Organization of employees, collectively acting, searching to promote & protect their mutual interests through collective bargaining is known as labor union.
The most important influence of a union on the management of human resources is its effects on shaping HRM policies. The business organization may build all HRM policies on the basis of efficiency in the absence of a union.
Objectives of Labor Union
Following are the objectives of union.
- If possible, to improve and secure economic status and living standards of its members.
- If possible, to guarantee and enhance individual security contingencies and threats that might result from technological change, market fluctuations and management decisions.
- To affect power relations in the social system in a manner that does not threaten and favor union goals and gains.
- To progress the benefit of all workers who work for living either union members or not.
- To develop mechanisms to secure against the employment of capricious & arbitrary policies & practices in the workplace.
Factors Leading to Employee Unionization
Following are the four types of factors that lead to employee unionization.
Working Environment
Mandatory overtime, Inadequate staffing, Poor working conditions
Compensation
Inadequate benefits, Non-competitive pay, Inequitable pay raises.
Management Style
Use of fear, Arbitrary management decision making, Lack of recognition
Organization Treatment
Unfair discipline & policies, Job insecurity, not responsive to complaints, Harassment and abusive treatment
Why Employees Join Labor Unions
There are many various reasons due to which individuals join unions and these reasons tens to alter over time.
See Also: What is Compensation in HRM
They may involve requirement for a social outlet, dissatisfaction with management, forced unionization opportunity for leadership and peer pressure.
An organization that shows workers interest to management on problems like hours, wages and working conditions is termed as union. Usually, workers search to join a union when they
- Feel a deficiency of influence or power with management in terms of making alterations.
- Are they not satisfied with aspects of their work?
- Consider unionization as solution to their issues
Dissatisfaction with Management
Issues in the organizations are looked by the unions which then emphasize the benefits of union membership as a source to solve those issues.
The management and labor corporation is foster by using restraint by management along with employing its power in order to benefit all the concerned. Following are some reasons for employee dissatisfaction.
Compensation: Employees may look for a union when they are not satisfied with their wages in order to improve their standard of living.
Job Security: Employees may turn to a union if a business organization does not give them with a sense of job security. Due to decline in employment in such key industries like rubber, automobile and steel, workers are more concerned than ever about job security.
Management Attitude: Workers do not feel good to be subjected to capricious and arbitrary actions by management. The management is insensitive to the requirements of its workers in some business organizations.
See Also: Methods of Performance Appraisal
Under such circumstances, workers may perceive that they have no or little effect on the work-related matters, thus becoming prime targets for unionization.
A Social Outlet
Many persons have strong social requirements. The sense of solidarity can be enhanced through union-sponsored recreational and social activities, other services and day care centers.
Opportunity for Leadership
Leaders are mostly promoted to managerial level as supervisors by the workers.
Forced Unionization
It is not legal for management to need that a person joins union before its employment.
Peer Pressure
Because many people are forced to join the union by the members of their workgroup, therefore they join the union.
The Impact of Labor Unions on Human Resource Management
On the basis of efficiency, managers are more likely to build their HRM policies. But employee preferences must be reflected as well when union comes into the picture.
Workers have preferences associated to employee development, staffing, employee relations and compensation.
Staffing
How jobs are filled and on what basis they are filled, are dictated by the contract.
Employee Development
In unionized organizations performance evaluations are rarely used. However, there is mostly an enhanced amount of worker training.
Compensation
10% to 20% higher wages are earned by union employees on average as compared to non-union employees.
Merit pay plans are avoided to be used in unionized organizations and instead these organizations provide across-the-board pay raises to workers on the basis of market considerations.
Employee Relations
Specific rights are given to employees by the labor contract. Through collective bargaining process, workers have a voice in the development of work rules that influence their work.
