Strategy for Human Resource Management Lecture 28

1. Strategy for Human Resource ManagementLecture 28 HRM 765

2. Last Lecture • What is stress? • What are stressors? • Positive and negative stress. • Symptoms of stress.(Physiological symptoms, Psychological symptoms, Behavioral symptoms. • How to Reduce stress? • Type A and Type B Behaviors. • Burnout (Chronic Stress) • Employee assistance programs. • Wellness programs. (Programs to keep employees healthy; include smoking cessation, physical fitness, weight control, etc. ) • International Safety and Health (First Aid Box, Vaccination etc.) Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

3. Topic Understanding Labor Relations and Collective Bargaining Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

4. Introduction • A union is an organization of workers, acting collectively, seeking to promote and protect its mutual interests through collective bargaining. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

5. Introduction Impact of unionization • Labor contracts typically stipulate: • wages • hours • terms and conditions of employment • limit management’s discretion Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

6. Why Employees Join Unions • Higher wages and benefits: The strength of large numbers and negotiating skills of professional bargainers give unions an advantage over individuals. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

7. Why Employees Join Unions • Greater job security: Collective bargaining contracts limit management’s ability to hire, promote or fire. • Influence over work rules: Unions represent workers and define channels for complaints and concerns. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

8. Why Employees Join Unions Compulsory membership • Union shops require that all employees hired into positions covered under the collective-bargaining agreement must join the union. • Agency shops require nonunion employees to pay an amount equal to union fees and dues. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

9. Why Employees Join Unions Compulsory membership • Open shops allow union membership to be totally voluntary. • Maintenance of membership clauses require union members to remain for the duration of the contract. • Dues checkoff provisions require employers to withhold union dues from members’ paychecks. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

10. Unionizing Employees Union Organizing Process Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

11. Unionizing Employees • Thirty percent of employees must sign authorization cards indicating their interest in having an election. • A representation certification (RC), a secret-ballot election is held • If the union is accepted by a majority of eligible voting workers, the union becomes the workers’ legal representative. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

12. Unionizing Employees • Once the National Labor Relations Board certifies a union, each worker must abide by the negotiated contract. • Most organizations’ managements will try to influence workers against voting for union representation. • Representation Decertification (RD) elections can be held to vote unions out. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

13. Collective Bargaining • The negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, that covers a specific period of time. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

14. Collective Bargaining Objective and Scope of Collective Bargaining • Contracts must be acceptable to management, union representatives and union membership. • Four issues Mostly appear in all labor contracts. • wages • hours • terms and conditions of employment • grievance procedure Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

15. Collective Bargaining Collective Bargaining Participants • Management is represented by senior management for industrial relations, corporate executives and company lawyers • In small companies, the president typically represents the company. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

16. Collective Bargaining Collective Bargaining Participants • Union bargaining teams include an officer of the local union, local shop stewards and representation from the international/national union. • Government watches to ensure rules are followed. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

17. Collective Bargaining • The Collective Bargaining Process Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

18. Collective Bargaining The Collective Bargaining Process • Preparing to negotiate • Fact-gathering: Includes internal information (e.g., employee performance records, overtime) and external (i.e., data on what similar organizations are doing and the economy). • Goal-setting: Management decides what it can expect from the negotiation. • Strategy development: This includes assessing the other side’s power and tactics. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

19. Collective Bargaining Negotiating at the bargaining table • Each side usually begins by publicly demanding more than they are willing to accept. • More realistic assessments and compromises take place behind closed doors. • After oral agreement, a written contract is submitted to the union for ratification. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

20. Collective Bargaining • Contract administration refers to the implementation, interpretation and monitoring of the negotiated contract between labor and management. • Information dissemination includes helping staff and workers understand the new contract provisions. • Implementing refers to making the changes to comply with contract terms. Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

21. Summary • Union • Impact of unionization • Labor contracts typically stipulate: (wages, hours, terms and conditions of employment, limit, management’s discretion • Why Employees Join Unions (Higher wages and benefits, Greater job security, Influence over work rules, Compulsory membership) • Union shops • Agency shops • Collective Bargaining • Objective and Scope of Collective Bargaining (wages, hours , terms and conditions of employment , grievance procedure ) • The Collective Bargaining Process • Preparation • Negotiations • Agreement • Union ratification • Contract administration Fundamentals of Human Resource Management 8e, DeCenzo and Robbins