Industrial relations


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Industrial relations

  1. 1. Industrial Relations LAKEN MARAIS 2013
  2. 2. What is IR ??? Relationships between employees & employers within the organizational settings. Employees: Workers seek to improve the terms and conditions of employment. They exchange views with management and voice grievances. They also want to share decision making of management. Workers generally unite to form unions against the management and get support from these unions Employers: Employers possess certain rights. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. Government: The central and state government influences and regulates industrial relations through laws, rules, agreements.
  3. 3. IR is concerned with: Focusing on Collectives (not Individuals): Management/Labour unions. How two parties (Employers & Labour Unions) interact with the State. IR covers ALL aspects of the Employment relationship: HR, employee relations, & labour relations. Major Role: Manage relationship between Employing organisations & relevant organs of state, e.g. CCMA
  4. 4. Impact on Productivity • Complex relationships arise out of the Workplace which impacts on productivity • These Include: 1. Relationships between workers 2. Relationship between workers & their employer. 3. Relationship between employers. 4. Relationships employers & workers have with organizations formed to promote their respective interests 5. Relations between organizations at all levels. 6. IR deals with processes through which these relationships are expressed: Collective bargaining, Grievance & Dispute settlement, Management of conflict between employers, workers, & trade unions.
  5. 5. Levels of IR NATIONAL LEVEL INDUSTRY LEVEL • FORMULATION OF LABOUR RELATIONS POLICY: • e.g. Tripartism, LRA, State. • COLLECTIVE BARGAINING • Btw employer organisations & unions, determination of wages, terms of employment. • MORE DIRECT RELATIONSHIP • Btw employers & workers, although unions often represent workers interests. ENTERPRISE LEVEL
  6. 6. “Sound” IR System Employment creation, job security, increased employment opportunities. Raising living standards through better working terms & conditions. Society-wide productivity improvement, industrial competitiveness, minimising workplace conflict, resolution of industrial conflict through peaceful means
  8. 8. Theoretical Perspectives & Ideologies of IR • PLURALIST: Employer & workers have conflicting goals but are interdependent. • UNITARISM: Regards the employer & workers as having similar goals & being committed to achieving those goals. • RADICALISM: Views workers as owners of capital, & social corporatism views that employers & workers have the same goals, who appreciate structured conflict & the presence of trade unions.
  9. 9. Justice Perceptions • Distributive Justice: Employees must perceive FAIRNESS of outcomes & distribution of Justice. • Procedural Justice: Employees must perceive that processes & procedures are FAIR. • Interpersonal Justice: Employees must perceive the treatment they receive from employers as FAIR & they must feel that they are communicated to about the REASONS for decisions.
  10. 10. Power Dynamics • Power can be INTERPERSONAL or SOCIAL UNIT POWER. • INTERPERSONAL POWER: Between employer & Employee • SOCIAL UNIT POWER: Between employers as represented by employers’ organizations & employees as represented by trade unions. • Therefore, Power is gained through: Reward, legitimacy, coercion, knowledge or reference.
  11. 11. Conflict Dynamics • Dynamic process concerning change, which influences emotions. • Caused by: Different values Attitudes Perceptions Different objectives Communication obstacles Lack of resources Personality differences • Co-operation & Participation dynamics: Co-operation & jointdecision-making & participation is KEY in employment relationship to avoid conflict.
  12. 12. Factors Influencing Labour Relations Social Factors Political Factors Economic Factors Institutional Factors Micro/Organisational Factors Technological factors International Factors
  13. 13. Roles/Functions of Trade Unions Recruitment of members Liaising with Union officials Consulting & Negotiating with employers Ensuring management sticks to the rules/law Organising & attending meetings Participating in workplace forums & health & safety committees Engaging in Collective Bargaining Creation of Collective Agreements Enrolling members to the Union Discussing workplace problems/issues with management Acting as liaison between employees & management discussing valid complaints, ensuring management uses official languages to communicate to discuss particular resolutions of management with employees.
  14. 14. ……… • Collective process in which representatives of both management & employees participate. • Continuous process which aims at establishing stable relationships between parties involved. • Not only involves Bargaining agreement, but also Implementation of agreement. • Attempts to achieve discipline in the industry. • Flexible approach, as parties involved have to adopt flexible attitude towards negotiations.