Prof R K Singh/AIMA CME1 Human Resources Management Prof R K Singh AIMA Centre for Management...

Prof R K Singh/AIMA CME 1

Human Resources Management

Prof R K SinghAIMA

Centre for Management Education


eHR 01: Collective Bargaining

Collective Bargaining is a procedure by which the terms and conditions of workers are regulated by agreements between their bargaining representatives and employers.

Collective Bargaining may take place at the national, industry or enterprise level.



Characteristics/Features :

1. Collective :

It is collective in two ways. One is that all workers collectively bargain for their common interests and benefits.

The other is that workers and management jointly arrive at an amicable solution through negotiations.



2.Equal Strength :

Both parties bargain across the table from a position of equal strength. It is industrial democracy at work.

3.Flexible :

Collective Bargaining requires flexibility by both the parties as it’s a give & take process.


eHR 01: Collective Bargaining4.Voluntary :

Both workers and management come to the negotiating table voluntarily in order to have a meaningful dialogue on various troubling issues.

5.Continuous :

It’s a continuous process which includes implementation of the agreement and also further negotiations.



6.Dynamic :

It’s a dynamic process because the way agreements are arrived at, the way they are implemented, the mental make-up of parties involved keeps changing. As a result, the concept itself changes, grows and expands over time.



7.Power Relationship :

In the process of collective bargaining, management tries to retain its control on workplace matters and unions attempt to strengthen their hold over workers without serious dilution of their powers.

8.Bipartite Process :

The employers and the employees negotiate the issues directly without involving any third party.



9. Representation :

The employer/Management of the organization negotiates with representatives of employees’ union/s who are authorized to bargain with employers on work-related matters.



Objectives of Collective Bargaining :1.To settle disputes/conflicts relating to

wages and working conditions.

2.To protect the interests of workers through collective action.

3.To resolve the differences between workers and management through voluntary negotiations and arrive at a consensus.

4.To avoid third party intervention in matters relating to employment.



Context & Coverage of Collective

Bargaining Agreements :

1. Wages and Working Conditions

2. Work Norms

3. Incentive Payments

4. Job Security

5. Changes in Technology

6. Work Tools, Techniques and

Practices



7. Staff Transfers and Promotions

8. Grievances

9. Disciplinary Matters

10. Health and Safety

11. Insurance and Benefits

12. Union Recognition

13. Union Activities/Responsibilities

14. Management Rights


Types of Bargaining:1. Conjunctive/Distributive Bargaining: The parties try to maximize their respective gains.2. Co-operative Bargaining:Realization of surviving in difficult times by both

parties.3. Productivity BargainingWorkers’ wages and benefits are linked to

productivity.4. Composite Bargaining:Bargains for wages goes one step further

demanding equity in matters relating to work norms, employment levels, manning standards, environmental hazards, sub-contracting clauses, etc.



Stages of Collective Bargaining:

1. Negotiation, and

2. Implementation

Steps involved are:

1. Identification of the problem

2. Preparing for negotiations

3. Negotiation of agreement

4. Implementation of contract


Pre-requisites of Successful Collective Bargaining:

1.Unanimity Among Workers :Before entering into negotiations, there must

be unanimity among workers. At least the representatives of workers should be able to present the opinion or demands of majority of workers or else, the management can take advantage of diverse demands of the workers.

2.Equal Strength Of Both The Parties : Should always be a ‘give and take’ process and should not be a ‘you give & we take’ or ‘you bargain and we collect’ process.



3. Positive Attitude : Both parties should have mutual trust, confidence and respect for each other and also show willingness to settle matters through negotiations.

4. Representative Authority:

The representatives of both parties should fully understand and be clear about the problems and their implications. They should be given the required authority in the process of negotiation like altering minor terms and conditions, if necessary.



Recommendations of National Commission on Labour (1969):

1.Government intervention in industrial relations, particularly in the settlement of industrial disputes, should be reduced gradually to the minimum possible extent.

Compulsory adjudication of disputes should be used only as last resort.



2. Trade unions should be strengthened both organizationally and financially by amending the Trade Union Act of 1926

-Make Registration of Unions Compulsory,

-Enhance the Union Membership Fee,

-Reduce the Presence of Outsiders in the Union Executive and Among the Office-bearers and

-Increase the Minimum Number of Members in Respect of the Union Applying for Registration.



3.Legal Provision may be made either by a separate legislation or by amending an existing enactment for :

-Compulsory recognition of trade unions and certification of unions as bargaining agents

-Prohibition and penalization of unfair labour practices

-Bargaining in good faith by both employers and unions-Conferring legal validity and legitimacy on collective agreements (e.g. Maharashtra Recognition of Trade Unions &

Prevention of Unfair Labour Practices Act, 1972)



4. Intensification of worker’s education for building up internal union leadership and making workers more knowledgeable and conscious about their rights and obligations.

This may help to de-politicize unions and also reduce union rivalry.

5.The idea of one union for one plant or one industry should be popularized and made a reality



6.The Government should declare its policy to allow and encourage the parties to settle their conflicts and disputes through bipartite consultation and negotiation consistent with public safety and interest of the society in general.

Implementation of these recommendations may further help the promotion of collective bargaining process in the country.


Collective Bargaining in India : Pre-Independence

Trade Unions occupied the centre stage after 1900

In 1918, Gandhiji, as the leader of the Ahmedabad Textile Workers’ advocated the resolution of conflict through collective bargaining agreements.

After Second World War, the legal steps taken by the government revived interest in the Collective Bargaining once again

The legislative measures included the setting up of a machinery for negotiations, conciliation, and arbitration.

Basic conflicting issues concurring wages and conditions of employment were sought to be resolved through voluntary means.


Collective Bargaining in India :Post-Independence

With the spread of trade unionism, collective bargaining agreements became popular

A large majority of disputes were resolved through this mechanism.

Most agreements were concluded at the plant level

In centres like Mumbai and Ahmedabad, industry level agreements were quite common

The agreements took place in industries such as chemicals, petroleum, tea, coal, oil, aluminum etc

In ports and docks, banking and insurance collective agreements- at the national level.


Employee Empowerment Vs Delegation:

Empowerment is a core concept of the new management model. In the new-generation adaptive organization, delegation is replaced by empowerment, and responsibility by ownership.

Authority and responsibilities are formal aspects of organizing. They are based upon organizational properties and not individual capabilities.

Empowerment and ownership are social aspects of organizing. They are based on efficacy and initiatives, and not just on roles and requirements. They belong to people.


Employee Empowerment Vs Delegation:Delegation is an old idea used in the traditional

management model. The idea was to make sure that responsibility and authority were equal for every job at the same level.

When delegation was implemented correctly, people had the authority that they needed to execute their responsibilities.

Limitations of this approach: Assigning authority does not mean that someone has the ability, motivation, and understanding necessary to perform.


Benefits of Employee Empowerment :

1. The organization : Harness individual talents to the full. Changes the managers’ mind-set and leaves them with more time to engage in broad-based thinking, visioning and nurturing.

2. The department/team: Becomes more enthusiastic, active and successful. Facilitates teamwork and harnesses collective power of employees.

3.Employees :Entrusted new responsibilities and are stretched beyond what they previously thought they could achieve. Releases the individual wisdom, creativity, and energy of employees.


Employee Empowerment: Three Levels1.ENCOURAGING employees to play a more

active role in their work.2. INVOLVING employees in taking

responsibility for improving the way that things are done.

3.ENABLING employees to make more and bigger decisions without having to refer to someone more senior.

Organizational Benefits: Getting closer to the customerImproving service deliveryInnovating continuouslyIncreasing productivity & Gaining the competitive edge.


Employee Empowerment : 4 Cs1.COMPETENCE :The power which competence

provides grants to the manager keeps him free from feeling threatened by his subordinates. He not only disseminates the relevant competencies to his subordinates but also regularly exposes his subordinates to new competencies.

2.CONVICTION : The force of conviction is purely internal to people. The manager has his own set of convictions about the benefits of empowerment and will go all out to see his conviction fructify.


Employee Empowerment : 4 Cs

3. CHARACTER : Empowering managers are more concerned with their character than their reputation. Character is what they really are while reputation is merely what others think they are. They do not hesitate to take the blame on themselves in case of genuine mistakes.

4. CANDOUR : Empowering managers depend upon candour to draw the power to empower. They are free from prejudice and malice and are crystal clear in their dealings. They do not disguise and exaggerate but remain objective in approach. They share with their subordinates information and ideas, experiences and thoughts and hide nothing from them.


Future of HRM“9 Need-to-knows” for HR Managers

1. Performance Improvement2. Restructuring3. Organization Change4. Globalization5. Groups and Teams6. Action Learning7. Inter8. Time-shift9. Power-shift -W. Warner Burke


1. Performance Improvement

Two Kinds of Actions are Needed:1. Understand/Expand more- “Measurement of

Performance” and 2. Learn more about the direct and indirect

enhancers and inhibitors of high performance.

Performance Measurement in terms of :-Customer Satisfaction-Internal Business Competencies-Innovation and Learning (Continuous Improvement)


Enhancers of High Performance

1. High congruence between Job Requirements and Individual Skills and Abilities to enhance Motivation, and- in- turn, Performance.

2. Congruence between Organizational and Individuals’ Objectives

3. Learning more about the complexities of Performance Improvement

4. Relationship between Pay and Performance is temporary


2. Restructuring(Downsizing, Re-engineering, BPR/

Business Process Redesign)

Understand the consequences of restructuring

Make restructuring systematic and part of a larger strategic effort to minimize its negative effect

Assessment of the effectiveness of TQM, Downsizing, and Re-engineering


3. Organization Change

Organization Change : Role of HR Managers

Understanding the,

-Change Process

-Stages of Change

-Management of Change


4. GlobalizationImplications of Globalization on HRM activities and HR Professionals

“Globalization : The Business of Mindset and Behaviour Change”


5. Groups and Teams

Understanding the distinction between a Group and a Team

A Group may be nothing much more than an assemblage whereas a Team is a group with a common and challenging goal and members behave interdependently.


6. Action LearningAction Learning is combining the solving of

actual problems in real time in the organization with learning about,

- How to work together better

- How to solve problems more effectively

- How to improve the learning process in

general- that is,

“Learning about Learning”


6. Action LearningHR Practitioners needs to learn

Action Learning because,

It reduces significantly the time between Learning and Application

Provides useful feedback to organizational members on their Behaviour and Performance.


7. Inter : Interpersonal, Intergroup, Interorganizational Behaviour/Conflict : Issues1. Strong need of employees to interact

with each other for work and social reasons

2. Greater reliance on groups and teams with more emphasis on cross team activities

3. Inter-organizational relations (Collaborations, Mergers, Acquisitions)

4. Knowledge, Skill development in Conflict Management, Co-operation, and Negotiation

5. Relationship Management


8. Time-shift1. Harder and longer work hours2. Craming more activities into the limited

work time3. Blurring of time on-the-job and off-the-

jobImplications:1. Supervisors and Managers need to be

tolerant of the work and personal life, provided productivity and quality of performance do not suffer

2. Need to be recognized for our efforts in achieving the results


9. Power-shiftsMicro level Power-shifts: Organizational1. More openness in organization because

so many employees have access to information about the organization and its performance

2. Technology has made a difference in the shifts of Power, so are,

3. Changes in organizational structure (Flatter Hierarchies & Broader Span of Control), and

4. The trend towards the virtual and the knowledge-based organization.


Macro level Power-shifts:

(Multi-organizational, Societal and Global)1. Domestic Companies to MNCs2. Power-shift from developed to Developing

Countries3. Growing Power-shift/Divide between Rich

and PoorImplications:

Its essential that the HR Practitioners be discerning about the use of Power and its consequences, e.g. Distinguishing between mere compliance on the part of employees and Intrinsic Motivation and Commitment.

Prof R K Singh/AIMA CME1 Human Resources Management Prof R K Singh AIMA Centre for Management...

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