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Human Resource Management: Functions, Applications, Skill
Development by Robert N. Lussier and John R. HendonChapter 10
Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Labor Relations: A Function of Trust and Communication
Trust is faith in the character and actions of another.
� To improve others’ level of trust in us, we need to be open and honest.
Communication is the process of transmitting information and meaning, verbally, nonverbally or in writing.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Checking Understanding
Feedback is information provided by the
receiver that verifies that a message was
transmitted successfully.
Paraphrasing is the process of restating a
message back to the original sender in the
receiver’s own words.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Job Satisfaction
�Is a feeling of well-being and acceptance of our place in the organization, and it is generally measured along a continuum from
�satisfied/positive/high to
�dissatisfied/negative/low.
�It affects worker productivity, absenteeism and turnover.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Job Dissatisfaction
Is a cause of many poor organizational outcomes, including:
�Losing good employees and costly turnover.
�Lower levels of health, wellness, and productivity.
�Higher levels of alcohol and other substance abuse, employees’ physical or psychological withdrawal, and theft and sabotage.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Measuring Job Satisfaction
Job satisfaction is difficult to measure
accurately because it is an attitude, so firms
must rely on employees’ honesty in self-
reporting their level of satisfaction on a job
satisfaction (attitude) survey.
�Since honesty requires trust, ensure that
employees’ anonymity will be protected.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Measuring Job Satisfaction
Faces Scale
Employees circle the face that most closely matches their satisfaction with their job.
� Best for a quick job satisfaction assessment.
Job Satisfaction Survey (JSS)
An organizational development survey that has been shown to be valid and reliable for measuring job satisfaction in the workplace.
� Best for an in-depth job satisfaction assessment.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Legal Issues in Labor Relations
Managers need to understand the
constraints set up by labor laws in order to
successfully do their job.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
The Railway Labor Act (RLA) of 1926
Was originally enacted to significantly limit the potential for railroad strikes to affect interstate commerce.
It also:
� Provides protection for worker rights to join a union.
� Requires that in major disputes, management and labor must participate in a negotiation and mediation process presided over by the National Mediation Board before a strike may be called.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
The National Labor Relations Act (NLRA) of 1935 (The Wagner Act)
Gives employees the rights, without fear of persecution, to self-organization; form, join, or assist labor organizations; bargain collectively through representatives of their own choosing; engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; and refrain from such activities unless that right may be affected by an agreement that requires membership in a labor organization as a condition of employment.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
The Labor Management Relations Act
(LMRA) of 1947 (Taft-Hartley Act)
An amendment to the 1935 NLRA that rebalanced
employer and employee rights by prohibiting specific
unfair practices by unions, including:
� Jurisdictional and wildcat strikes, and secondary
boycotts.
� Union shops.
� Coercive tactics.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
The Labor Management Reporting and
Disclosure Act (LMRDA) of 1959 (The
Landrum-Griffin Act)
Requires a series of disclosures by union
officials and provides specific rights to union
members.
�Enacted because of organized crime/national
labor union linkages in the 1950s.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
The Worker Adjustment and Retraining Notification Act (WARN) of 1988
Firms that employ (full time) more than 100 people must notify employees of a layoff at least sixty days ahead of time when laying off more than 50 people.
�All workers are entitled to this notice, including hourly and salaried workers, and managers.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Other Legal Issues in Labor Relations –
Corporate Whistleblowers and the Law
Whistleblowers are employees who tell an
organization with authority, outside their own
company, about actions within their company that
they believe to be illegal.
� Whistleblower laws include the Federal False
Claims Act and the recent Dodd-Frank Act.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Other Legal Issues in Labor RelationsExpress Contracts, Implied Contracts and Quasi-ContractsExpress contract – when the agreement between two parties is specifically stated, orally or in writing.
Implied contract – when an agreement is formed by parties’ actions rather than as a result of a specific oral or written agreement.
Quasi contract – is a court ordered implied agreement that prevents one party from benefiting at the expense of another.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Other Legal Issues in Labor Relations
Wrongful discharge – terminating an individual employee for an illegal reason, either due to a violation of a contract or in violation of a state or federal law.
Constructive discharge – occurs when an employee is forced to quit because of severe and/or pervasive harassment or intolerable working conditions.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Union Organizing
People join unions for a variety of reasons,
including better pay and benefits (especially
good health care coverage and retirement
plans); unfair management practices that lead to
poor labor relations; and job security.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Union Organizing – The NO TIPS Rule
� No Threats – managers can’t threaten that the firm will shut down a facility that votes for unionization.
� No Interrogations – managers can’t ask an employee about union organizing activities.
� No Promises – managers can’t promise employees pay or benefits rewards if they vote against union authorization.
� No Spying – managers can’t plant spies in union organizing meetings or other activities.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Labor Relations and Collective Bargaining
Labor relations are the interactions between management and unionized employees.
Collective bargaining is the negotiation process resulting in a contract between union employees and management that covers employment conditions.
A grievance is a formal complaint concerning pay, working conditions, or a violation of some other factor in a collective bargaining agreement.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Management Rights – Limiting Union Organizing Efforts
No unionization on company time – policy must be consistent with other solicitation policies and the company handbook.
Management’s position on unionization – can state how unionization will affect management/labor relationships, the firm, and employees’ pay, etc.
Change agreements and use of non-union employee representation – management can offer a “non-union employee representation” alternative to union.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Management Rights – Lockouts and
Replacement Workers
Lockouts – management stops work and
physically prevents workers from entering the
workplace.
Management may hire replacement workers,
who may replace striking workers permanently
or temporarily, in cases of economic strike.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Management Rights Decertification Elections can be held to remove a union. But:
� Not within a year of a previous attempt at decertification.
� The company cannot initiate a decertification petition or encourage a decertification petition.
� If requested by employees, management can provide information to employees regarding decertification, but cannot threaten employees or promise benefits.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Managing ConflictConflicts exist when people are in disagreement and opposition. They occur because:
� We don’t let others know our expectations and don’t ask theirs.
� We assume others have the same expectations we have.
� We don’t know our expectations until people do things in opposition to us.
Thus, it is important to share information and communicate expectations.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Functional vs. Dysfunctional Conflict
Functional conflict – helps the firm meet its goals of increased performance.
Dysfunctional conflict – prevents the from from achieving individual and organizational objectives.
�Conflict management skills can resolve conflicts and maintain relationships before conflicts become dysfunctional.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Negotiations
Negotiating is a process in which two or
more parties in conflict attempt to come to
an agreement.
�Ideally, negotiation should be viewed by
all parties as “I win some and you win
some,” rather than a win-lose situation.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
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Employee and Labor Relations
Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.
Alternative Dispute Resolution (ADR) –Mediation and ArbitrationWhen labor and management cannot resolve conflicts, ADR may be used.
A mediator is a neutral third party who helps resolve a conflict, but has no authority to impose a solution to the conflict.
An arbitrator is a neutral third party who resolves a conflict by making a bindingdecision.
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