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2.6 Industrial/employee relations (HL) 2014
Transcript of 2.6 Industrial/employee relations (HL) 2014
Are Businesses too slow to change?
A short animated video that reports back on a recent Economist debate (March 2013) about whether businesses are too slow to adapt to change. It features some great examples and case studies, including Kodak and HMV. Some great quotes and simple, powerful ideas here.
employee and employer representatives
employee - collective bargaining, slowdowns/go-slow, work-to-rule, overtime bans and strike action
employer - collective bargaining, threats of redundancies, changes in contract, closure and lock-outs
sources of conflict in the workplace
approaches to conflict resolution
factors causing resistance to change
strategies for reducing the impact and resistance to change
Businesses are dynamic in nature and are always subject to the forces of change. Change happens whether we encourage it or not. To take control of change and to ensure it is a positive process, businesses must have a vision, a strategy and a proven and adaptable process for managing change.
- is the management process of planning, forecasting, controlling and steering change within an organization.
Causes of Change
Change is inevitable and is having an increasing impact in modern business. Rapid developments in technology, changes in regulations and legislation and increased pressure to behave in a socially responsible way, and changes in consumer taste are all factors that have caused change in business.
Look at 3 examples of change on tutor2u slideshare on change management.
Resistance to change
This is one of the biggest problems faced by organizations when they attempt to introduce change. The managers and workforce of a business may resent and resist change for any of the following reasons.
Fear of the unknown
Fear of failure
Lack of job skills
Loss of control
Lack of trust
Inertia - change requires effort and the fear of having to work harder may cause reluctance to change.
Resistance mostly stems from fear about not knowing what the changes may mean.
Resistance due to...
Fear of new working practices, threat to their job security.
Fear of losing a product they were loyal to.
Fear of losing a place in the supply chain. Job losses and lost revenue.
Fear of having to implement change and dealing with adverse reaction
Examples of Resistance to Change
Process of Change
Key stages in successful change management
Below are essential points that managers should consider before attempting to introduce significant changes in an organization.
1. Where are we now and why is change necessary?
2. New vision and objectives.
3. Ensure resources are in place to enable change to happen.
4. Give maximum warning of the change.
5. Involve staff in the plan for change and its implementation.
7. Introduce initial changes that bring quick results.
8. Focus on training.
9. Sell the benefits of the change.
10. Always remember the effects on individuals.
11. Check on how individuals are coping and remember to support them.
Promoting change is an important function of management. Acceptance of change - both by the workforce and other stakeholders - is more likely to lead to a positive outcome rather than imposing change on unwilling groups, which could lead to increasing resistance to change and ultimately lead to failure. According to
r, a leading writer on organizational change, the best way to promote change is to follow an eight-step process.
"Change is the only constant."
– Heraclitus, Greek philosopher
Review - 30 second video on Change Management
Introduction to employee/employer relations
"In the News"
Tesco staff warn of strike action in row over pay
Immigration staff threaten rolling strike action over pay conditions
Strike action planned at Mondelēz’s Cadbury Ireland plant
Read and discuss recent strike articles handout.
What do employees want?
Employer and employee representatives
Conflict resulting from differing objectives may be inevitable between labour and management within business.
How can these conflicts be resolved or at least reduced so that the disagreement is not so great that it prevents all forms of coordination and working together?
How an positive cooperation be achieved between these two groups for the benefit of the business and all stakeholders.
Collective Bargaining and Negotiation
The situation where the management team and workers have representatives who negotiate on the terms and conditions of employment is called
Large firms do not have the time to negotiate with individual employees. For both workers and managers, having employer and employee representatives to negotiate makes better sense.
is a bargaining process whereby two or more parties attempt to achieve a mutually acceptable result. The negotiations tend to focus on the terms and conditions of employment such as wage rates, hours or work and work conditions.
Sometimes collective bargaining does not work and an industrial dispute may arise. An industrial dispute is conflict arising between workers and employers.
Industrial action refers to the activities taken by disgruntled employees due to disputes over working conditions and practices. It is a result of poor employer-employee relationships or conflict at work.
Employees are usually represented by a
(or labour union). This is an organization whose members unite to protect their rights and welfare.
Members of a trade union must pay an annual fee to contribute towards the costs of running the union. Their main role is to protect the interests of their members.
are individuals or organizations that represent the management team in the collective bargaining process.
Types of action employees can take include:
- this means workers deliberately work below their potential.
- which involves workering strictly by the company rule book and following every rule in the organization.
- employees refuse to work overtime.
- employees stop working to force an employer to meet their demands.
Threats of redundancies
- a way to intimidate or pressure workers into complying with demands.
Changes of contract
- it may be possible to legally change people's contract of employment, if administered fairly.
- the business is closed down.
- employers temporarily stop employees from working during an industrial dispute.
Sources of Conflict
The primary causes of conflict between workers and management in the workplace include the following:
- change causes stress.
- managers sometimes think that workers do not consider the goals of the business
- lack of acceptance and understanding can cause conflict
- changes in economic environment can affect resources available to to the business, migration of labour can bring in new workers who are not used to an organizations culture, political changes can lead to new laws and regulations
- no organization has unlimited resources
- lack of communication can create misunderstandings
- do not do job properly - at all levels whether managers or workers.
Approaches to conflict resolution
Conciliation and arbitration:
Sometimes the employer and employee will seek help from a third party to resolve a dispute.
The aim of conciliation is the bring together the groups in dispute and help them find a resolution.
An independent third party is used and both parties outline their positions by providing appropriate evidence.
This evidence is then assessed and a judgement made.
Employee participation and industrial democracy:
Employee participation is an example of industrial democracy. This means that employees are given responsibilities and authority to complete tasks and are involved in decision making. This would be examples such as team working. Employers benefit from a more cooperative workforce who are less likely to engage in industrial action. Employees benefit from higher levels of morale and an increase in job satisfactions. As a result absenteeism and labour turnover rates will fall. A win-win situation for both employer and employee.
No strike agreement:
A no strike agreement occurs when a trade union has agreed not to undertake industrial action until procedural steps have first been undertaken. It can also mean that they have agreed to rule out any possibility of industrial action. Unions will agree to not strike when the management team has agreed to certain conditions.
Where one union is recognized as the only representative of employees it is called a single union agreement.
This situation saves managers from having to negotiate with several unions.
Unison and the role of unions - small case study
Richard Branson's favorite Change Quotes
A year from now you will wish you had started today. - Karen Lamb
By changing nothing, nothing changes. - Tony Robbins
Change before you have to. - Jack Welch
Education is the most powerful weapon which you can use to change the world . - Nelson Mendela
It is not the strongest of species that survive, nor the most intelligent, but the one most responsive to change. - Charles Darwin
In his book
, John Kotter reported that a shocking 70% of all change initiatives in businesses fail.