MGHC53H3 Chapter 6: The Management Perspective (Hebdon & Brown)

8 Pages
Unlock Document

Management (MGH)

H&B - Chapter 6: The Management Perspective: The Evolving Managerial View: - Most significant perspectives that have influenced managerial thinking o The master-servant relationship o Scientific management o Human relations o Human resources management (HRM) Master-servant relationship - Early employment relationship  significant power imbalance o Employment relationship  a contractual agreement whereby the employee was obligated to perform work and the employer was required to pay wages o Worker forced into agreeing to employment terms and conditions (i.e. illegal to quit, bargain collectively or to form a union) - Master-servant relationship – the essence of the common-law employment relationship pertaining to non- union workplaces - Rarely interference by courts and usually in employers’ favour if there was - Labour viewed as a commodity - Little ramification (consequence/complication) to the employer - Limited consideration of the employee - Marginal court protection of the employee - Sparked the movement of organized labour in a balance of power between mgmt. and labour Scientific management (Taylorism) - Industrial Revolution  movement toward large-scale workplaces employing large groups of workers - Focus on mass production via assembly lines o Large # of tasks to becoming specialists in a small # of tasks (or even a single task)  task specialization - Task specialization started in early 1900s because of Frederick Taylor’s theory of scientific mgmt. o Work should be divided into simple tasks, and workers should be trained to perform a small # of these simple tasks o Managers should perform all planning and decision-making tasks while workers merely perform simple tasks in accordance with the plans and decisions made by mgmt. - Elements of master-servant relationship remained - Employee seen as an extension of the machines they ran - Goal was to reduce costs by making the production line (and those running it) as efficient as possible Human relations - Human relations – a managerial view that believes that effective mgmt. practices can minimize the conflict between managers and employees o Movement in the 1930s as a more enlightened approach to mgmt. o Influenced by Elton Mayo and the Human Relations School he founded (known for the Hawthorne studies) - Focused heavily on the role of effective leadership as a way to improve the workplace - Hawthorne studies o Effects of lighting, breaks, and other factors on plant workers’ productivity o Productivity found to increase dependent on the work environment, and the social needs and satisfaction of workers - Criticized by the labour movement as anti-union o May have started by the human relations school o Found ways to improve the relationship between workers and mgmt. without reducing managerial control o Disagreement  some unionists embraced human relations concepts Human resources management (HRM) - Concepts came from the human relations school and the field of organizational behaviour (OB) - Core  relationship between individual employees and their employers (mgmt.) - HRM profession seeks to balance the need for fairness in workplace procedures with the organization’s need to remain efficient and productive - Attempts to achieve competing goals by minimizing the elements of o Industrial democracy (democratic processes in the workplace  not collective representation) o Conflict between mgmt. and worker - Barbash’s seminal equity-efficient theory  theoretical link between the HRM and traditional IR perspectives o Efficiency in terms of the organizational outputs  focused on the needs of the organization o Equity in terms of fair or ethical treatment of employers by employees ▪ Employees need to have a say in the work they perform (voice) ▪ Employees require due process in the handling of complaints ▪ Employees are entitled to fair treatment at work ▪ Employees are entitled to meaningful work ▪ Employees need fair compensation and secure employment o Collective agreement terms protect employees from exploitation, inconsistent mgmt. practices, and potentially unsafe work practices while still assuring that the operation remains financially viable - Barbash argued that mgmt. itself could introduce equity through HRM practices o Organizational justice – employees’ perception of fair treatment at work ▪ Distributive justice – employees’ perception of fairness in workplace outcomes and decisions ▪ Procedural justice – employees’ perception of fairness in workplace procedures • Mirrors Dunlop’s concepts of procedural rules (rules concerning processes and procedures) ▪ Interactional justice – employees’ perceptions of the fairness of interpersonal interactions and exchanges • Mirrors Dunlop’s concepts of substantive rules (rules concerning the outcomes) - Not anti-union The Growing Role of Mgmt. The strategic choice framework - Kochan, Katz, McKersie (1986) focused on the role of mgmt.  mgmt. as the driving force in transforming the IR system - # of trends in the U.S. from 1960s to 1980s o Rapid decline in the # of unionized workers o Large # of employers opening new locations in largely non-union areas or states o Large # of plant and business closures in the more heavily unionized states o Decreased capital expenditures in non-unionized vs. unionized plants o Shift of products from union to non-union plants o Movement toward “union-free” workplaces (i.e. HRM strategies to avoid unionization; value of unionization provided by the employer already) - 1980s in the U.S.  anti-union trends in the National Labour Relations Board and the gov’t o Appointment of “employer-friendly” and “anti-union” members to the NLRB o Pro-mgmt./anti-union approach to labour relations by political leaders and gov’ts of the time - Trends questioned Dunlop’s (1958) concept of shared ideology o Actors of mgmt. and gov’t were questioning, if not reducing, the role of labour - Strategic choice framework – a view that emphasizes the role of mgmt. and strategies in the industrial relations system o IR decisions are made at 3 levels (business level; collective bargaining level; day-to-day workplace level) o Effective strategies require these 3 levels to work in 1 direction in order to achieve major goals ▪ Strategic choices must be designed to achieve a significant goal, planned and executed from the highest level, and must have a LT focus o Strategic choices can have a longer-term impact on all actors and the IR system ▪ Strategic choice of one actor can impact the other actors and the IR system Strategic choice and Canada - Arguments concerning the potential for “non-union” IR system in Canada arose shortly after the release of Kochan et al.’s publish o Canada has historically followed the IR trends of the US o # of multinational corporations that are HQ-ed in the U.S. and operate in Canada will encourage a similar transition here in Canada o Low level of union density in the private sector o Increased global competition will encourage employers to avoid the increased wage and benefit costs associated with unionization o Progressive HRM techniques may result in employees no longer seeing significant advantages to unionization, making such workers difficult to organize o Rise in largely non-unionized industries (e.g. retail, business services) o Gov’ts are taking actions that may be seen as “pro-mgmt.” (i.e. wages and benefits in back-to-work legislation, or threaten to use such legislation to end a strike) - Arguments that Canada will not see a shift from unionization o Union density rate in Canada still remains in the 30% range with limited evidence of a radical drop o Highly unionized public sector shows little likelihood of becoming union-free o Unions focusing efforts with youth and union drives - Arguments for a movement to a non-union system in some sectors of the economy but not others o Chaykowski and Verma (1992) suggests that in heavily unionized industries and in the public sector, we are unlikely to see the movement to a union-free model o Private sector and in largely non-union industries may see trends toward union-free workplaces (more external environment pressures like increased competition and global trade) Industrial Relations and Business Strategies - Business/organizational strategy process includes 4 phases o Assessment of the external and internal environments  SWOT analysis o Strategy formation ▪ Based on the SWOT analysis, development of the mission statement will follow to map out the organization’s overall purpose ▪ Break the mission statement into specific performance goals to determine a more targeted direction (i.e. SMART goals) ▪ Firm will develop strategies to achieve these performance goals o Strategy implementation o Strategy evaluation ▪ Effectiveness? What factors impacted the success or lack of success of the IR strategy? ▪ Post-evaluation and the refinement of the strategy and a restart of the previous steps - Need to examine the fit of its strategy with its overall people-mgmt. strategy - Strategic HRM – managing HRM philosophies, policies, and practices in a manner that supports the achievement of the organizational strategy o Overall HR philosophy  defines values of the organization as it related to employees and HR issues o Specific policies  formal policies and guidelines that can outline/constrain specific HR strategies o Specific practices Management strategies related to unions - Effectiveness of HRM includes analysis of IR and of the organization’s strategy in relation with labour relations and unionization - Thompson (1995) identified 4 specific mgmt. strategies related to unions o Union acceptance o Union resistance o Union removal o Union substitution - Union acceptance – mgmt.’s seeing unionization as a democratic right, and accepting that part, if not all, of its operations will be unionized o Unionization is somewhat inevitable o Doesn’t mean that mgmt. will give up control of the operation to the union o Goal for mgmt.  obtain the best deal that it can to meet its operational needs - Union resistance – a mgmt. policy seeking to limit the spread of unions in the firm o Mgmt. accepts the right of employees to organize and may follow a union-acceptance strategy in the parts of the organization that are currently unionized o Mgmt. will oppose any further unionization of its workforce (i.e. active opposition to union drives and challenging certification procedures; illegal behaviours) - Union removal (union busting) – a mgmt. strategy designed to remove the union from the workplace o Unionized workplaces  mgmt. endeavours to ensure tat unionized employees’ working conditions, wages, and benefits are not superior
More Less

Related notes for MGHC53H3

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.