Industrial & Employee Relations

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2. MGT 631HUMAN RESOURCEMANAGEMENT Topic 5: Industrial & Employee Relations

3. Topic 5: Industrial Relations

4. Objectives • Explain what IR is and why it is important • Identify and explain the roles of main players in IR • Review some IR differences in other countries • Describe how employee relations can affect performance • Analyze the factors that motivate employees

5. Industrial Relations & Employee Relations Covers the process to set up pay & conditions for employees and the way employers treat employees Laws, regulations, agencies and associations to deal with conflicts Interaction between unions, employers, employer associations & government Deals with direct relationship between specific employer and its employees

6. Elements of Industrial Relations • A set of rules & regulations for dealing with conflicts over pay, conditions of employment, & other aspects of the employment relationship • Government agencies overseeing the operation of the rules & regulations and changing them as necessary • Employees and their collective representatives (union) • Employers and their collective representatives (employer associations)

7. Why is IR Important for Managers?

8. Approaches to Industrial Relations • Management/employee conflict is inevitable • Work conflict is class-based • Condemn Capitalism • Workers should own & • control the means of • production • Mutual cooperation • Individual treatment • Teamwork • Common objectives • Organizations are coalitions of competing interests • Management role is mediation • Unions represent employee interests • Stability is product of concessions & compromises

9. The Major Players in Industrial Relations

10. Government

11. Employer Associations • Collective organizations representing interests of employers • Emerged largely in response to the growth of unions • Enable companies to represent collective interests • Examples: • Chamber of Commerce (U.S.) • Better Business Bureau(U.S.) • Australian Federation of Employers and Industries (AU) • Australian Aluminum Council (AU) • Confederation of British Industry (UK)

12. Australian IR – Standard Topics • Minimum wages and job classifications • Type of employment (full-time, part-time, casual, flex) • Hours of work, rest and meal periods • Overtime rates • Penalty rates • Annualized wage and salary arrangements • Expense reimbursements, disability pay • Leave and leave arrangements • Superannuation (pension/retirement plans) • Procedures for consultation and dispute settlement

13. National Employment Standards –Minimums • Parents have right to 12 months unpaid parental leave • Annual leave is at least four weeks per year for full time • Personal leave is 15 days annually; can be cashed out • Community service leave up to ten days annually • Employees can refuse work on public holidays • Notice of termination & redundancy must be in writing • A Fair Work Information Statement must be provided to all new employees

14. International Industrial Relations • Vary greatly from country to country • Many countries are complying with ILO standards • freedom of association effective recognition of collective bargaining rights • Elimination of all forms of forced or compulsory labor • Effective abolition of child labor • Elimination of discrimination in employment

15. Employee Relations

16. Employee Relations - Definition • A broad term used to refer to the general management and planning of activities related to developing, maintaining and improving employee relationships through effective communication processes • Successful employee relations practices are characterized by open communication, fair and equitable HR policies and practices, high work / life satisfaction, trust, cooperation, and commitment to high performance.

17. Job Satisfaction • Job satisfaction is defined as how an employee feels about his or her job, work environment, pay and benefits. • Satisfied employees are getting everything they wish, a steady paycheck, benefits, sick leave, and paid vacation. Their workload is fair, and they like the people they work with. Their actual contribution to the well-being of the organization in terms of innovation, creativity and productivity may be negligible, but these employees are satisfied.

18. Employee Engagement Engagement refers to the degree to which employees are committed to their jobs and the organization, their willingness to remain with the organization and work hard to make it succeed, and their enthusiasm in completing their own work and helping their co-workers.

19. Engaged and Disengaged Workers • Engaged work with enthusiasm and feel a connection to the organization. They drive innovation and move the organization toward goals. • Non-engaged employees are those putting in their time and doing their work with little energy or passion, but not interfering with others • Actively disengaged employees are those who are unhappy about their work, actively complain about their job and the company, and undermine what their engaged colleagues are trying to achieve.

20. Reward and Recognition Programs Impromptu recognition of employees for effort or achievement Awards of value other than monetary such as work/life benefits, special award ceremonies, dinners, etc. Recognition of teams that have completed a special project Monetary gifts in recognition of achievements Intrinsic manager-employee exchanges such as praise or gratitude for good performance

21. Work/Life Balance Programs • Alternative work schedules • On-site child care facilities • Flexible hours for working parents • Adoption assistance • Elder care assistance • Employee assistance programs • Concierge services • Wellness and fitness programs

22. Employee Motivation in U.S. Studies

23. Top Ten Employee Motivators • Interesting Work • Involved in decision-making • Feedback • Job Development • Respect • Salary • Bonuses • Vacation • Retirement • Other Benefits & Perks End

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