employee relations in human resource management.ppt

employee management in construction

1. EMPLOYEE RELATIONSEMPLOYEE RELATIONS
Main features, questions and principles,
concrete examples

2. WHAT CONSTITUTES EMPLOYEE RELATIONS WORK
Historically, Employee Relations:
• has protected the employee from managers or owners
• has protected the company from its employees
• has taught management how to deal with employees
• has been an ombudsman between employees and managers
• has managed the relationship between management and
representatives of employees - Unions -
The work of Employees Relations is still:
to strike a balance among all of the interests represented in an
organization and particularly:
to align the interests of employees with the organization’s stated
objectives of fulfilling customer needs in ways that are consistent
with company values

3. TRADITIONAL AND STRATEGIC EMPLOYEE RELATIONS
Focuses on day-to-day problem
solving, often dealing with employee
complaints about management and
other employees
Sees task as employee administration-
assisting employees with their
administrative tasks
Provides management/employee re-
presentation
Focuses on employee satisfaction
Provides activities and entertainment
for employees
Manages or avoid Unions
Traditional Employee Relations Strategic Employee Relations
Focuses on development of stronger, more
capable employees to meet customer and
company needs
Has a comfort level in developing employees
so that they are stronger, more independent,
and marketable, rather than dependent upon
the organization
Defines a more fluid, evolving relationship
between employees and the entity
Is adamant(firm,determined) about adhering
to values and agreements with employees
Sees employees’ talent as a resource of
scarcity and does what is needed to develop
and keep highly talent, committed employees
Seeks effective and balanced partnership of
HR with management and employees
Source: R. Christensen “Roadmap to Strategic HR “, 2006

4. KEY QUESTIONS IN DEFINING STRATEGIC E.R. POLICY
AND WORK LINES
Do we want employees to stay for an entire career? All employees or
just those with certain skills sets ?
What does loyalty mean for us ?

How do we balance seniority and performance?
Is a low termination rate good or bad ?
Do we measure results or activities?
How involved do we want employees to be in the management of the
business? How much information can we trust to employees?

5. UNPRECEDENT WORKFORCE REDUCTION IN U.S. HISTORY
Between 1984 and 1986 nearly 600.000 middle and
upper level executives land off in U.S.A
Between 1987 and 1991 over 85% of the Fortune 1000
eliminated 5 millions white-collar jobs in total
Between 2000 and 2003 Corporate America cut
another 2.7 million jobs
With increasing globalization and hypercompetion in the market most employers
have resorted to headcount managementheadcount management in order to gain flexibility, remain gain flexibility, remain
competitive, ensure survival competitive, ensure survival
As a consequence, a dramatic corporate downsizingdramatic corporate downsizing occurred in most industries:

6. Sir Luke FILDES (Social Realist English Painter) (1843 - 1927)
“Applicants for admission to a Casual Ward“, 1874 (Royal Holloway College, Egham, Surrey, UK)

7. A NEW DEAL BETWEEN EMPLOYERS AND EMPLOYEES
The dramatic downsize was resulting in the breaking of the traditional
deal: a lifelong job with mutual loyaltya lifelong job with mutual loyalty between the employer and the
employee
A new dealnew deal took place:
–the employer, instead of loyalty (job security), offers an employee a
challenging jobchallenging job and a fixed compensation packagecompensation package along with opportunities opportunities
to learnto learn valuable skills
–the employee in turn, instead of loyalty, pays back the employer through a
good job performancegood job performance, without a strong commitment to the organization
As a consequence:
The bond between an employer and an employee is no longer
loyalty and commitment
but a contract like an economic exchange

8. KEY QUESTIONS IN DEFINING STRATEGIC E.R. POLICY
AND WORK LINES (cont.)
Do we want employees to stay for an entire career? All
employees or just those with certain skills sets ?
(the focus must be on getting people ready to meet future
organizational demands, rather than emphasizing lifelong
employment; otherwise an employee can become a burden rather
than an help)
What does loyalty mean for us ?
(since loyalty is the act of binding oneself to a course of action, the
matter is not to have a good friend who will always be there, but to
get someone who is committed to do whatever is needed to help the
company be successful)

9. KEY QUESTIONS IN DEFINING STRATEGIC E.R. POLICY
AND WORK LINES (cont.)
How do we balance seniority and performance?
(most companies place value on longevity of employment: this can be
correct or not; the only longevity of great value is the one that provides
the needed skills in changing times: all the others can be dangerous)
Is a low termination rate good or bad ?
(we should be suspicious: this could mean that we have allowed many
employees to stay on the payroll despite their poor contributions: many
managers don’t admit to have such employees, they prefer to say they
have nothing but great people)

10. KEY QUESTIONS IN DEFINING STRATEGIC E.R. POLICY
AND WORK LINES (cont.)
Do we measure results or activities?
(we tend to measure activities rather than results; this for the human
tendency to feel uncomfortable looking a poor performer in the
eyes and being honest with him/her; we prefer to focus on the hard
work and long hours spent in the job regardless of whether this time
led to real accomplishment!)
How involved do we want employees to be in the
management of the business? How much information
can we trust to employees?
(the answer creates a completely different E.R. and general business
environment: the management that exceeds on the side of informing
employees will have an employee base far more productive;
employees generally want to be involved as part of a successful
business and will do whatever they can to make that happen)

11. WHAT TYPE OF INFORMATION SHOULD BE SHARED
WITH THE EMPLOYEES ?
VISION, MISSION AND GOALSVISION, MISSION AND GOALS
Employees must know what the company stands for, where it’s going and the
progress it’s making towards its objectives
BUSINESS RESULTSBUSINESS RESULTS
Informing employees how the business is doing financially will make them feel
involved and will help better understand the reasons for management actions
TRIUMPHS AND DISAPPOINTMENTSTRIUMPHS AND DISAPPOINTMENTS
It’s important to share both successes and failures: people are more motivated and
fulfilled knowing their contribution to company success and learn from situations
that didn’t work well how to improve the next time
ORGANIZATIONAL AND BUSINESS CHANGESORGANIZATIONAL AND BUSINESS CHANGES
Employees must be told sooner rather then later about major changes like cultural
re-orientation, restructuring, sale of a line of business, lay-offs or office moves; this
helps avoiding rumors and speculations

12. Fundamentals of organizational cultureFundamentals of organizational culture
and corporate cultureand corporate culture
Conceptual framework, basic definitions,
real examples

13. PRODUCING TRAINING means ...
... TO INFLUENCE IN A PURPOSEFUL AND ORGANIZED WAY THE
PROFESSIONAL CULTURE OF INDIVIDUALS AND GROUPS IN ORDER TO
ACTIVATE AND FACILITATE IN THEM A PROCESS OF CONSCIOUS LEARNING
PROFESSIONAL CULTURE
SYSTEM
(for groups or individuals)
ORGANIZATIONAL
CULTURE
SUB-SYSTEM
beliefs
values
attitudes
norms
behavior
PROFESSIONAL
COMPETENCE
SUB-SYSTEM
knowledge
-information
-technique/method
abilities
experience
personal qualities

14. CULTURE
PATTERN OF ALL THE ADAPTATIONS
ADOPTED BY A SOCIETY TO SOLVE
THE PROBLEMS OF ITS MEMBERS
BELIEF
ALL THE NOTIONS SHARED BY THE
MAJORITY OF A SOCIAL AGGREGATE
VALUE
INNER CONVICTION OF WHAT IS
WORTH OR DESIERABLE - OR IT
IS NOT -
SOME ESSENTIAL DEFINITIONS

15. ATTITUDE
MENTAL DISPOSITION TO ACT IN
FAVOUR OR AGAINST A CERTAIN
SOCIAL OBJECT
NORM
BEHAVIOR
ALL THE ACTIONS THAT ARE
OBSERVABLE IN A PERSON OR
IN A SOCIAL GROUP
SOME DEFINITIONS (cont.)
RULE THAT STATES THE APPROPRIA-
TENESS OR THE INAPPROPRIATE-
NESS OF A STANDARD BEHAVIOR

16. VALUES
ATTITUDES
COMPORTAMENTI
CREDENZE
CULTURA
NORMS
MISSION
VISIONE
BELIEFS
CULTURE
BEHAVIOURS
VISION
ADDITIONAL ELEMENTS OF AN OVERALL
COMPANY CULTURE SYSTEM

17. VISION
WHAT
ARE WE BUILDING ALL TOGETHER?
(FOR THE NEXT 5-10 YEARS)
MISSION
WHY
ARE WE THERE ?
(COMPANY’S REASON FOR BEING)
VALUE
HOW
DO WE BEHAVE AND ACT?
(AMONG US AND WITH THE OTHERS)
FURTHER ESSENTIAL DEFINITIONS

18. COMPANY VALUE DEFINITION
Convinctions - deep-rooted, shared, interiorized and put in action -
on what is really key for managing the Company in ways that are
correct, competitive and satisfactory for all the stakeholders,
resulting in:
Internally
glue, behavioral guidance,
vector of
group integration
Externally
lever of competitive
differentiation, distinctive way
to approach the customer

19. BHAGs (target)BHAGs (target)
“Democratize the automobile”
(Ford Motor Company, early 1900s)
“Become a $125 billion company by the year 2000”
(Wal-Mart, 1990)
BHAGs (common-enemy)BHAGs (common-enemy)
“Crush Adidas”
(Nike, 1960s)
BHAGs (role-model)BHAGs (role-model)
“Become the Harvard of the West”
(Stanford University, 1940s)
BHAGs (internal-transformation)BHAGs (internal-transformation)
“Become number one or number two in every market”
(General Electric, 1980s)
VISION (BHAGs - Big, Hairy, Audacious Goals - )
Examples

20. 3M:
“To solve unsolved problem innovatively”
Hewlett Packard:
“To make technical contributions for the advancements and
welfare of the humanity”
Mary Kay Cosmetics:
“To give unlimited opportunity to women”
Wal - Mart:
“To give ordinary folk the chance to buy the same things as
rich people”
Walt Disney:
“To make people happy”
MISSION (Company core purpose)
Examples

21. NORDSTROM:
• Hard work and individual productivity
• Never being satisfied
• Service to the customer above all else
• Excellence in reputation
• Being part of something special
WALT DISNEY:
• No cynicism
• Nurturing and promulgation of “wholesome American
values”
• Creativity, dreams and imagination
• Fanatical attention to consistency and detail
• Preservation and control of the Disney magic
VALUES ( Company’s essential tenets)
Examples

22. PUTTING IT ALL TOGETHER: SONY CULTURE IN THE 1950s
VISION: become the Company most known for changing the
worldwide poor-quality image of Japanese products
MISSION: experience the sheer joy of innovation and the application
of technology for the benefit and pleasure of the general
public
VALUES: - elevation of the Japanese culture and national
status
- being a pioneer non following others
- doing the impossible, encouraging people ability and
creativity
Example

23. KYOCERA CORPORATE VISION TODAY

24. KYOCERA CORPORATE MISSION

25. YAZAKI The ideal partner in progress: quality product at reasonable
prices delivered smoothly and swiftly …
The Yazaki way: working for economic and social welfare as
a good neighbour and a corporate citizen …
At Yazaki we never stop developing. The company that
cares: people are our priority …
SUBARU A better world with news standards of quality and usability.
Create advanced technology and provide consumers with
distinctive products with the highest level of quality and
customer satisfaction ….
Promote harmony between people, society and the
environment while contributing to the prosperity of the
society ….
Looking to the future with a global perspective and aim to
foster a vibrant, progressive company …
FURTHER EXAMPLES OFJAPANESE COMPANY VALUES

26. FURTHER COMPANY CULTURE AND VALUES’ EXAMPLES IN
CHINESE CORPORATIONS
VISION: To enrich life through communication
MISSION: To focus on our customers' market challenges and
needs by providing excellent communications network solutions
and services in order to consistently create maximum value for
customers
VALUES: Customer-focus; Innovation; Steady-and-sustainable
growth; Harmony
VISION: First Automobile, First Partner
MISSION: We endeavor to evolve today's dreams into tomorrow's
reality
VALUES: Promoting Teamwork; Innovation; Personal Growth;
Optimization
(TELECOMMUNICATION(TELECOMMUNICATION
NETWORKS)NETWORKS)
(AUTOMOTIVE (AUTOMOTIVE
INDUSTRY)INDUSTRY)

27. COMPANY CULTURE AND VALUES’ EXAMPLES
IN CHINESE CORPORATIONS (cont.)
VISION: To build China Telecom up to a world-class telecom
group
MISSION: Sharing the very best of this information age
VALUES: Comprehensive Innovation; Pragmatic Execution;
People-centered Approach; Value-added Cooperation
VISION: To build a leading and competitive multinational company
MISSION: Caring for Energy, Caring for You; Energize, Harmonize,
Realize
VALUES: Dynamic, loyal, honest, committed; Achieving excellence
through innovation and integrity

28. COMPANY CULTURE AND VALUES’ EXAMPLES
IN CHINESE CORPORATIONS (cont.)
VISION: To base our success on our customers achieving their
goals: productivity in business and enhancement of personal life
MISSION: To develop, manufacture and market cutting-edge,
reliable, high-quality PC products and value-added professional
services that provide customers around the world with smarter
ways to be productive and competitive
VALUES: Customer service ; Innovative and entrepreneurial spirit;
Accuracy and truth-seeking; Trustworthiness and integrity
(COMPUTER SYSTEMS)(COMPUTER SYSTEMS)

29. COMPANY CULTURE AND VALUES’ EXAMPLES
IN CHINESE CORPORATIONS (cont.)
VISION: “Being itself is the product of not being” (*)
MISSION: To create resources and worldwide prestige meeting
the needs of customers from all over the world
VALUES: individual-goal combination and swift action and
success; advanced concept, innovative strategy, efficient
organization, creative technology, market orientation,
recognition and participation of all the employees
(*) Free translation from the book “Tao Te Ching” (4
th
/3
rd
century BC) by Laozi,
the father of Taoism; it literary says [part 2, chapter 40]: … All thing under
Heaven sprang from It as exsisting (and named); that existence sprang from
It as non-existent (and not named) .” The sentence can be simplified saying:
things exist because they are; they are because they once were not.
(WHITE GOODS)(WHITE GOODS)

30. Building A High Performance
Operating Environment
Global Growth Mindset
Results Focused
Obsessed with Customers
and about Competitors
Workplace that is Open,
Supportive and Diverse
Speed
“LUCENT GROWS ”

31. “LUCENT LESSONS LEARNED”
Set bold, audacious goals that you don’t already know how
to reach
Create a public image (externally and internally) of what
you want to be and then grow into it
Individual acts of leadership make a big difference
Celebrating your progress is what builds the confidence to
take the next steps.

32. WHAT TYPE OF INFORMATION SHOULD BE SHARED
WITH THE EMPLOYEES ?
VISION, MISSION AND GOALSVISION, MISSION AND GOALS
Employees must know what the company stand for, where it’s going and the
progress it’s making towards its objectives
BUSINESS RESULTSBUSINESS RESULTS
Informing employees how the business is doing financially will make them feel
involved and will help better understand the reasons for management actions
TRIUMPHS AND DISAPPOINTMENTSTRIUMPHS AND DISAPPOINTMENTS
It’s important to share both successes and failures: people are more motivated and
fulfilled knowing their contribution to company success and learn from situations
that didn’t work well how to improve the next time
ORGANIZATIONAL AND BUSINESS CHANGEORGANIZATIONAL AND BUSINESS CHANGE
Employees must be told sooner rather then later about major changes like a layoff,
restructuring, office move or sale of a line of business; this helps avoiding rumors
and speculations

33. METHODS OF COMMUNICATION IN A TWO-WAY PROCESS
Face-to-face communicationFace-to-face communication
(individually, in small group, to all
employees at once)
Letters from the Top ManagementLetters from the Top Management (to
provide general information)
Newsletter Newsletter
(to inform recurrently on Company
life)
E-mailsE-mails
(to inform quickly)
Written memorandumWritten memorandum
(more formal than e-mail and
less likely to be misplaced)
Communicating to employees Getting information from employees
Encourage employees to ask questions
Conduct employee focus groups and
surveys
Have a procedure for employees to
express grievances
Establish a suggestion box where
employees can submit ideas and
concerns
Consider establishing an employee hot
line run by an external provider
Walk around informally and talk to your
people

34. AN EXAMPLE OF EMPLOYMENT CONTRACT:
MAGNA EMPLOYEE’S CHARTER

35. SOME INALIENABLE EMPLOYEE RELATION PRINCIPLES
Everyone has the opportunity to be the best he/she can be
The work environment is one in which everyone is treated with
dignity and respect, including the speed resolution of problems and
complaints
Reasonable accommodation is made for individual needs
The workforce is informed in a timely manner of all things that may
effect their work within a culture that promotes two-ways
communication
Protecting employee health and safety is ensured
The “quality of work life” fundamentalsThe “quality of work life” fundamentals

36. Opportunity is provided to balance work and personal life
Training and development opportunities are provided on company
time and at company expenses
Continued employment is reasonable expectation for those who
excel
Lawful and ethical behavior overrides all workforce actions
Reward and recognition are adequate and fair and based on perfor-
mance
SOME INALIENABLE E.R. PRINCIPLES (cont.)

37. KEY PROBLEMS IN EMPLOYEE RELATIONS
We often say that we want employees to feel good because we care about
them. Instead, too often we want to feel good ourselves as managers, but at
employees’ long term expenses
Most real improvement comes from a response to dissatisfaction! Too often
high scores indicate that life is comfortable with no much pressure. Low
satisfaction scores may indicate that employees are being pushed beyond
their comfort zones and are stretching to be good
Conflict between helping employees feel good and helping
them be good
Conflict between positive scores in satisfaction surveys
and their actual meaning and consequence