their problems through mutualnegotiations and consultation with the
managemento To encourage and develop trade unions in order
to improve the workers strengtho To avoid industrial conflict and their
consequenceso To extend and maintain industrial democracy
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Sana AliGillani
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Industrial Relations in Australia
The dimensions of the existing Australian bargainingframework
I. The major parties/bargaining agents in IRII. The Legislation
III. The IR institutions
IV. The IR process
V. The instrument of regulation
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1. The Parties in IR
Unions and Union Movement
According to H.B. Higgins, unionism should be
fostered so that the employers did not have todeal with the individual complaints of eachemployee
By the end of the century, such support forunions and legitimate actors in IR has declined
Emerging HRM emphasized direct communicationwith the employees and individualization of theemployment relationship
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1. The Parties in IR (contd)
The causes of decline of unionism in Australia
may be grouped into two categories
Internal Cause: union themselves, their politicalalliance with Australian Labor Party
External Cause: changes in the volume, structureand nature of work, as well as management andgovernment strategies
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1. The Parties in IR (contd)
Unity and collective actions are the foundationconcepts of unionism
They may operate independently during thebargaining, it often shares power with otherunions
Despite the changed political, economic and socialenvironment, the union movement continues toplay an important role in Australian society andworkplace
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1. The Parties in IR (contd)
Employers in Australia formed associations torepresent them in multi-employer bargaining &before industrial tribunal
Employer have sought to alter their relations withemployees and unions
This is conducted through choosing specific HRMpolicies and strategies
In terms of social and psychological contracts
with employees, HR managers seek to gain eitherincreased compliance or greater organizationalcommitment
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2. The Legislation WR Act 1996
It represented an institutional break or aparadigm shift
Formalized a new bargaining system enterprisebargaining
Reduced the role of AIRC and the scope of itsdecision, known as awards
Discouraged unions by prohibiting compulsoryunionism & made union access to workplace more
difficult Encouraged the establishment of smaller unions
and the formation of enterprise unions
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Nida Ali Raza
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3. The IR institutions
AIRC remains and ironically, the WR Act alsoestablished a new institution Office of theEmployment Advocate (OEA)
The functions of AIRC include registration ofunions and employer associations
The over sighting and regulation of employmentissues
The making of industrial awards and the settlingof unfair dismissal claims
The main purpose of OEA is to facilitate themaking and filing of AWAs EA is to have particular regard to the needs of
workers in disadvantaged bargaining positions,assisting to balance work and familyresponsibilities and promoting better work andmanagement practices
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4. The Processes EB, CB & PB
Two key concepts, Collective Bargaining andArbitration
They have been the main processes used to
resolve conflict between employers and unionsand settle the terms & conditions of work
In Australia the arbitral powers of the industrialtribunals have become restricted
Emphasis is now placed on direct bargainingbetween the employers and employees, in
Australia this process is referred to as enterprisebargaining EB is negotiation that is focused at the workplace
level and does not necessarily involve unions
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4. The Processes EB, CB & PB(contd)
Pattern Bargaining: Imitation of collectivebargaining settlements by parties not directlyinvolved in the initial negotiations
Concession Bargaining: Unions agreeing to wagecuts or freezes or in other ways, such as workrule changes, giving back to employers previousgains
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5. The instruments of regulation
awards, certified agreements & AWAs
Awards are legally enforceable orders that set outthe minimum wages and conditions of employeescovered by them
Awards are legally binding documents that mustbe signed and dated and must specify acommencement date and period of operation
The outcomes of enterprise bargaining arecodified in instruments called certified agreements
the most common provision included in certifiedagreements are hours of work, training andperformance indicators
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Fahim Alam
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HRM and Enterprise Bargaining
EB was first introduced in Australia To operate within the new bargaining
environment, the HR managers requires abilities
including contractual skills, negotiating skills andability to deal with more people and a morecomplex legal environment
Line managers and senior managers appear to besignificantly involved in employment matters asHR practitioners
From a SHRM perspective, bargaining provides anopportunity whether or not to use the bargainingframework to initiate high commitment model ormaintain high control
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IR in Pakistan
industrial labour force in Pakistan is organised inthe form of trade unions
employers have also organised themselves in the
institutions of Chambers of Commerce andIndustry with a view to protect their interest
basic law which plays an important role inpromoting sound labour-management relations isthe IR Ordinance, 1969
It is legally obligatory on the parties to enter intodirect negotiations in the first instance
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LaborCourt
Industrial disputes are resolved in the forum ofadjudication, called the Labour Court
Basic Functions:
adjudicate and determine industrial disputes
to enquire into the facts and adjudicate any matterrelating
to the implementation or violation of a settlement
to try offences under the Industrial Relations Ordinance
In the event of failure of bilateral negotiations, eitherparty to the dispute, may invoke conciliationproceedings by serving on the other party to thedispute a notice of strike or lock-out
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Summary
Managing the employment relationship hasbecome a critical aspect of strategic HRM
Understanding the IR system and bargainingframework are critical
Australia has moved away from the system basedon compulsory conciliation and arbitration and thecollective representation of the employees andemployers
The emphasis is shifted to EB and a reduced roleof third parties and increased emphasis on non-union agreements and individualizing theemployment relationship
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Summary (contd)
Role of HRM in such a complex, fluid, andcontentious environment is difficult
It highlights not only the conflicting roles of HRmanagers, as agents of the management and asadvocates of employees
But also the need to remain alert to changes inthe legislative and political contexts