HRM - Employee Relations Slides

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HRM - Employee Relations Slides

  1. 1. Employers’ Associations <ul><li>Represent the views and interests of companies within one sector or industry. </li></ul><ul><li>Financed by subscriptions from members. </li></ul><ul><li>E.g. Newspaper Society, Engineering Employers Association, Meat Marketing Board </li></ul>
  2. 2. Employers’ Associations <ul><li>Provide a range of services </li></ul><ul><li>Try to influence government e.g. taxes, employment law </li></ul><ul><li>Produce both product and market research for members </li></ul><ul><li>Public relations voice for industry (e.g. BSE crisis) </li></ul><ul><li>Can provide negotiating team for pay, working conditions etc. </li></ul>
  3. 3. TRADE UNIONS <ul><li>Individual employees have very little power. </li></ul><ul><li>A group of workers who join together to further their own interests: </li></ul><ul><li>Obtaining satisfactory pay </li></ul><ul><li>Ensuring satisfactory working conditions (no of hours, breaks) </li></ul><ul><li>Negotiating bonuses </li></ul><ul><li>Obtaining job security </li></ul>
  4. 4. LARGE UNIONS <ul><li>Unison </li></ul><ul><li>Representing local govt employees, health, utilities, 1.3m members </li></ul><ul><li>The Transport and General Workers Union (TGWU) </li></ul><ul><li>Represent people working in a range of different occupations and industries in the public and private sector </li></ul>
  5. 5. <ul><ul><ul><li>Represents all trade unions. </li></ul></ul></ul><ul><ul><ul><li>Provides information and advice to its members </li></ul></ul></ul><ul><ul><ul><li>Membership starting to increase again </li></ul></ul></ul><ul><ul><ul><li>Involved in research into employment rights, health and safety, working conditions </li></ul></ul></ul><ul><ul><ul><li>CBI (Confederation of British Industry) represents employers </li></ul></ul></ul>TRADE UNION CONGRESS (TUC)
  6. 6. SINGLE UNION AGREEMENTS <ul><li>One union represents all workers in an organisation </li></ul><ul><li>This system saves time and money and there is less likely to be conflict. </li></ul>
  7. 7. Question <ul><li>Describe the role of Trade Unions in supporting employees and employers when disputes occur in the workplace. </li></ul><ul><li>(3 marks) </li></ul><ul><li>(2006 Higher Bus Man) </li></ul>
  8. 8. Solution <ul><li>Trade Unions </li></ul><ul><li>Represents employees with regard to wage negotiations, conditions of service, dismissal, redundancy and other work-related matters. </li></ul><ul><li>Undertake collective bargaining on behalf of employees. </li></ul><ul><li>Have greater negotiation power than individuals. </li></ul><ul><li>Offer employers advice in work-related matters. </li></ul><ul><li>Involvement with Industrial Tribunal. </li></ul>
  9. 9. Professional Associations <ul><li>Represent ‘professional’ occupations </li></ul><ul><li>Doctors – British Medical Association </li></ul><ul><li>Police – Police Federation </li></ul><ul><li>Footballers – Professional Footballers Association </li></ul><ul><li>Represent members in bargaining for pay and improved terms and conditions </li></ul>
  10. 10. Employee relations processes <ul><li>NEGOTIATION – discussing, agreeing and implementing changes </li></ul><ul><li>CONSULTATION – by law employees have to be consulted, however may only involve “telling” </li></ul><ul><li>ARBITRATION – a third party is called upon to make a decision, eg ACAS, where the employer and employees are in dispute </li></ul>
  11. 11. Employee relations policies <ul><li>Contract of Employment Terms and conditions </li></ul><ul><li>Procedures/Policies for dealing with staff complaints,the disciplining of staff, redundancy procedures and redundancy payment </li></ul><ul><li>Involvement of staff in decision making </li></ul><ul><li>Trade union recognition </li></ul><ul><li>Collective bargaining </li></ul>
  12. 12. COLLECTIVE BARGAINING <ul><li>This is the process of a group representing the employees negotiating changes in working conditions with the employer(s). </li></ul><ul><li>Typically agreements will be for several years at a time. </li></ul>
  13. 13. Question <ul><li>Employee Representative Groups, (eg Trade Unions) use the power of collective bargaining for the benefit of their members. Describe 3 advantages of collective bargaining. </li></ul><ul><li>(2007 Bus Man Higher) </li></ul><ul><li>(3 marks) </li></ul>
  14. 14. Solution <ul><li>Representing a large number improves the negotiating position and chance of success for members. </li></ul><ul><li>Agreements reached can be on a national level. </li></ul><ul><li>Reduces the number of individual meetings required to resolve an issue. </li></ul><ul><li>Without collective bargaining the employees could be taken for granted and deliberately left out of discussions, consultations or told very little by the organisation. </li></ul><ul><li>Negotiators are experienced. </li></ul>
  15. 15. INDUSTRIAL ACTION <ul><li>Work to rule </li></ul><ul><li>Overtime ban </li></ul><ul><li>Sit in </li></ul><ul><li>Boycott </li></ul><ul><li>Strike </li></ul>
  16. 16. Question <ul><li>Employees may undertake industrial action in an attempt to force employers to meet their demands. Describe types of industrial action that employees could take. </li></ul><ul><li>(4 marks) </li></ul><ul><li>(2008 Higher Bus Man) </li></ul>
  17. 17. Solution <ul><li>Strike - employees refuse to do their work and do not enter the workplace. </li></ul><ul><li>Sit in - employees are in their place of work but do not do any work. </li></ul><ul><li>Work to rule - employees only undertake the exact jobs written in their job description. </li></ul><ul><li>Go slow - employees deliberately work at a much slower rate. </li></ul><ul><li>Overtime ban - employees do not do any overtime. </li></ul><ul><li>Picketing - employees protest at entrance to the place of work. </li></ul>
  18. 18. Question <ul><li>Explain possible effects that prolonged industrial action could have on an organisation. </li></ul><ul><li>(5 marks) </li></ul><ul><li>(2008 Higher Bus Man) </li></ul>
  19. 19. Solution <ul><li>Loss in production will lead to possible shortages in stock </li></ul><ul><li>Loss in sales revenue may lead to liquidation </li></ul><ul><li>Long term loss of customers who now shop at competitors </li></ul><ul><li>Image of organization is tarnished- future applicants may not be attracted to the company, so the business might lose out on the best employees. </li></ul><ul><li>Damage to long term reputation of organization </li></ul><ul><li>Share price can fall- no shares are being sold so the business are receiving no capital </li></ul><ul><li>May result in redundancies- employees are still getting paid, therefore the company is losing money as no output is being produced. So as to save money they would sack the staff to save money </li></ul><ul><li>Improves working practices </li></ul><ul><li>Facilitates change </li></ul>
  20. 20. WORKS COUNCILS <ul><li>A European concept that has been introduced in UK. </li></ul><ul><li>Allows access to company information and gives employee representatives joint decision making powers. </li></ul><ul><li>Companies (150+ employees) can be fined if they do not have a Special Negotiating Board. </li></ul>
  21. 21. <ul><li>If an employee is unhappy with their conditions or the way in which they are treated. </li></ul><ul><li>Three stages in the process: </li></ul><ul><li>Negotiations with union and HRM dept </li></ul><ul><li>ACAS approached for a ruling </li></ul><ul><li>Employment Tribunal (has legal powers) </li></ul>Grievance procedures
  22. 22. DISCIPLINARY PROCEDURES <ul><li>Steps an organisation will take to deal with an employee who is breaking the conditions of their contract. Could be: </li></ul><ul><li>Verbal warning - logged </li></ul><ul><li>Written warning </li></ul><ul><li>Second written warning </li></ul><ul><li>Contract terminated (P45 issued) </li></ul><ul><li>However could jump straight to dismissal depending in nature of offence </li></ul>

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