Labour Relations Final)

EMPLOYEE AND LABOR RELATIONS

“Employee and Labor Relations” is integral part of an organization. In this era almost every organization has diverse work force so it’s very difficult to manage internal relations among employees and management. In employee relations it’s mandatory for Management to solve problems of labor union and collective bargaining which is fundamental to management labor relations. The status of most workers is not permanently fixed in an organization. Employees constantly move upward, laterally, Downward, and out of the organization. In order to ensure that workers with the proper skills and experience are available at all level, constant and concerted efforts and require to maintain good internal employee relations program is very beneficial to both the organization and its employee.

INTERNAL EMPLOYEE RELATIONS: It comprises the human resource activities associated with the movement of employee within the organization. These HRM activities include Promotion, demotion, transfer, resignation, discharge, layoff and retirement. Discipline and disciplinary action is also crucial aspect of internal employee relations.

Discipline:

Discipline is the state of employee self control and orderly conduct and indicate the extent of genuine team work within an organization.

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DISCIPLINARY ACTION:

It is basically a penalty against an employee who fails to meet established standards. Effective disciplinary action addresses the employees’ wrongful behavior, not the employees as a person. Incorrectly administrated disciplinary action is destructive to both the employee and for the organization. It is not usually management’s initial response to a problem. Normally, there are more positive ways of convincing employees to adhere to company policies that are necessary to accomplish organizational goals. The major purpose of disciplinary action is to ensure that employee behavior is consistent with the firms’ rules. Rules are established to further the organization’s objectives. When a rule is violated the effectiveness of the organization is diminished to some degree, depending on the severity of the infarction. Disciplinary action can also help the employee become more productive, thereby benefiting him or her in the long run.

THE DISCIPLINARY ACTION PROCESS: The disciplinary action process is dynamic and ongoing. Because one person’s action can affect others in a work group, the proper application of disciplinary action fosters acceptable behavior by other group members. Conversely, unjustified or improperly administered disciplinary action can have a detrimental effect on other group members.

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The disciplinary process is shown in table .The external environment affects every area of human resources management, including disciplinary policies and actions. Changes in the external environment, such as technological innovations, may render a rule inappropriate and may even necessitate new rules. Laws and government regulations that affect company policies and rules are also constantly changing. Union are other external factor. Specific punishment for rule violations is subject to negotiation and inclusion in the collective bargaining agreement. Changes in internal environment of the firm can also alter the disciplinary process. Through organizational development, the firm may alter its culture. This change may result in the first-line supervisors handling disciplinary action more positively. Organization policies can also have an impact on the disciplinary action process. Rules are specific guides to behavior on the job. After management has established rules, it must communicate rules to employees. When appropriate disciplinary action is taken, employees should realize that certain behaviors are unacceptable and should not be repeated it.

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EXTERTNAL ENVIRONMENT INTERNAL ENVIRONMNET

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Organizational Goals

Establish Rules

Communication Rules to employees

Observe performance

Compare performance with rules

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Take appropriate Disciplinary Action

APPROCHES TO DISCIPLINARY ACTION: Several concepts regarding the administration of disciplinary action have been developed. Three of the most important concepts are the hot stove rule, progressive disciplinary action, and disciplinary action without punishment.

THE HOT STOVE RULE: One approach to administering disciplinary action is referred to as the hot stove rule. According to this approach, disciplinary action should have the following consequences, which are called as hot stove. 1. Burns immediately: If disciplinary action is to be taken, it must occur immediately so that the individual will understand the reason for it. With the passage of time, people have the tendency to convince themselves that they are not at fault, which tends in part to nullify later disciplinary effects. 2. Provides warning: 7

It is also extremely important to provide advance warning that punishment will follow unacceptable behavior. 3. Gives consistent Punishment: Disciplinary action should be consistent in that everyone who performs the same act will be punished accordingly. 4. Burns impersonally: Disciplinary action should be impersonal the hot stove burns anyone who touches it without favoritism. Although the hot stove approach has some advantages but also has some weaknesses. Some times situations do vary and progressive so it cannot be more realistic.

Progressive Disciplinary Action: It is basically indented to ensure that the minimum penalty appropriate to the offense is imposed. It is session of answering questions about the severity of the offense. The manager must ask series of questions—in sequence--- to determine the proper disciplinary action. In order to assist managers in the organizing the proper level of disciplinary action, some firms have formulized the procedure. One approach is to establish progressive disciplinary guideline. However, specific guidelines for various offenses should be developed to meet the needs of the organization.

Disciplinary Action Without Punishment: It gives worker some time of and pay to think about whether he or she wants to follow the rules and continue working for the company. When an employee violates the rule, the managers issue an oral reminder and in case of repetition brigs a written reminder. And if

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it happens again the result in the worker having to take one, two or three days off to think about the situation. During the first two steps the managers tries to encourage the employee to solve the problem. If the third step is taken, upon the worker return, he or she and the supervisor meet to agree that the employee will not violate the rule again or that the employee leave the firm. This approach keeps workers from taking undue advantage of the process.

Administration of Disciplinary Action: It is very difficult task and many managers avoid taking disciplinary actions due to following reasons: 1. Lack of training: The supervisor may not have the proper knowledge and skills which are necessary to handle the disciplinary problem. 2. Fear: The supervisor may be concerned that top management will not support his action. 3. The only one: It also possible that he may be thinking that no one else is disciplining so why should I? 4. Guilt: The supervisor may have some sort of guilt that if I‘ve done the same thing? 5. Loss of friendship: The supervisor may believe that the action will damage his friendship with an employee or the employee’s association. 6. Time loss: The supervisor may don’t want to loss his valuable time that is required to administered and explain that disciplinary action.

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7. Loss of temper: The supervisor may be afraid of his temperament mean may he feels that he will loss his temper while taking that action and may be he got rash. 8. Rationalization: The supervisor may think that the employee knows it was a wrong thing which he done, so why do we need to talk about it? These reasons apply to all forms of disciplinary actions---- form an oral warning to termination. Supervisor often avoid this form of disciplinary action, even when it is in the company’s best interest. In order to assist management in administering discipline properly, a Code on Discipline Procedure has been prepared by the Advisory, Conciliation and Arbitration Services.

Labour Relations Process

1. Workers desire collective representation

2. Union begins its organizing campaign

3. Collective negotiations lead to a contract

4. The contract is administered

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The Labour Relations Process

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Why Employees Unionize

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 As a result of economic needs (wages and benefits).

 Dissatisfaction with managerial practices.

 To fulfill social and status needs.

 Unionism is viewed as a way to achieve results they cannot achieve acting individually

Grievance Procedure

 Grievance

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Grievance can be broadly defined as an employee dissatisfaction or feeling of personal injustice relating to his or her employment

Other condition that may reasons of grievance

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 A violation of law

 A violation of the intent of the parties as stipulated during contract

 negotiations.

 A violation of company rules

 A change in working condition or past company practices

 A violation of Health and safety standards

Five-Step Grievance Procedure

 Grievance Procedure 

A formal procedure that provides for the union to represent members and nonmembers in processing a grievance

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

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Grievance Arbitration

 Rights Arbitration

 Arbitration over interpretation of the meaning of contract terms or employee work grievances. 16

 Many factor involve in the evaluation of arbitration

1. Nature of the offense

2. Due process and procedural correctness

3. Grievant past record

4. Grievant length of service with the company

5. Knowledge of rules

6. Warning

The Arbitration Process

 Arbitrator declares the hearing open and obtains the submission agreement.

 Parties present opening statements.

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 Each side presents its case using witnesses and evidence; witnesses can be cross examined.  Parties make closing statements.

 Arbitrator closes hearing and designates date and time for rendering the award.

TERMINATION

Termination is the severest penalty that an organization can impose on an employee. Therefore, it should be the most carefully considered disciplinary action. The experience of being terminated is traumatic for employees regardless of their position in the organization. Feelings of failure, fear, disappointment and anger can occur. It is also a difficult time for the person making the termination decision termination is a extremely serious form of discipline and must, therefore always be carefully considered and appropriate. Furthermore, in today’s business environment, companies need to be as concerned with the termination process as with the hiring process.

TERMINATION OF NONMANAGERIAL/NONPOFESSIONAL EMPLOYEES

Individual in this category are neither manager nor professionally trained individual, such as engineers or accountants. They generally include such employees as steel workers, truck drivers, and waiters. If firm is unionized, the termination procedure is typically well

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defined in the labor-management agreement. For example, drinking on the job might be identified as a reason for immediate termination. Excessive absences, on the other hand may require three written warnings by the supervisor before termination action can be taken. When the firm is union-free, there workers can generally terminated more easily.

TERMINATION OF EXECUTIVES:

Executive usually have no formal appeal procedure. The decision to terminate an executive has probably been approved by the CEO in the organization. In addition, the reasons for termination may not be as clear as those for lower level employees. Some of the reasons included the following:

Economic: At times, business conditions may force a reduction in the number of executives. Reorganization/downsize: In order to improve efficiency, a firm may reorganization or downsize, resulting in the elimination of some executive positions. Philosophical differences: Differences in philosophy of conducting business may develop between an executive and other key company officials. In order to maintain consistency in management philosophy, the executive may be replaced

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Decline in productivity: The executive may have been capable of performing satisfactory in the past, but, for various reasons, he or she can no longer perform be replaced. TERMINATION OF MIDDLE AND LOWER LEVEL MANAGERS AND PROFESSIONALS:

In the past, the most vulnerable and perhaps the most neglected group of employees with regard to termination have been middle and lower level managers and professionals, who are generally not union members and, thus not protected by a labor-management agreement. They also may not have the political clout that a terminated executive has. Termination may have been based on something as simple as the attitude or feelings of an immediate superior.

EMPLOYMENT AT WILL

. The concept of employment at will has eroded somewhat in recent years.

“Employment at will is an unwritten contract created when an employee agrees to work for an employer but no agreement exists as to how long the parties expect the employment to last”

Employers can do certain things top help protect themselves against litigation for wrongful discharge based on a breach of implied employment contract.

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DEMOTION AS AN ALTERNATIVE TO TERMINATION

Termination frequently is the solution when a person is not able to perform his or her duties satisfactory. At times, however, demotions are used as an alternative to discharge, especially when a long-term employee is involved.The worker may have performed satisfactorily for many years, but his or her productivity may then begin to decline for a variety of reason. Organization can use the demotion as alternative to termination.

“Demotion is the process of moving a worker to a lower level of duties and responsibilities, which typically involves a reduction in pay”

Emotions often run high when an individual is demoted. The demoted person may suffer loss of respect from peers and feel betrayed, embarrassed, angry, and disappointed. The employee’s productivity may also decrease further. For these reasons, demotion should be used very cautiously. One means of reducing the trauma associated with a demotion is to establish a probationary period in which a promoted worker is permitted to try out the new job. If demotion is chosen over termination, effort must be made to preserve the selfesteem of the individual. The handling of demotion in a unionized organization is usually spelled out clearly in the labor-management agreement. Should a decision be made to demote a worker for unsatisfactory performance, the union should be notified of this intent and given the specific reasons for the demotion.

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LAYOFFS

When demand is low, the firm has no alternative but to lay off workers .Although being laid off is not the same thing as being fired, it has the same effect: The worker is unemployed. And in today’s work environment, there may be little chance of the worker being rehired. Being laid off can often has extreme psychological consequences.

LAYOFF/RECALL PROCEDURES:

Even in this rapidly changing environment, at times recalls are necessary. Whether the firm is union-free of unionized, carefully constructed layoff/recall procedures should be developed .workers should understand when they are hired how the system will work in the event of a layoff. When the firm is unionized the layoff procedures are usually stated clearly in the labor-management agreement. Seniority usually is basis for layoffs, with the least senior employees laid off first. The agreement may also have a clearly spelled out bumping procedure. When senior-level positions are eliminated, the people occupying them have the right to bump workers from lower-level positions, assuming that they have the proper qualifications for the lower-level job. When bumping occurs the composition of the workers is altered.

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OUTPLACEMENT:

Many organizations have established s systematic means of assisting laid off or terminated employees in locating jobs. The use of outplacement began at the executive level but has recently been used at other organizational level else. In outplacement, laid off employees are given assistance in finding employment elsewhere. Outplacement are use of a transition center, individual counseling, job fairs, complete access to office equipment and free postage for mailing application letters and resumes.

TRANSFERS

The lateral movement of a worker within an organization is called a transfer. A transfer may be initiated by the firm or by an employee. The process does not, and should not, imply that a person is being promoted or demoted. Transfers serve several purposes. First, firms often find it necessary to reorganize. Offices and departments are created and abolished in response to the company’s needs. In order to fill positions created by reorganization, employee moves not entailing promotion may be necessary. The same is true when an office or department is closed. Rather than terminate valued employees, management may transfer them to other areas within the organization. Second reason for transfers is to make positions available in the primary promotion channels.

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Another reason for transfer is to satisfy employees’ personal desires. The reason for wanting a transfer is numerous. For example an individual may need to work closer to home to care for aging parents. Transfers may also be an effective means of dealing with personality clashes. Some people just cannot get alone with one another. Finally because of the downsizing of management levels, it is becoming necessary for mangers to have a wide verity of experiences before achieving a promotion. Management should establish clear policies regarding transfers. Such policies let workers know in advance when a transfer request is likely to be approved and what its ramifications will be.

A GLOBAL PROSPECIVE

International transfers involve the movement of workers within a multinational organization. A transfer may be initiated by the firm or by an employee, but most international transfers are initiated by the firm. International transfers are used to take advantage of domestic talent in global business operations. A well-thought-out expatriate transfer policy can help a company avoid many of the frustrations and pitfalls of sending people abroad while achieving cost savings. The policy should be directed tat achieving the company‘s business.

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PROMOTION

“A promotion is the movement of a person to a higher –level position in the organization.

The term promotion is one of the most emotionally charged words in the field of human resource management. An individual who receives a promotion normally receives additional financial rewards and the ego boost associated with achievement and accomplishment. Most employees feel positively about being promoted. but for every individual who gains a promotion, there are probably others who were not selected. If these individual wanted the promotion badly enough, they may slack off or even resign.

RESINATION

Even when organization is totally committed to making its environment a good place to work, workers will still resign. Some employees cannot see promotional opportunities.

Analyzing Voluntary Resignations

A frequently given reason for resignation is the desire to obtain a better salary and/or benefits. However, most firms either conduct salary surveys or keep in touch with what

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competitors are paying. Research has shown that when workers mention pay as a reason for resigning, they often have other deeper reasons for deciding to leave.

Advance Notice of Resignation

Most firms would like to have at least two weeks notice of resignation from departing workers. However, a month’s notice may be desired from professional and managerial Employees who are leaving.

RETIREMENT Most long-term employees leave an organization by retiring. Retirement plans may be based on reaching a certain age or working a certain number of years with the firm, or both. Upon retirement, former employees usually receive a pension each month for the remainder of their lives.

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BIBLIOGRAPHY 1. R. Wayne Mondy Sphr, Robert Noe, Human Resource Management, 1996 , 6th edition 2. Dessler, Garry, (2003) Human Resource Management, 4th Edition 3. www.google.com

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