Management Consulting/MS-24


Dear Sir

Following is the Question. Pls Give the answer if you do this it will be the great help for me.

1) Explain the meaning and concept of collective bargaining. Describe the functions of collective bargaining of any organisation you are familiar with.Discuss the conditions for success of collective bargaining. Briefly describe the organisation you are referring to.

2) Explain the aims and objectives of workers participation in Management. Describe the effectiveness workers participation practices of an organisation with which you are familiar with. Outline the pre-requisites for effective participation. Briefly describe the organisation you are referring to.

Thanks in Advance


3]Explain the meaning and concept of collective bargaining. Describe the functions of collective bargaining of any organisation you are familiar with. Discuss the conditions for success of collective bargaining. Briefly describe the organisation you are referring to.

  collective bargaining
  Process of negotiation between representatives of workers (usually labour union officials) and management to determine the conditions of employment. The agreement reached may cover not only wages but hiring practices, layoffs, promotions, working conditions and hours, and benefit programs.
  Collective bargaining is "a process of negotiation between management and union representatives for the purpose of arriving at mutually acceptable wages and working conditions for employees". Various methods may be used in the bargaining  process, but the desired outcome is always mutual acceptance by labor and management of a collective bargaining agreement or contract.
  The Bargaining Process
  The collective bargaining process begins when the majority of workers of an organization vote to be represented by a specific union. The National Labor Relations Board , then certifies the union. At this point, the management of the organization must recognize the union as the collective bargaining  agent  for all the employees of that organization. Once this part of the process is completed, collective bargaining can begin.
  Bargaining always takes place between labor and management, but negotiations can include more than one group of workers and more than one employer. Single-plant, single-employer agreements are the most common. However, if an employer has more than one plant or work site, multiplant, single-employer agreements can be bargained. Several different union groups representing the workers of the same employer can use coalition bargaining. Industry wide bargaining involves one national union bargaining with several employers of a specific industry.
  Many different negotiation styles can be used when union and labor representatives sit down at the bargaining table. The two basic modes of bargaining are traditional bargaining and partnership bargaining, though there are many variations of each style.
  The traditional style of bargaining has been used since collective bargaining began between management and the early labor unions . It is an adversarial style of negotiating, pitting one side against the other with little or no understanding of, or education about, the other on the part of either party. Each side places its demands and proposals on the table, and the other side responds to them with counterproposals. The process is negative and involves a struggle of give-and-take on most issues. Even with its negative connotations, however, the traditional style of negotiating is still used effectively in bargaining many union contracts.
  The partnership style of bargaining is the more modern approach to negotiations. It strives for mutual understanding and common education on the part of both labor and management, and it focuses on goals and concerns common to both parties. Because of its emphasis on each side's being aware of the issues concerning the other side, partnership-style bargaining is also known as interest-based bargaining. In this process, labor and management each list and explain their needs, and the ensuing discussion revolves around ways to meet those needs that will be not only acceptable but also beneficial to both parties. This style of bargaining is very positive and imparts a much more congenial atmosphere to the negotiating process. Many modern union-management contracts are bargained very successfully using the partnership style.
  A blending of the traditional and partnership styles is widely used in labor-management negotiations. The combination approach is used for many reasons, including the fact that many union and management leaders are more familiar with the traditional style. However, with today's more participatory relationship between labor and management in the workplace, the partnership style is becoming more accepted and is being used more frequently. The negotiating process may also include both styles of bargaining because of the variety of issues being negotiated. The partnership style may be used to negotiate certain issues, while the traditional style may be invoked when bargaining other terms.
  Collective Bargaining Issues
  Labor unions were formed to help workers achieve common goals in the areas of wages, hours, working conditions, and job security. These issues still are the focus of the collective bargaining process, though some new concepts have become the subjects of negotiations. Table 1 lists the issues most often negotiated in union contracts.
  The Settlement Process
  Union contracts are usually bargained to remain in effect for two to three years but may cover longer or shorter periods of time. The process of negotiating a union contract, however, may take an extended period of time. Once the management and union members of the negotiating team come to agreement on the terms of the contract, the union members must accept or reject the agreement by a majority vote. If the agreement is accepted, the contract is ratified and becomes a legally binding agreement remaining in effect for the specified period of time.
  If the union membership rejects the terms of the agreement, the negotiating teams from labor and management return to the bargaining table and continue to negotiate. This cycle can be repeated several times. If no agreement can be reached between the two teams, negotiations are said to have "broken down," and several options become available.
  Mediation is usually the first alternative when negotiations are at a stalemate. The two parties agree voluntarily  to have an impartial  third party listen to the proposals of both sides. It is the mediator's job to get the two sides to agree to a settlement. Once the mediator understands where each side stands, he or she makes recommendations for settling their differences. The mediator merely makes suggestions, gives advice, and tries to get labor and management to compromise on a solution. Agreement is still voluntary at this point. The mediator has no power to force either of the parties to settle the contract, though often labor and management do come to agreement by using mediation.
  If mediation fails to bring about a settlement, the next step can be arbitration, which can be either compulsory or voluntary. Compulsory arbitration is not often used in labor-management negotiations in the United States. Occasionally, however, the federal government requires union and management to submit to compulsory arbitration. In voluntary arbitration, both sides agree to use the arbitration process and agree that it will be binding. As in mediation, an impartial third party serves in the arbitration process. The arbitrator acts as a judge, listening to both sides and then making a decision on the terms of the settlement, which becomes legally binding on labor and management. Ninety percent of all union contracts use arbitration if the union and management can't come to agreement .
  Sources of Power
  If the collective bargaining process is not working as a way to settle the differences between labor and management, both sides have weapons they can use to bolster their positions. One of the most effective union tactics is the strike or walkout. While on strike, employees do not report to work and, of course, are not paid. Strikes usually shut down operations, thus pressuring management to give in to the union's demands. Some employees, even though allowed to belong to unions, are not allowed to strike. Federal employees fall into this category. The law also prohibits some state and municipal employees from striking.
  During a strike, workers often picket  at the entrance to their place of employment. This involves marching, carrying signs, and talking to the media about their demands. The right to picket is protected by law . Problems sometimes arise during strikes and picketing when management hires replacement workers, called scabs or strikebreakers, who
  need to cross the picket line in order to do the jobs of the striking workers.
  Collective Bargaining Issues
  Wages      Hours      Working Conditions      Job Security
  Regular Compensation      Regular Work Hours      Rest Periods      Seniority
  Overtime Compensation      Overtime Work Hours      Grievance Procedures      Evaluation
  Incentives      Vacations      Union Membership      Promotion
  Insurance      Holidays      Dues Collection      Layoffs
  Pensions          Recalls
  The boycott is another union strategy to put pressure on management to give in to the union's demands. During a primary boycott , not only union members but also members of the general public are encouraged to refuse to conduct business with the firm in dispute with the union.
  Though it is rarely done, management may use the lockout as a tactic to obtain its bargaining objectives. In this situation, management closes down the business, thus keeping union members from working. This puts pressure on the union to settle the contract so employees can get back to their jobs and receive their wages.
  Management sometimes uses the  injunction as a strategy to put pressure on the union to give in to its demands. An injunction is a court order prohibiting something from being done, such as picketing, or requiring something to be done, such as workers being ordered to return to work.
  Grievance Procedures
  Once a collective bargaining agreement is settled and a union contract is signed, it is binding on both the union and management. However, disagreements with contract implementation can arise and violations of the contract terms can occur. In these cases, a grievance, or complaint, can be filed. The differences that must be resolved are usually handled through a step-by-step process that is outlined in the collective bargaining agreement. The grievance procedure begins with a complaint to the worker's immediate supervisor and, if unresolved at that level, moves upward, step by step, to higher levels of management. If no resolution is found at any of these levels, the two parties can agree to have the grievance submitted to an impartial outside  arbitrator for a decision binding to the union and management.
  Collective bargaining is a successful way for workers to reach their goals concerning accept able wages, hours, and working conditions. It al lows workers to bargain as a team to satisfy their needs. Collective bargaining also allows management to negotiate efficiently with workers by bar gaining with them as a group instead of with each one individually. Though traditional bargaining can be negative and adversarial, it does produce collective bargaining agreements between labor and management. Partnership bargaining can lead to increased understanding and trust between labor and management. It is a positive, cooperative approach to collective bargaining that also culminates in contracts between labor and management.
  Collective bargaining is still practiced in the twenty-first century, but among many of its union advocates it is no longer the most hopeful road toward either high wages or an updated industrial democracy. Key service-sector trade unions have sought to fulfill these goals through a set of increasingly political initiatives. In the janitorial, hotel, and health care sectors of the economy, firm centered collective bargaining has been linked, and in some cases subordinated, to political and social mobilizations designed to advance the well-being of all workers, regardless of their union status.
  The organisation  I  am   referring to
  The  organization, I am  familiar  with  is  a
  -a  large  manufacturer/ marketer of  safety products
  -the products  are  used  as  [personal  protection safety] [ industrial  safety]
  -the products  are  distributed through  the distributors as well as  sold directly
  -the  products  are  sold  to various  industries like  mining/fireservices/defence/
  as  well  as  to  various  manufacturing  companies.
  -the  company employs  about  235  people.
  -the  company  has  the following  functional   departments
  *finance/ administration
  *human resource
  *customer  service
  *warehousing/  transportation
  the organization  has  negotiated  the  following
  with  the  trade union
  Wages      Hours      Working Conditions      Job Security
  Regular Compensation      Regular Work Hours      Rest Periods      
  Overtime Compensation      Overtime Work Hours      Grievance Procedures      Evaluation
        Vacations      Union Membership      
  Insurance      Holidays      Dues Collection      Layoffs
  Pensions          Recalls
4]Explain the aims and objectives of workers participation in Management. Describe the effectiveness workers participation practices of an organisation with which you are familiar with. Outline the pre-requisites for effective participation. Briefly describe the organisation you are referring to.


 Three groups of managerial decisions affect the workers of any industrial establishment and hence the workers must have a say in it.
o Economic decisions – methods of manufacturing, automation, shutdown, lay-offs, mergers.
o Personnel decisions – recruitment and selection, promotions, demotions, transfers, grievance settlement, work distribution.
o Social decisions – hours of work, welfare measures, questions affecting work rules and conduct of individual worker’s safety, health, sanitation and noise control.
 Participation basically means sharing the decision-making power with the lower ranks of the organization in an appropriate manner.
 The concept of WPM is a broad and complex one.
 Depending on the socio-political environment and cultural conditions, the scope and contents of participation change.
 International Institute of Labour Studies: WPM is the participation resulting from the practices which increase the scope for employees’ share of influence in decision-making at different tiers of organizational hierarch with concomitant assumption of responsibility.
 ILO: Workers’ participation, may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers’ member on management or supervisory boards or even management by workers themselves as practiced in Yugoslavia.
 Workers’ participation may be viewed as:

  o An instrument for increasing the efficiency of enterprises and establishing harmonious relations;
o A device for developing social education for promoting solidarity among workers and for tapping human talents;
o A means for achieving industrial peace and harmony which leads to higher productivity and increased production;
o A humanitarian act, elevating the status of a worker in the society;
o An ideological way of developing self-management and promoting industrial democracy.
 Other objectives of WPM can be cited as:
o To improve the quality of working life (QWL) by allowing the workers greater influence and involvement in work and satisfaction obtained from work; and
o To secure the mutual co-operation of employees and employers in achieving industrial peace; greater efficiency and productivity in the interest of the enterprise, the workers, the consumers and the nation.
 The main implications of workers’ participation in management as summarized by ILO:
o Workers have ideas which can be useful;
o Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere.

 Unique motivational power and a great psychological value.
 Peace and harmony between workers and management.
 Workers get to see how their actions would contribute to the overall growth of the company.
 They tend to view the decisions as `their own’ and are more enthusiastic in their implementation.
 Participation makes them more responsible.
o They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas.

Scope and ways of participation:

   One view is that workers or the trade unions should, as equal partners, sit with the management and make joint managerial decisions.
 The other view is that workers should only be given an opportunity, through their representatives, to influence managerial decisions at various levels.
 In practice, the participation of workers can take place by one or all the methods listed below:
o Board level participation
o Ownership participation
o Complete control
o Staff or work councils
o Joint councils and committees
o Collective Bargaining
o Job enlargement and enrichment
o Suggestion schemes
o Quality circles
o Empowered teams
o Financial participation

Participation at the Board level:
 This would be the highest form of industrial democracy.
 The workers’ representative on the Board can play a useful role in safeguarding the interests of workers.
 He or she can serve as a guide and a control element.
o He or she can prevail upon top management not to take measures that would be unpopular with the employees.
o He or she can guide the Board members on matters of investment in employee benefit schemes like housing, and so forth.
 The Government of India took the initiative and appointed workers’ representatives on the Board of Hindustan Antibiotics (Pune), HMT (Bangalore), and even nationalized banks.
 The Tatas, DCM, and a few others have adopted this practice.
 Problems associated with this method:
o Focus of workers’ representatives is different from the focus of the remaining members of the Board.
o Communication and subsequently relations between the workers’ representative and the workers suffers after the former assumes directorship.
 He or she tends to become alienated from the workers.
o As a result, he or she may be less effective with the other members of the Board in dealing with employee matters.
o Because of the differences in the cultural and educational backgrounds, and differences in behaviour and manners, such an employees’ representative may feel inferior to the other members, and he or she may feel suffocated. Hence, his or her role as a director may not be satisfying for either the workers or the management.
o Such representatives of workers’ on the Board, places them in a minority. And the decisions of the Board are arrived at on the basis of the majority vote.

Participation through ownership:
 This involves making the workers’ shareholders of the company by inducing them to buy equity shares.
o In many cases, advances and financial assistance in the form of easy repayment options are extended to enable employees to buy equity shares.
 Examples of this method are available in the manufacturing as well as the service sector.
 Advantage:
o Makes the workers committed to the job and to the organization.
 Drawback:
o Effect on participation is limited because ownership and management are two different things.

Participation through complete control:
 Workers acquire complete control of the management through elected boards.
 The system of self-management in Yugoslavia is based on this concept.
 Self-management gives complete control to workers to manage directly all aspects of industries through their representatives.
 Advantages:
o Ensures identification of the workers with their organization.
o Industrial disputes disappear when workers develop loyalty to the organization.
o Trade unions welcome this type of participation.
 Conclusion: Complete control by workers is not an answer to the problem of participation because the workers do not evince interest in management decisions.

Participation through Staff and Works Councils:

   Staff councils or works councils are bodies on which the representation is entirely of the employees.
 There may be one council for the entire organization or a hierarchy of councils.
 The employees of the respective sections elect the members of the councils.
 Such councils play a varied role.
o Their role ranges from seeking information on the management’s intentions to a full share in decision-making.
 Such councils have not enjoyed too much of success because trade union leaders fear the erosion of their power and prestige if such workers’ bodies were to prevail.

Participation through Joint Councils and Committees:
 Joint councils are bodies comprising representatives of employers and employees.
o This method sees a very loose form of participation, as these councils are mostly consultative bodies.
 Work committees are a legal requirement in industrial establishments employing 100 or more workers.
o Such committees discuss a wide range of topics connected to labour welfare.
o Examples of such committees are welfare committee, safety committee, etc.
o Such committees have not proven to be too effective in promoting industrial democracy, increasing productivity and reducing labour unrest.

Participation through Collective Bargaining:
 Through the process of CB, management and workers may reach collective agreement regarding rules for the formulation and termination of the contract of employment, as well as conditions of service in an establishment.
 Even though these agreements are not legally binding, they do have some force.
 For CB to work, the workers’ and the employers’ representatives need to bargain in the right spirit.
 But in practice, while bargaining, each party tries to take advantage of the other.
 This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the crude concept of exercising power for the benefit of one party.
o WPM, on the other hand, brings both the parties together and develops appropriate mutual understanding and brings about a mature responsible relationship.

Participation through Job Enlargement and Job Enrichment:
 Excessive job specialization that is seen as a by-product of mass production in industries, leads to boredom and associated problems in employees.
 Two methods of job designing – job enlargement and job enrichment– are seen as methods of addressing the problems.
o Job enlargement means expanding the job content – adding task elements horizontally.
o Job enrichment means adding `motivators’ to the job to make it more rewarding.
 This is WPM in that it offers freedom and scope to the workers to use their judgment.
 But this form of participation is very basic as it provides only limited freedom to a worker concerning the method of performing his/her job.
 The worker has no say in other vital issues of concern to him – issues such as job and income security, welfare schemes and other policy decisions.

Participation through Suggestion Schemes:
 Employees’ views are invited and reward is given for the best suggestion.
 With this scheme, the employees’ interest in the problems of the organization is aroused and maintained.
 Progressive managements increasingly use the suggestion schemes.
 Suggestions can come from various levels.
 The ideas could range from changes in inspection procedures to design changes, process simplification, paper-work reduction and the like.
o Out of various suggestions, those accepted could provide marginal to substantial benefits to the company.
 The rewards given to the employees are in line with the benefits derived from the suggestions.

Participation through Quality Circles:
 Concept originated in Japan in the early 1960s and has now spread all over the world.
 A QC consists of seven to ten people from the same work area who meet regularly to define, analyze, and solve quality and related problems in their area.
 Training in problem-solving techniques is provided to the members.
 QCs are said to provide quick, concrete, and impressive results when correctly implemented.
 Advantages:
o Employees become involved in decision-making, acquire communication and analytical skills and improve efficiency of the work place.
o Organization gets to enjoy higher savings-to-cost ratios.
o Chances of QC members to get promotions are enhanced.
 The Indian Scenario:
o Tried by BHEL, Mahindra and Mahindra, Godrej and Boyce among others.
o Experienced mixed results:
 M&M (jeep division) with 76 QCs has experienced favourable results.
• Technical problems got solved.
• Workers got to get out of their daily routine and do something challenging.
 Trade unions look at it as:
• A way of overburdening workers, and
• An attempt to undermine their role.
 These circles require a lot of time and commitment on the part of members for regular meetings, analysis, brainstorming, etc.
 Most QCs have a definite life cycle – one to three years.
o Few circles survive beyond this limit either because they loose steam or they face simple problems.
 QCs can be an excellent bridge between participative and non-participative approaches.
 For QCs to succeed in the long run, the management needs to show its commitment by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions.

Empowered Teams:
 Empowerment occurs when authority and responsibility are passed on to the employees who then experience a sense of ownership and control over their jobs.
 Employees may feel more responsible, may take initiative in their work, may get more work done, and may enjoy the work more.
 For empowerment to occur, the following approach needs to be followed as compared to the traditional approach:
Element Traditional Org. Empowered Teams
Organizational structure Layered, individual Flat, team
Job design Narrow, single task Whole process, multiple tasks
Management role Direct, control Coach, facilitate
Leadership Top-down Shared with the team
Information flow Controlled, limited Open, shared
Rewards Individual, seniority Team-based, skill-based
Job process Managers plan, control, improve Teams plan, control, improve

 Features of empowered or self-directed teams:
o Empowered to share various management and leadership functions.
o Plan, control and improve their work.
o Often create their schedules and review their performance as a group.
o May prepare their own budgets and co-ordinate their work with other departments.
o Usually order materials, keep inventories and deal with suppliers.
o Frequently responsible for acquiring any new training they might need.
o May hire their own replacement to assume responsibility for the quality of their products or services.
 Titan, Reliance, ABB, GE Plastics (India), Wipro Corporation and Wipro InfoTech are empowering employees – both frontline as well as production staff, and are enjoying positive results.

Total Quality Management:
 TQM refers to the deep commitment, almost obsession, of an organization to quality.
 Every step in company’s processes is subjected to intense and regular scrutiny for ways to improve it.
 Some traditional beliefs are discarded.
o High quality costs more.
o Quality can be improved by inspection.
o Defects cannot be completely eliminated.
o Quality in the job of the QC personnel.
 New principles of TQM are:
o Meet the customer’s requirement on time, the first time, and 100% of the time.
o Strive to do error-free work.
o Manage by prevention, not correction.
o Measure the cost of quality.
 TQM is called participative because it is a formal programme involving every employee in the organization; making each one responsible for improving quality everyday.

Financial Participation:

   This method involves less consultations or even joint decisions.
 Performance of the organization is linked to the performance of the employee.
 The logic behind this is that if an employee has a financial stake in the organization, he/she is likely to be more positively motivated and involved.
 Some schemes of financial participation:
o Profit-linked pay
o Profit sharing and Employees’ Stock Option schemes.
o Pension-fund participation.

Pre-requisites for successful participation:
 Management and operatives/employees should not work at cross-purposes i.e. they must have clearly defined and complementary objectives.
 Free flow of communication and information.
 Participation of outside trade union leaders to be avoided.
 Strong and effective trade unionism.
 Workers’ education and training. Trade unions and government needs to work in this area.
 Trust between both the parties.
 Workers should be associated at all levels of decision-making.
 Employees cannot spend all their time in participation to the exclusion of all other work.

Limitations of participation:

   Technology and organizations today are so complex that specialized work-roles are required.
o This means employees will not be able to participate effectively in matters beyond their particular environment.
 Everybody need not want participation.
 The role of trade unions in promoting participative management has been far from satisfactory.
 Employers are unwilling to share power with the workers’ representatives.
 Managers consider participative management a fraud.
  The organisation  I  am   referring to
  The  organization, I am  familiar  with  is  a
  -a  large  manufacturer/ marketer of  safety products
  -the products  are  used  as  [personal  protection safety] [ industrial  safety]
  -the products  are  distributed through  the distributors as well as  sold directly
  -the  products  are  sold  to various  industries like  mining/fireservices/defence/
  as  well  as  to  various  manufacturing  companies.
  -the  company employs  about  235  people.
  -the  company  has  the following  functional   departments
  *finance/ administration
  *human resource
  *customer  service
  *warehousing/  transportation
  In  this  organization,  worker  participation  is implemented  in a  limited way.
  The  program covers   the  following  areas:
  1.TQM  implementation.
  2.Factory  rewards system planning/ implementation.
  3.Factory  emergency security  system implementation.
  4.Quality  circle  problem solving  team.
  5.Suggestion  box  management.
6.Factory  workercouncil.


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Leo Lingham


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