Possible responses to issues outlined in Case study 1
Answer 1:
The case has five unions working at a same point of time. This creates the scenario
of multiple unionisms. Multiple unionisms both at the plant and industry levels
pose a serious threat to industrial peace and harmony in India. The situation of
multiple unions is said to prevail when two or more unions in the same plant or
industry try to assert rival claims over each other and function with overlapping
jurisdiction. The multiple unions exist due to the existence of craft unions,
formations of two or more unions in the industry.
The nature of competition tends to convert itself into a sense of unfair competition
resulting in inter-union rivalry. The rivalry destroys the feeling of mutual trust and
cooperation among leadership. It is a major cause for weakening the Trade Union
Movement in India. Multiple unionisms also results in small size of the unions,
poor finances, etc.
The inter-union rivalry breaks the very purpose of the trade unions by weakening
the strength of collective bargaining. On the other hand, the existence of a single,
strong union not only protects the employee interests more effectively but also
halts the various unproductive activities of the unions and forces the leaders to
concentrate on the strategic issues.
There are many employees who feel they have not been given their “place in the
sun” and they have not benefited from the new democracy. When talks get heated,
it’s tempting to draw a line in the sand. Reason being the same makes the union B
felt offended.
As these issues are a reality and forms part of every organization, employers must
make sure that they are aware of which factors are driving their employee’s
demand and must be ready to bargain and negotiate if/when the time comes.
Further, it helps to bring about congenial industrial relations by bringing about a
system of orderliness in dealing with the employees and by facilitating expeditious
settlement of disputes.
Answer 2:
If I were the Industrial Relations Manager, I’ll ensure that Cooperative
coexistence in the organization doesn't have to deal with strikes or becoming
embroiled in lengthy arbitration over collective bargaining impasses or unresolved
grievances. Also make sure to:
Develop and implement policies, programs and procedures related to
Employee Relations.
Develop and administer progressive discipline policy and procedures.
Review and approve employee disciplinary actions.
Develop and interpret personnel policies consistent with directions of HR
Director.
Ensure employee handbook which reflects current policy.
Record performance and disciplinary issues working with managers and
supervisors.
Conduct other investigations as directed by Director of Human Resources.
Review and approve involuntary terminations consistent with gaming
policies and procedures.
Conduct exit interviews for terminated employees.
Provide feedback to HR and departmental management regarding trends
revealed in exit interviews.
Provide feedback to Company Recruiters regarding competency level of
terminated employees.
Participate in legal hearings to provide testimony and monitoring
proceedings.
Prepare written materials for documentation and conveying information.
Consult and advise management to ensure compliance with legal and
administrative requirements.
Moreover;
Investigation of the employees' complaints and issues,
Resolving the concerns of the employees that may affect their performance
at the workplace,
Providing professional counseling,
Developing action plans to motivate and build the morale of the employees,
Thereby strengthening the employee and employer working relationship to help in
the growth of the organization.
In addition to the above,
There’s a need to prepare reports related to the employees' concerns, the
action plans that have been taken, and their effects on the employees.
To guide the employees regarding insurance and retirements benefits.
To identify the strengths and weaknesses of the employees and enroll them
in various developmental programs.
To attend various meetings, seminars, and conferences to improve the
working relationship between the employees and the management.
To makes sure that all the facilities like lunch room, library, recreational
activities, etc., are made available, ensuring compliance with the standards
of the organization.
Thus, to help in boosting the morale of the employees and stimulate interest in
their minds to work towards achieving the goals and objectives of the organization.
Possible responses to issues outlined in Case study 2
In this case there are 4 pressures on the company – workers want wage increase,
shareholders want greater return on their investment, input costs have gone up
while company faces competition that forces them to reduce product price:
1. Increase in input cost: the input prices have gone up by 10 %. This
increment can be neutralized by :
Adoption of proper Inventory management techniques: Products
can usually be manufactured utilizing a variety of different
materials, depending on marketplace requirements and the practices
of the manufacturers.
Change in design of the product to save more material:
Technology is constantly improving older materials and creating
new ones, prices move up and down due to political goals as much
as supply and demand, and processing methods change.
Use of conventional sources of energy by employing solar panels
to save energy/power.
Reducing waste in raw material usage: Product engineers typically
design products without considering the production consequences,
particularly how non-standard purchase units of size, volume, or
weight must be modified to create the final product. Production
methods are usually established to minimize the costs of the highest
component of production, either labor or materials, at the time the
method is established.
Improve productivity by system and methods improvement by
improving line balancing: Modifying product designs and altering
production methods in order to utilize standard raw material units
may reduce excessive scrap and its associated costs.
Buy Need, Not Potential: JIT remains one of the more popular
cost-cutting methodologies around the world. The lesson for a small
business here is to not buy inventory or equipment until you need it
or can determine an immediate benefit in either lower costs or
improved customer benefits.
Trade Time for Discounts: The opposite approach to JIT is to
purchase and receive materials on the supplier’s schedule, rather
than when you will use the material. This means you will incur
additional associated costs in excess inventory. However, allowing
vendors and suppliers to deliver materials on their cycle times,
rather than on your production schedule, may result in a lower price.
Offer Quick Payment for Lower Prices: For many companies,
cash flow is more important than profits, particularly in the short-
term. During periods of financial stress, companies simply cannot
afford to keep excess inventory or allow the payments of accounts
receivable to be delayed.
Negotiate Long-Term Supply Agreements: While a single order
might be small, the total volume of material used over a period of
time – a single quarter of the year, multiple quarters, or a full year –
will be significantly larger.
2. Competition in price: This can be met by selling at lower profit margin but
at a mass level. But for this we need to improve productivity.
The hard factors include products, technology, equipment and raw
materials, while the soft factors include the labour force, organisational
systems and procedures, management styles and work methods. Productivity
improvement involves various factors such as:
process and system improvement
updated technology
application of various improvement tools
Culture and attitudinal change etc
Once productivity and sales increases it will generate more revenues and profits.
This then can be the basis for increased sharing between capital owners and
employees in a manner considering that a focus on shareholder value can cause
employment to shrink as managers seek ways to cut costs, and that the relationship
between shareholder payments and employee wages is on some zero-sum level.
