Workers participation in Management and Industry

WPM

1. Unit-II Techniques to Industrial Relations

2. Workers Participation in Management WPM is a system of communication and consultation, either formal or informal, by which employees of an organization are kept informed about the affairs of an undertaking and through which they express their opinion and contribute to management decisions.

3. Objectives of WPM Increasing productivity for the general benefit of the enterprise, the employees and the community; Giving employees a better understanding of their role in the working of the industry & of the production process; and Satisfying the worker’s urge for self- expression, thus leading to industrial peace, better relations and increased co- operation.

4. Forms of WPM Consultative participation : Management encourages employees to share their opinions before final decisions are made. Examples include regular meetings with supervisors, attitude surveys, and employee suggestion plan Informative & associative participation : An improved form of consultative participation, where the employer is expected to acknowledge and implement the employees' unanimous decisions Administrative participation : Workers implement decisions that have already been made, and share more authority and responsibility than in other forms of participation.

5. Participative Forums in India Works committees; Joint mgt. Councils; Joint councils; Unit councils; Plant councils; Shop councils; Workers’ representative on the board of management; and Workers’ participation in share capital.

6. Conditions necessary for effective working of the Scheme Congenial work environment Well defined roles Faith in the efficacy of the scheme Wide publicity Should be evolutionary Free flow of information throughout the enterprise Should be based on mutual trust Decisions taken by different participatory forums must be sincerely carried out in the stipulated time

7. Reasons for Failure of WPM Ideological differences between the employer and the employees regarding the degree of participation. Failure to imbibe the spirit of participation by the parties

8. Collective Bargaining The term of “Collective Bargaining” was first used in 1891 by Beatrics Webb, a founder of field in industrial relation in Britain. It refers to a sort of collective of negotiation and agreement that has existed. The concept of collective bargaining was introduced very late in India, as trade union were formed only in 1962.

9. Collective Bargaining Definition Collective Bargaining is the agreement between the a single employer or an association of the employers on the one hand and labor union on the other Collective Bargaining is the processes in which the representative of a labor organization and the representative of the business organization meet and attempt to negotiates a contracts or agreement. Edwin Flippo

10. Collective Bargaining Objectives To provide an opportunity to the workers to voice. To reaching a solution that is acceptable. To maintain cordial relation. To promote democracy. To prevent unilateral action to employees. To preventing strike and enhance the productivity. To Resolving and prevent all conflicts and disputes in a mutually agreeable manner. To develop a conducting atmosphere . To provide stable and peaceful organization (hospital).

11. CHARACTERSTICS OF COLLECTIVE BARGAINING:- CHARACTERSTICS 1) Collective 2) Strength 3) Voluntary 4) Flexible 5)Improvement 6) Re pre s en t a ti o n 7 ) C o n t i nuou s 8) Bipartite Process

12. Types o f Collective Bargaining DISTRIBUTIVE INTEGRATIVE TYPES OF COLLECTIVE BA R GA I NING : - PRODUCTIVITY COMPOS I TE

13. Distributive or Collective Bargaining Conjunctive bargaining is the most common type of bargaining & involves zero-sum negotiations, in other words, one side wins and the other loses. This involves bargaining over the distribution of surplus. in this, economic issues like salaries , wages and bonuses. Economic issues like wages, salaries and bonus are discussed. One party’s gain is another party’s loss. More competitive. e.g. Unions negotiate for maximum wages.

14. Integrative or Corporative Bargaining Integrative bargaining is similar to problem solving sessions in which both sides are trying to reach a mutually beneficial alternative, i.e. a win-win situation Both parties may gain or neither party losses. Both the parties are trying to make more of something.

15. PRODUCTIVITY BARGAINING :- A form of collective bargaining leading to a productivity agreement in which management offers a pay raise in exchange for alterations to employee working practices designed to increase productivity .

16. COMPOSITE BARGAINING Wages with equity.

17. PROCESS OF COLLECTIVE BARGAINING:- Preparatory phase Discussion phase Proposal phase Bargain i ng Set t l ement phase Forma l i z i ng agreement Enfo r c i ng a g r eeme nt

18. PREPARATORY PHASE:- In this phase, following activities are carried out :- Selection of negotiation team :- This phase involves composition of a negotiation team. It consist of the representatives of the both parties. They should have adequate knowledge and skills for the negotiation. Identification of problem. Enough supporting data is kept ready

19. DISCUSSION PHASE:- Decide an appropriate time and set a proper climate for negotiation. Maintenance of mutual trust and understanding. Involve in active listening, asking questions, observation and summarizing decision.

20. PROPOSAL PHASE:- o This phase could be described as brainstorming‘. The exchange of messages takes place and opinion of both the parties. Initial opening of statement. Possible alternative/opinion to resolve the issue by both parties.

21. BARGAINING PHASE:- Both the parties will involve in the following activities:- Problem solving Proposal

22. SETTLEMENT PHASE:- Settlement phase start with:- This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change . Agreement on common decision.

23. FORMA L IZ I NG AGREEM E N T : - Drafting of agreement:- After good faith bargaining, a formal document must prepare. It should be simple, clear and concise. Signing the agreement:- Both parties sign the agreement and abide by its terms and conditions.

24. ENFORCING AGREEMENT:- To have the agreement effective and meaningful, it should be enforced or implemented immediately

25. PRINCIPLES OF COLLECTIVE BARGAING :- For The MANA G E MENT For the TRADE UNION For Trade Union and Manage m e nt

26. PRINCIPLES FOR THE MANAGEMENT:- The management should be waiting for the trade union to bring employees grievances to its notice but should rather create the condition in which the employees can approach themselves without involving the trade union. The management should only deal with the one trade in the organization. They must form and follow a realistic labor policy They should treat the trade union fairly They should regularly check the rules and regulations to determine the attitude and comfort of its employees Must agree to reform the trade union without any reservations The management should not wait for the trade union to bring employees problems

27. PRINCIPLES FOR THE TRADE UNIONS:- The trade union should eliminate racketeering and other undemocratic practices within their own organization Trade union leaders should resort to strike only when all other methods of the settlement of a dispute have failed Trade union leaders should not imagine that their only function is to secure higher wages, shorter hours of work and better working conditions for their members. Trade union leaders should assist in the removal of such restrictive rules and regulations that are likely to increase costs and prices and reduce the amount that can be paid out as wages

28. PRINCIPL E OF UNION AND MANAGEMENT:- Collective bargaining should be made an education well as a bargaining process. It should offer to trade union leaders an opportunity to present to the managements. There should be an honest, able and responsible leadership for only this kind of leadership which make collective bargaining effective and meaningful. There must be mutual confidence and good faith and a desire to make collective bargaining effective in practice.

29. ADVANTAGE OF COLLECTIVE BARGAINING: - PROVIDE SECURITY TO WORKERS:- Since collective bargaining contracts are legally binding agreement the employee can be sure of their work condition. As longs as all terms are followed the management cannot be go back or changed of the condition. PROHIBITS THE STRIKES:- This is the security is provided by the management. Collective bargaining agreement prevents any employees from striking or not working try to get different benefits. Strikes can cause huge problems within company. so this is a big draw for management for collective bargaining. GIVE EMPLOYEE A VOICE :- All the employee that the agreement will affects are allowed to have a say in the condition. All voice are heard, which promotes a much better moral in workplace. This also ensures that they want and need of the majority are met. REDUCED BIAS AND FAVORITISMS:- All too often you heard stories of someone getting additional benefits simply because with their boss or other irrelevant things. This is greatly reduced and possibly eliminated with the use of collective bargaining

30. DISADVANTAGE OF COLLECTIVE BARGAINING:- N OT A L L PEOP L E W I LL AGR E E :- C o l l ective bargaining cater to need of the many and disagree the few. The terms in the agreement could negatively affects employee who have special circumstances or simply do not agree. A LOSS OF AUTHORITY :- When the employee knows the exactly how much power management has, and has say in things that they can and cannot do, their role as the authority figure is greatly diminished REDUCED MANAGEMENT HAND IN BUSSINESS :- Constructive development is hindered when the collective bargaining is used. If the policy or the terms of the agreements truly need to be received or removed, it is nearly possible to do.

31. POINTS TO KEPT IN MIND BEFORE COLLECTIVE BARGAINING:- Set clear objectives for every bargaining item. Do not hurry. When in doubt, discuss with your associates. Be well prepared. Don't concern yourself. Be alert to the real intentions of the other party. Be a good listener. Pay close attention towards the wording. Remember that collective bargaining is a compromise process. Try to understand people. Consider the impact of present negotiations on those in future years.

32. Understanding Grievance Procedure If an organization has to move towards excellence, maintenance of harmonious and cordial relationship is a vital condition. Similar to organization’ expectations from the employees in terms of work, the employees have expectation in terms what they have contributed. Failure to meet with each others expectation or the deviations from what has already been accepted may lead to indiscipline, grievance and stress are of continuing in nature and often judicial- legal process may not be of much help in resolving them.

33. Features A grievance refers to any form of discontent or dissatisfaction with any aspect of the organization. The dissatisfaction must arise out of employment and not due to personal or family problems. The discontent can arise out of real or imaginary reasons. When employees feel that injustice has been done to them, they have a grievance. The reason for such a feeling may be valid or invalid, legitimate or irrational, justifiable or ridiculous. The discontent may be voiced or unvoiced, but it must find expression in some form. However, discontent per se is not a grievance. Initially, the employee may complain orally or in writing. If this is not looked into promptly, the employee feels a sense of lack of justice. Now, the discontent grows and takes the shape of a grievance. Broadly speaking, thus, a grievance is traceable to be perceived as non-fulfillment of one’s expectations from the organization.

34. Causes of Grievances Grievances may occur due to a number of reasons: Economic: Employees may demand for individual wage adjustments. They may feel that they are paid less when compared to others. For example, late bonus, payments, adjustments to overtime pay, perceived inequalities in treatment, claims for equal pay, and appeals against performance- related pay awards. Work environment: It may be undesirable or unsatisfactory conditions of work. For example, light, space, heat, or poor physical conditions of workplace, defective tools and equipment, poor quality of material, unfair rules, and lack of recognition. Supervision: It may be objections to the general methods of supervision related to the attitudes of the supervisor towards the employee such as perceived notions of bias, favoritism, nepotism, caste affiliations and regional feelings.

35. Organizational change: Any change in the organizational policies can result in grievances. For example, the implementation of revised company policies or new working practices. Employee relations : Employees are unable to adjust with their colleagues, suffer from feelings of neglect and victimization and become an object of ridicule and humiliation, or other inter- employee disputes. Miscellaneous: These may be issues relating to certain violations in respect of promotions, safety methods, transfer, disciplinary rules, fines, granting leaves, medical facilities, etc. Causes of Grievances

36. Characteristics of Grievances 1- It May Be Unvoiced Or Expressly Stated 2- It May Be Written Or Oral 3- It May Be Valid, Legitimate Or Untrue Or False. 4- It May Relate To The Organizational Work An Employee May Feel An Injustice Has Been Done. It May Affect The Performance Or Work. Grievances generally give rise to Unhappiness, Frustration, Indifference, Discontent, Poor Morale, And Poor Efficiency.

37. Types of Grievances A- INDI V I D U AL B-GROUP C-UNION D-POLICY

38. A - Individual An individual grievance is a complaint that an action by management has violated the rights of an individual as set out in the collective agreement or law, or by some unfair practice. Examples of this type of grievance include: discipline, demotion, classification disputes , denial of benefits, etc. The steward should file the grievance, not the employee on his/her own, as it is in the interest of everyone in the union that the grievance be handled properly. When an individual’s rights have been violated and that person refuses to file a grievance, the steward should file the grievance on behalf of the union – especially if the contract specifically permits. In this way, the steward will defend the collective agreement and protect the rights of all employees covered by it. The management’s argument that the steward cannot file an individual grievance on behalf of the union is false.

39. B - Group A group grievance is a complaint by a group of individuals, for example, a department or a shift that has been affected the same way and at the same time by an action taken by management. An example of a group grievance would be where the employer refuses to pay a shift premium to the employees who work on afternoon shift when the contract entitles them to it. Clearly, they should grieve the matter as a group rather than proceeding by way of individual grievances.

40. C - Policy A policy grievance is a complaint by the union that an action of management (or its failure or refusal to act) is a violation of the agreement that could affect all who are covered by the agreement. Group grievances are often treated as policy grievances, but strictly speaking, they should be considered separately. A policy grievance normally relates to the interpretation of the contract rather than the complaint of an individual. However, a policy grievance may arise out of circumstances that could also prompt an individual grievance, insofar as the union claims the action taken by management implies an interpretation of the collective agreement that will work to the detriment of all employees. For example, management assigns a steady day-shift employee to work on an off shift without regard to seniority. The union might grieve in an effort to establish that seniority must be considered in such an assignment, even though the individual involved might have no complaints against the shift change. The point is that the outcome or the precedence of the grievance may have a detrimental effect on the local union at some point in the future and the union must challenge it

41. D - Union A union grievance may involve a dispute arising directly between the parties to the collective agreement. For example, the union would grieve on its own behalf if management failed to deduct union dues as specified by the collective agreement. In these cases, the union grievance is one in which the union considered its rights to have been violated, and not just the rights of individuals in the local union.

42. Grievance Procedures Grievance procedures are a means of dispute resolution that can be used by a company to address complaints by employees, suppliers, customers, and/or competitors. A grievance procedure provides a hierarchical structure for presenting and settling workplace disputes. The procedure typically defines the type of grievance it covers, the stages through which the parties proceed in attempting to resolve matters, individuals responsible at each stage, the documentation required, and the time limits by which the grievance must be presented and dealt with at each stage. The best-known application of grievance procedures is as a formal process outlined in labor union contracts. Grievance procedures do not necessarily have to be so formal and elaborate, and in fact, overly formal grievance procedures often discourage the airing of disputes in a timely manner. In small businesses, the procedures may consist of a few lines in an employee manual or the designation of a single ombudsman to deal with problems as they develop. Peer review of employee concerns is another popular way to address grievances. On the other hand, some larger companies may create an entire department dedicated to fielding complaints from employees or customers.

43. Whatever form they may take, grievance procedures are intended to allow companies to hear and resolve complaints in a timely and cost-effective manner, before they result in litigation. Knowing that formal procedures are available often encourages employees to raise concerns or question company policies before major problems develop. It also makes managers less likely to ignore problems, because they know that upper management may become involved through the grievance process. In union settings, grievance procedures help protect employees against arbitrary decisions of management regarding discipline, discharge, promotions, or benefits. They also provide labor unions and employers with a formal process for enforcing the provisions of their contracts. Grievance Procedures

44. Steps in G rievance H andling P rocedure Identify the grievance and acknowledge the same. Listen carefully to the complainant. Define the grievance clearly. Gather the complete information with facts and figures. Analyze and search for multiple solutions to the grievance and finally select the best feasible and possible solution and implement the same. Ensure that there is follow-up at each stage for successful grievance procedure.

45. Preventive Measures Quick action- As soon as the grievance arises, it should be identified and resolved. Training must be given to the managers to effectively and timely manage a grievance. This will lower the detrimental effects of grievance on the employees and their performance. Acknowledging grievance- The manager must acknowledge the grievance put forward by the employee as manifestation of true and real feelings of the employees. Acknowledgement by the manager implies that the manager is eager to look into the complaint impartially and without any bias. This will create a conducive work environment with instances of grievance reduced. Gathering facts- The managers should gather appropriate and sufficient facts explaining the grievance’s nature. A record of such facts must be maintained so that these can be used in later stage of grievance redressal.

46. Examining the causes of grievance- The actual cause of grievance should be identified. Accordingly remedial actions should be taken to prevent repetition of the grievance. Decisioning - After identifying the causes of grievance, alternative course of actions should be thought of to manage the grievance. The effect of each course of action on the existing and future management policies and procedure should be analyzed and accordingly decision should be taken by the manager. Execution and review- The manager should execute the decision quickly, ignoring the fact, that it may or may not hurt the employees concerned. After implementing the decision, a follow-up must be there to ensure that the grievance has been resolved completely and adequately. Preventive Measures

47. 2 Golden rules of H andling G rievances A very helpful question to ask an employee raising a grievance is “what outcome do you want from this grievance?” This tends to focus the employee’s mind on the solution he or she is looking for rather than just the problem. BE PREPARED FOR A GRIEVANCE. Check that there is an up to date procedure in place, published in the handbook, that supports the resolution of grievance issues in your workplace.