Chapter 15:

The Role of
Communications
in Labor-
Management
Relations
Good and Effective Communication
Communication is the lifeblood of every relationship. A lack of healthy
communication causes marriages to fail, creates distance between
parents and children and can destroy the culture of any organization.
An effective communication is an indispensable management tool. For
any organization to function maximally, there must be communication
because management and subordinates must interact for the organization
to move forward.
Communication is transfer of ideas from the sender to the receiver.
Communication serves two key functions for management. It provides a
vehicle by which one can implement a plan of action coordinated towards
a common goal and a means by which members of an organization can be
motivated to execute the plans willingly and enthusiastically.

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 The Ten Commandments
for Good Communication
I. Thou shalt listen first.
II. Thou shalt show empathy.
III. Thou shalt focus on the positive.
IV. Thou shalt be sincere.
V. Thou shalt be specific.
VI. Thou shalt be respectful.
VII. Thou shalt pause.
VIII.Thou shalt be transparent.
IX. Thou shalt know when to yield.
X. Thou shalt be consistent.

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 1. Less Misunderstanding 1. Increases Self-esteem
2. Healthy Workplace 2. Clear Direction
Culture 3. Stronger Teamwork
3. Non-threatening 4. Higher Employee job
Environment satisfaction
4. Solve Conflicts Easily 5. Business Success
5. Team Spirit

Signs of Successful Communication

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Employee Communication Media
There are multiple channels that can be used for employee communication, the
following are the most common one;
1. Traditional Method
– Involves formal communication channel such as
papers, memos, policies and procedures, reports etc.

2. Emails

3. Cell phones and social media

–an informal communication channel through text, call,
messenger, viber, hangout.

4. Meetings

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 The following are other communication channel that can be useful in
an organization;
1. Intranet Software - it is a private network that companies use for
communication, task delegation, and analytics within their workforce. 
2. Internal Blog, Employee newsletters, & Infographics - a
versatile internal communication channel and come from leaders as well as employees and
departments.
3. Project management tools - tools include charts and graphs designed to
track progress, repetition-based approaches to testing and adjusting everyday processes,
and other actions that allow organizations to manage and improve important projects.

Other Communication Channels

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 The Grapevine
 is a random, unofficial means of informal
communication that spreads through an
organization with access to individual
interpretation as gossip, rumors, and single-
strand messages. Grapevine communication is
quick and usually more direct than formal
communication. 

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1. Single Strand Chain
The single strand chain involves the passing of Patterns
information through a line of persons to the
ultimate recipient
or
Types
of
Grapevine

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2. Gossip Chain 

Patterns
or
Types
of
Grapevine
In the gossip chain, one person seeks and tells the
information to everyone. This chain is just like the wheel
where one person stays at the center and the information
passes along the spokes of the wheel to others stationed
on the rim.
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3. Probability Chain
The probability chain is a random process in which
someone transmits the information to others in
accordance with the laws of probability and then these
others tell still others in a similar way. This chain may
Patterns
also be called random process.
or
Types
of
Grapevine

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4. Cluster Chain

Patterns
or
Types
of
a person tells the information to the selected trust worthy
Grapevine
persons who may in turn relay (pass) the information to other
selected trust worthy persons. Later on some of those selected
individuals pass the same information to other selected
individuals and the process continues in the same way.
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The Suggestion System
 A formalized mechanism which encourages employees to contribute
constructive ideas for improving the organization in which they work.
 is a method by which the ideas and suggestions of the employees are
communicated upward through the management hierarchy.
 The overall aim is to gather, analyze and implement ideas in order to
create results that have a positive impact on the business and/or deliver
new value to customers.

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 Benefits of a  Improves one’s own work and the
Suggestion working environment

System  Engages and empowers employees

 Creates ownership and trust
 Builds teamwork
 Enhances communication between
employees and management

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 Typical Suggestion Flow

Participant writes idea on

form

Submit form to Suggestion

Participant submits form
Committee for evaluation
to Department
feedback and
Representative
implementation

Department Representative
submits form to
Section/Department head
for comments & Approval
Approach to Communicating Benefits
The following are some of the best options for communicating employee benefits to your
workforce.

Email, text and voice mailing message

through Pay Slips
Social Media
Use Video
Work Place Notice Boards

Communicating Employee Benefits

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 Company Policy and Procedures
are basically set in place to establish the rules
Communicating of conduct within an organization, outlining the
Company Policy responsibilities of both employees and
employers.
aim to protect the rights of workers as well as
the business interests of employers. Depending
on the needs of the organization, various
policies and procedures establish rules
regarding employee conduct, attendance, dress
code, privacy and other areas related to the
terms and conditions of employment.
Communicating Company Policy
the following are some of the recommendations on how to communicate policies and
procedures 

Inform employees up-front

Ask for feedback
Introduce final product
Ask employees to review employee handbook or policy manual
Provide training where required
Request employee sign-off

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Promotion
 refers to advancing an employee's rank or position in a
hierarchical structure. 
Types of Employee Promotion
1. Horizontal Promotion
2. Vertical Promotion
3. Dry Promotion
4. Open and Closed Promotion

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Transfer
 is the process of horizontal movement of an employee, wherein there is a
change in the job, without any changes or revision in the remuneration,
pay, and modification of responsibilities. It is a form of internal mobility, in
which the employee is shifted from one job to another usually at a different
location, department, or unit.
Types of Employee Transfer
• Production Transfer
• Replacement Transfer
• Versatility Transfer
• Shift Transfer
• Remedial Transfer

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 Demotion
 A demotion is a compulsory reduction in an employee's rank or job title
within the organizational hierarchy of a company, public service
department, or other body, unless there is no reduction in pay
Demotions are most common in the context of:
1) poor performance
2) Misconduct
3) restructuring and redundancies.

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 Layoffs
 refers to a temporary or permanent termination of work contract by an
employee because of reasons relating to the business. A company may
suspend just one worker or a group of workers at the same time.
Reasons of Layoffs
1. Cost reduction
2. Staffing redundancies
3. Relocation
4. Merger or buyout

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 Thank you
Michelle T. Ogerio
MBA604 Industrial Relation Management

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