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2.6 Industrial/employee relations (HL) 2014

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Deborah Kelly

on 1 June 2018

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Transcript of 2.6 Industrial/employee relations (HL) 2014

2.6 Industrial/employee relations (HL Only)
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.
Change management
- is the management process of planning, implementing and controlling the transition of a business as it moves from its current situation to a new one.
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.

Self- interest
- Some employees may feel their own pay and working conditions along with their future prospects are poorly affected by a change (fear of failure, lack of job skills)
Low tolerance -
Employees just find it difficult to deal with a change in their situation, particuarly those who have done the same job for a long time. (fear of the unknown, loss of control, discomfort)
- When there is a threat of change in an organization it often comes with lots of rumors and information that is not true and causes unease among workers.
Interpretation of the circumstances -
If workers do not understand the reasons for the change they are more likely to resist it.
Resistance mostly stems from fear about not knowing what the changes may mean.
Line workers



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
Source: http://trainteachassess.files.wordpress.com/2009/04/processofchange.jpg
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.
6. Communicate!
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
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
John Kotter
, 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"
German metalwork employees strike...
Some 10,000 Daimler employees strike...
UK universities face disruption...
Strikes Loom at Daimler, Siemens as Talks Fail...
Zara shoppers find...
Watch, read and discuss recent strike articles and about employee rights issues?
What do employees want? - list demands.
New vocabulary - list new terminology.
Employee and employer representatives
Conflict resulting from differing objectives may be inevitable between labour (employees) and management (employers) within business.

Representatives will work together to determine:
How conflicts can 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 positive cooperation can be achieved between these two groups for the benefit of the business and all stakeholders.
Employees are usually represented by a
trade union.
A trade union is

an organization set up by employees to represent the views and protect the rights of those employees.

Members of a trade union must pay an annual fee to contribute towards the costs of running the union. The main role of a trade union is to protect the interests of their members.

Types of industrial action
can take include:

Collective bargaining.

Unions negotiate on behalf of their members with employers' representatives on pay and conditions of employees.
- this means workers deliberately work below their potential.
- which involves working strictly by the company rule book and following every rule in the organization.
Overtime ban
- employees refuse to work overtime.
- employees stop working to force an employer to meet their demands.
Types of industrial action
can take include:

Collective bargaining
- Employer's teams negotiate on behalf of the business with the trade union on employees' pay and conditions.
Threats of redundancies
- a way to intimidate or pressure workers into complying with demands.
Changes of contract
- employers legally change people's contract of employment, such as going on a one year contract.
- employers prevent employees from entering the premises to do their work.
- employer shuts the business down until an agreement is reached.
Sources of Conflict in the workplace
The common causes of conflict between workers and management in the workplace include the following:

Changes in the business environment
- in a recession firms will cut costs and output by reducing wages or making redundancies.
Change management by the organization.
- a business embarks on a strategic change that unsettles workers and causes conflict.
Pay and working conditions
- if these are below employees expectations then this will likely lead to conflict because workers will be unsatisfied and demotivated.
Different personalities
- conflict is often about how people and groups of people relate to each other. If personalities clash this will lead to conflict.
Poor communication
- lack of communication or breakdown in communication can create misunderstandings can conflict
Approaches to conflict resolution

he employer and employee will seek help from a
third party
to resolve a dispute. The aim of conciliation is to provide a
compromise solution
Employee participation and industrial democracy:
Employee participation is an example of industrial democracy. This means that employees are involved in decision making. This could be having employee representative on the board of directors or involving employes in strategic decision making.

benefit from a more cooperative workforce who are less likely to engage in industrial action.
benefit from higher levels of morale and an increase in job satisfaction.
A win-win situation for both employer and employee.
No strike agreement:
A trade union agrees not to strike in return for greater involvement in a businesses decision-making process or when the management team has agreed to certain conditions.
Single-union agreement:
One union is recognized as the only representative of employees. it is called a single union agreement. This situation can reduce conflict and saves managers from having to negotiate with several unions.
To do:
2.6 K&U Worksheet

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
Leading Change
, John Kotter reported that a shocking 70% of all change initiatives in businesses fail.
Video Clip about UK Rail strike:
Video Clip about Tim Horton's
Employees' representatives
Employer representatives
are individuals or organizations that represent the management team in the collective bargaining process.

Employers are generally represented by HR managers appointed by the organization to work with
trade unions
on issues relating to its workforce and how this affects the organization.

There are some
employers' associations
representing groups of employers in a particular industry.
Employer representatives
Trade unions
have the following functions:

representing the views of employees to employers
safety and security at work
protecting pay and conditions
industrial action - if a dispute cannot be resolved.
Industrial action
- measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favor of employees.
There will always be conflict in businesses and successful organizations develop effective systems to resolve conflict.

third party
court is called in to make
on the dispute that
has to be followed
by both parties.
Change management strategy
1. Agreement and ownership.
This makes all employees have a say in and feel part of the decision-making process involving the change.

2. Planning and timing.
Once the change strategy has been decided, employees are likely to feel less resistant if it is clear to all employees when changes are going to take place and there is a clear plan on implementation.

3. Communicating changes.
A plan of how the communication of changes being made needs to effectively set out for the whole change process.
Employer employee relations and CUEGIS
leads to more change which can increase conflict. Developments in email and social media increases the quantity of information but can make managers feel more distant.

Ethical considerations
Improvement in ethics should lead to better relations. Some difficult decisions may be ethical but hard on employees.

Cultural differences.
If businesses operate in overseas markets and use their own countries managers to manage employees the cultural difference can lead to conflicts. Unethical managers may also discriminate against some workers.
2.6 K&U
Kahoot A
Kahoot B
Politics News - May 30, 2018
Minister of Employment, Workforce Development and Labour Patty Hajdu along with Transport Minister Marc Garneau express their pleasure at the tentative agreement between the Teamsters Union and Canadian Pacific.
Hajdu says collective bargaining works
Full transcript