Employee Relations

Table of ContentsEXECUTIVE SUMMARY.........................................................................................................................2

Lo1- understands the context of employee relations against a changing background...................3

Lo 1.1- Role of Employee organizations and its functions which has a positive impact to the success of the organization and the activities for protecting and enhancing the wellbeing of its members...........................................................................................................................................3

1.2: Assess how changes in trade unionism have affected employee relations.........................5

1.3: Explain the role of employers federations and the state in industrial relations.....................7

Lo 2: Understand the nature of industrial conflict and its resolutions................................................8

2.1: Explain the existing conflict resolutions procedures in the organization and compare with the mechanism provided by the industrial dispute...........................................................................8

2.2: Assess the impact to the effectiveness of grievance handling process...............................11

2.3: Evaluate the impact of HR practices in conflict resolution.....................................................16

LO 3: Understand collective bargaining process...............................................................................16

3.1: Explain the collective bargaining process in the organization which leads to a collective agreement............................................................................................................................................16

3.2: Assess the impact of negotiation strategy for given situation...............................................19

LO 4 : Understand the concept of employee participation and involvement...................................20

4.1: Explain the mechanism of employee voice and its impact to industrial peace...................20

4.2 : Assess the methods of employee participation in the organization and explain the benefits to the success of the organization.....................................................................................21

4.3: Assess the impact of cross cultural differences, gender differences and the generation gap in employee engagement...........................................................................................................23

Conclusion...............................................................................................................................................26

Reference................................................................................................................................................26

EXECUTIVE SUMMARY

This assignment is written as a part and partial requirement of the assignment under Unit 24 with the intention of grasping all knowledge, theory and practicality to manage both Employee Relations and Industrial Relations. Using peoples bank for the understudy, I have explored the context of employee relations against changing backgrounds. Next, the nature of industrial conflicts have been clearly examined, identifying the methods of resolution in the perspective of the management as well as the union, aligning with the mechanism provided by the Industrial Disputes Act. And then, collective bargaining process and negotiation strategies are discussed. Finally, the concept of employee participation and involvement and its impact are investigated.

Page | 2Pearson BTEC HND in Business - Management / HRM Unit 24: Employee relations And employee participation

Lo1- understands the context of employee relations against a changing background.Lo 1.1- Role of Employee organizations and its functions which has a positive impact to the success of the organization and the activities for protecting and enhancing the wellbeing of its members .

Introduction to ‘PEOPLES BANK’

People’s Bank is a government bank in Sri Lanka. It was established on July 1, 1961.The bank has a network of 347 local branches and 387 Service Centers with 450+ own ATMs. The Bank offer both Retail and corporate Banking services including Online Banking and mobile Banking. Current Chairman is Hemasiri Fernando.

Peoples bank has been The giant in banking industry in srilanka. Few of People’s banks incredible achievements are:

I. Bank of the Year at The European – Global Banking and Finance Awards 2014

II. Sri Lanka's Best Banking Group and Most Sustainable Bank at World Finance Banking Awards 2014

III. The country's largest branch network of 739 branches

IV. One of the country's largest savings deposit bases of over Rs 300 Bn and foreign remittances of US $1 Bn

What is industrial Relations?

The field of study that covers employment relationships in their entirety is called industrial

relations. In general, it is believed to be the study of relations between the employees and

employers. There are many factors which affect the relationship between employees, employers

and the government. The field of industrial relations came into existence with the advent of the

industrial revolution as an important tool to understand the complex relations between

employers and employees. There are many different ways to look at industrial relations as there

are the perspectives of workers, employers, government, and the perspective of the society. If

you are a worker, you would want better wages, safety at workplace, job security, and training at

workplace. On the other hand, industrial relations for an employer are all about productivity,


conflict resolution and employment laws. And they government sees IR as Industrial peace.

What is Employee Relations?

Employee relations mean the efforts taken by the company to manage relationships with its employees. An organization with a good employee relations program provides fair and consistent treatment to all employees so they will be committed to their jobs and loyal to the company.

It is important that employees share a healthy relation with each other at the work place. Let us find out why employee relations are important in an organization. Good ER practices;

Creates and maintain employee motivation. Obtains commitment from the workforce. Establishes a mutual channel of communication in the organization. The organization becomes a happy place to work if the employees work together as a

family. Helps to achieve high levels of efficiency. Grievances will be reduced as grievances can be voiced out.

Strong ER also gives lot of benefits for your business. The three most advantageous are listed below ;

1. Productivity- Since employees are highly motivated and has a improved employee morale so They perform their level best resulting a higher production rate and reduction of

Wasted resources.

2. Employee Loyalty- when employers come and talk to the employees and discuss their Problems with them, they feel good they feel as .They therefore treat the Company like their own company. This directly reduces the employee Turnover and it also improves employee retention, in doing so the cost of Recruitment, hiring and training is cut drastically. And it also reduces the Amount of resources wasted due to unawareness and crude attitude.


3. Conflict Reduction- Conflicts occur when grievances go unheard. With a good ER practices The employer interacts with the employee. Therefore the grievances Could be voiced out easily Less conflict results In the employees being Able to concentrate on the tasks at hand and they Are therefore more prod Productive.

Employee organization is an organization which has a history of good working relationships between employees and employers.

1.2: Assess how changes in trade unionism have affected employee relations

What is a Trade union?

Trade union is an organization whose membership consists of workers and union leaders, united to protect and promote their common interests. The principal purposes of a labour are to;

i. Negotiate wages and working condition terms,

ii. Regulate relations between workers (its members) and the employer

iii. Take collective action to enforce the terms of collective bargaining,

iv. Raise new demands on behalf of its members

v. Help settle their grievances.

vi. accompany their members in disciplinary and grievance meetings

vii. attempt to improve H&S conditions

viii. provide their members with legal and financial advice

ix. provide education facilities and certain consumer benefits such as discounted insurance

A person under the age of twenty-one, but above the age of sixteen, may be a member of a registered trade union. Employees have a right set down in the Constitution to join a trade union. A trade union can provide an important source of information and protection in relation to employment matters, as well as negotiating with the employer for better pay and conditions.

The trade union plays many roles in promoting the welfare of its members. For instance, trade unions play the role of bargaining power, minimise discrimination of any kind, senseof participation of the members, platform of self-expression, betterment of employee relations(Employee and employee relationship, employee management, management and


trade unions and trade union and other stakeholders of the organisation) and sense of job security of its members.

You have the right to:

choose to join or not join a trade union

decide to leave, or remain a member of, a trade union.

You can exercise your right to choose at any time. Your employer is not allowed to try to make you change your decision by offering you a benefit if you change your mind, or by threatening to penalise you if you do not. Your employer is not allowed to penalise you later for keeping to your decision.

According to TRADE UNION ORDINANCE (part V):

No action or other legal proceeding shall be maintainable in any civil court against any registered trade union or any officer because of trade union actions committed. Such as strikes, pickets and etc. all the losses of production and other losses should be maintained by the employer, he/ she can’t go to civil courts claiming compensations due to trade union acts.

There are 4 types of unions;

craft unions- All people in the TU are in the same occupation. Enterprise union- All people in the TU are in the same organization Industry union- All people in the TU are in the same industry General unions-Has employees from various industries.

The trade Unionism in ‘Peoples bank’

Bank employees are affiliated with one or another of the following trade unions:

Officers Association, Jathika Sevaka Sangamaya Ceylon Bank Employees’ Union Sri Lanka Nidahas Sevaka Sangamaya All Ceylon Bank Employees’ Union.

But majority of 95% of the employees represents one trade union which is known as “Ceylon banks employees’ union”.

About Ceylon Bank Employees’ Union

The Bank employees entered to the Trade Union movement in 1943 as Bank’s Clerks Union. It was registered as Trade Union on 1st September 1944. Later on 26th January 1956 at the Annual General Meeting of the union it was decided to change the name of the union to Ceylon Bank Employees’ Union. It is important to mention that only the employees of the foreign Commercial Banks were enrolled as members of the Ceylon Bank Employees’ Union.


Currently they have 22 both government sector and private sector banks joined to it. Peoples bank is a government bank affiliated to it.

How does the Ceylon Bank Employees’ Union help peoples bank in a matter of crisis

In early 2000’s peoples bank started not gaining enough profit and it was in the brink of bankruptcy. Management was helpless because the employees were constantly asking for a pay raise. By that time most of the employees were members of The Ceylon Bank Employees’ Union. Initially the trade union was pressing on for a pay raise, but once they got to know bank was about to go bankrupt they decided to step in.

What they did was they had a meeting with all the employees in the bank and told them what was going to happen and explained them why a pay raise is impossible to grant. Then the trade union did a truly amazing thing, they agreed the employees to work voluntarily till the company gets stable and in return all would be given a pay raise as soon as the bank is financially capable.

Things went as planned and peoples bank survived, gained profit and it was all up the hill from there onwards. it’s the number one bank in srilanka today thanks to the devoted employees and the trade union. Had the union been selfish, the bank would be long gone and this assignment will never been done. ;)

1.3: Explain the role of employers federations and the state in industrial relations

What is an ‘Employer federation’?

Employees’ associations are voluntary private groups of employers founded to facilitate trade, communication and representation in areas of common interest. The role of the association has declined with the increasing decentralization of employee relations process.

The main purposes of employee associations are;

To represent employees in the absence of unions. They have representational or even negotiating rights, but they seldom have anything

like the real power possessed by a well –organized and supported trade union. To give general help and advice on employee relations issues To assist member firms in the resolution of disputes ( including representation at

employment tribunals)

In srilanka the main employer organisation is the ‘Employers’ Federation of Ceylon’

The Employers’ Federation of Ceylon

The Employers’ Federation of Ceylon (EFC) was established in 1929 as an organization of employers dealing with labour and social issues in Sri Lanka. It is today the principal organization of employers, promoting employer interests at national level, especially focusing on industrial relations and labour law.


The unique feature of this organization is that it provides a wide range of direct services to its member employers. The membership consists of individual employers representing different business interests.

Initially, the EFC was more involved in ‘fire fighting’ and settlement of industrial disputes. This was a period of time when employer-employee relations were very much adversarial and conflictual. Subsequently, with the opening of the economy, Sri Lanka became an attractive point of investment for many foreign and multinational Companies. Ever since the 1980s, the EFC brought in a new culture and expanded its services in terms of training and development through which it promotes better workplace relations between employers and workers. Today, it is a formidable organization which commands the attention of the policy makers in relation to labour policy, and the EFC plays a very important role in terms of lobbying for labour reforms and changes in policy in the interest of employers in Sri Lanka. It is recognized by all Trade and Business Chambers in Sri Lanka as the ‘voice of business’ in relation to labour law and industrial relations in Sri Lanka.

Relationship of peoples bank with an ‘Employer federation’

Peoples bank is not a member in an ‘Employer federation’. Management deals with the trade unions without a third party employer federation.

Lo 2: Understand the nature of industrial conflict and its resolutions.

2.1: Explain the existing conflict resolutions procedures in the organization and compare with the mechanism provided by the industrial dispute .

what is an industrial conflict

Conflict may be defined as a struggle or contest between people with opposing needs, ideas, beliefs, values, or goals. Conflict on teams is inevitable; however, the results of conflict are not predetermined. Conflict might escalate and lead to nonproductive results, or conflict can be beneficially resolved and lead to quality final products. Therefore, learning to manage conflict is integral to a high-performance team. Although very few people go looking for conflict, more often than not, conflict results because of miscommunication between people with regard to their needs, ideas, beliefs, goals, or values..

Causes of conflicts

Every employee has needs and certain expectations at work, and conflict could arise when people feel that these are not being met or are being ignored.

Conflict could be the result of:

poor management unfair treatment unclear job roles inadequate training poor communication poor work environment lack of equal opportunities bullying and harassment


new changes to products, organizational charts, appraisals or pay systems

Other major causes include:

Personalities - the 'personality mix' within a team can be upset when a new member of staff joins or if two colleagues suddenly fall out. Individuals may also respond to difficult or challenging situations in an unhelpful or unproductive way.

Needs and expectations - conflict at work can often be caused when employers ignore the needs of employees or set unrealistic expectations. For example, arranging hours that make it difficult for employees to carry out childcare responsibilities.

Values - most people have very clear ideas about what they think is fair, and your organization’s procedures and policies must reflect this. For example, giving someone a fair hearing or explaining the reasoning behind a decision.

Unresolved issues - for example, an employee might ask to be moved to another team because of their manager's 'aggressive' leadership style. However, the employee may have other reasons - for example, they may blame their manager for a lack of training or career progression.

Increase in workload - sometimes conflict is caused because people feel they are being pushed too hard and that 'something has to give'.

Conflict resolution process

You should seek to avoid any conflict with your workforce arising in the first place. However, if conflict does arise, you should have procedures in place for resolving the cause of the conflict as soon - and as amicably - as possible.

This will reduce the financial cost of the dispute, minimise the damage done to employer-worker relations and your business' reputation, and help maintain productivity.


There are various ways or methods for meeting or engaging conflicts. These methods and ways are influenced, among other things by your understanding of conflicts in general. Flight-Fight-Openness In general one can identify three strategies when dealing with conflicts:

1. Flight – this strategy can manifest itself in many ways among which are to be evasive, ignore the issue, denial or to belittle the problem. One can physically or emotionally run away and terminate contact with the person one is in conflict with.

2. Fight – manifestation of this strategy includes; retaliation, sarcasm, physical or psychological violence, condescending or patronizing behavior.

3. Openness – recognizing that there is a conflict and that you are a part of it, being inquisitive, have the courage to maintain contact and being curious and engaging in dialogue.

In peoples bank we use a policy called ‘open door policy’

What is ‘open door policy’?

It is the policy where Decisions taken by the by top management to make themselves available at all times for anyone who wants to talk to them. The open door policy enables the employees to seek their boss’s help and freely discuss things with them for better clarity. Open door policy is essential for effective communication, proper feedbacks and better output. With the help of the open door policy, the employees do not crib amongst themselves, rather talk to their superiors, clear all their doubts and look forward towards a long term association with the organization.

Why has ‘open-door policy’ contributed so much in controlling industrial disputes in ‘peoples bank’?

Open door policy encourages effective communication between the employee and the management in peoples bank -The employees do not feel left out at the workplace as they know there is someone to support them always at the time of crisis. This way they get attached to the management and are always loyal towards the organization.

There is no room for confusion when the employees directly interact with their superiors. They feel motivated and strive hard to live up to the expectations of the management. They never badmouth the management or their organization.

Open door policy encourages healthy discussion at the workplace. Individuals exchange ideas and come to an innovative solution benefitting all. The employees are free to discuss their ideas with the superiors and gain from their talent and mentoring.

Gone are the days when people used to fear their bosses. The “Hitler approach” does not work in the current scenario. The management must respect the decisions of the employees to expect the same in return. The management must make the employees feel indispensable for the organization and should lend a sympathetic ear whenever required.


Actions taken by Peoples bank taken to ensure minimum of conflicts occur.

Peoples bank has developed a strategy for managing conflict with managers, employees and your representatives. It has been proved really reliable as the amounts of conflicts in Peoples bank reduced drastically since this is implemented.

They are: having sound policies and procedures in place explaining plans for change and training to managers and employees and making everyone feel

involved listening and consulting with employees on decision-making rewarding fairly with pay or bonus schemes ensuring work safety ensuring that managers are properly trained and able to handle management responsibilities

2.2: Assess the impact to the effectiveness of grievance handling processGrievances take the form of collective disputes when they are not resolved. Also they will then lower the morale and efficiency of the employees. Unattended grievances result in frustration, dissatisfaction, low productivity, lack of interest in work, absenteeism, etc. In short, grievance arises when employees’ expectations are not fulfilled from the organization as a result of which a feeling of discontentment and dissatisfaction arises. This dissatisfaction must crop up from employment issues and not from personal issues.

Therefore a proper grievance handling process is compulsory for an organization. The

formal mechanism for dealing with such worker’s dissatisfaction is called grievance procedure.

All companies whether unionized or not should have established and known grievance methods

of processing grievances. The primary value of grievance procedure is that it can assist in

minimizing discontent and dissatisfaction that may have adverse effects upon co-operation and

productivity. A grievance procedure is necessary in large organization which has numerous

personnel and many levels with the result that the manager is unable to keep a check on each

individual, or be involved in every aspect of working of the small organization.

The usual steps in grievance procedure are

1. Conference among the aggrieved employee, the supervisor, and the union steward.

2. Conference between middle management and middle union leadership.

3. Conference between top management and top union leadership.

4. Arbitration.

There may be variations in the procedures followed for resolving employee grievances. Variations may result from such factors as organizational or decision-making structures or size of the plant or company. Large organizations do tend to have formal grievance procedures involving succession of steps

Managers can know and understand grievance with the help of the following methods:


1. Exit Interview. An interview of every employee who quits the organization can reveal

employee grievances. Most of the employees quit the company due to some

dissatisfaction. Great amount of care and empathy is necessary for a successful exist

interview.

2. Opinion Surveys. A survey may be conducted to elicit the opinion of employees

regarding the organization and its management. Group meetings, periodical interviews

with workers and collective bargaining sessions are also helpful in knowing employee

discontent before it becomes a grievance.

3. Gripe Boxes. In these boxes employees can drop there anonymous complaints. There

are different from the suggestions boxes in which

Employees drop their suggestion with their names written on them.

4. Open Door Policy. It implies a general invitation to the employees to informally drop in

the manager’s room any time and talk over their grievances. This policy is useful in

keeping touch with employee’s feelings.

Grievance procedure in Peoples bank


Top Management Top Union Leaders

Middle Management Middle level Union Leaders

Front-Line SupervisorsUnion Representative

Aggrieved Employee

Arbitration

The front line supervisor is given the first opportunity to handle grievances. Then a

representative of the trade union also joins the supervisor in handling the grievance. This step is

essential for preserving the supervisor’s authority. But all grievances cannot be settled here

because they may be beyond the authority and competence of the supervisor. In the second

step, the HR officer or some middle level executive along with a high level union officer attempt

to tackle the grievance. In the third step, the top management and top union leader sit together

to settle grievances involving companywide issues. If the grievance remains unsettled it is

referred to an outside arbitrator for redressal.

Why is Peoples bank’s grievance process so effective?

Over the years there had been few industrial disputes and grievances in people’s bank like in

any other company in the world. But thanks to the effective grievance handling process they

could be solved very easily. So what makes our grievance handling process standout from the

rest?

It is because we:

Talk with the employee about his or her grievance; give the person a good and full

hearing.

Require the union to identify specific contractual provisions allegedly violated.

Comply with the contractual time limits of the company for handling the grievance. Treat

the union representative as your equal.

Fully inform the supervisor of grievance matters.

Always ensure that the managers involved in the grievance handling procedures have a

quiet place to meet with the complainant.

Always ensure that managers have adequate time to be devoted to the complainant.

Explain manager's role, the policy and the procedures clearly in the grievance handling

procedure.

Fully explain the situation to the employee to eliminate any misunderstanding and

promote better acceptance of the situation complained of.

Try to let employee present their issues without prejudging or commenting.

Use a positive, friendly ways to resolve the crisis than punitive steps, which disturb the

system.

Remain calm, cool, collected during the course of the meeting.

Always focus on the subject of the grievance than allied issues.


Be aware of the staff member's potential concerns to the possible repercussions of

raising a grievance. .

listen for the main point of arguments and any possible avenue to resolve the

grievance.

Listen and respond sensitively to any distress exhibited by the employees.

Eliminate the source of the irritation or discomfort being complained of.

Ensure effective, sensitive and confidential communication between all

involved.

Take all possible steps to ensure that no victimization occurs as a result of the grievance

being raised.

Make sure that the investigator or decision maker acts impartially, which means they

must exclude themselves if there is any bias or conflict of interest.

Make sure that all parties are heard and those who have had complaints made against

others are given an opportunity to respond.

Try to look upon the problem on different angles for appropriate understanding.

Ensure that there is proper investigation of the facts and figures related the problem

under concern.

Ask the staff member their preferred resolution option, although it is important to make it

clear that this may not be a possible outcome.

Be aware of the limits of authority of the person who involved in the grievance handling

procedures.

And because we do not:

Relinquish to the union your rights as a manager.

Trade a grievance settlement for a grievance withdrawal.

Deny grievances on the premise that your “hands have been tied by management.”

Settle grievance in the basis of what is “fair.” Instead, stick of the labour agreement,

which should be your only standard.

Bargain over items not covered by the contract

Make threats manage the grievances.

Make use of allegations against personalities.

become angry, belligerent, or hostile during grievance handling procedure


Furthermore our procedure is designed to supplement the statutory provisions. Wherever

possible, the procedure makes use of the machinery provided under legislation. The procedure

is incorporated in the standing orders or collective bargaining agreement of the organization.

The grievance procedure is with mutual consultation among management, workers and the

union. In order to be generally acceptable, the procedure provides:

o A sense of fair play and justice to workers;

o Reasonable exercise of authority to managers; and

o Reasonable participation to the union.

The procedure consists of as few steps as possible. which makes it simple to comprehend.

Employees know the officers to be contacted at each level. Information about the procedure are

communicated to the employees.

Supervisors and unions representatives are given training in grievance handling. This helps to

ensure effective working of the grievance procedure.

The working of the grievance procedure is reviewed at periodical intervals. Necessary

improvements are to made to make it more effective.


2.3: Evaluate the impact of HR practices in conflict resolution

The ideal hr practices conducted by peoples bank in conflict resolution.

We as the leading bank in srilanka, would like to minimize the amount of conflicts in our organization. Therefore we have implemented some good practices which directly helps us resolve conflicts.Many misunderstand the difference between HR activities and HR practices and use these terms interchangeably. HR activities or functions are comprised of transactional activities which can be handled in-house or easily outsourced where HR practices are part conceptual and strategic in nature which are comprised of systems that follow the normal or customary way of doing business. The term "best practices" refers to the HR systems that have the greatest impact on the workforce and the organisation. They are as follows:

Internal RecruitmentWhen there is a vacancy for a position such as for supervisors, peoples bank promote internal recruiting without selecting candidates outside. Because, it motivates the fellow employees and makes them more loyal to the organisation..

Competitive Salary Payment and Incentives- we certainly pay our employees a very very good pay which keeps them motivated to do the work and stay with the company. Improved infra-structure

With the development of the market, its environment, statuaries and modernisation of technology, company has also developed its infra-structure to suit to the changing world. It has given its best for its member employees. We provide the good cafeteria and good sanitary facilities. Which indirectly makes employees comfortable than being stressed out.

LO 3: Understand collective bargaining process

3.1: Explain the collective bargaining process in the organization which leads to a collective agreement

What is Collective bargaining?

Collective bargaining is the process whereby unions negotiate with employers to renew a collective agreement or enter into a new one. The process starts with a notice to bargain, a notice in writing to begin the collective bargaining process. Unions and employers must negotiate in good faith to reach a mutually beneficial agreement.

Collective agreements set out the working conditions for employees, including wages, working hours, health and safety, and overtime. When unions are able to negotiate better working conditions, it benefits society as a whole — so even non-unionized workers can reap the rewards.

Collective bargaining process


Collective Bargaining should always result in a win-win situation if not, both parties should thrive towards it. To do that both sides have to negotiate/ let go off things. At the end of the day the relationship between the workers and the employer affects the collective bargain. No matter how attractive deals look on top of the table. There are many stages of negotiation for a collective bargains. All the deals are discussed lot of time repeatedly. Collective bargaining empowers the laborers and a healthy relationship is developed across all departments and hierarchal levels of an organization.

1. Pay Negotiation Union – The union has to target what they would achieve, minimum they will accept in the collective bargaining and opening claim to achieving the target.

Employers – The employers have target a settlement, the maximum to concrete and the opening offer to maneuver.

The initial step towards better bargaining is to realize the main purpose of the negotiation and importance of it.

2. Preparation for negotiation:-While preparing for negotiation all the parties should set a realistic goal about the negotiation. Since practically collective bargaining goal is a matter of foresight not something similar to hindsight. For an E.g. pertains to management is that sometimes there are items that a labour union cannot and will not grant. If the management doesn’t prepare to the standard and makes the assumption of union will negotiate on any proposal submitted by management, would be high risk of possibility of strikes. Also strategy, tactics, supporting data should be gathers and negotiating team also should be selected.

3. Opening Tactics:-When the negotiation stating both sides should make sure that they are in order to set realistic goals, criteria for realistic goals must be established. Also parties should consider the negotiation must not impair its external relationships in the labour movements or with other employers. Always challenge the other side’s position, give freedom and listen and observe the behavior, ask question, show as non-committed about others proposals. Above all better to avoid too much talking.

4. Bargaining Tactics:-Make conditional proposal such as if you do this, I will consider do that. It’s best to use key words like if, then. Always both the parties should consider on ‘is your goal with the bargaining expectancy of the other party. Priorities must be established and ranked in order of impact and importance. This would help in bargaining. Never make one-sided concessions it could concur the same party. Negotiation on the whole package is the best thing to do rather than doing it item by item.


5. Closing touch:-Summarizing what has happened so far. Make concession from the package preferably a minor one. Do a deal, spread the difference, bringing in new ideas to the table and emphasize the concessions that have been made and the extend of the movement from the original position. Above all while pointing out the thought and suggestion it shouldn’t be harming the employer and employee relationship at the workplace.

There are two types of negotiations in collective bargaining.

Industrial relations negotiations Commercial negotiations

Assume an ongoing relationship – negotiators cannot walk away

Negotiators can walk away

The agreement is not legally binding The contract is legally binding

Conducted on a face to face basis May be conducted at a distance

Carried out by representatives responsible to constituents

Carried out directly with the parties being responsible to a line manager

Collective bargaining incident in people’s bank

The collective bargain of people’s bank expired on 1st of January 2015 after 3 years implementing it. The agreement was signed between the management and the recognized trade union (Ceylon Bank Employees’ Union). They collectively bargained for over 4 months to come up with a round of collective agreement for “salary benefits”. They signed it on 3rd of July. They will furthermore discuss in round 2 about “non salary benefits”. And sign when both parties are happy. This agreement after all rounds are finished, will be valid for 3 years.

Some of their terms of discussion going to be are:

Security measures Annual leave Disciplinary measures. Working hours-

I. Fixed working timeII. Flexible working time

III. Night workIV. Work on Saturdays


3.2: Assess the impact of negotiation strategy for given situationWhat is a negotiation?

Negotiation is a method by which people settle differences. It is a process by which compromise

or agreement is reached while avoiding argument and dispute.

In any disagreement, individuals understandably aim to achieve the best possible outcome for

their position (or perhaps an organisation they represent). However, the principles of fairness,

seeking mutual benefit and maintaining a relationship are the keys to a successful outcome.

Negotiation process

There are three main steps for negotiating any contract: Preparation, Negotiation and

Agreement.

Negotiating strategies used by Peoples bank

i. Setting out clear objectives for every bargaining item, and having a clear idea about the reason behind each

ii. Being well prepared with firm data supporting the side of the managementiii. Being alert to the real intention of goals and priorities of the trade unioniv. Clearing any prevailing doubts discussing with associatesv. Listening well and controlling the emotions and using them when needed as a tool

vi. Understanding the people and their personalities and attitudesvii. Being fair, but firmviii. Practising win-win theoryix. Starting with easy issues but not making the best offer firstx. Always seeking the help, guidance and support from the EFCxi. Taking adequate time to settle


LO 4 : Understand the concept of employee participation and involvement

4.1: Explain the mechanism of employee voice and its impact to industrial peace.Grievances occurs when the dissatisfaction is unheard by the employer. (The consequences of grievances and conflicts are explained above)so how do we stop it? There are many ways to do it, but the most important and basic way is to let employees sound out their grievances. By letting the employee explain what’s wrong and take required action against it.

The involvement of trade unions and union and non union employee representatives can provide a collective voice for all or part of the workforce. . Trust, cooperation and information sharing are essential to the employee voice and the collective voice. The approach to employee and collective voice should support each other. A genuinely engaged workplace will be a foundation for the more formal process of involvement and consultation.

How does peoples bank encourage employee voice

We hold regular face-to-face business updates where employees can ask questions and share information - consider alternative channels for employees who work remotely or cannot make the meeting

We equip managers with briefing materials and support which helps them put business performance information into context for their teams

We communicate the personal views on business progress and performance through the channels we have available - for example - an internal newsletter column, blog, podcast or film for the intranet

By running regular discussions with groups of employees - for example - monthly breakfast or lunch meetings

We encourage feedback and ideas from employees

How has enhanced employee voice helped Peoples bank to manage industrial peace?

i. Increased Motivation – employee motivation is increased as they are feel more involved and committed towards the organisation as a part of it

ii. Increased Productivity – as employee involvement reduces stress and conflict amongemployees, employee absenteeism and turnover is also reduced

iii. Increased Job Satisfaction – as employee self-esteem and morale is boosted up and a sense of self-respect is inculcated among employees, they tend to retain with the company

iv. Improved Quality – as employees consider every input into detail, quality is automaticallyimproved

v. Cost Saving – when involvement is encouraged, all the aspects are increased reducing wastages and employees try their best to save company resources and cut extra costs


4.2 : Assess the methods of employee participation in the organization and explain the benefits to the success of the organization.

Why is employee participation so important to peoples bank?

When employees are involved in making decisions, they gain a professional and personal stake in the organization and its overall success. This commitment leads to increased productivity as employees are actively participating in various aspects of the company and wish to see their efforts succeed overall. This is not only beneficial to company growth, but is also on-the-job training for workers. The increase in responsibility expands employee skill sets, preparing them for additional responsibility in the future.

Actively engaging workers in the decision-making process increases overall company morale. Many companies have a distinct separation of power between management and workers; however, active employee involvement lowers that gap, opening the lines of communication between supervisors and employees. As a functioning participant in the decision-making process, employees understand their ideas are an important contribution to the company, and gives them the power to influence the outcome of their work, leading to increased job satisfaction and a positive attitude, not only toward their position but also to the company itself.

Using employees in the decision-making process, rather than outsourcing, saves money, time, and offers the company long-term reliable assistance from those who know the corporation well. Hiring an outside consulting firm is expensive and can take up valuable resources in fees and the time spent updating outside consultants in various aspects of the company. However, employees are already aware of these processes, offer insightful knowledge of the company needs, and understand the policies of the company overall.

Participation in the decision-making process gives each employee the opportunity to voice their opinions, and to share their knowledge with others. While this improves the relationship between manager and employee, it also encourages a strong sense of teamwork among workers. The expression of viewpoints opens dialogue between co-workers, with each worker bringing their individual strengths to a project. It is also a good way to gather information about the employees as to how they work in a team environment, and where training may be necessary, all of which leads to an increase in effectiveness, and ultimately an increase in good teamwork and performance.


Actions taken by Peoples bank ensure employees participation

We in peoples bank care about the employee participation, which gives us the cutting edge over the rest of the banks out there. We have a separate plans implemented to make sure employees participate in decision-making.

We have:

Group Discussions

group discussions are used to talk about changes before they are implemented. We break the

employees up into small groups of around 10 people and assign a facilitator that will guide the

discussion and record the main points. At the end of the discussion, the facilitator sends a report

to the leadership documenting the feedback gathered. Group discussions are intentional in

subject matter. For example, if leadership wants to know how employees would feel about

changing a policy, the discussion subjects need to consistently point to that policy.

Surveys

Surveys are used to obtain an objective perspective that the employee is able to compare with

other results. It’s one tool that allows employees to participate in a universal assessment of the

company, policies or personal satisfaction. A survey is developed with statements that are rated

by the employees from one to 10, one being “strongly disagree” and 10 being “strongly agree.”

After they’re filled out, they are tallied up and the results are assessed by the leadership.

Leadership evaluates them for areas of weakness and strengths. It also provides leadership

with insight into issues they would otherwise be unaware of.

Employee Voting

Voting is an effective form of employee participation. When there is a decision that needs to be

made, employees can be given the opportunity to govern themselves via voting. Hold a

company-wide meeting that presents both sides of the decision that needs to be made. Provide

paper and pen for each employee to vote for the resolution he thinks is the best decision for the

company.

Delegation

Delegate tasks to various individuals and teams as another form of employee participation. In

this structure, the leader gives full reign of a specific task to a person or group and removes

herself from the process. The team is able to make their own decisions without approval. The

leader returns at the close of the task to evaluate the outcome.Page | 22

Pearson BTEC HND in Business - Management / HRM Unit 24: Employee relations And employee participation

4.3: Assess the impact of cross cultural differences, gender differences and the generation gap in employee engagement

All people are not the same, therefore there could be some factors which affect sound employee engagement in the organization. They might be;

1. Cultural differences2. Gender differences 3. Generation gap

How does the cross culture affect employee engagement?

Culture is defined as a set of values, practices, traditions or beliefs a group shares, whether due to age, race or ethnicity, religion or gender. Other factors that contribute to workplace diversity and cultural differences in the workplace are differences attributable to work styles, education or disability.

An individual's cultural background has many effects on his style of communication which is a main factor against employee engagement. Furthermore there are racist people who doesn’t like working with people with some specific culture. This may help conflicts to happen.

How does gender differences affect employee engagement?

Gender differences in the workplace typically stem from social factors, which influence the behaviors of men and women. Some organizations welcome gender diversity and encourage the inclusion of both sexes when making company decisions and offering promotional opportunities. Other organizations discourage gender inclusion and promote bias in the workplace. With most companies, gender differences add value and varying perspectives to an organization.

Some times one sex do not treat and acknowledge the other sex. Conflicts can occur due to that.

How does generation gap affect employee engagement?

Workplaces have always had multiple generations working side by side. There's the fresh-faced

younger generation of newcomers, the established middle generation that holds most of the

management roles and the older generation of senior executives who are 30 or 40 years into

their careers. Each of these distinct age groups comes with their own generational differences,

which can cause some friction among colleagues and bosses.The modern workplace is no

different than those of years past, with Generation Y, Generation X and baby boomers all

coexisting in the same office. But as more boomers work past retirement age, and tech-savvy

millennials continue to graduate and enter the workforce, the stark differences in the values,

communication styles and work habits of each generation are becoming increasingly

pronounced.Page | 23


With post-millennials— known to some as Generation Z — quickly approaching college age, the

next generation will be joining the ranks of working professionals within the next few years —

meaning that a four-generation office will soon become the new norm. Leaders must be ready to

take on the challenge of integrating newer workers while still respecting the seniority and

experience of older ones.

The problems arise when the older (more mature) people gets reluctant to take up

advices from the junior people. The ideas of 2 generations do not synchronize. Due to

this the employees cannot have a good employee engagement.

What is the culture at peoples bank?

Peoples bank, the number 1 bank in srilanka has more than 1000+ employees from around the country. There are employees from all religions, races, and cultures. Yet due to our good precautions the employees interact with each other no matter what cultures they have.

We also have employees from all generations baby boomers, x generation and y generation. Baby Boomers are people who are born in the period of 1946 – 1964, who are now at their 60s'. Most of the baby boomers in peoples bank are now at managerial and consultant positions only 2% are workers. They have been aging with peoples bank having a service of about 40, 45 years of service. X generation people can be find in both managerial and non-managerial levels. Most of the new positions are hold by y generation people, such as supervisory and clerical. Still y generation people are not promoted to managerial levels, as they have to be more experienced exposing to the business more. As well as peoples bank has encountered no much commitment and involvement from this young generation. Eventhough we have all the generations present in our company, we have a good employee engagement.

Even though Majority of employees are male there is no sexual discriminations in peoples bank. The power is given to people with knowledge irrespective of their gender. There are females in the director board as well. And they are one reason for peoples bank being the best bank in srilanka.

How does peoples bank prevent cross cultural/gender and generation gap difference?

1. Communication: we communicate with everyone the same way. We make sure no

favourations are done to one specific culture, generation and gender.

2. Team-building: we believe that employees once they get to know each other’s properly the

internal conflicts can be solved easily. Therefore we have teams built with a mixture of cultures,

generations and genders.

3. Calendars: we have maintained a cultural calendar in oder to resolve cultural difference.. For

example, Christians celebrate Christmas. For Muslims, Friday is a day for prayer. Jews observe Page | 24


holidays ranging from Rosh Hashanah to Yom Kippur. These variations affect the workplace as

people require time off to observe their holidays. A cultural calendar is a helpful tool to ensure

meetings are successful, and deadlines are met.

4. Support Flexible Schedules: While it may not elevate more women to the corner office,

schedule flexibility does offer employees of both genders a sense of control that translates to

higher engagement. Building in options to work from home or to arrange flexible hours provides

a level of personal freedom and responsibility that leads to increased productivity and deeper

investment in the company.

5. Delegating authority by the knowledge and not by the gender: this helps to reduce gender

difference in workplace.


Conclusion

With regards to the process of employee relations in Peoples bank, it is clear that employee relations processes in this firm are distinctive and complex and involve the interaction of many variables, both internal and external. Peoples bank is not conflict-free, however, but rather conflict is more covert or manifests itself at a more personal level, perhaps by the high level of turnover among new recruits or the level of strikes among expatriates. Moreover in the context of a ―new realism‖ in Peoples bank‘s industrial relation, the conclusion is that such ―realism‖ is not a new phenomenon this firm‘s employees or owners, as work practices associated with this concept have long been the norm in small companies. This is facilitated by weak/ no union influence and recruitment practices whereby managers/owners will employ only people who ―fit in‖ and accept the dominant management style and authoritative practices within the firm. Therefore, it cannot be argued that a new system or realism in employee relations is emerging from external changes in the context of the firm, as the much heralded ―new realism‖ would seem to be ―long established realism‖ within the firm.

Reference

http://www.torbenrick.eu/blog/leadership/10-reasons-why-employee-engagement-is-important/

http://www.managementstudyguide.com/employee-engagement-relationship.htm

http://www.yourarticlelibrary.com/industries/industrial-disputes-definition-forms-and-types/35453/

https://home.snu.edu/~HCULBERT/conflict.htm

http://www.transconflict.com/?gclid=Cj0KEQiAqK-zBRC2zaXc8MOiwfIBEiQAXPHrXqyxoRkKn4qGU_gIOo8zNrM7FiUUHC7c3u0vwyfWzpwaAtFX8P8HAQ


https://home.snu.edu/~HCULBERT/conflict.htm

http://www.yourarticlelibrary.com/industries/industrial-disputes-definition-forms-and-types/35453/

http://www.managementstudyguide.com/employee-engagement-relationship.htm



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