Human Resources
Management
Prof R K Singh
AIMA
Centre for Management Education
Prof R K Singh/AIMA CME
1
eHR 01: Collective Bargaining
Collective Bargaining is a procedure
by which the terms and conditions of
workers are regulated by agreements
between their bargaining
representatives and employers.
Collective Bargaining may take place
at the national, industry or enterprise
level.
Prof R K Singh/AIMA CME
2
eHR 01: Collective Bargaining
Characteristics/Features :
1. Collective :
It is collective in two ways. One is
that all workers collectively bargain
for their common interests and
benefits.
The other is that workers and
management jointly arrive at an
amicable solution through
negotiations.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
2.Equal Strength :
Both parties bargain across the table
from a position of equal strength. It
is industrial democracy at work.
3.Flexible :
Collective Bargaining requires
flexibility by both the parties as it’s a
give & take process.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
4.Voluntary :
Both workers and management come
to the negotiating table voluntarily in
order to have a meaningful dialogue
on various troubling issues.
5.Continuous :
It’s a continuous process which
includes implementation of the
agreement and also further
negotiations.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
6.Dynamic :
It’s a dynamic process because the
way agreements are arrived at, the
way they are implemented, the
mental make-up of parties involved
keeps changing. As a result, the
concept itself changes, grows and
expands over time.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
7.Power Relationship :
In the process of collective bargaining,
management tries to retain its
control on workplace matters and
unions attempt to strengthen their
hold over workers without serious
dilution of their powers.
8.Bipartite Process :
The employers and the employees
negotiate the issues directly without
involving any third party.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
9. Representation :
The employer/Management of the
organization negotiates with
representatives of employees’
union/s who are authorized to
bargain with employers on workrelated matters.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
Objectives of Collective Bargaining :
1. To settle disputes/conflicts relating to
wages and working conditions.
2. To protect the interests of workers
through collective action.
3. To resolve the differences between
workers and management through
voluntary negotiations and arrive at a
consensus.
4. To avoid third party intervention in matters
relating to employment.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
Context & Coverage of Collective
Bargaining Agreements :
1. Wages and Working Conditions
2. Work Norms
3. Incentive Payments
4. Job Security
5. Changes in Technology
6. Work Tools, Techniques and
Practices
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
7.
8.
9.
10.
11.
12.
13.
14.
Staff Transfers and Promotions
Grievances
Disciplinary Matters
Health and Safety
Insurance and Benefits
Union Recognition
Union Activities/Responsibilities
Management Rights
Prof R K Singh/AIMA CME
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Types of Bargaining:
1. Conjunctive/Distributive Bargaining:
The parties try to maximize their respective
gains.
2. Co-operative Bargaining:
Realization of surviving in difficult times by both
parties.
3. Productivity Bargaining
Workers’ wages and benefits are linked to
productivity.
4. Composite Bargaining:
Bargains for wages goes one step further
demanding equity in matters relating to work
norms, employment levels, manning standards,
environmental hazards, sub-contracting clauses,
etc.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
Stages of Collective Bargaining:
1. Negotiation, and
2. Implementation
Steps involved are:
1. Identification of the problem
2. Preparing for negotiations
3. Negotiation of agreement
4. Implementation of contract
Prof R K Singh/AIMA CME
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Pre-requisites of Successful
Collective Bargaining:
1. Unanimity Among Workers :
Before entering into negotiations, there must
be unanimity among workers. At least the
representatives of workers should be able
to present the opinion or demands of
majority of workers or else, the
management can take advantage of diverse
demands of the workers.
2. Equal Strength Of Both The Parties :
Should always be a ‘give and take’ process
and should not be a ‘you give & we take’ or
‘you bargain and we collect’ process.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
3. Positive Attitude : Both parties should
have mutual trust, confidence and respect
for each other and also show willingness to
settle matters through negotiations.
4. Representative Authority:
The representatives of both parties should
fully understand and be clear about the
problems and their implications. They
should be given the required authority in
the process of negotiation like altering
minor terms and conditions, if necessary.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
Recommendations of National
Commission on Labour (1969):
1.Government intervention in industrial
relations, particularly in the
settlement of industrial disputes,
should be reduced gradually to the
minimum possible extent.
Compulsory adjudication of disputes
should be used only as last resort.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
2. Trade unions should be strengthened both
organizationally and financially by
amending the Trade Union Act of 1926
-Make Registration of Unions Compulsory,
-Enhance the Union Membership Fee,
-Reduce the Presence of Outsiders in the
Union Executive and Among the Officebearers and
-Increase the Minimum Number of Members
in Respect of the Union Applying for
Registration.
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
3. Legal Provision may be made either by a
separate legislation or by amending an
existing enactment for :
-Compulsory recognition of trade unions
and certification of unions as bargaining
agents
-Prohibition and penalization of unfair
labour practices
-Bargaining in good faith by both
employers and unions
-Conferring legal validity and legitimacy on
collective agreements
(e.g. Maharashtra Recognition of Trade
Prof R K Singh/AIMA CME
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Unions & Prevention of Unfair Labour Practices Act, 1972)
eHR 01: Collective Bargaining
4. Intensification of worker’s education for
building up internal union leadership and
making workers more knowledgeable and
conscious about their rights and
obligations.
This may help to de-politicize unions and
also reduce union rivalry.
5. The idea of one union for one plant or one
industry should be popularized and made a
reality
Prof R K Singh/AIMA CME
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eHR 01: Collective Bargaining
6. The Government should declare its policy
to allow and encourage the parties to settle
their conflicts and disputes through
bipartite consultation and negotiation
consistent with public safety and interest
of the society in general.
Implementation of these recommendations
may further help the promotion of
collective bargaining process in the
country.
Prof R K Singh/AIMA CME
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Collective Bargaining in India : PreIndependence
Trade Unions occupied the centre stage after 1900
In 1918, Gandhiji, as the leader of the Ahmedabad
Textile Workers’ advocated the resolution of conflict
through collective bargaining agreements.
After Second World War, the legal steps taken by the
government revived interest in the Collective
Bargaining once again
The legislative measures included the setting up of
a machinery for negotiations, conciliation, and
arbitration.
Basic conflicting issues concurring wages and
conditions of employment were sought to be
resolved through voluntary means.
Prof R K Singh/AIMA CME
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Collective Bargaining in India :
Post-Independence
With the spread of trade unionism, collective bargaining
agreements became popular
A large majority of disputes were resolved through
this mechanism.
Most agreements were concluded at the plant level
In centres like Mumbai and Ahmedabad, industry
level agreements were quite common
The agreements took place in industries such as
chemicals, petroleum, tea, coal, oil, aluminum etc
In ports and docks, banking and insurance collective
agreements- at the national level.
Prof R K Singh/AIMA CME
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Employee Empowerment Vs
Delegation:
Empowerment is a core concept of the new
management model. In the new-generation
adaptive organization, delegation is replaced
by empowerment, and responsibility by
ownership.
Authority and responsibilities are formal aspects
of organizing. They are based upon
organizational properties and not individual
capabilities.
Empowerment and ownership are social
aspects of organizing. They are based on
efficacy and initiatives, and not just on roles
and requirements.
belong
to people. 23
Prof R They
K Singh/AIMA
CME
Employee Empowerment Vs
Delegation:
Delegation is an old idea used in the traditional
management model. The idea was to make
sure that responsibility and authority were
equal for every job at the same level.
When delegation was implemented correctly,
people had the authority that they needed to
execute their responsibilities.
Limitations of this approach: Assigning authority
does not mean that someone has the ability,
motivation, and understanding necessary to
perform.
Prof R K Singh/AIMA CME
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Benefits of Employee Empowerment :
1. The organization : Harness individual talents
to the full. Changes the managers’ mind-set
and leaves them with more time to engage in
broad-based thinking, visioning and nurturing.
2. The department/team: Becomes more
enthusiastic, active and successful. Facilitates
teamwork and harnesses collective power of
employees.
3. Employees :Entrusted new responsibilities
and are stretched beyond what they previously
thought they could achieve. Releases the
individual wisdom, creativity, and energy of
employees.
Prof R K Singh/AIMA CME
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Employee Empowerment:
Three Levels
1. ENCOURAGING employees to play a more
active role in their work.
2. INVOLVING employees in taking
responsibility for improving the way that
things are done.
3. ENABLING employees to make more and
bigger decisions without having to refer to
someone more senior.
Organizational Benefits:
Getting closer to the customer
Improving service delivery
Innovating continuously
Increasing productivity & Gaining the competitive edge.
Prof R K Singh/AIMA CME
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Employee Empowerment : 4 Cs
1. COMPETENCE :The power which
competence provides grants to the
manager keeps him free from feeling
threatened by his subordinates. He not
only disseminates the relevant
competencies to his subordinates but also
regularly exposes his subordinates to new
competencies.
2. CONVICTION : The force of conviction is
purely internal to people. The manager has
his own set of convictions about the
benefits of empowerment and will go all out
to see his conviction
fructify.
Prof R K Singh/AIMA CME
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Employee Empowerment : 4 Cs
3.
CHARACTER : Empowering managers are more
concerned with their character than their
reputation. Character is what they really are
while reputation is merely what others think they
are. They do not hesitate to take the blame on
themselves in case of genuine mistakes.
4.
CANDOUR : Empowering managers depend
upon candour to draw the power to empower.
They are free from prejudice and malice and are
crystal clear in their dealings. They do not
disguise and exaggerate but remain objective in
approach. They share with their subordinates
information and ideas, experiences and thoughts
and hide nothing from them.
Prof R K Singh/AIMA CME
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Future of HRM
“9 Need-to-knows” for HR Managers
1.
2.
3.
4.
5.
6.
7.
8.
9.
Performance Improvement
Restructuring
Organization Change
Globalization
Groups and Teams
Action Learning
Inter
Time-shift
Power-shift
-W. Warner Burke
Prof R K Singh/AIMA CME
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1.
Performance Improvement
Two Kinds of Actions are Needed:
1. Understand/Expand more- “Measurement of
Performance” and
2. Learn more about the direct and indirect
enhancers and inhibitors of high
performance.
Performance Measurement in terms of :
-Customer Satisfaction
-Internal Business Competencies
-Innovation and Learning (Continuous Improvement)
Prof R K Singh/AIMA CME
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Enhancers of High Performance
1.
2.
3.
4.
High congruence between Job
Requirements and Individual Skills and
Abilities to enhance Motivation, and- inturn, Performance.
Congruence between Organizational and
Individuals’ Objectives
Learning more about the complexities of
Performance Improvement
Relationship between Pay and
Performance is temporary
Prof R K Singh/AIMA CME
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2. Restructuring
(Downsizing, Re-engineering, BPR/
Business Process Redesign)
Understand the consequences of
restructuring
Make restructuring systematic and part of
a larger strategic effort to minimize its
negative effect
Assessment of the effectiveness of TQM,
Downsizing, and Re-engineering
Prof R K Singh/AIMA CME
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3. Organization Change
Organization Change : Role of
HR Managers
Understanding the,
-Change Process
-Stages of Change
-Management of Change
Prof R K Singh/AIMA CME
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4.
Globalization
Implications of Globalization on
HRM activities and HR
Professionals
“Globalization : The Business of
Mindset and Behaviour Change”
Prof R K Singh/AIMA CME
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5. Groups and Teams
Understanding the distinction
between a Group and a Team
A Group may be nothing much
more than an assemblage whereas
a Team is a group with a common
and challenging goal and members
behave interdependently.
Prof R K Singh/AIMA CME
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6. Action Learning
Action Learning is combining the solving of
actual problems in real time in the
organization with learning about,
- How to work together better
- How to solve problems more effectively
- How to improve the learning process in
general- that is,
“Learning about Learning”
Prof R K Singh/AIMA CME
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6. Action Learning
HR Practitioners needs to learn
Action Learning because,
It reduces significantly the time
between Learning and
Application
Provides useful feedback to
organizational members on their
Behaviour and Performance.
Prof R K Singh/AIMA CME
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7. Inter : Interpersonal, Intergroup,
Interorganizational Behaviour/Conflict : Issues
1.
2.
3.
4.
5.
Strong need of employees to interact
with each other for work and social
reasons
Greater reliance on groups and teams
with more emphasis on cross team
activities
Inter-organizational relations
(Collaborations, Mergers, Acquisitions)
Knowledge, Skill development in Conflict
Management, Co-operation, and
Negotiation
Relationship Management
Prof R K Singh/AIMA CME
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8.
Time-shift
Harder and longer work hours
2. Craming more activities into the limited
work time
3. Blurring of time on-the-job and off-thejob
Implications:
1. Supervisors and Managers need to be
tolerant of the work and personal life,
provided productivity and quality of
performance do not suffer
2. Need to be recognized for our efforts in
achieving the results
1.
Prof R K Singh/AIMA CME
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9.
Power-shifts
Micro level Power-shifts: Organizational
1. More openness in organization because
so many employees have access to
information about the organization and
its performance
2. Technology has made a difference in the
shifts of Power, so are,
3. Changes in organizational structure
(Flatter Hierarchies & Broader Span of
Control), and
4. The trend towards the virtual and the
knowledge-based organization.
Prof R K Singh/AIMA CME
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Macro level Power-shifts:
(Multi-organizational, Societal and Global)
1. Domestic Companies to MNCs
2. Power-shift from developed to Developing
Countries
3. Growing Power-shift/Divide between Rich
and Poor
Implications:
Its essential that the HR Practitioners be
discerning about the use of Power and its
consequences, e.g. Distinguishing
between mere compliance on the part of
employees and Intrinsic Motivation and
Commitment.
Prof R K Singh/AIMA CME
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