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MGT 3500 Exam 1 Notes (aced the test and got 96%)

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MGT 3500
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Management 3500Exam One NotesThe Elements of Industrial RelationsIBasic Premise of Industrial RelationsIndustrial relations are a field of academic inquiry that looks at employee relations not just unions It differs from Human Resources because HR looks at employment relations from a management perspective and industry relations looks at management from the employer perspective Additionally states that conflict between works and management is normal and natural however it gives rise to union formationAny one characteristic that describes a person can lead to the identification of a group of people having similar interests and forming a group to protect those interests thus forming a union Unions can also form around issues for example the NFA who is a collective group of people working to protect gun usage Workers form unions based on these thoughts to ensure that collective representation in the workplace occurs Furthermore people intentionally form groups of interest unions because they see themselves as different and want to promote and protect their different views from potential conflicts occurring within society The basic premise of industrial relations is that there is an inherent conflict between workers and management and that conflict exists with or without the use of unions Unions can serve both good and bad purposes within an organization but are not always needed They are not a sign of organizational downturn rather a sign that you have different goals and objectives brewing between your current workers and management team However while workers and management may have notice mixed motives these conflicts can serve as outlets for cooperation between the two They must work to understand the conflict within the relationship before being able to correctly comprehend employee relations IIKey Elements AManagement EfficiencyCost Discipline The starting point for industrial relations is management efficiency otherwise known as cost discipline where management has the initiative to govern the workforce at all levels Each level of an organization deals with costs discipline and it is often referred to as the systematic planning control and supervision of organizational decisions according to some profit andor costs standardThus the goal of management is to achieve costs discipline at all levels of their organization resulting in capitalism which leads to profit maximization In attempts to achieve costs discipline we have realized there are both direct and indirect effects that may occur Direct effects of costs discipline are seem most clearly between employees on their compensation levels and managements concern for labor costs control Employees want to get paid more for doing less and management wants to pay less while receiving hardworking employees Any other additional input in the production process would need to be economized from management perspective providing a surplus of income over labor costs Indirectly feelings of exploitations may occur which is a result of labor management interactions because every decision they make is driven by their costs discipline concern For example management must decide on economies of scale and how big it should be the type of technology used in the production process and how to divide the organization both vertically and horizontally which are all driven by costs discipline initiatives As the organization increases in size the employers see themselves drifting away from the item they produce which leads to alienation within the organization The implementation of technology that decreases the use of employee skills also leads to feelings of monotony while organizational divisions can create feels of subordination because of what the levels represent Vertical divisions focus on specialization and are driven by limits on how much one person may know They are also hierarchical in that they hold the supervisory positions over subordinatesHorizontal divisions are dived based on specialty areas such as marketing and accounting but create competitiveness between the workforces because they compete for scarce resources due to the uncertainty of the future They do not have control over their compensation or any decision so they are uncertain about what will happen to them especially in terms of employment security The organization also becomes scaled larger thus leaving the employees to feel disconnected from their true purpose and become alienated Management does all of the above things to try and achieve costs discipline in and effort to maximize profits but it leads to various tensions which we are noticing puts managements goal in potential conflict with the goals of their workers Then workers afraid of the rising tension decide to counter these tensionsby protecting themselves from hard and form a workplace union BWork Society and Union ProtectivismA workers society is created when employees work with others that have similar job positions and are in good relationships with For example a workers society may form by employees who work near one another on the same floor and have similar job types thus sharing interests with those individuals and having similar problems and conflicts with management No one announces that a work society has formed leading it to be real informal with fairly narrow boundaries because the society is fixed geographically to coworkers nearest to them The workers society then seeks to protect its interests in the employee relationship from management as well as coworkers outside of their society by coming up with a plan to speak with them concerning multiple issues The interests of the workers society are mainly price equity effort and power represented by the acronym PEEP Price the main concern of work societies consists of the wages salary and total compensation an employee receives for their work It refers to an employees compensation in exchange for the physical labor and mental effort they exert on their jobEquity is the concern for fair treatment in the workplace where employees compare themselves to others to determine if they are getting a good deal or not It can be viewed both internally and externally by an employeeEffort is the amount of physical and mental exertion an employee is required to put forth for their job position It often links with price because the pricetoeffort exchange is very important to employees For example employees may ask themselves if the price of their labor is fair depending on how much effort they must exert to achieve that level of compensation Powers is composed of both voice and mobility Voice is the ability to be heard as an employee and if they have a say so in the decisions that are affecting them directly which most employees want a part in Mobility refers to having the flexibility as an employee to leave your current place of employment to find another job if you are unsatisfied with the present position you holdThe basic concept to PEEP is that workers in response to the decisions created through costs discipline initiatives will realize they too have interests that are separate from management and seek to protect them
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