Review Questions

Topic 2: The Nature of the Employment Relationship

1. Why is the employment relationship interdependent?

In order to tap the creative and productive powers of workers, employers cannot
treat them as any other market commodity. Employees can always bargain with
their compliance, commitment and effort. Hence, to some extent, employers must
seek a cooperative relationship with their workers in order to gain their consent to
managerial directives. Employees, on the other hand, are also faced with the
pressure of contradictions. Although resisting subordination and exploitation,
workers also have an interest in the continuing viability of the organization that
employs them and in their individual position within the organization. Herein lies the
interdependent nature of the employment relationship. Whereas the employers hold
the balance of power by virtue of their ownership of capital, ultimately it is the
employees who perform the work tasks. As a result, the employment relationship
cannot be viewed as a simple dialectic of (management) control and (worker)
resistance. Rather, it involves a ‘fractured interplay of control, consensus and
bargaining’.

2. What is managerial prerogative and how far should it extend?

The term managerial prerogative refers to the right of managers or business owners
to make unilateral decisions about all aspects of their business without interference
from government, workers or unions. It should extend with legal prohibition on
bargaining over issues such as hiring, promotion, job allocation, firing, demotion,
introduction of new technology, occupational health and safety and management
communication and consultation with employees.

3. What is the difference between overt and covert forms of industrial

conflict? Give some examples of each.
Overt (open) manifestations tend to be collective and organized and hence
observable to all. Convert (concealed) forms are more likely to be individual and
unorganized and are therefore less visible to the public eye. Overt conflicts include
strikes, lockouts, picketing, threats of plants closures, outsourcing of tasks while
convert conflicts includes absenteeism, labour turnover, sabotage, restriction of
work effort, strict disciplinary cods linked to threats of dismissal, etc.

4. How do the unitarist pluralist and radical frames of reference differ

in their assumptions about the nature of the employment relationship?
Unitarist perspective is the viewpoint that holds the employment relationship is
grounded in mutual cooperation and a harmony of interest between employers and
employees. Trade unions are regarded as competitors for employee commitment
and loyalty to organizational goals.

Pluralist perspective is the viewpoint that regards conflict as inevitable because of

the competing interest of employers and employees. Trade unions are the
legitimate representative of employee interests and have the right to challenge
management prerogative and the state is an impartial protector of the public
interest.

Radical/Marxist perspective is the viewpoint that regards industrial conflict as an

aspect of class conflict in wider society. Unions are an outcome of the power
imbalance inherent in the employment relationship, whereas the State actively
seeks to protect the interests of capital.

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*5. What is the systems approach and what are its strengths and
weaknesses? How applicable is it to Singapore?
Unitarist system
Strength: Highlights the common interests shared by all in the organization even if
it is just the mutual survival of the enterprise.
Weakness: Pluralists and radicials argue unitarists’ view of conflict too narrow.
Unitarism too prescriptive and unrealistic. A mere ideology designed to legitimize
managerial power.

Pluralist system
Strength: Seen to be common-sense, moderate position.
Weakness: Unitarist say it is a reflection of them and use conflictual mindset.
Marxist criticizes assumption of balance of power and says pluralism is just a
sophisticated form of manageralism and ignores fundamental class divisions.

Radicial system
Strength: Emphasises material conditions the dynamic of society; class analysis
Weakness: Obsession with conflict overlooks the apparent trust, cooperation in
most workplaces and lack of class consciousness. It is outdated being a 19th century
view of capitalism. Society is now too complex to be seen in two-class terms. It is
refuted by rise of welfare state, stae autonomy and workers’ improved living
standards.

6. What role does freedom and choice play in the employment

relationship?

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Topic 3: The Changing Context of Employment Relations
(Textbook)
3-1 The population in Singapore is ageing. Why should a human resource
manager worry about such a trend? What is the implication of this trend to
trade union leaders?
There will be a shortage of workers when these mature employees reach retirement
age which is also fuel by shrinking population. Trade unions leader s and
government are promoting lifelong learning and retraining to increase older
workforce employability.

3-2 The workers of today are better educated. What is the implication of
this trend for the human resource manager in a company?
Better education has led to an occupational shift in the workforce. The number of
people in the higher occupation groups has increased over the last decade. This
resulted in an increase in occupation types for professional and manager while a
decrease in occupation types for production workers and labourers.

3-3 There is a large pool of mid-career workers in the Singapore labour

market. What are their characteristics? How can an employer encourage
these workers to continue contribution to the company?
Mid-career workers were born during the 1930s to 1940s and educated in the 1940s
to 1960s. These were periods of political uncertainty. The standard of living was low
and many of these people had to drop out of school to look for jobs. Educational
opportunities then were limited. Many of these mid-career workers were educated
in non-English schools and thus most of them are not highly competent in English.
The language they use most at the workplace is Mandarin, Chinese dialects or
Malay. Owing to their low education, their wages are low. In order to supplement
their income, many of them perform overtime work or moonlight (take on a second
job).

As the retirement age has been legally extended to 62, many of these mid-career
workers will remain in the workforce for another 10 years. There is a need to
provide them with retraining so that they remain relevant and can continue to
contribute to the economy.

3-4 Why is the government paying so much attention to BERI’s ranking of

Singapore workers?
A high ranking will not only reinforce that Singapore workforce has built up a
reputation for quality but also encourage investors to Singapore due to the low risk,
stable and easiest environment to do business. The investments will create more
jobs and led to continuous economic growth for the country.

3-5 Discuss the impact of the present economic downturn on

retrenchment.
Most of the retrenchment was in the services sector. Also, the economic downturn
has affected more professionals and technicians than clerical and sales workers.

4-1 Discuss the problems involved in encouraging more females to work.

The main factors that discourage women from working are childcare and household
responsibilities. For the older women, their low level of education and their
traditional attitude towards working outside the home are the main factors. For the
younger women, the main problem is in making suitable childcare arrangements.

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4-2 Suggest some ways to encourage housewives and retirees to work on
a part-time basis.
The provision of childcare facilities, flexible time and job-sharing needs to be
catered for. Thus, companies must provide flexible work arrangements and
provision of childcare support. The government has enacted the Childcare Centre
Act in 1988 and subsidies childcare centre programmes, many companies have not
taken advantage of these facilities.

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4-3 Why are some companies reluctant to employ older workers?
Companies are reluctant to employ them because of their relatively high wages
compared to younger employees. Some companies think that older workers have
lower adaptability and performance. Lastly, there is the alternative of the
availability of female and foreign workers.

4-4 Discuss the measures used by the government to regulate the inflow
of foreign workers.
The four measures are expanding employment opportunities for older workers,
enhance their cost competitiveness, raise their skills and value and encourage
employers and the public to have positive perceptions towards older workers.

4-5 What factors should a company consider before it starts to recruit

from overseas?
Employers will have to apply for employment pass if they wish to employ a foreign
professional, manager, executive, specialist or entrepreneur. They will also have to
adhere to the foreign worker levy and quota that the Ministry of Manpower uses to
regulate the inflow of foreign workers. The levy for skilled workers is lower than that
for unskilled workers.

4-6 What can a company do to overcome the problem of manpower

shortage?
The companies should recruit technical staff from countries such as the former
Soviet Union and India to solve the problem of shortage of skilled manpower.

4-7 What role does the ITE play in supplying technical manpower?
The ITE has been providing pre-employment traning for school leavers as well as
training for workers. It establishes skil standards, conducts trade test and certifies
the attainment of skills. The ITE also conducts worker continuing education courses
and offers courses to industrial trainers.

4-8 What are the reasons for encouraging retirees and housewives to
return to the workforce? Discuss some of the adjustment problems faced
by these “returnees”. How can these problems be overcome?
The reasons include flexible working options, training, innovative recruitment, job
matching and childcare support. With that, there is the “Back to Work” scheme
launch by the government and trade union to encourage housewives and retirees to
take up part-time work and for employers to make flexible working arrangement for
these workers. The part-time regulations introduced in 1996 give employment
benefits such as payment for work on a rest day, rate of overtime pay, entitlement
to annual leave and sick leave. Flexitime allows workers to choose their own work
hours within a specified period and thus leave the woman to have time for their
family and lastly, more childcare centres with the fees within the means of working
parents.

4-9 Discuss some of the problems in matching applicants with the right
jobs.
Some of the problems include the number of years of education and training
needed, the entry restriction (qualification and work experience) and the career
prospect and status. Also, another issue will be low paid jobs.

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Topic 3
1. What are the implications of the aging Singapore workforce?
There will be a shortage of workers when these mature employees reach retirement
age which is also fuel by shrinking population.

2. What are some of the difficulties in encouraging greater workforce

participation and outline the steps the government, employers and the
trade unions can take to redress this issue?
Some of the difficulties in encouraging greater workforce participation include
companies reluctant to employ older workers and encouraging women to return the
workforce and lastly, shortage of skilled manpower. The government has taken a
number of measures to prolong employment and increase older workers’
employability by progressively raising the retirement age. In addition, lifelong
learning and the training and re-retraining of older workers are being promoted
both by the government and the trade union movement.

3. Why does Singapore need foreign maids?

Singapore needs foreign maids to support dual income family and nuclear
household. It allows better educated women to work and contribute to the economy
of Singapore. There is also a need to take care of aging family members. Lastly, the
population is more affluent now and thus able to afford foreign maids.

4. What steps has the Singapore government taken to deal with foreign
domestic workers?
State policy is conceived to ensure that foreign domestic workers are no more than
a transient workforce and subject to repatriation during periods of economic
downturn. In the long term, the state aims to restructure the economy to manage
without such a high dependence on immigrant workers, both skilled and unskilled.

5. Has the Singapore government intervened in the employment

relationship between the domestic worker and the employer? What are
the outcomes of this?
Stringent legislation has been put in place not only to restrict the number of foreign
domestic workers and ensure their short-term migrant status but also to govern
their employment. First, all employers of foreign maids must pay a monthly levy.
Second, all migrant workers are regulated in a stringent allocation system of maids
to employers, based on criteria such as employers’ household income. Employer is
also required to pay a security bond of S$5,000 to the government which is forfeited
should the maid fail to comply with any of the conditions. Lastly, employers are also
required to purchase a personal accident insurance policy of at least S10,000 for
the maid. Despite an initial, short-lived dampening effect, the demand for foreign
maids has continued to rise steadily and rapidly.

6. What are the economic impacts of foreign domestic workers?

In the 1980s and 1990s, dependence on foreign sources of labor has been
necessary in order for the Singapore economy to achieve a higher growth rate. In
the case of a shortage of workers in the workforce coupled with an ageing
population, foreign maids will continue to be needed to retain women and older
employees in the workforce. This lead to an increase in the number of married and
more educated women employed in the workforce to contribute to the economy of
Singapore while leaving the low skilled domestic job to foreign domestic workers.

7. What are the political and security impacts of foreign domestic

workers?
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The movement of labor among member states is an integral component of this
highly successful regional association which is comprised of both labor-sending and
labor-receiving countries. Transnational labor migration issues in the regional
context can affect the bilateral ties such as the case of Contemplacion’s execution
which deteriorated the bilateral gains between Singapore and Philippines. Many
Singaporean executives based in the Philippines left the country after experiencing
harassment from locals.

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Topic 4: The View from the Organisation – Managing Human Resources

*1. What are the four HR categories under the Harvard model and what
ensures their effectiveness?
The four human resource (HR) categories are employee influence (is the question of
how much responsibility, authority and power is voluntarily delegated by
management and to whom), human resource flow (concerns managing the flow of
people into, through and out of the organization), reward systems (regulate how
employees are extrinsically and intrinsically rewarded for their work) and work
systems (are the ways in which people, information, activities and technology are
arranged, at all levels of the organization so that work can be performed efficiently
and effectively).
Policies in these four HR categories must be designed and applied in a coherent
(logical) manner, satisfy the many stakeholders of the enterprise such as
shareholders, employees, customers, suppliers, trade unions, government, etc and
managers making HRM policy decisions should consider the ‘four Cs’ of
commitment, competence, congruence (compatibility) and cost-effectiveness.

*2. Why is the Harvard model soft HRM?

The Harvard model is soft HRM because it concentrates attention on outcomes for
people especially their well-being and organizational commitment. It does not rank
business performance or one of the stakeholder interest as being inherently
superior to other legitimate interests, such as the community or unions.
Organisation effectiveness is represented in the Harvard model as a critical long-
term consequence of HR outcomes but alongside the equally important
consequences of individual and societal well-being. An organization putting this
model into practice would therefore aim to ensure that its employees were involved
in their work and able to participate in decision making. HRM policies would be
developed and implemented to meet employees’ needs for influence but within the
limitation of having to be consistent with the overall business strategy and
management philosophy.

*3. What is the main concern of the Michigan model and what are the
three important issues in this model?
The main concern of the Michigan model is that it focuses on the organization and
how it can best rationally respond to its external environment. Focusing on the level
of the organization has the advantage of drawing attention to aspects partly under
the control of management, such as formal strategy, structure and preferred
culture. On the other hand, attending to the organization level may lead manager to
assume that, through organizational strategy, structure and HR systems, they have
more power than they really have to change individuals and influence the external
environment.
The three important issues in this model are as follow. First, the mission and
strategy must be considered because these are an organisation’s reason for being.
Second, the organisation’s structure, personnel requirements and tasks must be
formally laid out, including systems of accounting and communications. Third, HR
systems needs to be established and maintained because as the authors state,
‘people are recruited and developed to do jobs defined by the organization’s formal
structure: their performance must be monitored and rewards allocated to maintain
productivity’.

*4. Why is the Michigan model hard HRM?

The Michigan model is hard HRM because it is based on strategic control,
organizational structure and systems for managing people. It acknowledges the
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central importance of motivating and rewarding people but concentrates most on
managing human assets to achieve strategic goals.

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*5. What differentiates Schuler’s model from hard and soft HRM?
Schuler’s model emphasis HRM’s contribution to the bottom line of the firm which
can be interpreted as consistent with hard HRM insofar as focuses on the needs of
the organization. However, in other significant respects, the model has a soft HRM
focus characterized by its emphasis on employee development and supportiveness
towards management-union relationship. The purposes of HRM given in the model,
furthermore, are consistent with soft HRM and with the human relations tradition of
promoting productivity alongside quality of work-life and legal compliance.

*6. Are soft and hard HRM approaches alternatives or complementary?

Hard and soft HRM share a concern for matching the organisation’s strategic needs.
In sum, the hard face of HRM emphasizes the ‘quantitative, calculative and business
strategic aspects of managing the headcount resource in as “rational” a way as for
any other economic factor’, while the soft face emphasizes ‘communication,
motivation and leadership’. These models of hard and soft HRM provide different
perspectives but all are unitarist; that is, they assume that management represents
the main legitimate interest in a business, and that employees’ interest are largely
aligned with those of managers.

*7. Analyse Kochan’s framework and explain how it differs from soft and
hard HRM?
Kochan’s framework analse industrial relations that addresses the need for
transformation of the employment relationship at the level of society rather than at
the level of the organization.
Kochan’s framework differs from soft and hard HRM by arguing that a stronger
partnership should exist between unions, employers and government. It does not
advocate (supporter) HRM from a unitarist viewpoint but assumes a pluralist
perspective that acknowledges a long-term role for unions working in partnership
with employers and government as the most effective means of reconciling their
differences.

*8. Do these models of HRM apply equally to all industries?

Three common elements of all of these models are unitarism, the need for
management to adopt a strategic approach and ensuring that organization achieve
new social goals. To a greater or lesser extent, all make the assumption that
management’s interest are the most legitimate ones in the running of the business.
All advise that HRM ultimately must fit the competitive environment a a prerequisite
of this is that organizations be less ad hoc in their management decision making
and more strategic. Finally, all predict that HRM innovations will be in the long-term
social interest of employees, employers and the nation and thus apply equally to all
industries.

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Topic 5: Selection and Recruitment

1. How is job analysis linked to job description and person

specification?
Job analysis is a thorough analysis of the requirements of the job that should be
established. Once the job analysis data has been collected, the next stage is to
develop a job description. The job description identifies the particular demands of a
job and emphasizes those aspects which are crucial to success. The job description
is job-orientated, focusing on the work itself while the job specification is worker-
orientated, focusing on the psychological and behavioural requirements of the jobs.
The job description and job specification provide the necessary information to move
to the next stage of the job analysis process which is to develop a person
specification. This converts the job specification inho human terms, specifying the
kind of person needed to perform the described job. All in all, job description and
person specification is part of the overall job analysis phase.

2. What is the significance of the ideas of reliability and validity in

selection processes?
In evaluating which methods are effective, three basic criteria are normally applied.
That is reliability, validity and usefulness. Reliability essentially refers to the
consistency of a method used to select individuals. Three most important types of
reliability when considering selection methods is the ‘testee’ reliability (if they are
going to be of value, they need to provide the same information over time), ‘tester’
reliability (If two people interview a person for a job but one concludes that the
candidate is suitable while the other concludes that the person is not, then the
selection method is not reliable) and ‘test’ (If there are a number of question which
all relate to the assessment of the personality dimension of ‘extroversion’, all these
items should have the same scores for the measure of extroversion to be reliable).
Validity is establishing the relationship between the predictors (the results from the
selection methods used) and the criterion (performance on the job) and one of the
most important selection method is predictive validity. For a selection tool to be
considered valid, it must discriminate between candidates in terms of subsequent
performance on the job.

*3. What are the strengths and weaknesses of different selection

methods?
Pre-selection methods: Adopting a more objective, statistical approach to this
biographical information about a person’s past experiences and achievements has
been shown to significantly improve validity. This statistical approach to selection,
using biodata with confirmed predictive relations to job performance can, therefore,
be useful and some firms now do use common applications in this way as the first
part of the selection process. The major weakness is that predictive variables
appear arbitrary (subjective).

Interviews: The major weakness is that unstructured interviews are bad predictors
because the information which is ‘extracted’ is different for each individual and
differs between interviewers and so comparisons between candidates cannot be
reliably made. This is resolved by using structured interviews such as situational
interview, the patterned interview and the content analytical interview. Subjective
biases by the interviewers also occur due to different questions being asked of each
candidate. This can be minimized by understanding the sources of unreliability and
invalidity. Then again, unstructured interviews can also be a strength as it allows
more realistic information from both the interviewer and candidate and negotiating

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a mutually agreeable ‘psychological contract’. Furthermore, the candidate can learn
more about the culture and values of the organization.

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Psychological Testing: There has been a substantial increase in their usage and they
have become an integral part of the search for greater objectivity in selection.
There are two types which is the personality test (provide an assessment of an
individual’s general disposition to behave in a certain way in certain situation) and
the cognitive test (provide an assessment of an individual’s intellectual abilities
either in terms of general intelligence or specific abilities).
Cognitive tests in selection were valid predictors in a wide range of job situations
with general intelligence predicts at least some of the performance variation in
most job situations. Moreover, such tests are relatively simple to administer and
score, although the person using such tests needs to be properly trained. The
weakness is that for most jobs, the range of intelligence of those applying for the
job is likely to be very restricted. Therefore, the consequence of this is that a
measure of cognitive ability may not differentiate much between the various
candidates. Also, cognitive tests can be biased against certain groups. This certainly
raises social and ethical issues which will need to be carefully considered when
selecting particular tests.
Personality tests selections are useful only when specific personality constructs are
linked to specific job competencies. However, the weakness is that very different
systems of personality description have been used, making it difficult to compare
results. Also, there has been much less increase in usage of personality tests than
cognitive test over the course of the 1990s reflect the validity of these test in
comparison to other types of test. It is also unlikely that personality tests alone will
ever be good predictors of future job behavior. This is because job situations often
present strong situational pressures which mean that differences between
individuals’ behaviours are minimized and second, it is highly likely that the same
job can be done in very different but equally successful, ways by individuals with
different personalities. This does not mean that personality measures have no place
in the selection process but it raises the question of how such measures are best
used within this context.

Assessment centres: Refers to the utilization of a number of different selection

methods over a specified period in order for multiple assessors to assess many
candidates on a range of identified competencies or behavioural dimensions. A core
element is the simulation of actual work tasks in order to observe job-related
behaviours. The strength is that first, designing and developing an AC has the
potential to improve the validity of selection. Second, many of the problems
identified with respect to ACs need to be looked at from a broader perspective than
simply their criterion-related validity and a key benefit of using an AC is that it gives
the potential recruit an extended opportunity to find out more about the
organization. Despite the growing use of it, there is also increasing evidence of their
limitations. A key problem appears to be that managers, acting as assessors, are
not able to accurately assess cross-situational abilities from the different exercises.

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Topic 6: HRM and the New Workplace: Emerging Approaches to Changing
Work Organisation

*1. What are the five broad industry trends that indicate forms of
flexibility?
The five broad industry trends that indicate froms of flexibility are: Firstly, there is a
tendency for vertically integrated organizations to use sub-contractors; secondly,
internationalization is occurring through the expansion into international markets to
increase market share and through the forming of joint ventures, mergers and
acquisitions with corporations outside of the domestic sphere; thirdly, there is an
increase in investment in flexible automation machinery; fourthly, there is a new
focus on satisfying customers through quality improvement and adapting products
and services to customer demand using total quality management (TQM) and just-
in-time (JIT) methods and; lastly, unskilled, semi-skilled and professional workers
are increasingly required to take on a broader range of tasks and there appears to
be a move toward increasing the proportion of professional workers compared to
semi-skilled and unskilled workers.

*2. What are the four characteristics of flexible specialization and what
are the criticisms surrounding it?
First, there needs to be flexibility and specialisation. Flexibility is the ability to
reorganise the production processes through reorganising the components of
production and this is facilitated by new computerised technology. However, the
extent of reorganisation is limited by conceptual and physical constraints imposed
by
specialisation.
Second, limited entry to the community or industry ensures that the “safety nets”
are not over burdened by “outsiders”. Entry into the community is based on job
placement and this might be achieved through family ties and networks.
Third, competition that promotes innovation is encouraged. Innovative firms are
considered to gain favourable places within the industry hierarchy, that is, although
placement is guaranteed, equality of placement is not. Competition between similar
industries is also considered to help the innovative process.
Fourth, limits to destructive competition are needed. Wages and working conditions
are set within the industry to avoid competition based on cost cutting measures
that could lead to “sweating”. That is, employment security and trust are required
in order for organisations and industry to remain innovative and take advantage of
new technology, and for the community to remain cohesive through periods of
reorganisation.
The advantages in that long term working conditions and wages will improve; new
craft culture is created and skills of workers will increase to include conception and
execution of tasks; and lastly increasing a sense of “communitarianism” as
cooperation between firms facilitates the regeneration of regional economies.
The disadvantages is that it is too simplistic; concludes long hours and poor wages
and not technical know-how of workers leads to flexibility; class struggle between
capital and labour ignored; and lastly ignores the fact that the means of production
are still retained by business owners and it is labour who are displaced during re-
organisation.

*3. What are the characteristics of Atkinson’s model of the flexible firm
and what are some of its deficiencies?
Atkinson’s flexible firm model provides a framework based on breaking internal
hierarchical labour markets by creating a “core” and a “periphery” workforce.
The core workforce is said to be made up of highly skilled workers who are
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able to participate in decision making and are directly employed by an organization.
Such workers are provided with job security and high salaries that reflect their skill
levels and their importance to the organization. The peripheral workforce is
characterized by low wages, low job security and having little or no autonomy in
their work. The three forms of flexibility are:

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Functional flexibility. Allows management to move workers around jobs and tasks as
the need calls
Numerical flexibility. Allows management to match the need for workers with the
number employed and achieved through the use of a variety of short-term
employment arrangements that include contracts/part-time work, self-employment,
etc.
Financial flexibility. Allows the cost of labour to reflect the supply of, and demand
for, labour.
Some of its deficiencies include restricted autonomy, threat of contracting out used
as tactic to change working conditions/practices and empirical evidence show that
the model is insufficient to explain the changes observed in organizations and that
the theoretical distinction made between core and peripheral workers appears to be
unsupported.
The characteristics is that it addresses the rigidities associated with the rules of
employment established under scientific organization design. Bureaucratic
organizational structures designed to increase productivity and management
control over workers by establishing rules and procedures. Designing jobs in a
scientific way and internal labour markets created career paths. Also, jobs were
reduced to routine tasks and rules established in contracts and awards. Thus
flexibility at the firm level not only helps remove the rigidities created by these
rules but also shed costs in terms of worker benefits associated with the rules.
Lastly, it provides a framework based on breaking internal hierarchical labour
markets by creating a “core” and a “periphery” workforce.

*4. What are the characteristics of lean production and has it proved to
be of benefit to firms?
Lean production is developed by Toyota Car Company in Japan. Lean production
systems reduce production costs by utilizing sub-contracts and JIT delivery systems.
Quality circles are set up to help with continuous improvement and to improve
worker participation in the production process. The model argues that increased
quality, productivity and flexibility can be achieved by making better use of
employees.
The advantages include allowing quick response to customer needs; getting things
right the first time thus decreasing wastage; increased worker skill and participation
allowing quick and effective on the job decisions; and ability to change rapidly to
market demand due to adaptable technology and small batch production.
The disadvantages include relentless performance demand where employees
seldom talked to each other unless work related; employees asked to work overtime
in short notice; high incidence of occupational overuse syndrome resulting from the
extreme pace and repetitive nature of work; lean production firm is a rigorous
factory regime as workplace minutely regulated and personal attributes prohibited;
relies on high volume output to remain profitable; and contracting firms usually pay
lower wages and that while the manufacturers may operate JIT, the suppliers
require buffer stocks to ensure delivery of unpredictable orders.

*5. Why should the flexibility debate be viewed with skepticism?

This is because it maintains there is nothing new about segmenting the labour
market with some employee groups achieving better working conditions and pay;
there is no evidence of strategic commitment by organizations to implement
flexible firm structures; the notion that core workers are highly skilled while
periphery workers are low skilled is over-simplified; flexibility debates has obscured
and overshadowed important changes that have occurred with the reorganization of
production; globalization of production and finance are central to contemporary
restructuring by large organizations; intensification of work effort required by
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labour; decrease in safety standards; increased unemployment; widening income
gap; power of state more centralized and less focus on welfare; the attempts to
develop a general theory based on flexibility to explain changes in work
organization have not been able to capture the range of changes that have
occurred; and the theories put forward have not been able to predict or explain the
consequences of flexibility on realities of working life.

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Topic 7: The legal and Institutional basis for employment relations in
Singapore
1. Why does the NTUC want to maintain the tripartite relationship?
The National Trades Union Congress (NTUC) is the only federation of trade unions in
Singapore. A strong tripartism is crucial for a competitive and inclusive workforce.
By seeking and nurturing an inclusive workforce in the face of diversity, NTUC’s
competitive edge is sharpened. Strengthening the tripartite relationship allow an
effective tripartite response to grapple with critical issues such as re-employment of
older workers beyond the retirement age, employability and welfare of low wage
contract and casual workers, helping more women get back into the workforce and
fairness at the workplace. Also, tripartite system provides Singapore with a
comparative advantage in attracting investments and creating jobs. It has
contributed to Singapore’s attractiveness as an investment location. It has
underpinned (formed the basis of) a long period of peaceful industrial relations
climate and provides a system where national decisions are made on the basis of
consultation and consensus. It has also helped to rally the different partners to act
in the common interest of Singapore such as adopting difficult but necessary
measures (such as increasing employer CPF contribution rate by 1.5% to 14.5% in
2007) that have put Singapore on a firmer footing for the future.
2. What roles does the SNEF play in the tripartite system and compare
that to the NTUC
The Singapore National Employers Federation (SNEF) is the largest employer body
in Singapore today and is registered as a trade union under the Trade Unions Act. It
is the national trade union of employers representing the interests of all sectors of
the economy. SNEF is a trade union of employers dedicated to preserving industrial
harmony and helping employers achieve excellence in employment practices,
thereby enhancing productivity, competitiveness as well as the quality of their
employees’ work life. SNEF is an active player in facilitating the tripartite industrial
relations partnership among the Government, employers and unions. It is thus the
counterpart of the National Trades Union Congress (NTUC).
3. What role to the three functions of government play in employment
relations?
The three functions are The Legislature (this branch of the government makes all
the laws for governing the country), The Executive (The Executive branch of the
government administer the law) and The Judiciary (As provided in the Singapore
Constitution, The Judiciary enforces the law independently of The Executive branch
of the government). The roles to the three functions of government play in
employment relations to ensure a peaceful workplace by administer employment
laws by the Ministry of Manpower; assist in the settlement of disputes; and take part
in tripartite organizations such as the National Wage Council (The NWC ensure an
orderly wage rise and to formlate wage guidelines for the economy).
4. What is the role of the Industrial Arbitration Court?
The functions of the Court are award-making, certification and registration of
collective agreements (CAs), resolution of disputes (arising out of the operation of
an award or certified collective agreement) through a referee, interpretation of an
award, setting aside or variation of award, mediation, providing advisory service on
matters pertaining to industrial relations. Thus, the main role of the Industrial
Arbitration Court is to deal specifically with employment relations matters.
5. What is the role of the Trade Unions Acts and what are its
implications for workers and trade unions?

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The Trade Unions Act defines a trade union as any association or combination of
workmen or employers, whether temporary or permanent, whose principal objective
is to regulate relations between workmen and employers for all or any of the
following purposes including to promote good industrial relations between workmen
and employers; to improve the working conditions of workmen or enhance their
economic and social status; or to achieve the raising of productivity for the benefit
of workmen, employers and the economy of Singapore. Thus, the purpose of the Act
is to register and supervise trade unions.

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Topic 8: Representing Employee Intersts: Trade Unions

1. What are the “Two Faces” of trade unionism?

Monopoly Face
Unions have monopolistic power to raise wages above competitive levels and
assuming that the competitive system works perfectly, these wage increases have
harmful economic effects, reducing the national output and distorting the
distribution of income.
The Collective Voice / Institutional Response Face
“Voice” refers to the use of direct communication of workers to bring actual or
desired conditions closer together. In a political context, “voice” refers to
participation in the democratic process, through voting, discussion, bargaining and
the like.

2. Which face is most applicable to Singapore? Is there a role for the

other face in Singapore?
The collective voice / institutional response face is the most applicable to Singapore.
There is the Labour Movement which is recognized as a partner in nation building
and the presence of workers’ voice in Parliament and cabinet. There is little chance
for the other face in Singapore given the tripartite model in Singapore is not equally
balance with the paternalistic style of the government. Unions and management are
subjected to accepting the policy of the government which clearly give unions little
room to exhibit the monopoly face.

*3. What role does management play in what unions do?

In the most basic monopoly analysis in which unions can simply raise wages,
management’s responses are limited. It can reduce employment, substitute capital
for labour or hire more skilled workers to raise labour’s productivity. Since
management is assumed to be doing everything just right in the absence of unions,
these adjustments are socially harmful.
By contrast, the voice/response face directs attention to the possibility that because
of incomplete information, lack of coordination in an enterprise and organizational
slack, management can respond to unionism in more creative ways which may be
socially beneficial. This view is consistent with modern theories of the firm in which
management is taken to be not a simple all-knowing profit-maximizer but rather a
mediator of the interests of relatively permanent employees, stockholders and
consumers.

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Topic 9: Representing Employee Interests: Non Union Voice

*1. What is employee voice?

Employee voice refers to the participation of employees in influencing corporate
decision making. Employees are given a voice through informal and formal means
to minimise conflict, improve communication and encourage staff retention through
motivation and fair treatment. Employee participation is a form of empowerment
and motivation that leads to increased productivity and retention. Informal
employee voice mechanisms include general conversation between employees and
employers, email communication, employee feedback, social functions and
meetings at the workplace. Employees can also influence corporate decision making
through their actions, such as turnover and absenteeism. Formal mechanisms
include communication tools implemented by an organisations human resource
department, such as employee surveys and suggestion boxes. Some organisations
promote employee voice through financial participation, such as share ownership
and profit-sharing opportunities. Employee consultative committees and
representation through trade unions are also formal ways of ensuring employees
are informed and are given a voice in decisions that affect their employment.

2. What are the differences between individual and collective voice?

Individual voice is where employees can exert influence at their workplace by
speaking directly with a supervisor. In companies with open-door policies, they can
take a problem to higher management. In companies with internal grievance
mechanisms, they can use a formal complaint procedure when they have a
problem. In many large firms, workers can also voice their concerns through the
opinion surveys of workers that these firms regularly conduct. They can also send e-
mail or use suggestion boxes.
Collective voice is where employees can affect decisions by meeting as a group with
management or by electing representatives to meet with management. In some
companies, management gathers all workers together in “town meeting” to discuss
common workplace problems. In other companies, management might set up
committees of employees to deal with problems. Independently of management,
workers might form unions to represent their collective interests.

*3. How does employee voice appear in union and non-union workplace?
Unionised companies have grievance procedures laid out in Collective Agreements
required by the Industrial Arbitration Court while non-unionised companies usually
have grievance procedures in employees’ handbook or HR manuals.

4. Which form of voice is preferable?

The preference for an individual or collective voice depends on the particular
grievance workers face. Individual voice is preferred for individual grievance such as
rejection of annual leaves, harassment / unfair treatment issues while collective
voice is preferred for collective grievances such as change of shift work, re-location
and health / safety benefits.

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Topic 10: Wage Reform and Wage Negotiation

1. Why was the National Wage Council established and how has its role
changed through time?
In order to avoid a wage explosion because of the tight labour market, the
government set up the National Wages Council (NWC) to ensure an orderly wage
rise and to formulate wage guidelines for the economy. The effect of the NWC
recommendations is that most employers and unions implement NWC
recommendations. Furthermore, it has also contributed to industrial peace by
moderating extreme wage positions of the unions and the employers. Thus, NWC
has played an important role in formulating and issuing wage guidelines based on
relevant economic and productivity indicators. Due to the economic recession in the
1980s, there is a need for wage reform to counter rigidity in the wage system such
as the seniority-based, fixed annual increments, etc and NWC continue to
recommend quantitative guidelines with a gradual transition to qualitative
guidelines by sectors and allow market forces to determine the appropriate wage
level.

2. Why has the National Wages Council stopped giving quantitative

wage increases?
Quantitative wage increase recommended by NWC introduces inflexibility into the
wage system. By moving towards qualitative guidelines which emphasize the
relationship between wage increase and productivity will ensure Singapore remains
economically competitive.

3. Discuss the features of the flexible wage system and outline the
problems in implementing a flexible wage system?
The features of the flexible wage system include a basic wage to reflect the value of
the job and provide income stability to the worker; an annual wage supplement
(AWS) of one month’s basic wage that may be adjusted under exceptional
circumstances; a variable wage component based on company performance to be
paid yearly or half-yearly. Other features include a small service increment to
reward length of service, loyalty and experience which can either be negotiated
annually of fixed for the duration of the collective agreement. Wages should reflect
job worth and the maximum and minimum ration in a salary range should be about
1.5 times.
Problems in implementing the flexible wage system include wage increases
outstripping productivity growth; wage level exceeding job value; lack of a proper
performance appraisal system to reward individual performance; capping of bonus
at two months’ wages; incorporation of AWS in excess of one month’s salary into
the basic wage; difficulties in productivity measurement; different interpretation of
the concept of “profit”; and reluctance of some employers to share information with
the unions and employees.

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Topic 11: Current issues in Singapore employment relations

1. What benefits do the tripartite partners obtain from productivity

improvement?
For employers, high productivity is important if a company wants to remain
competitive. High productivity means that the company is efficient in using its
resources. This means lower costs and higher profits. Unions support for
productivity improvement by reinforcing training and re-skilling. Also, when a
company is profitable, unions can bargain for more favourable collective bargaining
for the employees. For government, this will ensure that Singapore companies are
productive so that they can compete in the international market.

2. Why do some employers neglect training and what are the benefits
of training for employers and employees?
Some employers neglect training due to the following reasons as follow. First,
employees believe that it may be more cost effective to recruit workers with the
necessary skills than to train existing employees. That work itself may be sub-
contracted to another company if it is not the main activity of the company. Also,
there are some employers that insist that production and sales are the activities
that bring profits for the company and thus view training as an expense to be kept
at a minimum. Lastly, some employers believe that workers who are over trained
will either ask for more pay or join another company where their skills are in
demand.
Benefits of training for employers and employees are that well-trained employees
make quality products and serve their customers better. They will increase profit for
the company. Beside, a good training plan tells employees that the company cares
about them and is willing to develop their potential and that their future in such a
company is brighter than one that does not provide an training.

3. What are the steps in designing a training programme and how are
you able to tell if the training has succeeded?
In designing a training programme, it is useful to identify training needs (should be
examined at the various levels of the organization by looking at the company’s
basic objectives; the activities which are carried out to achieve these objectives; the
skills needed in these activities; and whether the workers possess these skills),
define training objectives (the objectives should spell out the skills to be achieved
and the criteria for measuring the level of competence), choosing training methods
(as some methods are appropriate for skills training while other are more effective
in changing behavior. Some methods include lecture, group methods, behavior
modeling, role play, coaching and counseling and self-paced learning or
programmed instruction) and lastly evaluating training results (for its effectiveness
via questionnaire, pre-course and post-course questionnaire).
Training has succeeded if the employees have achieved the basic objective of
training of attitude, skill and knowledge. Skills are needed to perform a task after
the worker has knowledge of what is to be done. They may also be able to
improvise or improve the method of doing the task if they have the positive attitude
of wanting to find a better way of doing things.

4. How is the Singaporean workforce changing and what challenges

does this pose?
Ageing Workforce
Due to a successful family planning programme in the 1960s and 1970s, the
population growth in Singapore has slowed down. At the same time, as a result of
higher income, better nutrition and good medical care, the life expectancy of the
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average has increased steadily over the last two decades. This has resulted in an
ageing population. Many older workers are at the high end of their salary scale and
as an incentive for employers to retain older worker, the government has reduced
substantially the employer’s CPF contribution rate for workers who are 55 and
above. With the increasing use of new technology, older workers have to upgrade
their skills if they want to remain employable. There may be a need to re-design
jobs to fit the ability of older workers.

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Better Educated
Also, as a result of a successful education system, the workforce in Singapore has
become better educated and the younger workers have higher aspirations than
their older co-workers.

More Female Workers

There are also more female workers as compared to a decade ago. In order to
encourage working mothers to remain economically active, there is a need to
provide more childcare facilities, introduce part-time jobs or to adopt a flexible work
schedule.

Diverse Workforce and Foreign Worker Levy and Quota

Due to an extensive industralisation programme introduced to provide generous
incentives for foreign investors to set up export-oriented labour-intensive industries,
the unemployment problem was solved in the mid-1970s. Coupled with the small
population, Singapore has to depend on foreign worker for its labour-intensive
industries especially in construction and marine industries and thus workers today
come from many countries such as Malaysia, Thailand, Myanmar, Philippines, China
and India. The government imposes a levy on employers to control the number of
foreign workers with higher levies imposed on unskilled workers. Managers and
supervisors must be aware of the cultural differences in their social habits,
communication skills and expectations.

Foreign Professional
A high technology company will see many professionals from many foreign
countries such as Australia, Britain, Russia, US, China and India. Managers must be
able to motivate a group of professional who are highly qualified but culturally
diverse. They must assist these foreign talents to adjust to local working
environment and at the same time, convince local professional that these foreigners
are not a threat to their career advancement.

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Miscellaneous

1. The Industrial Relations System in Singapore is often associated with

the “GUM Model”. Discuss the “GUM Model” and explain how it fits into
the Singapore’s system of industrial relations.
GUM stands for Government, union and management which are the three
participants in the employment relationship. The relationships among the three
participants are linked by a set of belief commonly held by these participants and
this ideology helps to bind the system together. In the 1960s, the common objective
of the participants was to create jobs and promote economic growth. By the 1980s
and 1990s, the shift was towards productivity and maintaining competitiveness in
the world market as well as providing quality work life for the workers. By the late
1990s, the priority was to minimize retrenchment of workers and to re-train workers
for new jobs. The outcome arising from the interaction among the three participants
is a network of rules such as the nation’s manpower policy and an agreement on
the general terms and conditions at the workplace.

2. Employment relations in Singapore can be affected by a number of

external environmental factors. Discuss one of the external environmental
factors that have impact the development of employment relations in
Singapore and explain how the Government, working with the NTUC and
SNEF, manages to minimize issues and problems arising from these new
challenges.
In 1998, the Singapore economy was affected by the Asian financial crisis. Many
companies retrenched worker to remain in business. The same year, Ministry of
Manpower set up a Tripartite Panel on Retrenched Workers. Panel members
included representatives from the MOM, EDB, PSB, NTUC and SNEF. The Panel
looked into ways to help retrenched workers to get re-employed and to advise
employers how to minimize retrenchment by seeking other alternatives which
include shorter work week, temporary layoff, re-training under the SRP.

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