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Name: Muhammad Shabbir Roll No. 508194950

Course: Labour Management Relation (821) Semester: Autumn, 09

Assignment No. 01

Q. No. 01:

Describe major labor laws in the work? Explain different


characteristics of Pakistani Labor law?

Labor law (or employment law) is the body of laws, administrative


rulings, and precedents which address the legal rights of, and restrictions on,
working people and their organizations. As such, it mediates many aspects of the
relationship between trade unions, employers and employees.

There are two broad categories of labor law. First, collective labor law
relates to the tripartite relationship between employee, employer and union.
Second, individual labor law concerns employees' rights at work and through
the contract for work. The labor movement has been instrumental in the enacting
of laws protecting labor rights in the 19th and 20th centuries. Labor rights have
been integral to the social and economic development since the industrial
revolution.

The major labor laws in the world are following:

o 1. Contract of employment
o 2. Minimum wage
o 3 Working time
o 4 Health and safety
o 5 Anti-discrimination
o 6 Unfair dismissal
o 7 Child labor

Contract of employment

The basic feature of labor law in almost every country is that the rights and
obligations of the worker and the employer between one another are mediated
through the contract of employment between the two. This has been the case
since the collapse of feudalism and is the core reality of modern economic
relations. Many terms and conditions of the contract are however implied by
legislation or common law, in such a way as to restrict the freedom of people to
agree to certain things in order to protect employees, and facilitate a fluid labor
market. In the U.S. for example, majority of state laws allow for employment to
be "at will," meaning the employer can terminate an employee from a position for
any reason, so long as the reason is not an illegal reason, including a termination
in violation of public policy.

Minimum wage

There may be law stating the minimum amount that a worker can be paid
per hour. Australia, Canada, China, Belgium, France, Greece, Hungary, India,
Ireland, Japan, Korea, Luxembourg, the Netherlands, New Zealand, Paraguay,
Portugal, Poland, Romania, Spain, Taiwan, the United Kingdom, the United
States and others have laws of this kind. The minimum wage is usually different
from the lowest wage determined by the forces of supply and demand in a free
market, and therefore acts as a price floor. Each country sets its own minimum
wage laws and regulations, and while a majority of industrialized countries has a
minimum wage, many developing countries have not.
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Working time

Before the Industrial Revolution, the workday varied between 11 and 14


hours. With the growth of industrialism and the introduction of machinery,
longer hours became far more common, with 14–15 hours being the norm, and 16
not at all uncommon. Use of child labor was commonplace, often in factories. In
England and Scotland in 1788, about two-thirds of persons working in the new
water-powered textile factories were children. The eight-hour movement's
struggle finally led to the first law on the length of a working day, passed in 1833
in England, limiting miners to 12 hours, and children to 8 hours. The 10-hour day
was established in 1848, and shorter hours with the same pay were gradually
accepted thereafter. The 1802 Factory Act was the first labor law in the UK.

Health and safety

Other labor laws involve safety concerning workers. The earliest English
factory law was drafted in 1802 and dealt with the safety and health of child
textile workers.

Anti-discrimination

This clause means that discrimination against employees is morally


unacceptable and illegal, on a variety of grounds, in particular racial
discrimination or sexist discrimination.

Unfair dismissal

Convention no. 158 of the International Labour Organization states that an


employee "can't be fired without any legitimate motive" and "before offering him
the possibility to defend himself". Thus, on April 28, 2006, after the unofficial
repeal of the French First Employment Contract (CPE), the Longjumeau
(Essonne) conseil des prud'hommes (labour law court) judged the New
Employment Contract (CNE) contrary to international law, and therefore
"illegitimate" and "without any juridical value". The court considered that the
two-years period of "fire at will" (without any legal motive) was "unreasonable",
and contrary to convention no. 158, ratified by France.

Child labor

Child labor is the employment of children under an age determined by law


or custom. This practice is considered exploitative by many countries and
international organizations. Child labor was not seen as a problem throughout
most of history, only becoming a disputed issue with the beginning of universal
schooling and the concepts of laborers' and children's rights. Child labor can be
factory work, mining or quarrying, agriculture, helping in the parents' business,
having one's own small business (for example selling food), or doing odd jobs.
Some children work as guides for tourists, sometimes combined with bringing in
business for shops and restaurants (where they may also work as waiters). Other
children are forced to do tedious and repetitive jobs such as assembling boxes, or
polishing shoes. However, rather than in factories and sweatshops, most child
labor occurs in the informal sector, "selling on the street, at work in agriculture or
hidden away in houses — far from the reach of official inspectors and from media
scrutiny."

CHARACTERISTICS OF PAKISTANI LABOR LAW

The Constitution of Pakistan contains a range of provisions with regards to


labour rights found in Part II: Fundamental Rights and Principles of Policy.

• Article 11 of the Constitution prohibits all forms of slavery, forced labour and
child labour;

• Article 17 provides for a fundamental right to exercise the freedom of


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association and the right to form unions;

• Article 18 proscribes the right of its citizens to enter upon any lawful
profession or occupation and to conduct any lawful trade or business;

• Article 25 lays down the right to equality before the law and prohibition of
discrimination on the grounds of sex alone;

• Article 37(e) makes provision for securing just and humane conditions of
work, ensuring that children and women are not employed in vocations unsuited
to their age or sex, and for maternity benefits for women in employment.

Labour Legislation

Pakistans labour laws trace their origination to legislation inherited from India at
the time of partition of the Indo-Pak subcontinent. The laws have evolved
through a continuous process of trial to meet the socio-economic conditions,
state of industrial development, population and labour force explosion, growth of
trade unions, level of literacy, Government’s commitment to development and
social welfare. To meet the above named objectives, the government of the
Islamic Republic of Pakistan has introduced a number of labour policies, since its
independence to mirror the shifts in governance from martial law to democratic
governance.

Under the Constitution labour is regarded as a ‘concurrent subject’, which means


that it is the responsibility of both the Federal and Provincial Governments.
However, for the sake of uniformity, laws are enacted by the Federal
Government, stipulating that Provincial Governments may make rules and
regulations of their own according to the conditions prevailing in or for the
specific requirements of the Provinces. The total labour force of Pakistan is
comprised of approximately 37.15 million people, with 47% within the agriculture
sector, 10.50% in the manufacturing & mining sector and remaining 42.50% in
various other professions.

Contract of Employment

While Article 18 of the Constitution affords every citizen with the right to enter
upon any lawful profession or occupation, and to conduct any lawful trade or
business, the Industrial and Commercial Employment (Standing Orders)
Ordinance was enacted in 1968 to address the relationship between employer and
employee and the contract of employment. The Ordinance applies to all
industrial and commercial establishments throughout the country employing 20
or more workers and provides for security of employment. In the case of workers
in other establishments, domestic servants, farm workers or casual labour
engaged by contractors, their labour contracts are generally unwritten and can be
enforced through the courts on the basis of oral evidence or past practice.

Every employer in an industrial or commercial establishment is required to issue


a formal appointment letter at the time of employment of each worker. The
obligatory contents of each labour contract, if written, are confined to the main
terms and conditions of employment, namely nature and tenure of appointment,
pay allowances and other fringe benefits admissible, terms and conditions of
appointment.

Termination of the Contract

The services of a permanent worker cannot be terminated for any reason other
than misconduct unless one month’s notice or wages in lieu thereof has been
furnished by the employer or by the worker if he or she so chooses to leave his or
her service. One month’s wages are calculated on the basis of the average wage
earned during the last three months of service. Other categories of workers are
not entitled to notice or pay in lieu of notice.
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All terminations of service in any form must be documented in writing stating the
reasons for such an act. If a worker is aggrieved by an order of termination he or
she may proceed under Section 46 of the Industrial Relations Ordinance 2002,
aimed at regulating the labour-management relations in the country, and bring
his or her grievance to the attention of his or her employer, in writing, either him
or herself, through the shop steward or through his or her trade union within
three months of the occurrence of the cause of action. Forms of termination have
been described as removed, retrenched, discharged or dismissed from service. To
safeguard against any colorful exercise of power, victimization or unfair labour
practices, the Labour Courts have been given powers to examine and intervene to
find out whether there has been a violation of the principles of natural justice and
whether any action by the employer was bonafide or unjust.

Working Time and Rest Time

* Working hours

Under the Factories Act, 1934 no adult employee, defined as a worker who has
completed his or her 18th year of age, can be required or permitted to work in any
establishment in excess of nine hours a day and 48 hours a week. Similarly, no
young person, under the age of 18, can be required or permitted to work in excess
of seven hours a day and 42 hours a week. The Factories Act, which governs the
conditions of work of industrial labour, applies to factories, employing ten or
more workers. The Provincial Governments are further empowered to extend the
provisions of the Act, to even five workers.

* Paid Leave
As provided in the Factories Act, 1934, every worker who has completed a period
of twelve months continuous service in a factory shall be allowed, during the
subsequent period of twelve months, holidays for a period of fourteen
consecutive days. If a worker fails in any one such period of twelve months to
take the whole of the holidays allowed to him or her, any holidays not taken by
him or her shall be added to the holidays allotted to him or her in the succeeding
period of twelve months.

A worker shall be deemed to have completed a period of twelve months


continuous service in a factory notwithstanding any interruption in service
during those twelve months brought about by sickness, accident or authorized
leave not exceeding ninety days in the aggregate for all three, or by a lock-out, or
by a strike which is not an illegal strike, or by intermittent periods of involuntary
unemployment not exceeding thirty days in the aggregate; and authorized leave
shall be deemed not to include any weekly holiday allowed under section 35
which occurs at beginning or end of an interruption brought about by the leave.

* Maternity Leave and Maternity Protection


While article 37 of the Constitution makes reference to maternity benefits for
women in employment, there are two central enactments, one federal and the
other provincial providing maternity benefits to women employed in certain
occupations. The Maternity Benefit Ordinance, 1958 stipulates that upon the
completion of four months employment or qualifying period, a worker may have
up to six weeks prenatal and postnatal leave during which she is paid a salary
drawn on the basis of her last pay. The Ordinance is applicable to all industrial
and commercial establishments employing women excluding the tribal areas. It
also places restrictions on the dismissal of the woman during her maternity leave.
Similarly, the Mines Maternity Benefit Act, 1941 is applicable to women
employed in the mines in Pakistan.

* Other Leave Entitlements


In addition to the 14 days of annual leave with pay, the Factories Act, 1934
provides that every worker is entitled to 10 days casual leave with full pay and
further 16 days sick or medical leave on half pay. Casual leave is granted upon
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contingent situations such as sudden illness or any other urgent purpose. It


should be obtained on prior application unless the urgency prevents the making
of such application. As a customary practice, causal leave is approved in most
cases. Sick leave, on the other hand, may be availed of on support of a medical
certificate. Management should not refuse the leave asked for if it is supported by
a medical certificate.

In addition to the leave entitlements, workers enjoy festival holidays as declared


by the Federal Government. The Provincial Government under section 49 of the
Factories Act, 1934, states all festival holidays, approximately 13 or as further
declared, in the Official Gazette. Additionally, every worker is entitled to enjoy all
such holidays with pay on all days declared and notified by the Provincial
Government. If however, a worker is required to work on any festival holiday, one
day's additional compensatory holiday with full pay and a substitute holiday shall
be awarded.
Under agreements made with the Collective Bargaining Agent, employees who
proceed on pilgrimage i.e., Hajj, Umra, Ziarat, are granted special leave up to 60
days.

Minimum Age and Protection of Young Workers

Article 11(3) of Pakistan’s Constitution expressly prohibits the employment of


children below the age of fourteen years in any factory, mine or other hazardous
employment. In addition, the Constitution makes it a Principle of Policy of the
State of Pakistan to protect the child, to remove illiteracy and provide free and
compulsory education within the minimum possible period and to make
provision for securing just and human conditions of work, ensuring that children
and women are not employed in vocations unsuited to their age or sex.

The Factories Act, 1934 allows for the employment of children between the ages
of 14 and 18 years provided that each adolescent obtains a certificate of fitness
from a certifying surgeon. A certifying surgeon, per section 52 of the Act, shall on
the application of any child or adolescent who wishes to work in a factory, or, of
the parent or guardian of such person, or of the factory in which such person
wishes to work, examine such person and ascertain his or her fitness for such
work.

Under the Employment of Children Rules, anyone who employs a child or


permits a child to work in contravention of the Constitution is punishable by
imprisonment for a term extending up to one year or may be fined up to Rs.
20,000 or subject to both. Repetition of the offense is punishable by
imprisonment for a term extending up to two years and shall not be less than six
months.

Equality

Article 38 of the Constitution imparts the State’s obligations aimed at achieving


equality in the form of securing the well-being of the people, irrespective of sex,
caste, creed or race, by raising their standard of living, by preventing the
concentration of wealth and means of production and distribution in the hands of
a few to the detriment of general interest and by ensuring equitable adjustment of
rights between employers and employees, and landlords and tenants. All citizens
are bestowed, within the available resources of the country, facilities for work and
adequate livelihood with reasonable rest and leisure and the basic necessities of
life, such as food, clothing, housing, education and medical relief, for all such
citizens, irrespective again of their sex, caste, creed or race, as are permanently or
temporarily unable to earn their livelihood on account of infirmity, sickness or
unemployment.

Pay Issues

Wages are construed as the total remuneration payable to an employed person on


the fulfillment of his or her contract of employment. It includes bonuses and any
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sum payable for want of a proper notice of discharge, but excludes the value of
accommodations i.e., supply of light, water, medical attendance or other
amenities excluded by the Provincial Government; the employer’s contribution to
a pension or provident fund, traveling allowance or concession or other special
expenses entailed by the nature of his or her employment; and any gratuity
payable on discharge.

The employer is responsible for the payment of all wages required to be paid to
persons employed by him or her. Similarly any contractor employing persons in
an industry is responsible for payment of wages to the persons he or she employs.
The persons responsible for payment of wages must fix wage periods not
exceeding one month. Wages should be paid on a working day within seven days
of the end of the wage period, or within ten days if 1,000 or more persons are
employed. The wages of a person discharged should be paid not later than the
second working day after his or her discharge.

* Labour Courts

Section 33 of the Industrial Relations Ordinance, 2002 permits any CBA or any
employer to apply to the Labour Court for the enforcement of any right
guaranteed or secured by law or any award or settlement. The Provincial
Government derives its authority to establish as many Labour Courts as it
considers necessary under section 44 of the Ordinance. Each Labour Court is
subject to jurisdictional limitations derived by its geographical parameters or
with respect to the industry or the classes of cases allocated. Each Labour Court
consists of one Presiding Officer appointed by the Provincial Government.

An award or decision of a Labour Court is produced in writing and delivered in


open Court with two copies subsequently forwarded to the Provincial
Government. Upon receipt, the Provincial Government within a period of one
month publishes the award or decision in the Official Gazette.

The IRO 2002 abolished the Labour Appellate Tribunal. Any party aggrieved by
an award or a decision given or a sentence passed by the Labour Court may now
submit an appeal to the High Court (Article 48 of the IRO 2002). The High Court,
may vary or modify an award or decision or decision sanctioned by the Labour
Court. It may, on its own motion at any time, call for the record of any case or
proceedings in which a Labour Court within its jurisdiction has passed an order,
for the purpose of satisfying itself as to the correctness, legality, or propriety of
such order, and may pass such order, in relation thereto as it thinks fit, provided
that the order does not adversely affect any person without giving such person a
reasonable opportunity of being heard.

Official Gazette
The Federal Laws of Pakistan are published by the Government in a document
called the Gazette of Pakistan. The Ministry of Justice, Law and Parliamentary
Affairs in addition publishes individual Acts through the Official Gazette.
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Q. No. 2

Write notes on the following:

(a) Models of labour management relations:

A “model” is a mental construct with which people organize their thoughts about
a topic. When we consider labor management relations, we usually think
about a single company dealing with a single local union. This is of course a
model. The figure below show the management of a company.

Management of a company

Union local No. 100

This company is dealing with local No. 100 which represents company A’s
employees. The line between the company and the union has arrows pointing
both ways and indicates that each side influences the other. Also, the absence
of any other organizations or lines indicates that the relationship between
company A and local No. 100 is all there really is to know about the system of
labour management relations indicated here. The above figure represents a
model, in that is identifies the parties involved, indicates their relationships
as insignificant.

Customers of Stock holders in Employer Association to


Company A company A which company A
belong

Other local unions Management of Government of


with which company Company A regulatory bodies
A has dealing

Companies in which
Employees of Union Local No. company A has plants or
Company A 100 offices

In above figure we examine the web of relation ships involving company A.


we see that company A has responsibilities to its stockholders and customers as
well as to local no. 100. It also has relationships with other companies through an
association to bodies. It has commitments to the communities in which it
operates; and it has responsibilities to other unions with which it deals.

This is more accurate model of the relationship of company A to local No. 100
because it shows that the company must also deal with these other groups on
issues that affect local No. 100. for example in considering where to give into
wage demands by local No. 10 or to take a strike, company A must consider
the impact of its choice on its customers, it stock holders, the communities in
which it operates, its non unionized employees, and the other unions with
which it deal. Often the strong preferences of one or more of these groups will
determine company A’s decision.
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A local union is also involved in a web of relationships. Figure below shows


that local No. 100 must consider in its own activities the views of its national
union, other unions, the community in which it is located, its political friends
(whom it should not embarrass by its activities), other companies with which
its contacts (if any), and the management of company A it self.

Management of National Union


Company A Other unions

Community in which
Union Local 100 the local is located
Other companies
with which local
deals Political friends of
the local union

Figures 2 & 3 together constitute an alternative model to Figure 01. the


alternative is much more complex and shows that there are many more
factors involved in the relationship between company A local no. 100 than
just the two organizations alone. As such, the more complicated model is
generally a more accurate reflections of reaity.

The model in figure 01 may be referred to as a “one to one” model. The few
situations in which it applices in reality are not difficult ones to analyze. Most
often, however, labour relations are of the type diagramed in figure 02 and
03.

Q .no. 2

(b) Diversity in the Workplace

Diversity issues related to race, gender, age, disabilities, religion, job title,
physical appearance, sexual orientation, nationality, multi culturism,
competency, training, experience, and personal habits are explored in these links.
The bias is toward valuing diversity.

Workplace diversity refers to the variety of differences between people in


an organization. That sounds simple, but diversity encompasses race, gender,
ethnic group, age, personality, cognitive style, tenure, organizational function,
education, background and more.

Diversity not only involves how people perceive themselves, but how they
perceive others. Those perceptions affect their interactions. For a wide
assortment of employees to function effectively as an organization, human
resource professionals need to deal effectively with issues such as
communication, adaptability and change. Diversity will increase significantly in
the coming years. Successful organizations recognize the need for immediate
action and are ready and willing to spend resources on managing diversity in the
workplace now.

Benefits of Workplace Diversity

An organization’s success and competitiveness depends upon its ability to


embrace diversity and realize the benefits. When organizations actively assess
their handling of workplace diversity issues, develop and implement diversity
plans, multiple benefits are reported such as:

Increased adaptability
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Organizations employing a diverse workforce can supply a greater variety of


solutions to problems in service, sourcing, and allocation of resources. Employees
from diverse backgrounds bring individual talents and experiences in suggesting
ideas that are flexible in adapting to fluctuating markets and customer demands.

Broader service range

A diverse collection of skills and experiences (e.g. languages, cultural


understanding) allows a company to provide service to customers on a global
basis.

Variety of viewpoints

A diverse workforce that feels comfortable communicating varying points of view


provides a larger pool of ideas and experiences. The organization can draw from
that pool to meet business strategy needs and the needs of customers more
effectively.

More effective execution

Companies that encourage diversity in the workplace inspire all of their


employees to perform to their highest ability. Company-wide strategies can then
be executed; resulting in higher productivity, profit, and return on investment.

Challenges of Diversity in the Workplace

Taking full advantage of the benefits of diversity in the workplace is not without
its challenges. Some of those challenges are:

Communication - Perceptual, cultural and language barriers need to be


overcome for diversity programs to succeed. Ineffective communication of key
objectives results in confusion, lack of teamwork, and low morale.

Resistance to change - There are always employees who will refuse to accept
the fact that the social and cultural makeup of their workplace is changing. The
“we’ve always done it this way” mentality silences new ideas and inhibits
progress.

Implementation of diversity in the workplace policies - This can be the


overriding challenge to all diversity advocates. Armed with the results of
employee assessments and research data, they must build and implement a
customized strategy to maximize the effects of diversity in the workplace for their
particular organization.

Successful Management of Diversity in the Workplace - Diversity


training alone is not sufficient for your organization’s diversity management plan.
A strategy must be created and implemented to create a culture of diversity that
permeates every department and function of the organization.

Recommended steps that have been proven successful in world-class


organizations are:

Assessment of diversity in the workplace - Top companies make assessing


and evaluating their diversity process an integral part of their management
system. A customizable employee satisfaction survey can accomplish this
assessment for your company efficiently and conveniently. It can help your
management team determine which challenges and obstacles to diversity are
present in your workplace and which policies need to be added or eliminated.
Reassessment can then determine the success of you diversity in the workplace
plan implementation.

Development of diversity in the workplace plan - Choosing a survey


provider that provides comprehensive reporting is a key decision. That report will
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be the beginning structure of your diversity in the workplace plan. The plan must
be comprehensive, attainable and measurable. An organization must decide what
changes need to be made and a timeline for that change to be attained.

Implementation of diversity in the workplace plan - The personal


commitment of executive and managerial teams is a must. Leaders and managers
within organizations must incorporate diversity policies into every aspect of the
organization’s function and purpose. Attitudes toward diversity originate at the
top and filter downward. Management cooperation and participation is required
to create a culture conducive to the success of your organization’s plan.

Recommended diversity in the workplace solutions include:

Ward off change resistance with inclusion. - Involve every employee


possible in formulating and executing diversity initiatives in your workplace.

Foster an attitude of openness in your organization. - Encourage


employees to express their ideas and opinions and attribute a sense of equal value
to all.

Promote diversity in leadership positions. - This practice provides


visibility and realizes the benefits of diversity in the workplace.

Utilize diversity training. - Use it as a tool to shape your diversity policy.

Launch a customizable employee satisfaction survey that provides


comprehensive reporting. - Use the results to build and implement
successful diversity in the workplace policies.

As the economy becomes increasingly global, our workforce becomes increasingly


diverse. Organizational success and competitiveness will depend on the ability to
manage diversity in the workplace effectively. Evaluate your organization’s
diversity policies and plan for the future, starting today.

Q No. 03

What is industrial relations system? How does industrial


relations systems operate?
Ans: An industrial relations system is characteristized by having certain active
institutions, a context in which they operate, and a certain output. It is important
to think of industrial relations as being a system because the concept of a system
focuses attention on interrelationships among the system’s parts. Infact, the
industrial relation system of each country constitutes a method of dealing with
certain problems of labour relations that exist in all countries, but that assume
different forms as a result of the particular form in which they occur.

Industrial relations systems can be defined as first the systems is industrial in


nature because we don not include in it the relationships that exist in the
agricultural sector, which explicitly involves the growing of crops and husbandry
of animals. In most countries these activities still consume most of the labor
force.

Industrial relations may be defined as the processes by which human


beings and their organizations interact at the work place and, more broadment.
The process of relations between persons and organizations is stressed, not just
the resulting standards. Finally, a “system” is spoken of in standards in the
industrial environment. Each nations may be said to have some characteristic
fashion of dealing with the social, economic, and legal problems that arise among
its citizen. If each of these areas is conceived to involve a system then the
industrial relations system may be described as an area in which they overlap.
Thus industrial relation system is seen to involve important aspects of social,
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economic and legal systems of a country as they relate to the industrial workplace
and the relationships among employees and managers.

Social Economic
system System
Industrial
relation
Legal system
system

The above figure provides a diagrammatic identification of an industrial relations


system. The diagram shows that the industrial relation system is derived from the
intersection of the other, more basic systems. It also shows that the other systems
overlap two by two outside the industrial relations system. thus in united states,
the eco systems over lap broadly outside industrial relations, including, or
examples income maintenance programs like Social Security and welfare as many
persons who make their livelihood in industrial relations system is deeply
embedded in our country’s basic framework and is not a thing apart. In fact,
many persons who make their livelihood in industrial relations have been broadly
trained as trades people, lawyers or business people and come therefore from the
legal or economic system, bringing their attitudes and practices into the
industrial relations system. Industrial relations matters are not separated from
the broad range of legal activities in the United States, but are in fact deeply
intermingled with them.

Twenty years ago it was reasonably accurate to speak of the industrial


relations system of each nation and to compare and contrast them. In recent
years, however, there has been much change, so that in important instance today
there are greater differences within a nation that between nations.

An industrial relations system consists of the whole gamut of relationships


between employees and employees and employers which are managed by the
means of conflict and cooperation.

A sound industrial relations system is one in which relationships between


management and employees (and their representatives) on the one hand, and
between them and the State on the other, are more harmonious and cooperative
than conflictual and creates an environment conducive to economic efficiency
and the motivation, productivity and development of the employee and generates
employee loyalty and mutual trust.

Actors in the IR system:

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the
right to hire and fire them. Management can also affect workers’ interests by
exercising their right to relocate, close or merge the factory or to introduce
technological changes.
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Employees: Workers seek to improve the terms and conditions of their


employment. They exchange views with management and voice their grievances.
They also want to share decision making powers of management. Workers
generally unite to form unions against the management and get support from
these unions.

Government: The central and state government influences and regulates


industrial relations through laws, rules, agreements, awards of court ad the like.
It also includes third parties and labor and tribunal courts.

SCOPE:

The concept of industrial relations has a very wide meaning and connotation. In
the narrow sense, it means that the employer, employee relationship confines
itself to the relationship that emerges out of the day to day association of the
management and the labor. In its wider sense, industrial relations include the
relationship between an employee and an employer in the course of the running
of an industry and may project it to spheres, which may transgress to the areas of
quality control, marketing, price fixation and disposition of profits among others.

The scope or industrial relations is quite vast. The main issues involved here
include the following:

1. Collective bargaining
2. Machinery for settlement of industrial disputes
3. Standing orders
4. Workers participation in management
5. Unfair labor practices

Importance of Industrial Relations:

The healthy industrial relations are key to the progress and success. Their
significance may be discussed as under –

 Uninterrupted production – The most important benefit of industrial


relations is that this ensures continuity of production. This means, continuous
employment for all from manager to workers. The resources are fully utilized,
resulting in the maximum possible production. There is uninterrupted flow of
income for all. Smooth running of an industry is of vital importance for several
other industries; to other industries if the products are intermediaries or inputs;
to exporters if these are export goods; to consumers and workers, if these are
goods of mass consumption.

 Reduction in Industrial Disputes – Good industrial relations reduce the


industrial disputes. Disputes are reflections of the failure of basic human urges or
motivations to secure adequate satisfaction or expression which are fully cured by
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good industrial relations. Strikes, lockouts, go-slow tactics, grievances are some
of the reflections of industrial unrest which do not spring up in an atmosphere of
industrial peace. It helps promoting co-operation and increasing production.

 High morale – Good industrial relations improve the morale of the


employees. Employees work with great zeal with the feeling in mind that the
interest of employer and employees is one and the same, i.e. to increase
production. Every worker feels that he is a co-owner of the gains of industry. The
employer in his turn must realize that the gains of industry are not for him along
but they should be shared equally and generously with his workers. In other
words, complete unity of thought and action is the main achievement of
industrial peace. It increases the place of workers in the society and their ego is
satisfied. It naturally affects production because mighty co-operative efforts alone
can produce great results.

 Mental Revolution – The main object of industrial relation is a complete


mental revolution of workers and employees. The industrial peace lies ultimately
in a transformed outlook on the part of both. It is the business of leadership in
the ranks of workers, employees and Government to work out a new relationship
in consonance with a spirit of true democracy. Both should think themselves as
partners of the industry and the role of workers in such a partnership should be
recognized. On the other hand, workers must recognize employer’s authority. It
will naturally have impact on production because they recognize the interest of
each other.

 Reduced Wastage – Good industrial relations are maintained on the basis


of cooperation and recognition of each other. It will help increase production.
Wastages of man, material and machines are reduced to the minimum and thus
national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production
with minimum cost and higher profits. It also results in increased efficiency of
workers. New and new projects may be introduced for the welfare of the workers
and to promote the morale of the people at work. An economy organized for
planned production and distribution, aiming at the realization of social justice
and welfare of the massage can function effectively only in an atmosphere of
industrial peace. If the twin objectives of rapid national development and
increased social justice are to be achieved, there must be harmonious relationship
between management and labor.

HOW DOES INDUSTRIAL RELATION SYSTEM OPERATE

An industrial relations system involves certain institutions, which we may term


“actor” in the system. The three major actors are
i) Management and management organization.
ii) Employees and their organization
iii) Government and its role as a regular actor and judge.

These actors together determine the output of the system, which we may
describe as a set of arrangements, understandings or rules about terms and
conditions of employment. Described in this way the system seem simple
enough but unfortunately, there are many complications for example there is
not one government in any country but many governments, with different
levels of government (e.g) federal, state and municipal) and many branches of
government (executive, legislative and judicial). We refer to this separation as
the “balance of powers” or “separation of power” doctrine. Because of this
separation , the many agencies of government are each, to a degree separate
actors in our industrial relations system. the actors in our industrial relations
system interact with one another to develop the basic output of the system,
including a set of rules or understanding about working conditions and
standards of employment.
14

When arrangements have been established, they have an impact on both


management and labour, who with government participated in their
established. Sometimes the impact, or feedback, is what was expectd and
intended. When this is the case, the actors in the industrial relations system
may turn their attention to other problems. However, sometimes the
arrangements that have been created have unexpected consequences.
Management or labour may be surprised and upset at the unintended
consequences of a rule. In this case, the actor that is aggrieved is likely to seek
further changes in the rule, or may go to the regulatory agencies to attempt to
get the rule changed.

An industrial relations system may also be said to operate within a set of


constraints involving both the technology available to the economic system
and the ideology of the society as a whole. Technology is very important, for
its helps to determine the types of jobs available and the amount of output
that can be produced and in turn can support living standards. Improving
technology is both a blessing and a curse to the industrial relations system. it
creates the capacity to provide higher living standards. But it also generates
disputes among labour and management about work assignments, pay levels
and similar matter associated with new processes and equipment.
The ideological direction of a society is also an important constraint on an
industrial relations system. Stability in industrial relations requires a degree
of correspondence among the actor’s views of industrial society, although the
specific nature of the views is less significant.

UNDERSTANDING ABOUT WHAT?

There is much to be said about the understandings or arrangements that


tare the product of the industrial relations system. First they may concern
many types of matters, including compensation, discrimination, hiring and
worker’s rights. Second, they may be either substantive or procedural.

Substantive arrangements establish a matter exactly, as for example, the


amount of compensation, the length of the workday, and the size of the
overtime premium (e.g time and a half).

The arrangements produced by an industrial relations system may be in


several different forms. In many instances they are in the form of the
personnel policies, practices, and procedures of various companies. In many
instances they are found in the collective bargaining agreements between
companies and labour unions. In some instances they are in written form; in
other instances they are in the form of tactic understandings and/or un
written practices.

Some union management agreements are very brief and treat only a few
matters. Main contents are as under:-
• Local working conditions
• Contracting out (i-e subcontracting)
• Recognition and union member ship
• Rates of pay
• Job classifications and incentives
• Hours of work and overtime
• Holidays
• Vacations
• Seniority
• Adjustment of complaints and grievances
• Discharge of employees
• Management functions
• Safety and health
15

Q. No. 04

Discuss history and philosophy of unions in the world with


examples.

Labor union

A labor union, or trade union, is an association of fair wage-earners uniting


for the purpose of maintaining and improving the conditions of their
employment. Over a three-hundred-year period, labor unions have developed
into a number of forms, influenced by various political and economic regimes.
Immediate objectives and activities of trade unions often vary according to
industry. Despite such differences, however, the fundamental ideals upheld by
traditional labor unions include the provision of member benefits, the right to
collectively bargain, and the right to take industrial action. Early trade unions,
like Friendly Societies, provided a range of benefits to accommodate their
members in times of unemployment, ill health, old age, and death, many of which
have subsequently been assumed by the state. Union members are also protected
when taking industrial action, such as striking to achieve particular goals. Unions
often promote political legislation favorable to the interests of their members or
workers as a whole. Thus, provided cooperative relationships are maintained
between management and labor unions, their work is generally beneficial to
society, ensuring that workers are well-cared for and thus able to make their best
contribution to society as a whole.

History

In the eighteenth century, much of Western society witnessed the world’s first
Industrial Revolution and the abandonment of an agrarian culture with craft
based production. The young industrial environment provided much of the
momentum for the establishment and advancement of the labor union.

The start of the Industrial Revolution sparked a rising fear in the craft
associations of the time, who feared encroachment on their established jobs,
wage changes, and workforce restructuring. The rapid expansion of the industrial
society quickly drew large numbers of women, children, rural workers, and
immigrants into the work force to labor for meager wages in appalling conditions.
These working environments would later prove to be an important arena for
change.

Early History

Trade unions have sometimes been seen as successors to the guilds of medieval
Europe, though the relationship between the two is disputed. Medieval guilds
existed to enhance their members’ livelihoods, through controlling the
instructional capital of artisanship, and the progression of their members from
apprentice to craftsman, journeyman, and eventually to master and grandmaster
of their craft. Guilds also facilitated mobility by providing accommodation for
their members traveling in search of work. Though guilds exhibited some aspects
of the modern trade union, they also exhibited aspects of modern professional
associations and corporations.

Unlike modern labor unions, guilds were highly selective and offered
membership to only those artisans practicing a specific trade. Labor unions seek
to incorporate a broad array of laborers, to increase membership numbers and
union leverage as a whole.
16

Since the 1894 publication of Sidney and Beatrice Webb’s History of Trade
Unionism, trade unions have been defined as a collection of employees working
to negotiate pay rates, working conditions, and member benefits. Others,
however, have put forth the view that trade unions are part of a broader
movement to benefit society, to be conceived of along the lines of freemasons,
friendly societies, and various fraternal organizations.

Later History

In the eighteenth century, most countries deemed labor unions illegal, and
constructed severe penalties, including execution, for the attempt to organize
such affiliations. Despite these measures, labor unions succeeded in forming, and
acquired political powers resulting in the passage of legislation which legalized
organizing efforts. Despite the awarding of legal stature, trade unions continued
to face generations of opposition.

The right to join a trade union is contained within the Universal Declaration of
Human Rights in Article 23, subsection 4. This clause states that “Everyone has
the right to form and to join trade unions for the protection of his interests”
(1948). This article also prohibits the forcing of a person to join or form such a
union body. The forcing of an individual to enter into a union, whether by a
government or a business, is generally considered a human rights abuse. Similar
allegations can be leveled against any employer found to be discriminating
against employees based on union membership.

Throughout nineteenth-century continental Europe, socialist parties and


anarchists played a prominent role in the formation and progress of trade unions.
In Britain, New Model Unions dominated the union movement. There, trade
unionism would remain stronger than the political labor movement until the
early years of the twentieth century, which marked the formation and growth of
England’s Labour Party.

The Modern Labor Union

Structure

There are three major structures of union organizing: craft unionism, general
unionism, and industrial unionism. Craft unionism is defined by the organization
of a particular section of skilled workers. An organization of a cross-section of
workers from various trades is known as general unionism. Attempting to
organize all workers within a particular industry is defined as industrial
unionism.

Labor unions are often divided into branches, or locals, and are united through
national federations. These federations are affiliated with international
organizations, such as the International Confederation of Free Trade Unions.

Union functions are also delineated by a service model and an organizing


model. The service model maintains worker rights, provides member services,
and resolves union disputes. The organizing model typically involves full-time
organizers, who foster confidence, build networks, and promote leaders
throughout the workforce. Labor organizers may also launch confrontational
campaigns involving large numbers of union members and affiliates. Most labor
unions are a blend of these two philosophies.

Union leadership is usually achieved through democratic elections.

Union Operations

Companies that employ workers with a union generally operate on one of several
models called shops. Within the United States, unions can operate under a closed
shop or a union shop. Under a closed shop, a union will employ only those who
17

are already union members, and employers must recruit directly from a union
pool of applicants. A union shop employs non-unions workers as well, but
establishes a time limit within which new hires must become union members.

An agency shop requires non-union workers to pay a fee to the union for its
services in negotiating their contracts. This is sometimes referred to as the Rand
formula. In certain situations regarding U.S. government employees, fair share
laws make it easy to require these sorts of payments.

During the 1980s, under Prime Minister Margaret Thatcher, the United Kingdom
was introduced to a series of laws directing the government to restrict all closed
and union shops. All agreements requiring a worker to join a union have since
been deemed illegal. In 1947, the Taft-Hartley Act outlawed the operation of the
closed shop union in the United States, but permitted the existence of the union
shop.

Political Relationships

Unions may also engage in broader political or social struggles. Social unionism
defines the many unions that use their organizational strength to advocate for
social policies and legislation considered favorable for their members. In some
countries, unions maintain close alliances with political parties. In many
countries, labor unions may be closely linked to, or may even share leadership
with, a political party intended to represent the interests of the working class.
Often times, these parties include left-wing politicians or socialists.

In the United States, labor unions have historically aligned with the Democratic
Party, though their allegiance to the party is by no means steadfast.

In the United Kingdom, the relationship between the labor movement and the
labor party has disintegrated over the party’s support of privatization plans, a
position at odds with the movement’s perception of worker interest.

Employment Laws

Varying structures of employment laws can also affect a union’s business


operations. In many western European countries, wages and benefits are largely
set by a governmental body. The United States takes a more laissez-faire
approach, setting a minimum standard but allowing most workers' wages and
benefits to be decided through collective bargaining and market forces. South
Korea has historically regulated collective bargaining by requiring employers to
participate in bargaining practices. However, collective bargaining is only legally
recognized if the sessions are held before the lunar New Year. Under totalitarian
regimes, such as Nazi Germany and the Soviet Union, labor unions were typically
controlled by de facto government agencies, devoted to the smooth and efficient
operation of enterprises.

International Operations

Labor unions also engage in international operations. Such organizations include


the World Confederation of Labor and the World Federation of Trade Unions.
The world’s largest international organization, the Brussels-based International
Confederation of Free Trade Unions, encompasses an estimated 231 affiliated
organizations throughout more than 150 countries and territories, and has a
combined membership of 158 million.

National and regional trade unions organizing in specific industry sectors or


occupational groups have also formed global union federations, such as Union
Network International and the International Federation of Journalists.

Labor Unions in Different Countries


18

As labor laws remain diverse in different countries, so do the functions of unions.


For example, German labor unions legally may operate only an open shop policy,
and all discrimination based on union membership is forbidden. German unions
also play a large role in the managerial decisions and co-determination of global
unions by participating in corporate boards.

The diversity of labor union operations in several countries, including Poland,


South Africa, the United Kingdom and the United States, is briefly detailed
below.

Poland

Poland’s Independent Self-governing Trade Union or, Solidarnośc (Solidarity), is


a trade union federation founded in 1980. In its earliest years, Solidarity
constituted a broad anti-communist social movement that the Polish government
attempted to destroy through martial law in 1981, and through a history of
repression.

"High Noon, 4 June 1989"


Solidarity Citizens' Committee election poster by Tomasz Sarnecki

In 1989, roundtable talks between a weakened Polish government and political


opponents led to the establishment of semi-free elections. Later that year, a
Solidarity-led coalition was formed and in December, union leader Lech Wałęsa
was elected president. Since its 1989 inception, Solidarity has become a more
traditional trade union, with relatively little impact on the Polish political scene
of the early 1990s.

The survival of Solidarity was an unprecedented event not only in Poland, a


satellite state of the USSR ruled by a one-party communist regime, but the whole
of Eastern Europe. It meant a change in the hard-line stance of the communist
Polish United Workers' Party, which sought to end a 1970 protest with machine
gun fire. The establishment of Poland’s Solidarity also differed from the broader
Soviet communist regime, a coalition which had quelled both the 1956 Hungarian
Uprising and the 1968 Prague Spring with Soviet-led invasions.

The influence of Solidarity led to the intensification and spread of anti-


communist ideals and movements throughout Eastern Europe, weakening a
series of communist governments. A succession of peaceful anti-communist
counterrevolutions in Central and Eastern Europe were sparked. Various
communist-opposing groups throughout Eastern Europe followed the lead of
Solidarity, eventually leading to the Eastern Bloc's effectual dismantling, and
contributing to the collapse of the Soviet Union in the early 1990s.

South Africa

The history of South African trade unions dates back to the 1880s. At that time,
unions were viewed as a reflection of national racial disunity, as the earliest
unions were established only for white workers. Through the turbulent years of
apartheid, trade unions played an important part in developing political and
economic resistance, and were a driving force in the establishment of a South
African democratic government.

Trade unions continue to represent an important force in South Africa,


encompassing a quarter of the general work force, represented by over 3 million
members. The Congress of South African Trade Unions (COSATU) is the largest
of the three major trade unions with a membership of 1.8 million. COSATU is
part of the Tripartite alliance with the ruling African National Congress (ANC),
and the South African Communist Party (SACP).

United Kingdom
19

British labor unions were often subject to severe repression until the mid-
nineteenth century, but continued to exist throughout the city of London. During
that period, workplace militancy often erupted, as in the 1820 rising in Scotland,
where 60,000 workers attempted a general strike. In 1834, a significant attempt
to set up a national labor union came in the form of Robert Owen's Grand
National Consolidated Trades Union, which attracted a range of socialists and
revolutionaries. However, facing severe pressures, the organization would later
collapse.

In the 1840s, trade unionism was overshadowed by the political activities of the
British parliament, though the establishment of less radical trade unions would
take hold in the 1850s. In 1860, the London Trades Council was founded,
followed by the establishment of a Royal Commission on Trade Unions in 1867
and the Trades Union Congress in 1868. Three years later, legal status would be
awarded to British trade unions under the 1871 Trade Union Act.

Trade union membership increased throughout years of industrial unrest and


World War I, resulting in a widespread recognition of unions and an increase in
management operations.

United States

On September 5, 1882, some 10,000 workers assembled in New York City to


participate in America's first Labor Day parade. After marching from City Hall,
past reviewing stands in Union Square, and then uptown to 42nd Street, the
workers and their families gathered in Wendel's Elm Park for a picnic, concert,
and speeches. This first Labor Day celebration was eagerly organized and
executed by New York’s Central Labor Union, an umbrella group made up of
representatives from many local unions. Debate continues to this day as to who
originated the idea of a workers' holiday, but it definitely emerged from the ranks
of organized labor at a time when they wanted to demonstrate the strength of
their burgeoning movement and inspire improvements in their working
conditions.

United States labor unions arose amidst the nineteenth-century Industrial


Revolution and have revolved around industrial advancement and the behavior of
the U.S. economy. Early historical resistance by employers to members and
affiliates of labor unions marked a long-established relationship of adversity, and
posed a great challenge to union organizers and members.

Labor unions in the United States now function as a legally recognized


representation of workers from various industries. Recent years have seen an
increase in participation among the union’s service sector and public sector.
Activity by labor unions in the United States is generally focused on collective
bargaining rights, employee benefits, and working conditions. Unions have also
focused on the representation of their members in violations of contract
provisions by employee management. American unions remain an important
political factor through the mobilization of their memberships and affiliations
with like-minded activist organizations. Main political agendas include
immigrant rights, trade policies, health care, and living wage campaigns.

Other Countries

Some Nordic countries including Belgium, Sweden, and Finland have strong,
centralized labor unions, where each industry represented has a specific union
and together comprises a national union confederation. The largest Swedish
union confederation is Landsorganisationen (LO), and has approximately two
million members totaling more than one-fifth of Sweden's population. Finland's
equivalent, the Central Organization of Finnish Trade Unions (SAK), has about
one million members out of a total country population of 5.2 million.
20

France is thought to have one of the lowest union densities within Europe,
encompassing an estimated 10 percent of workers. Several unions can be
represented inside large companies or administrations, with one from each of the
main national confederation of unions. Union membership tends to be
concentrated in specific areas, including the public sector.

Australia’s labor movement has a long history of craft, trade, and industrial
unionism. As of 2005, however, union numbers have declined due in part to the
actions of Australian politicians and the effects of liberal governments, which
introduced the 1996 Workplace Relations Act.

Q . No. 05:

What is changing and why in the new workplace versus


old work place? Discuss with examples.

Ans: workplace should be defined as ”the environment (as place, tools, social
connections, physical well being) enabling work to be done”. This broader
definition, will lead workplace development to include the determination of:

· where work will be done (such as in an office, at home, in a plane or car,


in an office, or at a conference, all of the above, etc.),

· what processes (such as transaction processing, innovating,


communicating, learning, etc) will define the work to be done,

· how technology will enable those processes to be carried out (such as


data access, groupware, mobileware, etc.)

· what physical environment will support the work (such as office design
and layout, furniture, equipment, temperature, light, etc.)

· when and where people interact to exchange knowledge and information

Scientific management was expanded and adapted by its adherents from a


theory of productivity improvement to a philosophy holding that

1. workers then to be “lazy” when unsupervised and so require close


supervision at work;
2. asking workers to make conscious decisions about production work has
the potential to disrupt present machine routines; hence, decisions must
be made by those away from the line segment.
3. wages are the most powerful motivator of behaviour, and, as they rise,
people will work harder, hence, profits from productivity improvement
should be shared with workers as increased pay.

The eventual realization that few benefits of automation were flowing back to
assembly workers except in higher wage rates, and that workers were absorbing
the bulk of the psychological and physical punishment of monotonous work,
generated a discontent that unions expressed. But in recent decades changes in
the business environment, in technology, and in the expectations of employees
have compelled companies to begin moving away from the scientifically
engineered workplace.

Over time, scientific management proved both beneficial and costly. It as


beneficial in that it pushed firms to rigorously study their production process-
standardizing machines, jobs and product designs as they did so. As machines
and human labor were more fully integrated into a single whole, the tremendous
potential of mass production was revealed. Wages levels rose to unprecedented
levels, and the wealth of society greatly advanced. Scientific management became
costly, however, when it led to and deskilled, creating monotony and boredom
among those required to perform them. Further, with machines pacing factories
21

and most of the power and authority in the hands of management, there was little
opportunity for workers to relieve the stresses of production except on them
selves.

The eventual realization that few benefits of automation were flowing back
to assembly workers except in higher wage rates, and that workers were

Modern working practices and technologies are typically designed to shape the
nature of work and affect employees’ behavior. They include, for example, lean
manufacturing, advanced manufacturing technology, total quality management,
call centres, supply-chain partnering and knowledge management. Surveys show
that these practices are increasingly in unintended ways, have deleterious effects
on employees and not produce the hoped for improvements in employee and
organizational performance. Indeed, changing working practices often creates
problems for employees at all levels in the organization. It is therefore essential
that we understand the nature of modern working practices, the extent of their
use, and the effects that they have on employees and organizational performance
so that they can be more effectively designed and managed.

The aims of this topic are therefore to examine:


1. The nature and extent of modern working practices and technologies.
2. The impact of modern working practices on how people work and their
experience of
work.

2 THE ESSENTIALS OF THE NEW WORKPLACE

Modern working practice Definition


Learn manufacturing An integrated system of production with a single
production flow that is pulled by the customer. Emphasis on small batch
manufacture, just-in-time, team-based work and participation to eliminate non-
value-adding activities and variabilities
Total quality management A comprehensive, organisation-wide effort that is
an integrated and interfunctional means of improving the quality of products and
services and of sustaining competitive advantage
Advanced manufacturing The application of computer-based technology to
automate and technology integrate the different functions in the manufacturing
system
Supply-chain partnering Developing long-term, cooperative relationships with
suppliers and customers
Team work A collection of individuals who are interdependent in their tasks
and outcomes, who see themselves and are seen by others as
a distinct social entity within a larger social unit
Call centres A work environment in which the main business is mediated by
computer and telephone-based technologies that enable the efficient distribution
of calls (or allocation of outgoing calls) to available staff, and permits customer–
employee interaction to occur simultaneously with the use of display screen
equipment and the instant access to, and inputting of, information Knowledge
management The use of practices, particularly IT-based technologies and
community- and network-based practices, to centralize, collectivize and create
knowledge so that it can be exploited to increase organizational performance and
to develop new opportunities Employee involvement The use of practices to
increase employee control, participation and empowerment and involvement,
and the supply of personal and Organizational resources necessary to do the job
Tele working/Virtual working remotely from the home, remote offices or other
sites for all or most of the working week, and connected to the main organization
by telephone and computer technologies

3. The human resource management implications of such practices.

4. The effect that these practices have on productivity and organizational


performance. These aims are covered throughout the book.
22

THE CONCEPTUALISATION AND NATURE OF MODERN


WORKING PRACTICES
A working practice can be broadly defined as a set of technique- or
technologically-based tasks that directly shape the labour process.1 Technique-
based tasks involve the practical application of a particular method, procedure or
skill. Technologically-based tasks are those in which the practical application of a
particular method or skill involves using technological hardware such as
machinery or computers. According to this definition, working practices are likely
to differ in the extent to which they use technique- or technology-based tasks.”.
Similar degrees of conceptual variability are found in the concepts of advanced
manufacturing technology, lean manufacturing, supply-chain partnering, call
centers, team working and knowledge management. In parallel with this
conceptual variability, there is also a degree of variation in the actual form of a
working practice. There are a number of reasons for this heterogeneity. First,
working practices are used to achieve multiple aims, and different aspects of a
practice may be emphasized in order to achieve those aims. Second, working
practices rarely occur on their own as independent entities. Even “remote”
practices such as tele work may be part of a supply-chain initiative or involve
team working, albeit virtually.
Third, a modern working practice is always embedded within a broader social
system and is best considered as a socio-technical system. As a consequence, the
nature of a working practice—and its effects—will be affected by the social system
of which it is part. Significant aspects of the social system,

CHANGE AND CONTINUITY IN THE WORKPLACE

Most of us are now fairly well versed in the changes occurring in the
economic, political and social landscape. These include: the internationalization
of the economy; a reduction in trade barriers between countries; the deregulation
of markets; privatization and the ending of state monopolies; increasing demands
for greater accountability and efficiency in the public sector; and changing
consumer demand (e.g. a desire for more customized products or better quality.
The changes have intensified competition and achieving a competitive advantage
will depend on the simultaneous pursuit of cost minimization, quality, innovation
and customization. Similar demands for cost efficiencies, quality and customized
services are evident in the public and not-for-profit sectors (e.g., in universities;.
In addition, the creation, ownership and management of knowledge-based assets
is increasingly recognized as a basis for competition for the implications of
knowledge management for organizational learning processes, the co-ordination
of distributed cognition and top team behavior). Organizational change is
undoubtedly taking place in response to these general economic and societal
changes and in the expectation of such changes (Sparrow & Cooper,
2003).

2 There appears to be fairly widespread use (in some 40–60% of


organizations) of TQM, team work and supply-chain partnering, particularly in
UK manufacturing companies, while the service sector has witnessed a rise in the
use of team work, TQM and information technology since the 1990s. Advanced
manufacturing technology is reported as being used, at least to a moderate
extent, by some 40% of all manufacturing organizations and lean manufacturing
appears to be fairly widespread in the automotive industry but less extensively
used in other parts of the manufacturing sector. There is also evidence of
initiatives that empower employees occurring in about one quarter of UK,
Japanese, Australian and Swiss manufacturing do question the extent to which
firms strongly embrace such initiatives and show that involvement initiatives
declined in the US in the mid-1990s.
This old workplace is being replaced by a “new workplace”
characterized by the co-occurrence of four factors: flexible modern
working practices; high-involvement human resource practices; a managerial
orientation that views these two sets of practices as integrated and
complementary; and an employee orientation that is flexible and pro-active.
23

1). This implies that “the new workplace” can be defined as comprising an
“historical new”, i.e., the presence of new working practices, types of HR practices
or bundles of practice, and an “experiential new”, i.e., the presence of
qualitatively different managerial and employee orientations and experiences of
self and work. However, we must exercise some caution when applying these
categories to the real world. First, a substantial proportion of organizations have
not adopted many modern working practices, nor are modern working practices
necessarily accompanied by high-involvement HRM. Second, “old workplace”
ideas are still influencing how “modern” working practices are designed and
managed, as is illustrated by the influence of Taylorism in some call centers and
other service organizations.

2 Two caveats on this are that much of the available data comes from the US
and the UK, and that not all changes are in the direction of new working
practices, as some firms may be introducing practices for the first time or
reformatting those associated with Taylorism.

6 THE ESSENTIALS OF THE NEW WORKPLACE

Not always accompanied by flexible, pro-active employee orientations and


fundamentally different experiences of self and work. At this stage of knowledge
it is safest to assume that throughout the economy there will be considerable
variation across organizations. Combining our historical and experiential
categories, there are logically four possible types of
Workplace:

1. The “new/new” workplace in which modern working practices are associated


with a qualitatively different experience of work. For example, workplaces with a
combination of TQM and employee involvement initiatives that are accompanied
by qualitatively different employee orientations to work, customers and their
lives.

2. The “new/old” workplace in which modern working practices are


associated with a quantitative change in how jobs are designed but employees’
experiences of work are not radically or qualitatively different as a consequence.
For example, an organization implements TQM and it results in employees
experiencing less control and more stress. However, the introduction of TQM
does not alter their sense of self or orientation to work, and thus the change has
been one of degree, not type.

3. The “old/new” workplace in which traditional working practices are


associated with qualitatively new experiences of work, for example when young
employees have been socialized in a different economic climate and have
radically different work expectations from those normally associated with the
traditional practices prevalent in their place of work.

4. The “old” workplace in which traditional working practices are associated


with a relatively unchanged experience of work. We do not have the knowledge to
identify the relative prevalence of these different types of workplace. For
example, we do not know enough about the exact co-occurrence of modern
working practices, HRM practices, managerial orientations and employee
experiences. We know even less about the effects of such practices on how people
experience or approach their work.

3 It is probable that all four types of workplaces will exist, but we might also
speculate that it is likely that a sizeable proportion of contemporary workplaces
will be a mixture of “old” and “new” and employees’ experiences will mirror this.
Just as there are questions about the extent and nature of workplace change,
questions are also being asked about whether the effects of change are as
beneficial as many imply. Modern working practices and high involvement
human resource practices are often portrayed as leading to a win–win situation
for the employee and the organization. But, while there is research that
demonstrates that the introduction of modern working practices can lead to more
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interesting work, more skilled work and lower levels of employee stress, there are
also studies that show that the introduction of modern working practices can
intensify work, de-skill employees and reduce well-being

3. This lack of understanding of the employees’ experience partly reflects the


fact that the measures typically used to assess employee experience, such as job
satisfaction and job control, are not designed to assess qualitative shifts in
experience, and because factors tend to be examined independently, making it
harder to ascertain global aggregate changes in individual experience. Qualitative
shifts in the experience of work might be discerned more readily if other factors,
such as identity or the psychological contract, were assessed, or if individual
change was examined in a more aggregated manner

JOB AND WORK DESIGN THEORY

Historically, the main focus of job design research has been on the
psychological consequences of work simplification brought about through the
pervasive adoption of Taylorist and Fordist approaches to work organization.
Two approaches, job characteristics and socio technical theories, have been
particularly influential. In particular, autonomy affects experienced
responsibility, feedback affects knowledge of results, and skill variety, task
identity and task significance affect the experienced meaningfulness of work.
Collectively, these critical psychological states affect the level of work satisfaction,
internal work motivation, performance, absence and labour turnover. Research
has generally demonstrated that the core job characteristics all predict affective
outcomes such as satisfaction and motivation, but evidence for their affects on
employee behaviour, performance, turnover and absence, is less consistent. The
motivating potential of job design has been a central issue within this research
tradition as it also has been within debates on modern working practices and
high-commitment human resource practices. control-demands model is another
job characteristic approach that has been influential. It predicts that “high-strain
jobs” are those characterized by high work demands and low control.

HUMAN RESOURCE MANAGEMENT AND ORGANISATIONAL


PERFORMANCE
Key concepts in human resource management (HRM) theory are fit and synergy.
Three types of fit can be identified:

1. The internal fit between human resource management practices.

2. The organizational fit between HRM systems—coherent sets of HRM practices


—and other systems within the organization.

3. The strategic fit between HRM systems and organizational strategy. The
discussion of internal fit centers on the idea that some HRM practices combine
better than others, and that coherent bundles of practice will have synergistic
effects. A corollary of this is that any difference in organizational performance
between organizations will be partly explained by the differential usage of
bundles of practice. Two main bundles of HRM practice are normally identified,
at least as ideal types, that correspond to the high-involvement (or high-
commitment) approach and low-involvement approach The rationale of the high-
involvement approach is that a particular bundle of HRM practices is needed to
recruit, develop and maintain a workforce with the high-level technical, cognitive
and interpersonal skills that are assumed to be necessary if organizations are to
deal with rapidly changing demands, to provide a high quality service or product,
and, crucially, to realize the full potential of complex modern working practices .

SOCIAL AND POLITICAL PROCESSES IN THE DESIGN AND


MANAGEMENT OF MODERN WORKING PRACTICES

A basic assumption of this book is that job design and human resource
management are fundamental to an understanding of modern working practices.
However, much job design and HRM literature neglects the issue of why a
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particular practice takes its current form. Neither does it have much to say on the
active role that employees play in shaping practices.
In contrast, interpretive research has illuminated how the political and social
assumptions of those involved in the design and introduction of new technology
become embedded within the technology, in the form of prescriptive design
rationales that prescribe a particular view of how work is undertaken. The
configuration of a technology and the social practices that surround them can be
seen, at any one point in time.

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