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Strategic Approach to Industrial Relations

Strategic Approach to Industrial Relations. Why Workers Join Union?. Job Protection Improve Social & Economic Condition Improving working conditions For getting more humane treatment from supervisors. Why Employers Dislike Employee Union?. Perception of reduced managerial Power.

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Strategic Approach to Industrial Relations

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  1. Strategic Approach to Industrial Relations

  2. Why Workers Join Union? • Job Protection • Improve Social & Economic Condition • Improving working conditions • For getting more humane treatment from supervisors

  3. Why Employers Dislike Employee Union? • Perception of reduced managerial Power. • Apprehension of increased cost & Loss of competitiveness • Threat to efficiency • Loss of employee commitment • Threat of strike & loss of Market

  4. Structure of Trade Union in India • Structure of Trade Union: Affiliation with a centralized Federation- In India, Trade union have a three-tiered structure,viz.,at Plant-Level, at State Level, at national Level. There are a number of national level trade unions. some big ones are all India Trade Union Congress(AITUC),Indian national Trade Union Congress(INTUC),Hind Majdoor Sabha(HMS), etc These are also linked with one or more political parties.

  5. Structure of Trade Union: Multiple Unions One other characteristic of Indian Industrial Relations is that in many firms, There is more than one trade union representing the employees working in different functional areas. Some of the causes of these multiple unions in Industrial relation are as follows- • Regulatory Support- • Political Linkage of the Trade Unions- • Compensation among national-level federations- • Poor Leadership quality among workers & outside leaders as a neccessity-

  6. Advantages in Union Involvement in Company Strategic Plan • Advantage in Cutting Transaction Cost Down • Cost Control Through Productivity Bargaining • Credibility to Strategy Information • Strategic Suggestion from Union • Ease in Strategy Implementation • Trade Union & Governance Advantage

  7. Potential Problems from Union Involvement • Time Lost in Information Transfer • Union Bureaucracy & Barriers to Information Transfer • Legal Barrier to Union Involvement • Vulnerability to Source of Competitive advantage

  8. Collective Bargaining as a source of Competitive Advantage • Policy of wage Leadership: • Supervisory Behaviour: • Working Conditions: • Managerial approach & attitude towards trade union • Participative Mgmt.

  9. Development of Better Industrial Relations • Invest in Developing Trade Union Leader • Invest in Developing Line Managers skill in collective Bargaining • Institutionalize Access to Company Information • Institutionalize a Collective Bargaining Structure

  10. THANK YOU

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