Employment Relations

 'Employee relations' is conceived as a replacement for the term 'industrial relations'.

 Historically the term was interpreted to refer to how collective relationships are
conducted between employers and their workforce, today’s interpretation is much
wider and refers to individual as well as collective relationships in the workplace.
 This reflects the increasing individualisation of the employment relationship at work
following the rise of individual workplace rights and the decline in trade union reach
and influence.
 Employee relations is a study of the rules, regulations and agreements by which
employees are managed both as individuals and as a collective group, the priority
given to the individual as opposed to the collective relationship varying from
company to company depending upon the values of management. As such it is
concerned with how to gain people’s commitment to the achievement of an
organisation’s business goals and objectives in a number of different situations.

The Employment Relationship

 This is an exchange relationship in the sense that the parties exchange or trade
specific tangible and intangible elements.
 With regards to the tangibles, the employee offers his/her labour (from a hard point of
view) which includes his/her skills, knowledge, abilities and experience among other
things in return for a salary/ wage and the associated benefits.
 At the level of the intangibles, the employee offers their commitment, loyalty,
subordination (from a soft point of view) with the expectation that the employer will
offer job security (or in its absence, employability security), recognition, job
satisfaction, opportunities for career advancement etc.
 This relationship may also be understood as the bedrock of conflicts because of the
divergence of interests between the parties to it.
 It is generally argued that the employer is much concerned with issues of controlling
the relationship, whilst the employee is concerned with care, which, at a
psychological level become the hub of industrial conflicts.

No employment relationship occurs in a vacuum and it is important to realise that there is a

range of contexts within which it occurs and which, to varying degrees, impinge upon the
relationship. One of these is the legal context, and at the level of the individual there is a
legally enforceable contract between employee and employer.
Employment Contract
 It is a legal relationship which creates rights that are enforceable at law
 A contract of employment begins when one party (the employee) offers to render their
services of a defined nature in return for a fixed, or ascertainable form of
remuneration, and the other party (employer) offers to remunerate for services
rendered.
 Contract may or may not be written
 Breach of contract can lead to unfair labour practice or unfair dismissal
 Express Agreement – are terms which are spelled out
 Implied will result from what is understood to have been the intention of the parties.
This could be from the fact that it’s so obvious that it need not be stated

Psychological Contract
 Schein (1988) is largely responsible for this notion of a psychological contract and his
suggestion was that between employer and employee there exists an implicit
contractual relationship which is derived from a series of assumptions on the part of
employer and employee about the nature of their relationship.
 These assumptions may not be legally enforceable but they constitute a set of
reciprocal arrangements and form the basis for a series of expectations that may have
a considerable degree of moral force.
 The main assumptions are that:
(a) Employees will be treated fairly and honestly;
(b) The relationship will be characterised by a concern for equity and justice and this
will require the communication of sufficient information about changes and
developments;
(c) Employee loyalty to the employer will be reciprocated with a degree of
employment and job security; and
(d) Employees’ input will be recognised and valued by the employer.

 The PC is “the understanding people have regarding the commitments made between
themselves and their organisation.”
  It therefore, is concerned with each party’s perception of what the other party to the
employment relationship owes them over and above that which may be specified in
the contract of employment.
Indicators of Poor Employee Relations Climate

o Disputes and strikes

o Low staff morale
o Loss of profits for employers
o Employee Grievances
o Labour Turnover

Players in Employee Relations

Management
 Harbison and Myers (1959) give a general definition of management -
(i) Management as a technical resource - which refers to management as those
having the functional expertise in the enterprise.
(ii) Management as a system of government, of authority - by which policy is
translated into effective action.
(iii) Management as an elite group - exercising power in society via family,
educational, political or professional links.
 Employers will often act as a collective through employer organizations such as
EMCOZ, CZI, Chamber of Mines Etc

Trade Unions
 Salamon (1998) define it as “any organisation whose membership consists of
employees which seeks to organize and represent their interests both in the workplace
and society and in particular, seeks to regulate the direct process of Collective
Bargaining with management”
 The legal definition of trade unions (according to The Act) “any association or
organization formed to represent or advance the interests of any employees or class
thereof in respect of their employment…”
Types of Unions
(a) Industrial Unions: members work in the same industry e.g. ZIBAWU, GAPWUZ,
ZEWU, ZIMBABWE DOMESTIC & ALLIED WORKERS UNION
(b) Craft Unions: members belong to a particular trade and have served an
apprenticeship. Alos called occupation union. e.g Zimta, Zimbabwe Nurses’
Association, Ptuz, Zimbabwe Union Of Journalists
(c) General Union - is a trade union which represents workers from all industries and
companies, rather than just one organisation or a particular sector, as in a craft union or
industrial union

Why Employees Join Unions

 To increase their bargaining power
 Minimize favouritism and discrimination
 Representation in labour disputes
 Closed shop arrangements
 Social factors, i.e., peer pressure, feeling of belongingness etc.,
 Cultural factors – legacy/history.
 According to Swanepoel et al (2004), the following are the factors that lead
employees into joining trade unions: -
1. Perceived lack of job security,
2. Management’s lack of respect for employees
 Anger at the employer

The State in Industrial Relations

 Limited to protecting the bargaining process.

Legal Function

 Professor Kahn-Freud has identified three legal functions which the State performs in
industrial relations (Otto Kahn Freud’s Labour and the Law 1972). First, the
"regulatory function" in which it provides rules that govern the terms and conditions
of employment of individual employees, whether or not they are union members.
 Second, the "restrictive function" in which it provides rules that governs the conduct
of industrial conflict, ie restricting the lawful ambit of industrial action.
 Third, the "auxiliary function" in which it provides rules that govern the
encouragement and extension of collective bargaining institutions. In reality there is a
great overlap between these functions, but as tools of analysis they are quite useful.

The State in the General Management of the Economy

  No analysis of the State's involvement in industrial relations will be complete without
an examination of the State versus the general management of the economy. The
extent to which the State gets involved in the general management of the economy
depends on the political economic philosophy of the Statue

Employee Participation & Involvement

 Participation has been defined as “a process which allows employees to exert some
influence over their work and the conditions under which they work”
 a process in which influence on decision making is shared between hierarchical
superiors and their subordinates”
 Concept used to describe a set of practices aimed at improving the quality of life of
employees in an organization
 Aims at increasing input of members in decision making that affect production
Four key elements affecting employee involvement

• Power - empower employees to make work related decisions

• Information - employees to have enough information to make meaningful decisions

• Knowledge and skills - organisation to provide training and development to improve

skills

• Rewards - to motivate; provide feelings of self-worthy and accomplishment

(Performance bonuses)

Benefits of EPI

• Improved communication

• Improved productivity

• Improved capabilities

• Improved coordination among departments

- Employees well-being and satisfaction

- Improved productivity

- Improved employee motivation

Strategies for EPI

a) Information sharing
- Its role as form of employee involvement is debatable. After all, merely being told
about an organisation’s plans or its financial results does not in any way give
employees influence.
- Two-way communication, by contrast, especially when it takes the form of a formal
exercise, clearly falls into the category of employee involvement. Staff are being
asked to respond to a suggested new approach, asked their opinion, being invited to
make suggestions for improvements or given an opportunity to point out flaws in
current systems or management thinking.
- The extent to which the disclosure of information by managers
b) Team briefing
 Team briefing is an initiative that attempts to do a number of different things
simultaneously.
 It provides authoritative information at regular intervals, so that people know what is
going on, the information is geared to achievement of production targets and other
features of organisational objectives, it is delivered face to face to provide scope for
questions and clarification,
c) Quality circles
 Originating in Japanese firms, quality circles comprise small groups of employees
(10–15 maximum) who meet regularly to generate ideas aimed at improving the
quality of products and services and of organisational productivity. They can also be
used as problem-solving groups and as a means by which employee opinion is
transmitted to senior management.
d) News sheets
 Another common form of employee involvement occurs through the regular
publication of in-house journals or news sheets either in paper or electronic form. On
one level they simply provide a means by which information concerning finances,
policy and proposed change can be transmitted by managers to employees.
e) Employee Opinion surveys
 Regular surveys of employee opinion are very useful from a management point of
view, particularly where there are no unions present to convey to management an
honest picture of morale and commitment in the organisation.
 f) Suggestion schemes
- A common system of formal bottom-up communication employed by organisations
involves encouraging staff to make suggestions as to how practices and processes
could be improved to make them more effective, efficient or safe
Employee financial participation

 Financial participation includes profit-sharing, and employee share ownership,

Profit-sharing

 Profit-sharing is the simplest form of financial participation. This can be understood

as a collective regulation that, in addition to the stipulated wage, provides a variable
income component dependent on enterprise profits.

Employee share ownership

 Employee share ownership In European countries is strongly determined in detail by

the relevant company and tax law. Basically, forms of both individual and collective
participation can be found which are related to the company in which the employee is
employed or also to other company shares.

Examples in Zimbabwe

- Old Mutual Zimbabwe Limited, gave 9% shareholding to its workers and 10% to
policy holders in a deal that was preceded with attrition between the company and
government.
- Schweppes, BAT

Joint Management Councils:

- Joint committees for settlement of grievances or specific problems may be set up for
promoting workers’ participation in management. Workers representatives sit with the
management across the table to discuss matters which fall within its purview. Hearing
and Job Evaluation, Safety

The Legal Duty to Consult

 - In most countries it has long been the case that employers must consult formally with
representatives of their workforce about significant matters which affect employment
prospects and practices.
- A legal requirement to consult at certain times has thus become a part of employment
regulation and has accordingly found its way into Zimbabwean employment law
Workers Committees

 Defined as essentially a committee formed and elected by workers to represent

themselves in negotiations/discussions with management

 It can also be defined as a formal structure of employee representation in an

organization

 To represent employees concerned in any matter affecting their rights and interests

 Negotiate with the employer a Collective Bargaining Agreement (CBA)

 Recommend a collective job action for the employees concerned (that is provided the
required dispute procedure has been followed- as laid down in S8 of SI 217/2003,
Settlement of Dispute Regulations, also S104 of the Act)

Works Council

 This is a joint body made up of an equal number of representatives of the Workers

Committee and of Management

 Introduced as S25A the Labor Act in 2003, providing for the establishment of Works
Councils in establishments where there is a workers committee representing
employees (other than a managerial workers committee)

 A Works Council is entitled to be consulted by the employer about proposals relating

to any of the following matters:

a) The restructuring of the workplace caused by the introduction of new technology &
work methods ;

b) Product development plans , job grading & training & education schemes affecting
employees;

c) Partial/ total plant closures & mergers and transfers of ownership;

 d) the implementation of an employment code of conduct ;

e) the criteria for merit increases or payment of discretionary bonuses

f) the retrenchment of employees , whether voluntary or compulsory

Collective Bargaining

 Rycroft and Jordaan define Collective Bargaining as a voluntary process for

reconciling the conflicting interests and aspirations of management and labour though
the joint regulation of terms and conditions of employment.
 The Labour Act [Chapter 28:01] provides the right to collective bargaining. See
Section 74 (2) and 24 (1) (b) of the Act
 At workplace level collective bargaining is by workers and management whereas at
the industrial level it will be between employers organizations and employees.
 The Bargaining Agenda: Wages, Hours of Work, Grievance Procedures, Leave days
and vacations, Union Membership, Job Security – security, evaluation, promotion, lay
offs etc, Deductions, Occupational safety

National Employment Councils (NECs)

NECsare representative bodies of employer and employee organizations. E.g The

NEC for the Medical and Allied Industry is a voluntary organization, having been
formed by the Medical Professions and Allied Workers Union of Zimbabwe
(MPAWUZ) and the Medical and Allied Employers Association (MAEAZ).

The Organs

1. The Council – A national structure composed of Councillors who meet once a

year at an Annual General Meeting. The council is the supreme policy and
decision-making organ.

2. Executive Committee – A national structure whose role is to implement Council

policies and receives monthly reports from NEC management.

3. Negotiating Committee – A national structure appointed by the Council to

conclude or amend the Collective Bargaining Agreement on behalf of the
Council. It deals with appeals from the Local Joint Committee.

4. Local Joint Committees – Regional structures appointed by the Council in any

area within its jurisdiction. They consist of equal number of representatives from
the employers’ organization and the trade union. One DA in each region is
responsible for conciliating disputes between employers.
Under Zimbabwean law, the industry agreement made by NEC is binding on all employers
and employees in the industry, whether or not they are members.

Conflict at Work

 Conflict exists in every organization and to a certain extent indicates a healthy

exchange of ideas and creativity.

 However, counter-productive conflict can result in:

(1) Employee dissatisfaction,

(2) Reduced productivity,

(3) Poor service to clients,

(4) Absenteeism and increased employee turnover,

(5) Increased work-related stress or,

(6) Worst case scenario is litigation based on claims of harassment or a hostile work
environment.

The easiest way to understand the term “conflict” is to divide theories of conflict into
functional, situational and interactive.
(a) The functional approach think that a conflict serves a social function “Why is there
conflict? What purpose does it serve?”
Situational, suggest that conflict is an expression under certain situations When do we have
conflict? Under what circumstances does it occur?”
The interactive. “how is there conflict? what methods and mechanisms are used
to express it?
Views on Conflict
Traditional View
 One school of thought says that conflict must be avoided as it reflects malefaction
within the group. Conflict is viewed negatively and is associated with violence and
 destruction. Conflict is a result of poor communication and a lack of trust between
people. Conflict can be eliminated or resolved only at high level of management.
 According to this view, all conflicts should be avoided. Thus, there is need to pay
attention to causes of conflict and correct them in order to improve group and
organization performance
 Most conflicts have negative connotations, invoke negative feelings and often lead to
destruction. Whether the effect of conflict is good or bad depends on the strategies
used to deal with it
The Human Relations or Contemporary View
 Conflict is a natural occurrence in all groups. The human relations school accepts
conflict. It believes that conflict may benefit a group’s performance
 Dispute happens from time to time and it is not wise to put too much effort into
avoiding or preventing the conflict. Concentrating only on large or critical conflicts
allows people to resolve the conflict in a better and more effective way (Leung, 2010).
 According to this view, conflict is seen as a natural and inevitable outcome of people
working together in groups and teams.

The Interactionist View:

 According to this view, conflict is not only a positive force, but is also necessary for
an individual to perform effectively.
 Resolving conflicts means challenging normal processes and procedures in an effort
to improve individual productivity or introduce innovative systems. Conflict is
necessary to perform effectively, but not all conflicts are good.

Forms/Classification of Conflict
Based on the Interactionist View different scholars have tried to classify conflict into various
forms:-.
a) Relationship Conflict:
 This exists when there are interpersonal incompatibilities among group members,
including personality clashes, tension, animosity and annoyance
 This type of conflict produces negative individual emotions, such as anxiety, mistrust,
or resentment
b) Task Conflicts:
  These are disagreements about the content of a task and work goals, such as
distribution of resources, procedures , and interpretation of facts
 Task conflicts include differences in viewpoints, ideas and opinions, and may
coincide with animated discussions and personal excitement.
c) Process Conflicts:
- This refers to disagreement about how a task should be accomplished, individuals’
responsibilities and when group members disagree about whose responsibility it is to
complete a specific duty
Causes/Sources of Workplace Conflict

1. Scarcity of Resources
- In many work situations, we have to share resources. The scarcer the resource in the
organization, the greater the chance for a conflict situation. Resource scarcity leads to
a conflict because each person that needs the same resources necessarily undermines
others who pursue their own goals. Limited resources may include money, supplies,
people or information.
2. Goal Differences
- Very often, the possibility of conflict increases substantially when departments in the
organization have different or incompatible goals.
3. Interdependence
- Sometimes one employee must depend on another to complete a task. When workers
are in an interdependent situation, it is easy to blame a co-worker when something
goes wrong
4. Goal differences
- Normally groups or departments in the organization have different and incompatible
goals, increasing the chances of employees experiencing conflict
5. Jurisdictional ambiguities
- Jurisdictional ambiguities occur when the lines of responsibility in an organization or
school are uncertain.
- When it is unclear who does what, employees have a tendency to pass unwanted tasks
onto the next employee
6. Poor Communication
- A common cause of conflict is poor communication, which can lead to
misunderstandings and allow barriers to be erected. Probably the easiest way to
 prevent conflict is to ensure good communication. However, both too little and too
much communication can lead to conflict.
7. Management /Leadership style
8. Interpretation of CBA or conditions of service
9. Unfair treatment and workplace bullying
10. Poor work environment/Conditions

Managing conflict

1. Accommodating

- The accommodating style is unassertive and cooperative. The goal of this stance is to
yield. Typically a person using this conflict mode neglects his or her needs to satisfy
the concerns of the other person. There is an element of self-sacrifice and this stance
is concerned with preserving the relationship versus attaining goals. The mode is also
known as an appeasement or smoothing style and is the opposite of competing

2. Competing

- The Competing style is a power-oriented mode that is high in assertiveness and low in
cooperativeness. The goal of this stance is to win. In this mode the individual aims to
pursue one's agenda at another's expense. This may mean standing up for one's needs,
defending a cherished position and/or simply trying to win. The goal is deemed very
important. This style is also referred to as a forcing or dominant style.

3. Avoiding

- The avoiding style is both unassertive and uncooperative. The goal of this stance is to
delay. In this mode an individual does not immediately pursue his or her concerns or
those of another. There is indifference to the outcome to the issue and the relationship
and the person withdraws or postpones dealing with the conflict. This style can
provide a needed respite from the situation or it can inflame things if the issue keeps
being pushed aside. This mode is also known as flight.
4. Collaborate

- The collaborating style is both assertive and cooperative. The goal of this stance is to
find a win-win situation. Typically this mode is concerned with finding creative
solutions to issues that satisfy both individual's concerns. Learning, listening and
attending to both the organizational and personal issues are addressed with this
conflict style. It takes time and effort. This mode is also known as a problem solving
or integrative style and it is the opposite of avoiding

5. Compromise

- The compromising style lands one right in the middle of being assertive and
cooperative. The goal of this stance is to find a quick middle ground. Parties find an
expedient, mutually acceptable solution by having each person give up something and
split the difference. This mode is also known as sharing

6. Withdrawing (Avoiding)
7. Conciliation
8. Arbitration
9. Litigation – disputes of rights