HRM & Industrial Relations

HRM & Industrial Relations
Chris Jarvis
Industrial Relations defining the scope
male, FT, unionised, manual, heavy
industries &
public sector , restrictive practices, strikes & collective
bargaining?
Employee relations - more diverse jobs: non-manual,
female, PT, non-union, services, high tech, new
business etc
Focus = regulation of employment relationship
(control, adaptation, adjustment) - legal, political,
econ, social,
historical within
contexts.
Collective
aspects?
operating
& outside
the workplace
concerned with determining & regulating

employment relationships.
Chris Jarvis
Unitary
Pluralistic
Authoritarian
Paternalism
Marxist
Cooperation
Conflict
Evolution
Revolution
Approaches to IR
Input
Conversion
Conflict
differences
Institutions
& processes
Output
Regulation
(rules)
Social
action
Systems
HRM
Labour
market
Chris Jarvis
Control over
labour process
Comparative
Wider approaches
Unitary
Assume
Capitalist society
integrated group
common values,
interests, objectives
Pluralistic
Marxist
Post-capitalist society
Sectional groups - coalesce
different values, interests,
objectives
Capitalist
Division of labour/capital
social imbalance + inequalities power, wealth etc
competitive authority /loyalty

(formal/informal)
inevitable, rational, structural
inherent in econ. & social systems

disorder - precursor to change
compromise + agreement
change society
Nature of conflict
one authority /loyalty

irrational + fractional
Conflict resolution
coercion
TU Role
intrusive
anachronistic
only accepted if forced
Chris Jarvis
legitimate
internal, integral to workplace

accepted role in econ &
managerial relations
employee response to capitalism

mobilise, express class
consciousness
develop political awareness &
activity
Input-output model
convert potential for conflict into regulation

reconcile conflicts of interest through legitimate, functional
processes & institutions
at the heart ....... collective bargaining
regulatory output
Chris Jarvis
Rules: unilateral, joint or imposed by government

substantial & procedural arrangements
within-the-organisation or external rules (law, national
agreements)
varying degrees of formality
Systems approach (Dunlop 1958)
IR - a social sub-system within the econ. & political systems

Components
Chris Jarvis
actors
contexts (influences & constraints on decisions & action e.g.
market, technologigy, demography, industrial structure)
ideology - beliefs affecting actor views - shared or in conflict
rules - regulatory elements i.e. the terms & nature of the
employment relationship developed by IR processes
Stable & orderly
Unstable & disorderly?
Social action (Bain & Clegg)
actor perceptions & definition of reality determine behaviour,

actions, relationships
work orientation is as much a result of extra-organisational

experience as experience within the workplace
structural factors may limit individual choice & action

bounded rationality - interrelated decisions may fix or
significantly shift values, focus, roles or relationships.
instrumental & value-based considerations

Chris Jarvis
Control over labour process
transformation in inputs by labour using tools & methods.
Chris Jarvis
Products, under capitalism, become exchangable, marketable

commodities. Relevance to banking, retailing, local govt etc ?
labour-capital relationship - essentially exploitative
(ownership, surplus value, logic of efficiency & savings,
structures of control.
Braverman - to achieve capitals objectives - specialisation,
standardisation, simplification, substitute technology for labour
(Taylor), de-skilling? Critique?
Core + peripheral employees. Segmented labour markets
Job enrichment, empowerment & responsible autonomy
Personal control & bureaucratic control
8
Labour Market - how work is distributed within society
Issues
increase in womens activity rates

level + nature of unemployment, long vs. short-term jobs
manufacturing service + globalisation vs. local
market regulation strategies + dual labour markets
Economic labour market model
Pay = price mechanism (SS/DD. elasticity & equilibrium)
One market (same for all) or differentiated by skill, job, location

etc.
assumes Pricing +
Work - disutility. Wages compensate for less leisure
Marginal productivity gain from using one extra unit of
labour
labour market - wage floor, "going rate",

institutionalised
range (quartiles), collective bargaining vs. individual
Chris Jarvis
negotiation.
Labour Market - social acceptance & hierarchies
Possible Issues
Unskilled, semi-skilled & skilled. Blue-collar, white-collar.

Professionalisation. Other desire the same.
UK recognition of engineers
UK class system & differential access to education (private schools)
& labour divisions.
Government interest
Chris Jarvis
Passive & active policies

Retirement age, unemployment benefit, training, job support
Who pays - via taxation or direct Er /Ee contributions?
Interventionist & corporatist approaches (state regulation)
Deregulation - free, flexible labour market, pay decided by ability to
pay.
10
Economic environment
UK de-industrialisation + manufacturing decline
increasing liberalisation, internationalisation & globalisation of trade

government management of economy e.g. Keynesian vs monetarism.
increasing inequality in wage distribution
industrial restructuring & introduction of new technologies
expansion of service sector
Participation rates in employment between 1966 & 1981
Chris Jarvis
77.3 to 75.3%
97.7 to 87.8%
55.4 to 61.5%
Overall
Men
Women
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Employment trends 1981-91
Male
FT
Manufacturing
1981
PT
Total
Female
FT
PT
Total
All
4242
69
4311
1342
395
747
6058
3157
-26%
55
-20%
3212
-26%
1080
-20%
282
-29%
1362
-22%
4574
-25%
Services
1981
5460
601
6061
3752
3288
7040
13101
1991
5691
879
6570
4491
4249
8739
15309
+4%
+46%
+8%
+20% +29%
+24%
+17%
1991
Figures rounded to nearest 000

Source: Employment Gazette
Chris Jarvis
12
Social environment
industrialised, capitalist society

principles of freedom of thought, expression & association
Protestant work ethic
Welfare state vs. independence & expansion of individual
opportunities
class & social mobility - manual to middle & professional
home & share ownership
unemployment, haves & have nots. NHS vs. private
medicine
Chris Jarvis
13
Political environment
Chris Jarvis
internal organisational decision-making. Power-authority

structures
external governmental politics
individual liberalist, laissez faire vs. corporatist, interventionist
government responsibility for high employment
privatisation (public vs private)
TU role/protections & employer role/protections
law & order
European Union - national vs supra-national & conflicting
political ideologies
14
Development of Industrial Relations - 1
in restraint of trade - Tolpuddle Martyrs

19 c. TUs & collective bargaining confined to skilled
late
trades & piecework. Industrial strength, mutual assurance,
th
Chris Jarvis
control over entry. Common interest in local rules.

Employer interest in controlling wage competition
WW1 industry level bargaining uniformity in wage
claims. 1916 Whitley Committee 70+ JICs set up
1918-21
20s & 30s recession, unemployment decline in TU
membership, wage cuts and...!!!...more industrial action.
Some JICs disbanded (industries facing foreign
competition). Many survive (public utilities, Logov & govt.)
15
Development of IR - post 1945
1950s & 60s
improvement in economic conditions ----> inc. TU membership & IR activity.

Pressure on industrial bargaining. Productivity problems. PIP. Shift to shop
floor bargaining (stewards vs national officials).
Donovan Commission (1968) recommends

reform of voluntary coll. bargaining. Pluralism & company agreements
1970s IR tensions & confrontations (3 day week, miners, Winter of
Chris Jarvis
Discontent, wage push inflation). Employment legislation to enhance

worker rights & extend coll. bargaining. Voluntary incomes policy.
From early 80s recession
Govt non-intervention re- industrial restructuring but strengthening of

individual over collective rights. TU member decline. Competitiveness,
globalisation & and TQM. Managerial (HRM) resurgence.
16
Donovan Commission 1968 (majority & minority report)
IR improvement by reform & extension of voluntary
Chris Jarvis
collective bargaining
management initiative & TU agreement
develop formal company level agreements.
substantive
terms & conditions, rights & obligations etc
procedural
conduct of relationships, dealing with disputes/conflict;
about power & authority in organisations
management to embrace pluralism & joint participation
17
Government & Legal intervention
Managing the economy. Balance of Payments & IMF. Problem of
growth, industrial change & inflation. Govt - TU - Employer triangle.
Contrary to Donovan voluntarism Increased legal intervention
Chris Jarvis
1969 In Place of Strife recommended law to deter destructive

industrial action (unofficial strikes) bring orderliness into IR.
1971 Industrial Relations Act (failed) - more legal control over TU
action & unofficial strikes. Unfair dismissal.
1974 Social contract & support for collective bargaining, stewards
rights, disclosure of information, consultation, time off.
1978-79 Industrial democracy & Winter of Discontent
1979 steady, greater legal control & restrictions over TU activities
18
Conservative legislation to limit TU activities
Employment Acts 1980 , 1982, 1988 & 1990

Trade Union Acts 1984 & Wages Act 1986
Employment Acts, Trade Union Reform Employment Act 1993
Employment Rights Act 1996
Chris Jarvis
no statutory recognition procedure nor closed shop

no immunity from secondary industrial action
independently scrutinised ballots for industrial action
union officers responsible for unlawful actions & must repudiate
right NOT to be disciplined by union for not taking part in action
secret ballots for election of NEC officers
abolished Wages Councils (price people back into jobs)
early 80s confrontations: miners, Wapping P&)/NUS
extended rights to obtain redress individually
new realism - single union agreements
19
New Realism?
management proactivity - neo-HRM, TQM & IIP.

Integration with business competitiveness, excellence, customer care.
bargaining structures shift from
management-union (collective) to management-individual relationships

(communication, empowerment, ownership)
multi- to single-employer. Sole-union recognition for flexible working
flexibility & individual.

more temporary & part-time working
core/periphery staff with task-function & time flexibility.
performance-related pay (individual & team)
share ownership & profit bonuses
pay & working conditions emphasis
TUs on the defensive. 1979-1993 lose 4.5m members. Cooperative

employer partnerships. Member services from credit to training.
Chris Jarvis
20
Concepts & Values in IR
fairness & equality (but fairness is relative & not constant)
utilitarian or democratic
impersonal technical notion
reciprocity of the exchange, consistent with other exchanges, equality of
treatment & consideration.
power to control, influence & modify versus legitimate authority
Chris Jarvis
French & Raven - 5 sources of power

reward, coercion, legitimised, referment, expertise
Morgan (more diffuse, implicit, pervasive)
control of resources & systems; control of knowledge, information &
decision-making; use of organisational structures, rules &
regulations; control of alliances, networks & counter-organisation
Magneau & Pruitt - reciprocal perception of power.
21
Individualism & collectivism
individual negotiation vs combining against Er-Ee imbalance

Oversimplification to say Mgt-employee relationship =
individual & Mgt-TU = collectivism .
Issue = degree to which the individual is or should be
Feels in control, responsible, allied with or subordinated to,

regulated by & protected
Issues of I & C in industrial relations
Mgt claim right to deal with staff without intermediate TU

constraint (represent/regulate on joint basis)
Individual PRP vs. one package for all
individual sees his/her well-being deriving from own efforts
vs.fraternalism (improvement through solidarity)
High trust - Low trust (Alan Fox - Beyond Contract)

Chris Jarvis
22
Trade Union Functions

- protect/support through strength in association - a
Power
countervailing force, pressure group. Note: bargaining
Chris Jarvis
leverage & member willingness to act together.

Economic regulation - maximise member returns within
wage-work framework. Note: political nature of TU wage policy
- comparability & differentials. Inflation & unemployment (costpush & demand pull). Win bigger slice of national income.
Job regulation - establish a joint-rule making system to
protect members from arbitary management action . Enable
participation in decisions affecting their employment. Expand
job opportuities?
Social change - express social cohesion, aspirations, political
ideology & develop a society which reflects this?
Institutionalise class & conflict? Dilemma of participating in
government.
Member services - provide benefits/services to members
Self-fulfilment - assist individuals to develop outside their job
domain & participate in wider decision-making processes
23
Union character
expression of sectional/class consciousness --->

socialist society
social responsibility - exercise role in non-detrimental
ways
business unionism - maximise benefits from employer
relationships
welfare unionism - wider social, econ. & political
involvement for all
political unionism - through political alliances
Chris Jarvis
24
Why do people join or NOT join trade unions?
Blue/white collar
clerical, technician, technologist,
Manual,
supervisor, manager
Heavy light, old high-tech. industry
Individualism vs. fraternal/collective
instrumental reasons for joining. Support in
uncertainty
preference for cooperation with Mgt rather than
conflict
Chris Jarvis
25
What is Recognition?
Mgt. formally accepts a TU (or TUs) to represent all/some
Chris Jarvis
employees & enters into joint determination of terms &

conditions on a collective basis.
confers legitimacy & defines scope of unions role
movement from unilateral management action to
pluralism. TU has right to exist & organise in workplace,
support members & have shop stewards, challenge
managerial action & bargain.
rights to information disclosure & consultation
(redundancy, transfer of undertaking, H & S & pensions).
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TU Recognition Process
Claim for recognition
Management
policy
TU & employees
expectations
Bargaining unit (common interest, internal homogeneity)
characteristics of work group (skills, pay, jobs, dispersion)
TU membership %
collective bargaining arrangements
management structure & authority
Degree of recognition
representative &procedural only
negotiating (some/all, joint or sole)
union membership agreement
Bargaining agent
independent
appropriate for all employees
effective/sufficient resources
representative
Recognition ballot
What %?
Recognition agreement
Chris Jarvis
management rights to manageappropriate

scope & instutions of collective bargaining
role of representatives
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Recognition
Implications for Managers
challenge & appeal against decisions. Slower processes

representatives as mediator of communications & may block
work to agreements, procedures with rights to be consulted
persuasion & negotiation to secure consensus
time off & protections for appropriate/legitimate TU activities.
1977 determined not to grant recognition & dismissed all

Grunwick
employees who took action
Recognition & non-recognition often exist side by side
decline in membership & now 1998 Fairness at Work
- Govt proposals to enable employees to have a TU recognised by
their employer where a majority of relevant workforce wishes it & to
introduce statutory procedures for both recognition & derecognition
Chris Jarvis
28
Collective Bargaining
an institutionised system of determining terms &
conditions of employment & regulating the
employment relationship between
representatives of Mgt & employees intended to
result in an agreement which may be applied
across a group of employees.
decline in coverage 1980 - 90
collective agreements > union membership.
public sector > private
manual > white collar
manufacturing > service

men > women
53% firms in 1990

66% of FT workers (direct or indirect)
Larger firms & public-sector organisations
Chris Jarvis
29
Models of Collective bargaining
Chamberlain & Kuhn
conjunctive bargaining
mutual coercion - agreed truce - indispensible to each other - Lose-lose
cooperative bargaining
both accept neither will gain advantages unless the other gains too. Win-Win
- willingness to concede - to increase size of cake
Walton & McKersie
Chris Jarvis
distributive bargaining
basic conflict over slice of the cake. Fixed-sum game - if you win, I lose.
integrative bargaining (common perception & acceptance of issue)
Mgt accept employee influence. TU accepts business responsibility.
Cooperate to increase cake. Adversarial- cooperative tension remains
intra-organisational bargaining.
30
Content & Scope of Collective Bargaining
Substantive rules (economic matters)
pay (basic, overtime, PBR, guaranteed payments.....bonuses???), hours

(37, 40, shifts, shorter week, flexi-time?) , holidays, fringe benefits
(pension, sick pay, company cars?, BUPA?). Annual negotiations.
Procedural rules
status quo (no change until disputes procedure exhausted). Shop

stewards, grievance, negotitating, disputes, redundancy, consultation,
discipline?
Work methods/arrangements. The nature of work & how it is
Chris Jarvis
=carried out. Flexibility, multi-skilling, productivity, assignments,

teams, use of contractors, operating procedures?
Bargaining levels
National/Industry wide (multi-employer & TU Federations?)

Company-wide
Plant/shop level
31
What enables bargaining power?
Chris Jarvis
32
Involvement & participation in decision making
democracy (worker control) - little currency in

industrial
contemporary market-driven economies
in decisions traditionally the prerogative of
participation
management
equal power or management style/good-will?

HRM & reaction against confrontation management
Task participation: empowerment, cell technology, team working, briefing

groups & quality circles, delegation, job enrichment & MbO joint problemsolving. McGregor Theory Y. Employee reports. 360 degree appraisal
involvement to mobilise cooperation, talent & creativity
particpation profit-related bonuses, share ownership

financial
schemes
Chris Jarvis
approved deferred share trusts

SAYE to buy company shares
employee share ownership plans
33
Employee participation
Worker directors
Bullock report
Works Councils
European pressure for Mgt to consult employee
representatives
collective redundancies, transfer of undertakings, health &

safety.
European Works Council Directive (1994)
Chris Jarvis
EWC for information & consultation to be estabished in any

multinational organisation with at least 1000 employees
(including 150 in each of at least 2 member states)
34

HRM &amp; Industrial Relations

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