Conflict Management in Industrial Relations - Term Paper Example

According to topic, it requires u to compare and contrast two national industrial relations systems, with particular emphasis on conflict management provisions. In that case, there should be clear linkage between case and theory which I do not see much in this work. You really had to put more emphasis on cases and apply theory to evaluate and to make analysis. But since it is quite late (only got 24 hours) please make it closer to it. Just run through this. There are some corrupt or missing references that you have to fix. Industrial Relations: Conflict Management Introduction: In the era of globalisation cross-organisational and trans-national practices were being practised. These are bringing changes in industrial systems and conflict management practices in them. In this article the conflict management was first discussed in global terms and then within the limits of the company and industrial relations. In 80s the number of MNC s was very less in number, both in developed and developing countries, if compared to today’s number. The existing MNC s at that time used to confine themselves to some countries. But today the MNC s arise even from developing countries and more number of MNC s from developed countries were established and trying to establish themselves in developing countries and vice versa. This brings change in Industrial systems in various countries, to make the system suitable for newly evolving industrial environment. This paper starts with the changes in industrial systems, which make the conflict management as conflict avoiding system, and thus it shows its effect from national level, to industry and enterprise level. Two industrial systems of US and UK having different conflict management methods When two industrial systems of US and UK are considered, which are doing well with two different systems at national level, US is managing with two different conflict management systems for government employees and private employees where as UK is maintaining same conflict management system for both Government and Private sector. In US Government employees have no right to strike while private employees have it. This makes the private employees enable to create conflict and it necessitates the management to work on the conflict management to solve the problems posed by conflicts. But in the case of government employees, as they don’t have chance of collective bargaining, a system is present to address their grievances. These grievances in other systems are generally addressed by collective bargaining. This method of conflict management by the system of addressing grievances was now being adopted by number of global companies having no unions. This is useful to avoid conflicts by addressing and listening to the grievances of employees and solving them. But in UK the system is same for both Government and private employees. Both of them used to have same type of right to strike and before 1980 there was even recession in economy due to frequent strikes. The credit of reducing the conflict goes to the conflict management system that was introduced by government to negotiate between management and employees resulting in tripartite discussion system for conflict management. Thus two different systems resulted in same type of conflict avoiding environment (this word is used by me and not borrowed from any site. If it was there, is just co incidence. This was the phrase I got in my mind when I was reading different material regarding HR practices.) paving way for greater industrial development and relations. In both the cases it was to be observed that the grievance addressing system in different forms was critical in reducing the role of unions and increasing the employee involvement. Though in US it affected the rights of employees regarding collective bargaining, it reduced the employee dissatisfaction up to a large extent in the period aftermath. This can be concluded by the manner in which global companies are implementing the grievance addressing system with good HR practices. Even in UK the government agency that was established to negotiate between employers and employees was the main actor in reducing the conflicts and reducing the role of Unions. The common factor that is critical in reducing the conflicts in two different industrial systems is taken into consideration. The whole argument in the article was developed around this idea that the conflicts can be reduced when the agencies are approachable to employees as well as the employers and the grievances of employees are addressed in time. The role of HR practices in conflict management Due to globalisation the companies from protectionist economies were being transferred into more market driven and diffusing into developed countries. On the other hand the companies of developed countries are more active in establishing their subsidiaries in developing countries resulting in exchange of number of industrial practices between companies and countries. When the subsidiaries of companies from developing economies operate from the land of developed countries and vice versa they have to recruit local staff up to some extent from managerial level to clerical level. This compels that company to practice the local Industrial practices in order to utilise local talent and to gain deeper access to local markets. This is a symbol of change, which increases involvement of employees in industrial relations systems to avoid conflict. (Alan Price, 2006, http://www.hrmguide.co.uk/hrm/chap12/ch12-links4.htm#ch12org, the guide was developed on site www.hrmguide.co.uk based on the book by Alan Price). At the same time the companies of developed countries are wooing the professionals from developed countries from Asian giants like India and China and are changing strategies according to their needs. The necessity of the companies operating globally will result in a modern conflict management strategy with employees having more roles to play in the policy of the company strategies. The more roles they play, the less is the probability of conflict. This type of HR practice, which gives employees a voice to speak and an outlet to their grievances makes conflicts to occur very less often. The agreements signed between employees and employers depending on the grievances addressing system were reducing the role of Unions and increasing the role of employees. This change was due to the globalisation and new practices in industrial relations depending on the new necessities of using local and international talent. If the agreements reached between employers and employees were through the grievances system, then there is less chance for employees resorting to strike to work if their grievances are rightly met and there is a chance of flow of professionals across the countries when there is a conflict avoiding system in place of union system. (These were the ideas taken from guide made by www.hrmguide.co.uk based on book ‘Human resource and management’ by Alan Price) System of addressing grievances When there is a system of conflict management, apprehensions and disputes can be settled through negotiations. But previously the occurrence of strikes and lockouts used to be common, to settle the disputes between the management and the employees. In US, the failure of PATCO strike and hard line policy of Reagan administration towards the strikes resulted in rise of conflict management system. Therefore a system of negotiations, fact finding, recommendations, and arbitration is there in existence to make the employees and employer to resolve the disputes before they take the shape of conflict. But in the case of private employees as they have right to strike and thus they don’t have the system of these negotiations to avoid conflict management. The negotiations for them can take place between union representatives and management at the enterprise level, which needs a different conflict management system that works on collective bargaining and industrial action. Considering the Europe, as a whole the harmonious environment created by conflict management systems is resulting in the establishment of works councils. These councils give a new definition and vigour for collective representation (reason for the power to bargain), as they have both rights and responsibilities. The recession in the economy of the state and position of the industry due to Unionism resulted in developing the conflict management systems by both Government and Industry. The recession in economy during the period of unionism may have been responsible up to some extent in bringing the conflict management system into existence along with good HR practices. Good HR practices are necessary to create conflict-avoiding environment. The HR practices which involve employee in discussing with management, company taking the responsibility of training them according to the need instead of taking action, introducing the system of solving the disputes by discussing are able to create conflict free environment. Each employee must have a chance of discussing his problems and grievances with the management representative. For this action to be materialised, the HR system need to be more organised as they have to listen more to employees than before. This increase not only chance of solving the problems of employees but also increases the responsibility of employees as each of them, who have grievance to express have to prepare well for the discussion with the management. This can make and even made unions loose hold on the employees as their problems were addressed through various arrangements, which are part of Industrial systems. The conflict management systems must make employees work harmoniously with employers resulting in increasing the productivity. Along with that it should result in increase of standards of living of the employees, which is capable of avoiding the conflict. In the last century the conflict management system used to be limited to the exploring the ways to solve the conflict, when it arises. They used to anticipate the conflict and plan accordingly. But the modern management in Industrial systems were designed in such a manner to avoid conflicts. So conflict management was being slowly extended to a level of conflict avoiding system by including some good HR practices. The HR procedures regarding addressing the grievances were a part of the system. The growth of grievances addressing mechanisms is significant in modern conflict management. As Jose (2000) (in The Decline of Trade Unions and the Emerging Actors in Industrial Relations by Prof. Virgil C. Binghay), said about the employees, "tend to be better-educated, career minded, individualistic and less motivated by class interests and solidarity”, the non unionised employees will try to utilise the conflict management practices involving HR by the management. The main draw back in the grievance system of non union companies is that the management prefers to keep very less documents written, regarding the conflict management. This raises the doubt in the employees and the thinkers. The doubt may be that as the power of collective bargaining was being reduced by the above practices the welfare and the rights of the employees may be at stake. But the competition between different companies and gradual evolving of the system into an institution can result in favour of employees and even to maintain good documentation. At national level the policy should make necessary for the company to maintain documentation regarding the system of addressing grievances. If that is the case, it will be a remarkable and notable change in the Industrial systems and its conflict management sections. But one thing that may be considered as a lapse in the grievance addressing system is that, one should be well prepared with his argument. In the case of union system the leaders used to do that homework, but that resulted in irresponsibility of workers. So, for the common good of both sides this system increases responsibility in both the employer and the employee, which in turn decreases the chance and probability of conflict. Generally the discussions and negotiations between management and employees were regarding pay, bonus, work environment, schedules, grievances, safety and working hours and targets regarding the production. The state, industry, negotiating institutions, and unions were the actors regarding these things and these play a major role in solving the problems relating to them. When the unionized employees withdraw their good will by strictly adhering to rules regarding work, refusing to work over time (though pay was offered) result in a conflict when the management took them seriously. These even lead to going to strike and may even result in lockout when not addressed in a righteous way. To solve the problems relating to the conflicts that arise due to the above contexts The Advisory, Conciliation and Arbitration Service (Acas) was set up in 1974 to solve the disputes and to create the congenial atmosphere at the work place. It introduced the codes of practice and was highly successful as the present day’s industry is witnessing only the minimum number of disputes or conflicts. The success lies in the fact that it is easier to both employers and the employees to consult the Acas when there is any dispute. But the determination is necessary for both the sides. The political and administrative leader ship must take responsibility to create that on either side. This is possible when the both sides were assured of the protection of their interests. From the side of employer, the increase of productivity, profitability, cost effectiveness were the topics that matter. The employee thinks about the security of work, reasonable pay, reasonable working hours, facilities and opportunities to his family. When these are addressed, both sides naturally try to act in a mutually beneficial manner. The role of the state is critical in establishing the Industrial system that meets the above requirements. At the same time the state should not intervene to favour one side. The liberalization and globalization, which result in competition between employers and was capable of introducing good HR practices, which enable employees to discuss their problems with the representative of the management.(Elements of a sound industrial relations system by SR de Silva) Making management and agencies more approachable The pressure and demands of liberalization in many economies made many companies change their strategy from hierarchal system to decreasing the layers of management, which made possible to address the grievances of the employees. The conflict arises from the basic fact that the management is not approachable. In conflict management procedure the top level of the management should not feel that they were responsible for all the activities. They can take into account the aspirations and opinions of the lower strata, which in turn make possible, the negotiations on every aspect. The reason for this is, this type of strategy makes possible two-way communication and results in making employees a lively part of the organization. The protectionist policies, subsidies, which encourage monopoly, exploitation, expecting cheap labour from the side of employers, make the environment conflict ridden. Not prepared to work for reasonable time, lack of skill, anticipation of hike in perks with irresponsibility were the causes for the conflict from the side of employees. When these issues were addressed and if both sides were assured of their benefits, then the conflict management will be a success. The transformation of views and developing of skills, taking a broader view, training programmes, can make every situation harmonious between management and workers. The managers in Globalisation period must be in a position to exercise leader ship of high standards than in the past. This is due to the situation that demands entrepreneurship from the managers. To achieve that, manager should not limit himself to just managerial activities, but in turn he must be a dealmaker and PRO. Coaching, motivating, visualisation, strategy planning, negotiating must be inculcated by the managers of the global companies, which can reduce conflicts by non-unionising and conflict management systems. The fundamentals of conflict management lie in identifying the fact that both sides are interdependent. This brings the change in system that results in conflict free environment. The basic quality of a conflict management system is developing mutual trust. The industrial actions that were taken by employers and unions are destroyers of this mutual trust in the past. If the environment is congenial and harmonious, employees think twice about the industrial action taken by their representatives and the employer too will think deeply before taking action. The mutual trust brings justice to the employees and required benefits to the employers resulting in loyalty of the employees towards employers who should return it in the form of concern. When a job is capable of affecting one’s self esteem positively and improves the living standards of the employee or the worker, the situation results in minimum confrontation between the management and the employees. So the role of conflict management in modern industrial environment must not limit itself to solving the conflict when it arises, but must be able to avoid as much conflicts as possible. The laws, practices, customs, agreements, arrangements between the both sides are the source for the processes and mechanisms of conflict management. Theoretical Model of Industrial System involving Conflict Management Practices  Idea ELEMENTS OF A SOUND INDUSTRIAL RELATIONS SYSTEM, by S.R. de silva National level The policies, causes and conventions which result in good industrial systems need not be same at national, industrial and enterprise level. At the national level the labour (Industrial) relations are to be framed. Generally tripartite process was followed to frame these conventions and customs in market driven or industrial economies. The Government, Employers’ Unions, and Labour Unions or people’s representatives can act as actors in tripartite discussion involving the policy framing. Industry level The collective bargaining at industry level is critical in building up system of conflict management. The grievances addressing system framed at industry level must make the collective bargaining a name sake process as there should be no issues that are capable of creating conflict. The collective bargaining right of the employees can be limited to refusing the extra cooperation that the management wants when a system of addressing the grievances was introduced. They must not be in a position to go for a strike and stopping the work. This is possible and plausible if the employers are concerned about the employees and the grievances addressing system was made compulsory at the level of industry. Idea extracted from (http://www.kli.re.kr/iira2004/pro/papers/VirgelC.Binghay.pdf, http://www.ilo.org/public/english/dialogue/actemp/papers/1998/srseleme.htm)These two were referenced at the end. Enterprise Level Self management, time management, good working conditions and practices from both sides play key role in maintaining the conflict free environment at enterprise level. The policies framed at national level, which are according to good and benevolent practices like improving the skill by training, resolving the disputes by negotiations, addressing grievances of the employees make the negotiations, discussions and collective bargaining at enterprise level conducive and result oriented. Conclusion The unwritten rule that efficiency at one level shows its effect at other level should bring required flexibility to solve the disputes and thus avoiding conflicts at every level. When this flexibility is present in the system, it is possible to be represented even in actors. The essential thing that was needed for the development of conflict management system is the decentralisation of management at every level. When a mechanism is institutionalised for the conflict management and to address the grievances, even workers do not bother entering into agreements regarding work and other matters, if it assures them the standard of living they anticipate. This mechanism should include the assurance to maintain sustenance of enhancement of wages. But in turn the mechanism should also assure the management that the above sustenance results in increase of productivity. Earlier the non unionised bargaining laws used to be more stringent, which forced the workers to take resort under unionised bargaining. This resulted in adding one more actor (Unions) to the industrial system of the yester years. This tells us that the rules and regulations regarding the discussions of the employee with management and the grievances addressing system must be liberal and easily approachable. The role, significance and the responsibility of one actor (Unions) can be reduced to a minimum by conflict management (avoiding) system and grievance addressing systems introduced at all the three levels of the Industrial system. References: 1. Prof. V. C. Binghay, Ph.D., 2004, The Decline of Trade Unions and the Emerging Actors in Industrial Relations, University of the Philippines, electronic, 27-07-06, http://www.kli.re.kr/iira2004/pro/papers/VirgelC.Binghay.pdf 2. Manfred Weiss, The Dynamics of Industrial Relations in the European Union, IIRA, electronic, http://www.cira-acri.ca/IIRA%20CIRA%20docs/Weiss,%20Manfred.pdf, 3. Dutch Government release, 2006, Industrial relations system, Ministry of social welfare and employment, electronic, 27-07-06, http://internationalezaken.szw.nl/index.cfm?fuseaction=dsp_rubriek&rubriek_id=13023#3083100 4. Alan Price, 2006, Human Resource Management in a business context, Amazon.com, 2nd edition, Electronic, 19-07-06, http://www.hrmguide.co.uk/hrm/chap12/ch12-links4.htm#ch12org 5. The times team, 2006, employer employee relations, MBA, electronic. 19-07-06, http://www.thetimes100.co.uk/theory/theory.php?tID=260 6. BUREAU OF PUBLIC INFORMATION (PRESSE), 1997-98, WORLD EMPLOYMENT REPORT 1996-97, ILO, electronic, 19-07-06, http://www.ilo.org/public/english/bureau/inf/pkits/wlr97.htm 7. S. R. de Silva, 2005, ELEMENTS OF A SOUND INDUSTRIAL RELATIONS SYSTEM, ILO, electronic, 19-07-06, http://www.ilo.org/public/english/dialogue/actemp/papers/1998/srseleme.htm 8. Nick Wailes & Russell D. Lansbury, 2006, IV. The process of collective bargaining over flexibility, ILO, electronic, 19-07-06, http://www.ilo.org/public/english/dialogue/ifpdial/publ/infocus/australia/4_4.htm Read More