Nexus between HRM & IR

"The trouble started in HMSI not because of low wages but maltreatment," says AITUC.
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Concept of Industrial Relations

Concept of Industrial Relations: Industrial Relations comprises of two terms: Industry and Relations.
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2.

Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged.
By relations we mean the relationships that exist within the industry between the employer and his workmen.

What is Industrial Relations?

A particular set of phenomena associated with regulating the human activity of employment

The making and administering of the institutions and rules of work regulation Socio-industrial conflict (in all its forms) and its resolution Explicit and implicit bargaining between employees and employers

Industrial relation is the study of employment and labor market. It assesses factors that shapes employer, government and workers relationship in enterprises, industries and across labor markets
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Organs with Conflicting Goals

There are different types of organizations: 1.Big organization, small organization, local or international. 2. They constitute of 3 main actors: Shareholder- represented by management, association of employers. Always to gain as much profit and productivity. Employees- being represented by trade unions. To get good salary and good working conditions Government; being represented by specialized government agencies concern with workers, enterprise and their relationship. Try create industrial harmony Each of the actors above always conflicting between one another in order to achieve their objectives. 3. Besides the above 3 main actors, in the present context academicians have also considered another actor which can also influence the nature of IR i.e Stakeholders.
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Conflict
Conflict result from industrial and organizational factors. 1. Different roles of management and employees Mgrs responsible for efficiency, productivity and profitability Employees: more of personal terms (better pay, good working conditions and good job security).

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What is HRM?
HRM functional definition
Is a set of interrelated functions and processes

whose goal is to attract, socialize, motivate, maintain, and retain employees

HRM goal-based definition

aims to improve the productive contribution of

individuals while simultaneously attempting to attain other societal and individual employee objectives

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Important terms
Human resource: Knowledge, skill sets, expertise of employees, the adaptability, commitment and loyalty of employees. Skills: The individual abilities of human beings to perform a piece of work. Resource: The stock of assets and skills that belong to a firm at a point of time Capability: The ability of a bundle of resources to perform an activity; a way of combining assets, people and processes to transform inputs into outputs. Core competencies: Activities that the firm performs especially well when compared to its competitors and through which the firm adds value to its goods and services over a long period of time. A unique capability in the organization that creates high value and that differentiates the organization from its competition. Competitive advantage: It comes from a firm's ability to perform activities more distinctively and more effectively than rivals. To attain competitive advantage, firms need to add value to customers and offer a product or service that cannot be easily imitated or copied by rivals (Uniqueness). Value: Sum total of benefits received and costs paid by the customer in a given situation.
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Evolution of HRM

Each slice relates to workforce responsible for business productivity not attainable in a state of chaos. Hence the importance of IR

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Human Resource Management

McClean

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What Does HRM Do?

HRM serves 3 primary entities:
The organization

Society Individual employees and

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Human Asset Profiles Career Development Plans

Performance Management

Coaching & Mentoring

Human Capital Strategy

Revenue Per Employee

Selection

Core Values

Recruitment
Cost Per Employee

Core Competencies

Performance Improvement

Profit Per Employee

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Shaping a Robust Nexus: HR-IR

Aligning employees to a common sets of objectives derived from the mission and value statements,

Mitigation of risk by devising appropriate Succession Planning Strategies,

Identification of top-performers and non-performers,

Continuous measurement of the effectiveness of leadership and employee satisfaction, Increasing employee engagement through appropriate measures,

Aligning compensation to performance,

Adjustment of recruitment and training to competency gaps, and specifying well-defined Job Descriptions which map to the organization structure . These become the basis of Recruitment, Goal Setting, Training, Performance Evaluation and Career Development.

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Aligning Organizational Goals

Focusing mission and value

Mission Vision

Mission

Alignment
CHAOS
Substandard Performance

Productivity

ASK: Whether bond between HR and IR becoming healthy?

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Vision

HR Management Main Components

Staffing

Employee and Labor Relations HRM Safety and Health

Training & Development

Compensation and Benefits

Take our 20 best people away, and I will tell you that Microsoft would become an unimportant company Bill Gates
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Purpose of HR Function?
To enable management to enhance the individual

and collective contribution of people (possible only if bond between HRM & IR is robust) to the enterprise in:
The The

short term Long term

The only vital value an enterprise has is the experience, skills, innovativeness and insights of its people
Leif Edvinsson, Swedish Intellectual Capital guru
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Core HRM Activities

Human Resource Planning Recruitment Selection Performance Management & Appraisal Training Rewards Employee Relations Employee Communication and Participation Hazard free work environment Personnel Records

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Job Satisfaction..
Workplace support (flexible schedules, etc) autonomy meaningfulness opportunities for learning & advancement job security are highly related to job satisfaction pay and benefits have little effect on job satisfaction.

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Top Themes that Concern Employees Satisfaction Most

An analysis of employee responses to opinion surveys in Asia
A job security B enough help and resources C friendly, helpful co-workers D interesting work E good working conditions F enough authority G good wages H opportunities to development I enough information J full appreciation of work done K competent supervision L clearly defined responsibilities
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Approaches to Employee Engagement

Employee engagement, or worker engagement, is a business management concept. An "engaged employee" is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a way that furthers their organization's interests.

Research-10 effective approaches for improving employee engagement: 1. Rewards and Recognition 2. Human Capital Infrastructure 3. Learning Management 4. Knowledge Management 5. Performance Appraisal 6. Workplace Design 7. Employee Relations 8. Career Development 9. Human capital strategy 10.Recruiting
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Employee Engagement (Reseach)

At least four studies agreed on these eight key drivers.
Trust and integrity how well managers communicate and 'walk the

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talk'. Nature of the job Is it mentally stimulating day-to-day? Line of sight between employee performance and company performance Does the employee understand how their work contributes to the company's performance? Career Growth opportunities Are there future opportunities for growth? Pride about the company How much self-esteem does the employee feel by being associated with their company? Coworkers/team members significantly influence one's level of engagement Employee development Is the company making an effort to develop the employee's skills? Relationship with one's manager Does the employee value his or her relationship with his or her manager?
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Factors Influencing Employee Satisfaction and Engagement

1) An expressed intention to remain with an organization 2) The variety of skills and competencies their job requires 3) The organization's commitment to satisfying customers 4) The amount of cooperation within and across functions 5) Consistent communication regarding roles and expectations 6) Training to improve their contributions to the organization 7) Freedom and discretion in their jobs and access to resources and information 8) Competent, expert managers who are open to ideas of their employees
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Workforce Engagement Metrics

Research Workforce engagement characteristics:
Satisfaction Understanding Contribution Alignment Retention

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Top Themes that Concern Employees Most

An analysis of employee responses to opinion surveys. Higher salaries. Pay is the number one topic for employee dissatisfaction. Internal pay equity. Employees are particularly concerned about 'pay compression' (defined as the differential in pay between new and more experienced employees). Benefits programs. Particularly health/dental, retirement,

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Safety and Health

Employees who work in a

safe environment and enjoy good health are more likely to be productive and yield longterm benefits to the organization.

Isn't it a bit unnerving that doctors call what they do practice?

George Carlin
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Safety and Health

Safety - Involves protecting employees from injuries

caused by work-related accidents

Health - Refers to the employees' freedom from

illness and their general physical and mental well being

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Competition
Competent Employees

Growth

Prosperity

Success

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Economic Challenges

Two related challenges:

Global trade international trade and competition with other markets Need for productivity Improvement More output with equal (or less) input
Need to contribute to international competence of workers (via training, etc.) Potential workforce reductions can result in job insecurity and negative effects on workers

HR Implications

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Complex Work Environment

Industrial society is a complex and dynamic society

(consist of group, societies and institution) they are interrelated, however have different attitudes and perceptions. They are also being influenced by external environment. We cannot ignore the working aspect of human being, as working hour dominate most of our time.

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HR Management
Only 2 imp. Parties employee and employer

Industrial Relations
Relationship between workforce & management

Objectives, policies, procedure The implementation of HRM and programs of human resources policies results in IR.

and implement them Individual employee contacts with the immediate superior. Grievance and disciplinary procedures are resorted to, to solve the employee-employer conflicts. Reformulates the objectives, policies etc ,based on industrial conflicts which are the outcome of unsound industrial relations. HRM is the overall management of all resources including workers, staff, executives, Top management and even suppliers and customers.
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There are four important parties namely employees, employer, trade unions and government
The sound IR contributes to the organizational goals. The

unsound IR result in industrial conflicts demanding for change and reformulation of HRM objectives and goals Employees contact even the top management as a group. Collective bargaining and forms of industrial conflicts are resorted to solve the problems
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Industrial Relations
Industrial relations are governed by the system of rules and

regulations concerning work, workplace and working community The main purpose is to maintain harmonious relations between employees and employer by solving their problems through grievance procedure and collective bargaining. Trade Unions is another important institution in the Industrial relations. Trade unions influence and shape the industrial relations through collective bargaining. Industrial relations are the relations mainly between employees and employers These relations emphasis on accommodating other parties interest, values and needs. Parties develop skills of adjusting to and cooperating with each other.

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Industrial Relations
Industrial relations has become one of the most delicate and

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complex problems of modern industrial society. Industrial progress is impossible without cooperation of labor and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). The main purpose is to maintain harmonious relations between employees and employer by solving their problems through grievance procedure and collective bargaining. Trade Unions is another important institution in the Industrial relations. Trade unions influence and shape the industrial relations through collective bargaining. Industrial relations are the relations mainly between employees and employers These relations emphasis on accommodating other parties interest, values and needs. Parties develop skills of adjusting to and cooperating with each other.

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Competitive edge will largely depend on knowledge workers ability to perform

Learning is not compulsory neither is survival!

W Edward Deming

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