\fIntroduction to employment relations Chapter 1 Cengage Learning Australia hereby permits the usage and posting of our copyright controlled PowerPoint slide content for all courses wherein the associated text has been adopted. PowerPoint slides may be placed on course management systems that operate under a controlled environment (accessed restricted to enrolled students, instructors and content administrators). Cengage Learning Australia does not require a copyright clearance form for the usage of PowerPoint slides as outlined above. Learning objectives 1. To understand what is meant by employment relations (ER), industrial relations (IR), employee relations and human resource management (HRM). 2. To identify and explain the distinct characteristics of the employment relationship. 3. Identify the main actors in the employment relationship. 4. Identify the key theoretical frameworks used to discuss employment relations. Employment relations (ER) ER is 'concerned with the behaviour and interaction of people in the workplace and is primarily associated with relationship between employers and employees' (Slade 2002). It incorporates 'a pluralistic frame of reference and the integration of industrial relations, employee relations and human resources management' (Slade 2002). ER Has a multidisciplinary and interdisciplinary foundation and it is influenced by: sociology economics history psychology political science, and law. Ideologies of IR, HRM and employee relations It can be argued that industrial relations (IR), human resources management (HRM) and employee relations (ER) are each representative of differing ideologies. IR is seen as being pluralist, while employee relations and HRM are largely unitarist in nature (Slade 2002). This means that employment relations (ER) encompasses IR, employee relations and HRM, and combines both practical and ideological elements of all three. Industrial relations (IR) Is 'concerned with how individuals, groups and institutions make decisions that shape the employment relationship between management and labour' (Deery & Plowman 1991, p. 3). IR Concerns collective processes engaged in by employees, control over the employment relationship and who holds it, and recognition that conflict is a normal part of the employment relationship but it can be resolved. IR in Australia Adopted a British tradition of adversarialism. This has influenced IR, giving rise to a historically strong trade union movement for most of the 20th century. Membership is now approx. a fifth of the workforce. IR in Western Europe Countries tend to have industrial relations systems that operate more consensually and cooperatively, with established roles in policy development at national level for: government trade unions, and employer associations via a 'social partnership' model. Employee relations in Australia Has come to have a specific meaning centering on the individual employee and their relationship with their manager. Therefore is unitarist in ideology as it is based on consensus and cooperation to achieve common goals. The difference between IR and employee relations The external/macro context in Australia Move to enterprise level bargaining in 1993. Driven by Business Council of Australia (BCA). Critics said had potential to increase 'managerialism' by giving managers greater control of decisions in workplace, rather than theoretical alternative of managers sharing control with employees. The new employee relations model Designed to theoretically remove 'rigid' IR regulation and reduce the role of third parties like trade unions at the workplace and therefore reduce conflict. In turn, meant to promote increased productivity and international competiveness for Australian industries and build harmonious workplace relations (Wright & Kitay 2004). Was appealing to many governments, employers and managers. Further reform The Workplace Relations Act 1996 (Cth) further promoted direct cooperative relationships at the workplace by introducing individual agreements known as Australian workplace agreements (AWAs). AWAs supposed to encourage managers to engage directly with individual employees rather than negotiate wages and conditions with unions. The operation of employee relations as a subset of industrial relations New internal/micro context More emphasis on role of supervisors, line managers and team leaders when it came to solving problems in workplace. To offset increased 'managerialism' through increased formalisation and to improve employer-employee relationships, employee participation and employee voice schemes sometimes introduced. Best performing workplaces Tend to have 3 main macro and micro level characteristics: 1.Found in competitive markets where both management and employees know need to generate greater efficiency to survive (macro level). 2.Management of such enterprises generally participative and team-oriented, not bureaucratic (micro level). 3.Employee relations arrangements allow flexibility and responsiveness and work tasks based on skills of employees and union presence/demarcation is low (micro level). Human Resources Management (HRM) 'Consists of various practices to manage people in organisations, and these practices commonly have been grouped into sub-disciplines of selection, training, appraisal and rewards' (Tichy & Devanna 1984). Hard v Soft HRM Hard HRM: Treats employees as replicable commodities that are therefore easily replaced. Soft HRM: Concentrates attention on employees' outcomes rather than prioritising business performance and shareholder interests over those of employees (Pinnington & Lafferty 2003). Soft HRM (U.S.) 1. Employee influence = amount of responsibility, authority and power devolved to employees. 2. Human resource flow = movement of people into and through organisation via decisions on recruitment and selection, promotion, career development and termination of employment. 3. Rewards systems = regulate intrinsic and extrinsic rewards to employees for their work. 4. Work systems = how people, information, technology and work tasks are arranged across organisation to promote efficient and effective work performance. Soft HRM (UK) Organisational and job design. Policy formulation and management of change. Recruitment, selection and socialisation. Appraisal, training and development. 'Manpower' or employee flows through, up and out of organisation. Reward systems. Communication systems (Guest 1987). The Psychological Contract A psychological contract is the expectation employers and employees have of each other and their working relationship (Noe 1999). Seen as central to employment relationship and involves perceptions of both parties' reciprocal promises and responsibilities (Guest 2004, Latornell 2007, Pate & Malone 2000). Guest's (2004) 5 factors of the psychological contract 1. Contextual and background factors examined to explore nature and consequences of psychological contract. At individual level it is important to consider different responses in background experiences and personal values. 2. Policy and practice relates to role of HRM and the type of culture in organisation. The types of procedures and practices that govern organisation influence nature of the psychological contract. 3. The state of the psychological contract relates to the responses to the contract. Guest's 5 points, cont... 4. The degree to which employees and employers engage in reciprocal promises and how fairness in promises made leads to a trusting relationship. 5. Outcomes are influenced by all factors previously mentioned and are particularly influenced by level of trust created in belief each party will fulfil their promises and obligations. Summary - The 7 components of the new employment relationship 1. The employment relationship is multifaceted and continuous. 2. The employment relationship is complex and involves many dimensions. 3. The employment relationship involves mutual responsibilities. 4. The employment relationship includes tangible and intangible elements. Summary - The 7 components of the new employment relationship, cont... 5. The employment relationship is indeterminate and incomplete - as the relationship evolves, new terms and conditions of employment emerge. 6. The employment relationship denotes the importance of cooperation and conflict. 7. The employment relationship is about balancing power. Power should be balanced between the employee and the employer