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Aligning Strategy with Practice
Chapter 14
Learning Objectives
After reading this chapter you should be able to:
Explain the concepts of vertical and horizontal alignment.
Identify the specific human resource practices that fit within
each of the basic HR strategies.
Understand how basic competitive and HR strategies can vary,
what role human resources can play in strategy formulation, and
why human resource management is important for small
organizations.
Describe how the field of human resource management is likely
to change in upcoming years.
How Can Alignment of HR Practices Make an Organization
Effective?
Each human resource practice is in alignment when it is in its
proper place relative to other practices and strategic objectives.
Two Types of Alignment
Vertical
Horizontal
Each human resource practice is in alignment when it is in its
proper place relative to other practices and strategic objectives.
There are two basic forms of alignment that are commonly
discussed as part of strategic management.
Vertical
Horizontal
WHAT ARE TWO BASIC FORMS OF STRATEGIC
ALIGNMENT? (LO1)
Figure 14.1 Vertical and Horizontal Alignment
Vertical Alignment
Refers to the positioning of an organization’s human resource
management strategy to support the competitive business
strategy.
For example the organization might be out of vertical alignment
if it seeks to differentiate its products through innovation but
adopts a Bargain Laborer HR strategy
Horizontal Alignment
This alignment is concerned with the coordination of parts
within the organization.
In human resource management, horizontal alignment refers to
the fit of specific practices with other practices.
The selection practice of hiring team players aligns with the
performance appraisal practice of reducing competition among
employees.
The other form of fit, known as horizontal alignment, concerns
the coordination of parts within the organization.
In the specific case of human resource management, horizontal
alignment refers to the fit of specific practices with other
practices.
The selection practice of seeking employees who are likely to
be team players aligns with the performance appraisal practice
of reducing competition among employees, for example.
In contrast, practices would not be horizontally aligned if the
selection practice focused on hiring team players but the
performance appraisal practice emphasized competition and
individual achievement.
The selection practice of seeking employees who are likely to
be team players aligns with the performance appraisal practice
of reducing competition among employees,
HOW DO HR PRACTICES ALIGN WITH ONE ANOTHER?
(LO2)
Core Human Resource Practices
Core Human Resource Practices
HR Practices
WHAT ARE SOME OTHER HR ISSUES? (LO3)
Turnaround Strategy
Companies using this strategy lay off employees and look for
new approaches to production.
This strategy is compatible with an external labor orientation.
Low performers are dismissed, and new employees are hired for
their ability to change the way work is accomplished.
A Free Agent HR strategy adopted with part of a competitive
strategy emphasizes the need to turn around low organizational
performance quickly.
Turnaround strategy
Companies using this strategy employees lay off employees and
look for new approaches to production are implemented.
This strategy is usually compatible with an external labor
orientation.
Low performers are dismissed, and new employees are hired for
their ability to change the way work is accomplished.
A Free Agent HR strategy adopted with the emphasizes the need
to turn around low organizational performance quickly.
Other HR Issues
Global Expansion Strategy
Focuses specifically on growing an organization’s presence in
foreign countries.
This strategy requires organizations to attract and select
workers who are quite different from those already employed.
The human resource approach most closely aligned with the
global expansion competitive strategy is the Free Agent HR
strategy.
Other HR Issues
Growth Strategy
Is adopted by companies seeking to expand into new markets.
Growth may occur through acquisitions and mergers.
human resource management focus will be on reducing barriers
to effective integration of organizational cultures.
HR in Small Business
In small firms the emphasis on recruiting, selection,
performance appraisals, training, and compensation grow at a
faster rate than other firms.
Effective human resource management helps small
organizations innovate.
In small firms the emphasis on recruiting, selection,
performance appraisals, training, and compensation grow at a
faster rate than other firms.
Effective human resource management helps small
organizations innovate.
What Might the Future of HR Look Like?
The field of human resource management is continually
changing.
The emphasis has moved away from personnel management
designed to ensure compliance with legal requirements toward a
strategic model that links the management of people to
competitive objectives.
Challenges Facing HR
Future Trends in HR
Increase emphasis on sustainability
Growth of social networking
Balance of work and family
Volatile economic conditions
Adaptation to healthcare legistlation
Working Effectively with Labor
Chapter 13
Learning Objectives
After reading this chapter you should be able to:
Explain how unions and organized labor fit with human
resource strategies.
Describe the history of organized labor in the United States, and
explain how current trends are affecting labor unions.
Explain the steps that are involved in organizing a labor union,
and describe managerial actions that are appropriate responses
to unionization efforts.
Describe the collective bargaining process.
Explain the employee grievance process.
How Can Good Labor Relations Make an Organization
Effective?
What is a labor union?
A labor union is an organization representing the collective
interests of workers.
The interaction between the organization and the labor union is
called labor relations.
In order to gain more power, workers have often joined together
to form labor unions.
A labor union is an organization of workers who work
collectively to improve the conditions of their employment.
Interactions between employing organizations and labor unions
are called labor relations. In many—in fact, most—
organizations, employees are not organized into labor unions.
HOW ARE LABOR RELATIONS STRATEGIC? (LO1)
Organizations gain from union relations when the overall
objective is a long-term relationship with a stable workforce.
Primary objective of unions is to provide employment security
and long-term employment.
Unions also encourage organizations to provide training and
better develop the specific skills of employees.
Organizations when the overall objective is a long-term
relationship with a stable workforce.
Primary objective of unions is to provide employment security
and long-term employment.
Unions also encourage organizations to provide training and
better develop the specific skills of employees
Figure 13.1 Human Resource Strategy and Labor Unions
HOW HAS ORGANIZED LABOR EVOLVED OVER TIME?
(LO2)
Until the early 1900s, the court system generally saw
employment relationships as private agreements between an
employer and an individual laborer.
The first federal law related to labor unions is the Railway
Labor Act (RLA), passed in 1926.
The RLA regulated relationships between railroads and unions
and still regulates labor relations in the railroad and later the
airlines industry.
An early federal law related to labor unions is the Railway
Labor Act (RLA), passed in 1926.
The RLA regulated relationships between railroads and unions
and still regulates labor relations in the railroad and airline
industries.
The RLA was the first of a series of laws passed to recognize
and regulate labor unions
The United States Labor Code
The first piece of legislation in the Labor Code is the Wagner
Act, actually titled the National Labor Relations Act.
This federal law was passed in 1935 against a background of
conflict over union activities that sometimes escalated to
physical violence.
The Wagner Act specifically gives employees the right to form
and join unions and to assist unions in recruiting members and
is seen primarily as pro-union legislation.
The first piece of legislation in the Labor Code is the Wagner
Act, as known as the National Labor Relations Act.
This federal law was passed in 1935 against a background of
conflict over union activities that sometimes escalated to
physical violence.
The Wagner Act specifically gives employees the right to form
and join unions and to assist unions in recruiting members and
is seen primarily as pro-union legislation.
Unfair Labor Practices-Management
The Wagner Act prohibits management from engaging in a
number of specific actions, which were identified as Unfair
Labor Practices. Such as:
Threatening employees with loss of jobs or benefits if they join
a union
Threatening to close a plant if a union is organized
Questioning employees about union activities or membership
Spying on union gatherings
Granting wage increases deliberately timed to discourage
employees from forming a union
The Wagner Act prohibits management from engaging in a
number of specific actions, which were identified as Unfair
Labor Practices. Such as:
Threatening employees with loss of jobs or benefits if they join
a union
Threatening to close a plant if a union is organized
Questioning employees about union activities or membership
Spying on union gatherings
Granting wage increases deliberately timed to discourage
employees from forming a union
Unfair labor practices-management
National Labor Relations Board
The Wagner Act created the National Labor Relations Board
(NLRB), which enforces the Wagner Act.
The board now consists of five members who are appointed by
the president of the United States, subject to Senate approval, to
serve five-year terms.
The president also appoints a General Counsel who serves as a
prosecutor, and the NLRB serves as the judge.
A central feature of the Wagner Act was the creation of the
National Labor Relations Board (NLRB), which has the duty of
enforcing the Wagner Act.
The board now consists of five members who are appointed by
the president of the United States, subject to Senate approval, to
serve five-year terms. As part of a later provision, the president
also appoints a General Counsel.
In essence, the General Counsel serves as a prosecutor, and the
NLRB serves as the judge.
NLRB
Serves two purposes:
The first is to organize and oversee employee elections that
determine whether a union will be formed in a particular
workplace.
The second is to investigate allegations of unfair labor practices
and to provide remedies, if necessary.
Currently, 33 regional offices located in major cities across the
country carry out the work of the NLRB and the General
Counsel.
The NLRB has two specific purposes.
The first is to organize and oversee employee elections that
determine whether a union will be formed in a particular
workplace.
The second is to investigate allegations of unfair labor practices
and to provide remedies, if necessary. Currently, 33 regional
offices located in major cities across the country carry out the
work of the NLRB and the General Counsel.
Taft-Hartley Act
The Taft-Hartley Act, formally known as the Labor-
Management Relations Act, was passed in 1947.
Taft-Hartley shifted power back toward management interests
by creating a list of unfair labor practices for unions.
The act prohibits labor unions from coercing employees to join
and requires unions, like management, to bargain in good faith
Unfair Labor Practices-Unions
The following practices were made illegal by Taft-Hartley:
Mass picketing in numbers that physically bar others from
entering the plant
Threatening bodily injury to other employees
Threatening that employees will lose their jobs unless they
support the union
Entering a contract with an employer when a majority of
employees have not chosen the union
Fining or expelling members for filing unfair labor charges with
the NLRB
Unfair labor practices-unions
Taft-Hartley
The Taft-Hartley Act makes the following union practices
illegal.
Secondary boycott, which occurs when a labor union pressures
other businesses to stop purchasing goods and services from a
business with which the union has a dispute.
Featherbedding – A practice in which a union requires a
company to pay employees wages for work that is not
performed.
The Taft-Hartley Act makes the following union practices
illegal.
Secondary boycott, which occurs when a labor union pressures
other businesses to stop purchasing goods and services from a
business with which the union has a dispute.
Featherbedding,” which occurs when the union requires a
business organization to pay employees wages even though the
employees are not performing any services
Taft-Hartley
Specifically made closed shops illegal.
A closed shop hires only individuals who are members of a
particular labor union.
Other important labor distinctions:
A union shop does not require union membership as a condition
of hiring but does require employees to join the union once they
are on the job.
An agency shop does not require employees to join the union
but requires them to pay service fees to the union.
An open shop does not require employees to have any
relationship with the union.
Specifically made closed shops illegal.
A closed shop hires only individuals who are members of a
particular labor union.
Other important labor distinctions:
A union shop does not require union membership as a condition
of hiring but does require employees to join the union once they
are on the job.
An agency shop does not require employees to join the union
but requires them to pay service fees to the union.
An open shop does not require employees to have any
relationship with the union.
Right-To-Work Laws
Taft-Hartley provided states with the authority to enact right-to-
work laws.
Which allow open-shop arrangements where employees are not
required to join or contribute to a union.
Unions are not in favor of right-to-work laws.
They argue that unions provide many benefits for employees
and that nonunion employees who receive these benefits without
paying are getting a “free ride.”
Taft-Hartley provided states with the authority to enact right-to-
work laws.
Which allow open-shop arrangements. Where employees are
not required to join or contribute to a union
Unions are not in favor of right-to-work laws.
They argue that unions provide many benefits for employees
and that nonunion employees who receive these benefits without
paying are getting a “free ride.”
Figure 13.2 Right-to-Work States
Note: Notice that most states that do not have right-to-work
laws are located in the Northeast and on the West Coast.
Source: Information from National Conference of State
Legislatures at http://www.ncsl.org/issues-research/labor/right-
to-work-laws-and-bills.aspx.
Landrum-Griffin Act
The Landrum-Griffin Act, formally known as the Labor-
Management Reporting and Disclosure Act, was passed in 1959.
This act regulates the internal workings of unions and protects
union members from abuse by corrupt leaders.
The Landrum-Griffin Act, formally known as the Labor-
Management Reporting and Disclosure Act, was passed in 1959.
This act regulates the internal workings of unions and protects
union members from abuse by corrupt leaders.
Landrum-Griffin Act
A major part of the Landrum-Griffin Act is a bill of rights for
union members. These rights include the following:
All members must have equal rights to nominate and vote for
union leaders.
The union can only impose fees through democratic procedures.
All members must have the right to participate in union
meetings.
Union members who feel that their individual rights are being
violated by the union must first try to resolve their complaints
by working with the union. However, individuals who are
unsatisfied with a union’s responses to their claims can
eventually bring lawsuits against the union.
A major part of the Landrum-Griffin Act is a bill of rights for
union members. These rights include the following:
All members must have equal rights to nominate and vote for
union leaders.
The union can only impose fees through democratic procedures.
All members must have the right to participate in union
meetings.
Union members who feel that their individual rights are being
violated by the union must first try to resolve their complaints
by working with the union. However, individuals who are
unsatisfied with a union’s responses to their claims can
eventually bring lawsuits against the union.
Landrum-Griffin Act
The Landrum-Griffin Act also requires unions to report on
several aspects of their inner workings.
Unions must file copies of their constitutions and bylaws, for
example, and must report their financial activities to the
Department of Labor.
The act also makes it clear that union funds can be used only for
the benefit of the union and not for the benefit of individual
leaders.
The Landrum-Griffin Act also requires unions to report on
several aspects of their inner workings.
Unions must file copies of their constitutions and bylaws, for
example, and must report their financial activities to the
Department of Labor.
The act also makes it clear that union funds can be used only for
the benefit of the union and not for the benefit of individual
leaders
Union Membership
Union membership in the United States has been decreasing
steadily since the 1950s.
Currently 12 percent of U.S. workers are currently organized
into unions.
Representation is significantly higher in the public sector, with
almost 40 percent of the workforce organized into labor unions.
The role of unions in some countries is very different from the
role of unions in the United States.
U.S. unions focus on bread-and-butter issues, such as wages,
hours and working conditions.
Unions in many European countries focus more on political
activism. Union growth is currently highest in countries, such
as Sweden, that focus on both economic issues and political
activism.
We noted that rapid growth in unions followed passage of the
Wagner Act. Yet today, only a small fraction of workers in the
United States are represented by labor unions. Declining
membership is an important current trend in organized labor.
C>Declining Union Membership. Figure 13.3 shows how the
percentage of workers who belong to unions changed between
1950 and 2005. At the beginning of this period, over one-third
of all workers belonged to unions.
Union membership in the United States has been decreasing
steadily since the 1950s.
Currently 12 percent of U.S. workers are currently organized
into unions.
Representation is significantly higher in the public sector, with
almost 40 percent of the workforce organized into labor unions.
The role of unions in some countries is very different from the
role of unions in the United States.
U.S. unions focus on bread-and-butter issues, such as wages,
hours and working conditions.
Unions in many European countries focus more on political
activism. Union growth is currently highest in countries, such
as Sweden, that focus on both economic issues and political
activism.
Figure 13.3 Union Membership in the United States 1950-2012
Sources: Information from Labor Research Association,
accessed
online at Source: Bureau of Labor Statistics Economic News
Release, at
http://www.bls.gov/news.release/union2.nr0.htm.
Figure 13.4 Union Membership in U.S. Public and Private
Sectors, 1950-2012
Source: Bureau of Labor Statistics Economic News Release
available at http://www.bls.gov/news.release/union2.nr0.htm.
Work Force in Labor Unions
Source: From Jelle Visser, “Union Membership Statistics in 24
Countries,” Monthly Labor Review, January 2006.
Figure 13.5 Points of Emphasis for Unions
Source: Information from Joseph Ofori-Dankwa, “Murray and
Reshef Revisited: Toward a Typology/Theory of Paradigms of
National Trade Union Movements, Academy of Management
Review 18 (1993): 269-292.
HOW DO WORKERS BECOME PART OF A UNION? (LO3)
The first step in organizing a union is to demonstrate that a
sufficient number of employees are interested in joining.
This is done through an authorization card campaign, in which
employees sign cards stating that they wish to hold a secret-
ballot election to determine whether a union will be formed.
Once 30 percent of eligible workers have signed authorization
cards, a petition to hold an election can be made to the NLRB.
The first step in organizing a union is to demonstrate that a
sufficient number of employees are interested in joining.
This is done through an authorization card campaign, in which
employees sign cards stating that they wish to hold a secret-
ballot election to determine whether a union will be formed.
Signature sheets can be used in place of cards.
Once 30 percent of eligible workers have signed authorization
cards, a petition to hold an election can be made to the NLRB.
An important consideration in representation petitions is what
constitutes a bargaining unit.
A bargaining unit is defined as two or more employees who
share a “community of interest” and may be reasonably grouped
together for collective bargaining purposes. The
appropriateness of a bargaining unit is often determined by
examining job descriptions
Figure 13.6 Steps in Organizing a Union
HOW DO WORKERS BECOME PART OF A UNION?
After receiving a petition for representation, the NLRB
conducts a union certification vote – Certification Election.
This election is usually held within 50 days of the petition
filing.
The NLRB conducts the election to make sure that every
employee has the opportunity to cast a secret ballot.
Union organizers and management are prohibited from
campaigning during the election and during the 24-hour period
preceding the election.
NLRB officials normally count votes in the presence of
designated observers from both management and the union.
After receiving a petition for representation, the NLRB
conducts a union certification vote – Certification Election.
This election is usually held within 50 days of the petition
filing.
The NLRB conducts the election to make sure that every
employee has the opportunity to cast a secret ballot.
Union organizers and management are prohibited from
campaigning during the election and during the 24-hour period
preceding the election.
NLRB officials normally count votes in the presence of
designated observers from both management and the union.
Removing a Union
The Taft-Hartley Act provides guidelines for employees to end
their affiliation with the union.
A vote to remove a union is known as a decertification election.
The procedures are similar to the procedures for certifying a
union.
Individuals seeking to get rid of the union must obtain
signatures of support from at least 30 percent of employees in
the bargaining unit.
Once enough signatures have been obtained, a petition is filed
with the NLRB.
The NLRB then holds a secret-ballot election to determine if a
majority of bargaining unit employees agree that they should no
longer be represented by the labor union
The Taft-Hartley Act provides guidelines for employees to end
their affiliation with the union.
A vote to remove a union is known as a decertification election.
The procedures are similar to the procedures for certifying a
union.
Individuals seeking to get rid of the union must obtain
signatures of support from at least 30 percent of employees in
the bargaining unit.
Once enough signatures have been obtained, a petition is filed
with the NLRB.
The NLRB then holds a secret-ballot election to determine if a
majority of bargaining unit employees agree that they should no
longer be represented by the labor union
WHAT HAPPENS DURING LABOR NEGOTIATIONS AND
COLLECTIVE BARGAINING? (LO4)
The process of agreeing on a labor contract is known as
collective bargaining.
Mandatory Bargaining Topics
Wages include things such as minimum salary, bonus payments,
and benefits.
Hours focuses on work scheduling and includes holidays,
vacation time, and shifts.
Working conditions encompass safety rules, promotions,
layoffs, and grievance procedures.
The process of agreeing on a labor contract is known as
collective bargaining.
Mandatory Bargaining Topics
Wages include things such as minimum salary, bonus payments,
and benefits.
Hours focuses on work scheduling and includes holidays,
vacation time, and shifts.
Working conditions encompass safety rules, promotions,
layoffs, and grievance procedures.
Collective Bargaining Actions
Failure to reach agreement results in a work stoppage.
A work stoppage can be initiated by either the employer or the
union. Types of work stoppages:
lockout occurs when an employer shuts down operations during
a labor dispute. Members of the union are prohibited from
working and are not paid.
strike occurs when union members collectively refuse to
perform their jobs.
Striking employees may also encourage consumers or other
companies not to purchase the company’s goods or services,
which is known as a boycott.
Failure to reach agreement results in a work stoppage.
A work stoppage can be initiated by either the employer or the
union. Types of work stoppages:
lockout occurs when an employer shuts down operations during
a labor dispute. Members of the union are prohibited from
working and are not paid.
strike occurs when union members collectively refuse to
perform their jobs.
The Bargaining Atmosphere
Source: Information from Natasha Caverley, Bart Cunningham,
and Lari Mitchell, “Reflections on Public Sector-Based
Integrative Collective Bargaining,” Employee Relations 28
(2006): 62-75.
Interest-Based Negotiation
Source: Information from Federal Mediation and Conciliation
Service, Interest-Based Negotiation: Participants’ Guidebook.
Figure 13.7 Interest-Based Negotiation Process
WHAT IS THE GRIEVANCE PROCESS? (LO5)
Grievance procedures generally follow a multi-step process.
The number of steps, and the actions associated with each step,
vary across organizations.
In general, however, the steps move from informal discussions
to formal mediation.
The grievance process normally begins when an employee feels
that he or she has been treated unfairly and goes a supervisor
with this complaint.
In some cases, the initial complaint is made in writing, but in
many instances the first step is simply a verbal statement that
informs the supervisor of the concern. A majority of grievances
are resolved at this first stage.
Grievance procedures generally follow a multi-step process.
The number of steps, and the actions associated with each step,
vary across organizations. In general, however, the steps move
from informal discussions to formal mediation. The grievance
process normally begins when an employee feels that he or she
has been treated unfairly and goes a supervisor with this
complaint. In some cases, the initial complaint is made in
writing, but in many instances the first step is simply a verbal
statement that informs the supervisor of the concern. A
majority of grievances are resolved at this first stage.
The Grievance Process
The employee often obtains help at this point from the union
steward, who is a representative of the union that advocates for
employees.
From the management’s side, additional steps in the grievance
process usually involve leaders higher in the organizational
hierarchy.
Department or division managers listen to appeals, and human
resource representatives often play a supporting role.
If the grievance is not resolved at the first step, the employee
then moves to a step that involves more people.
The employee often obtains help at this point from the union
steward, who is a representative of the union that advocates for
employees.
Many unions also have a grievance committee and national
representatives who get involved if a resolution is difficult.
From management’s side, additional steps in the grievance
process usually involve leaders higher in the organizational
hierarchy.
Department or division managers listen to appeals, and human
resource representatives often play a supporting role.
Arbitration
The final step in most grievance procedures is arbitration,
which is a type of judicial process.
Management and union representatives act much like attorneys
to present facts and arguments supporting their side of the
disagreement.
The arguments are heard by an arbitrator, a neutral third party
who has a role similar to that of a judge.
After hearing the arguments, the arbitrator makes a ruling,
which is usually binding on both parties.
The final step in most grievance procedures is arbitration,
which is a type of judicial process.
Management and union representatives act much like attorneys
to present facts and arguments supporting their side of the
disagreement.
The arguments are heard by an arbitrator, a neutral third party
who has a role similar to that of a judge.
After hearing the arguments, the arbitrator makes a ruling,
which is usually binding on both parties.
Only about 2 percent of grievances actually reach the arbitration
stage.
Week 6 Discussion TemplateEthics in the Workplace
Considering the background information in the Week 6
Discussion area:
· Select a topic from this week's readings that interested you the
most. Prepare a substantive posting (200 words minimum) on
the material.
· Describe a real-world situation involving ethics that relates to
or could be addressed utilizing primary concepts from the
assigned readings. Explain how the primary concepts could
address the situation.
· Explain the ethical and legal responsibilities of employers to
both their employees and the community at large in this
situation.
Post your response by Day 4.
Your post should be approximately 200–250 words in length.
Below are three UNRELATED EXAMPLES of how to cite
within a paragraph in APA format. You need to cite resources in
your Discussion Post to support and justify your thinking:
Haag and Cummings (2003) base their information on their
experience and concepts of IT at the time, and...
The authors base their information on their experience and
concepts of IT at the time, and... (Haag & Cummings, 2003).
The authors base their information on their experience and
concepts of IT at the time. They stated that “…IT is the most
important aspect that needs attention by upper management”
(Haag & Cummings, 2003, p. 89).
Now, draft your response of at least 200–250 words below:
After you have finished addressing all elements of the
Discussion prompt, do not forget to include your references in
APA format. You will need to write the references to any
resources that you cite in your Discussion Response. Below are
examples of references, including your course text. When
complete, please copy and paste your response in the
appropriate thread in the Discussion Forum.
References
Stewart, G. L., & Brown, K. G. (2014). Human resource
management: Linking strategy to practice (3rd ed.). New York,
NY: Wiley.
Below are UNRELATED REFERENCES from a journal, a
newspaper, and Web site. These references are only intended to
illustrate correct APA formatting:
Ismail, A., Mohamad, M. H., Mohamed, H. A.-B., Rafiuddin, N.
M., & Zhen, K. W. P. (2010). Transformational and
transactional leadership styles as a predictor of individual
outcomes. Theoretical and AppliedEconomics, 17(6), 89–104.
Porter, E. (2014, May 13). The politics of income inequality.
The New York Times. Retrieved from
http://www.nytimes.com/2014/05/14/business/economy/the-
politics-of-income-
inequality.html?module=Search&mabReward=relbias%3Ar%2C
%7B%222%22%3A%22RI%3A18%22%7D
Walmart. (n.d.) Our business. Retrieved from
http://corporate.walmart.com/our-story/our-business/
© 2015 Laureate Education, Inc. Page PAGE 2 of
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Aligning Strategy with PracticeChapter 14L.docx

  • 1. Aligning Strategy with Practice Chapter 14 Learning Objectives After reading this chapter you should be able to: Explain the concepts of vertical and horizontal alignment. Identify the specific human resource practices that fit within each of the basic HR strategies. Understand how basic competitive and HR strategies can vary, what role human resources can play in strategy formulation, and why human resource management is important for small organizations. Describe how the field of human resource management is likely to change in upcoming years. How Can Alignment of HR Practices Make an Organization Effective? Each human resource practice is in alignment when it is in its proper place relative to other practices and strategic objectives. Two Types of Alignment Vertical
  • 2. Horizontal Each human resource practice is in alignment when it is in its proper place relative to other practices and strategic objectives. There are two basic forms of alignment that are commonly discussed as part of strategic management. Vertical Horizontal WHAT ARE TWO BASIC FORMS OF STRATEGIC ALIGNMENT? (LO1) Figure 14.1 Vertical and Horizontal Alignment Vertical Alignment Refers to the positioning of an organization’s human resource management strategy to support the competitive business strategy. For example the organization might be out of vertical alignment if it seeks to differentiate its products through innovation but adopts a Bargain Laborer HR strategy Horizontal Alignment
  • 3. This alignment is concerned with the coordination of parts within the organization. In human resource management, horizontal alignment refers to the fit of specific practices with other practices. The selection practice of hiring team players aligns with the performance appraisal practice of reducing competition among employees. The other form of fit, known as horizontal alignment, concerns the coordination of parts within the organization. In the specific case of human resource management, horizontal alignment refers to the fit of specific practices with other practices. The selection practice of seeking employees who are likely to be team players aligns with the performance appraisal practice of reducing competition among employees, for example. In contrast, practices would not be horizontally aligned if the selection practice focused on hiring team players but the performance appraisal practice emphasized competition and individual achievement. The selection practice of seeking employees who are likely to be team players aligns with the performance appraisal practice of reducing competition among employees, HOW DO HR PRACTICES ALIGN WITH ONE ANOTHER? (LO2)
  • 4. Core Human Resource Practices Core Human Resource Practices HR Practices WHAT ARE SOME OTHER HR ISSUES? (LO3) Turnaround Strategy Companies using this strategy lay off employees and look for new approaches to production. This strategy is compatible with an external labor orientation. Low performers are dismissed, and new employees are hired for their ability to change the way work is accomplished. A Free Agent HR strategy adopted with part of a competitive strategy emphasizes the need to turn around low organizational performance quickly.
  • 5. Turnaround strategy Companies using this strategy employees lay off employees and look for new approaches to production are implemented. This strategy is usually compatible with an external labor orientation. Low performers are dismissed, and new employees are hired for their ability to change the way work is accomplished. A Free Agent HR strategy adopted with the emphasizes the need to turn around low organizational performance quickly. Other HR Issues Global Expansion Strategy Focuses specifically on growing an organization’s presence in foreign countries. This strategy requires organizations to attract and select workers who are quite different from those already employed. The human resource approach most closely aligned with the global expansion competitive strategy is the Free Agent HR strategy. Other HR Issues Growth Strategy Is adopted by companies seeking to expand into new markets. Growth may occur through acquisitions and mergers. human resource management focus will be on reducing barriers to effective integration of organizational cultures.
  • 6. HR in Small Business In small firms the emphasis on recruiting, selection, performance appraisals, training, and compensation grow at a faster rate than other firms. Effective human resource management helps small organizations innovate. In small firms the emphasis on recruiting, selection, performance appraisals, training, and compensation grow at a faster rate than other firms. Effective human resource management helps small organizations innovate. What Might the Future of HR Look Like? The field of human resource management is continually changing. The emphasis has moved away from personnel management designed to ensure compliance with legal requirements toward a strategic model that links the management of people to competitive objectives. Challenges Facing HR
  • 7. Future Trends in HR Increase emphasis on sustainability Growth of social networking Balance of work and family Volatile economic conditions Adaptation to healthcare legistlation Working Effectively with Labor Chapter 13 Learning Objectives After reading this chapter you should be able to: Explain how unions and organized labor fit with human resource strategies. Describe the history of organized labor in the United States, and explain how current trends are affecting labor unions. Explain the steps that are involved in organizing a labor union, and describe managerial actions that are appropriate responses to unionization efforts.
  • 8. Describe the collective bargaining process. Explain the employee grievance process. How Can Good Labor Relations Make an Organization Effective? What is a labor union? A labor union is an organization representing the collective interests of workers. The interaction between the organization and the labor union is called labor relations. In order to gain more power, workers have often joined together to form labor unions. A labor union is an organization of workers who work collectively to improve the conditions of their employment. Interactions between employing organizations and labor unions are called labor relations. In many—in fact, most— organizations, employees are not organized into labor unions. HOW ARE LABOR RELATIONS STRATEGIC? (LO1) Organizations gain from union relations when the overall objective is a long-term relationship with a stable workforce. Primary objective of unions is to provide employment security and long-term employment. Unions also encourage organizations to provide training and better develop the specific skills of employees.
  • 9. Organizations when the overall objective is a long-term relationship with a stable workforce. Primary objective of unions is to provide employment security and long-term employment. Unions also encourage organizations to provide training and better develop the specific skills of employees Figure 13.1 Human Resource Strategy and Labor Unions HOW HAS ORGANIZED LABOR EVOLVED OVER TIME? (LO2) Until the early 1900s, the court system generally saw employment relationships as private agreements between an employer and an individual laborer. The first federal law related to labor unions is the Railway Labor Act (RLA), passed in 1926. The RLA regulated relationships between railroads and unions and still regulates labor relations in the railroad and later the airlines industry. An early federal law related to labor unions is the Railway
  • 10. Labor Act (RLA), passed in 1926. The RLA regulated relationships between railroads and unions and still regulates labor relations in the railroad and airline industries. The RLA was the first of a series of laws passed to recognize and regulate labor unions The United States Labor Code The first piece of legislation in the Labor Code is the Wagner Act, actually titled the National Labor Relations Act. This federal law was passed in 1935 against a background of conflict over union activities that sometimes escalated to physical violence. The Wagner Act specifically gives employees the right to form and join unions and to assist unions in recruiting members and is seen primarily as pro-union legislation. The first piece of legislation in the Labor Code is the Wagner Act, as known as the National Labor Relations Act. This federal law was passed in 1935 against a background of conflict over union activities that sometimes escalated to physical violence. The Wagner Act specifically gives employees the right to form and join unions and to assist unions in recruiting members and is seen primarily as pro-union legislation. Unfair Labor Practices-Management The Wagner Act prohibits management from engaging in a number of specific actions, which were identified as Unfair Labor Practices. Such as: Threatening employees with loss of jobs or benefits if they join
  • 11. a union Threatening to close a plant if a union is organized Questioning employees about union activities or membership Spying on union gatherings Granting wage increases deliberately timed to discourage employees from forming a union The Wagner Act prohibits management from engaging in a number of specific actions, which were identified as Unfair Labor Practices. Such as: Threatening employees with loss of jobs or benefits if they join a union Threatening to close a plant if a union is organized Questioning employees about union activities or membership Spying on union gatherings Granting wage increases deliberately timed to discourage employees from forming a union Unfair labor practices-management National Labor Relations Board The Wagner Act created the National Labor Relations Board (NLRB), which enforces the Wagner Act. The board now consists of five members who are appointed by the president of the United States, subject to Senate approval, to
  • 12. serve five-year terms. The president also appoints a General Counsel who serves as a prosecutor, and the NLRB serves as the judge. A central feature of the Wagner Act was the creation of the National Labor Relations Board (NLRB), which has the duty of enforcing the Wagner Act. The board now consists of five members who are appointed by the president of the United States, subject to Senate approval, to serve five-year terms. As part of a later provision, the president also appoints a General Counsel. In essence, the General Counsel serves as a prosecutor, and the NLRB serves as the judge. NLRB Serves two purposes: The first is to organize and oversee employee elections that determine whether a union will be formed in a particular workplace. The second is to investigate allegations of unfair labor practices and to provide remedies, if necessary. Currently, 33 regional offices located in major cities across the country carry out the work of the NLRB and the General Counsel.
  • 13. The NLRB has two specific purposes. The first is to organize and oversee employee elections that determine whether a union will be formed in a particular workplace. The second is to investigate allegations of unfair labor practices and to provide remedies, if necessary. Currently, 33 regional offices located in major cities across the country carry out the work of the NLRB and the General Counsel. Taft-Hartley Act The Taft-Hartley Act, formally known as the Labor- Management Relations Act, was passed in 1947. Taft-Hartley shifted power back toward management interests by creating a list of unfair labor practices for unions. The act prohibits labor unions from coercing employees to join and requires unions, like management, to bargain in good faith Unfair Labor Practices-Unions The following practices were made illegal by Taft-Hartley: Mass picketing in numbers that physically bar others from entering the plant Threatening bodily injury to other employees Threatening that employees will lose their jobs unless they support the union Entering a contract with an employer when a majority of employees have not chosen the union Fining or expelling members for filing unfair labor charges with the NLRB
  • 14. Unfair labor practices-unions Taft-Hartley The Taft-Hartley Act makes the following union practices illegal. Secondary boycott, which occurs when a labor union pressures other businesses to stop purchasing goods and services from a business with which the union has a dispute. Featherbedding – A practice in which a union requires a company to pay employees wages for work that is not performed. The Taft-Hartley Act makes the following union practices illegal. Secondary boycott, which occurs when a labor union pressures other businesses to stop purchasing goods and services from a business with which the union has a dispute. Featherbedding,” which occurs when the union requires a business organization to pay employees wages even though the employees are not performing any services Taft-Hartley Specifically made closed shops illegal. A closed shop hires only individuals who are members of a particular labor union.
  • 15. Other important labor distinctions: A union shop does not require union membership as a condition of hiring but does require employees to join the union once they are on the job. An agency shop does not require employees to join the union but requires them to pay service fees to the union. An open shop does not require employees to have any relationship with the union. Specifically made closed shops illegal. A closed shop hires only individuals who are members of a particular labor union. Other important labor distinctions: A union shop does not require union membership as a condition of hiring but does require employees to join the union once they are on the job. An agency shop does not require employees to join the union but requires them to pay service fees to the union. An open shop does not require employees to have any relationship with the union. Right-To-Work Laws Taft-Hartley provided states with the authority to enact right-to- work laws. Which allow open-shop arrangements where employees are not required to join or contribute to a union. Unions are not in favor of right-to-work laws. They argue that unions provide many benefits for employees and that nonunion employees who receive these benefits without paying are getting a “free ride.”
  • 16. Taft-Hartley provided states with the authority to enact right-to- work laws. Which allow open-shop arrangements. Where employees are not required to join or contribute to a union Unions are not in favor of right-to-work laws. They argue that unions provide many benefits for employees and that nonunion employees who receive these benefits without paying are getting a “free ride.” Figure 13.2 Right-to-Work States Note: Notice that most states that do not have right-to-work laws are located in the Northeast and on the West Coast. Source: Information from National Conference of State Legislatures at http://www.ncsl.org/issues-research/labor/right- to-work-laws-and-bills.aspx. Landrum-Griffin Act The Landrum-Griffin Act, formally known as the Labor- Management Reporting and Disclosure Act, was passed in 1959. This act regulates the internal workings of unions and protects union members from abuse by corrupt leaders.
  • 17. The Landrum-Griffin Act, formally known as the Labor- Management Reporting and Disclosure Act, was passed in 1959. This act regulates the internal workings of unions and protects union members from abuse by corrupt leaders. Landrum-Griffin Act A major part of the Landrum-Griffin Act is a bill of rights for union members. These rights include the following: All members must have equal rights to nominate and vote for union leaders. The union can only impose fees through democratic procedures. All members must have the right to participate in union meetings. Union members who feel that their individual rights are being violated by the union must first try to resolve their complaints by working with the union. However, individuals who are unsatisfied with a union’s responses to their claims can eventually bring lawsuits against the union. A major part of the Landrum-Griffin Act is a bill of rights for union members. These rights include the following: All members must have equal rights to nominate and vote for union leaders. The union can only impose fees through democratic procedures. All members must have the right to participate in union meetings.
  • 18. Union members who feel that their individual rights are being violated by the union must first try to resolve their complaints by working with the union. However, individuals who are unsatisfied with a union’s responses to their claims can eventually bring lawsuits against the union. Landrum-Griffin Act The Landrum-Griffin Act also requires unions to report on several aspects of their inner workings. Unions must file copies of their constitutions and bylaws, for example, and must report their financial activities to the Department of Labor. The act also makes it clear that union funds can be used only for the benefit of the union and not for the benefit of individual leaders. The Landrum-Griffin Act also requires unions to report on several aspects of their inner workings. Unions must file copies of their constitutions and bylaws, for example, and must report their financial activities to the Department of Labor. The act also makes it clear that union funds can be used only for the benefit of the union and not for the benefit of individual leaders Union Membership Union membership in the United States has been decreasing steadily since the 1950s. Currently 12 percent of U.S. workers are currently organized into unions. Representation is significantly higher in the public sector, with
  • 19. almost 40 percent of the workforce organized into labor unions. The role of unions in some countries is very different from the role of unions in the United States. U.S. unions focus on bread-and-butter issues, such as wages, hours and working conditions. Unions in many European countries focus more on political activism. Union growth is currently highest in countries, such as Sweden, that focus on both economic issues and political activism. We noted that rapid growth in unions followed passage of the Wagner Act. Yet today, only a small fraction of workers in the United States are represented by labor unions. Declining membership is an important current trend in organized labor. C>Declining Union Membership. Figure 13.3 shows how the percentage of workers who belong to unions changed between 1950 and 2005. At the beginning of this period, over one-third of all workers belonged to unions. Union membership in the United States has been decreasing steadily since the 1950s. Currently 12 percent of U.S. workers are currently organized into unions. Representation is significantly higher in the public sector, with almost 40 percent of the workforce organized into labor unions. The role of unions in some countries is very different from the role of unions in the United States. U.S. unions focus on bread-and-butter issues, such as wages, hours and working conditions. Unions in many European countries focus more on political activism. Union growth is currently highest in countries, such as Sweden, that focus on both economic issues and political
  • 20. activism. Figure 13.3 Union Membership in the United States 1950-2012 Sources: Information from Labor Research Association, accessed online at Source: Bureau of Labor Statistics Economic News Release, at http://www.bls.gov/news.release/union2.nr0.htm. Figure 13.4 Union Membership in U.S. Public and Private Sectors, 1950-2012 Source: Bureau of Labor Statistics Economic News Release available at http://www.bls.gov/news.release/union2.nr0.htm. Work Force in Labor Unions
  • 21. Source: From Jelle Visser, “Union Membership Statistics in 24 Countries,” Monthly Labor Review, January 2006. Figure 13.5 Points of Emphasis for Unions Source: Information from Joseph Ofori-Dankwa, “Murray and Reshef Revisited: Toward a Typology/Theory of Paradigms of National Trade Union Movements, Academy of Management Review 18 (1993): 269-292. HOW DO WORKERS BECOME PART OF A UNION? (LO3) The first step in organizing a union is to demonstrate that a sufficient number of employees are interested in joining. This is done through an authorization card campaign, in which employees sign cards stating that they wish to hold a secret- ballot election to determine whether a union will be formed. Once 30 percent of eligible workers have signed authorization cards, a petition to hold an election can be made to the NLRB. The first step in organizing a union is to demonstrate that a sufficient number of employees are interested in joining. This is done through an authorization card campaign, in which employees sign cards stating that they wish to hold a secret- ballot election to determine whether a union will be formed. Signature sheets can be used in place of cards.
  • 22. Once 30 percent of eligible workers have signed authorization cards, a petition to hold an election can be made to the NLRB. An important consideration in representation petitions is what constitutes a bargaining unit. A bargaining unit is defined as two or more employees who share a “community of interest” and may be reasonably grouped together for collective bargaining purposes. The appropriateness of a bargaining unit is often determined by examining job descriptions Figure 13.6 Steps in Organizing a Union HOW DO WORKERS BECOME PART OF A UNION? After receiving a petition for representation, the NLRB conducts a union certification vote – Certification Election. This election is usually held within 50 days of the petition filing. The NLRB conducts the election to make sure that every employee has the opportunity to cast a secret ballot. Union organizers and management are prohibited from campaigning during the election and during the 24-hour period preceding the election. NLRB officials normally count votes in the presence of designated observers from both management and the union. After receiving a petition for representation, the NLRB
  • 23. conducts a union certification vote – Certification Election. This election is usually held within 50 days of the petition filing. The NLRB conducts the election to make sure that every employee has the opportunity to cast a secret ballot. Union organizers and management are prohibited from campaigning during the election and during the 24-hour period preceding the election. NLRB officials normally count votes in the presence of designated observers from both management and the union. Removing a Union The Taft-Hartley Act provides guidelines for employees to end their affiliation with the union. A vote to remove a union is known as a decertification election. The procedures are similar to the procedures for certifying a union. Individuals seeking to get rid of the union must obtain signatures of support from at least 30 percent of employees in the bargaining unit. Once enough signatures have been obtained, a petition is filed with the NLRB. The NLRB then holds a secret-ballot election to determine if a majority of bargaining unit employees agree that they should no longer be represented by the labor union The Taft-Hartley Act provides guidelines for employees to end their affiliation with the union. A vote to remove a union is known as a decertification election. The procedures are similar to the procedures for certifying a union.
  • 24. Individuals seeking to get rid of the union must obtain signatures of support from at least 30 percent of employees in the bargaining unit. Once enough signatures have been obtained, a petition is filed with the NLRB. The NLRB then holds a secret-ballot election to determine if a majority of bargaining unit employees agree that they should no longer be represented by the labor union WHAT HAPPENS DURING LABOR NEGOTIATIONS AND COLLECTIVE BARGAINING? (LO4) The process of agreeing on a labor contract is known as collective bargaining. Mandatory Bargaining Topics Wages include things such as minimum salary, bonus payments, and benefits. Hours focuses on work scheduling and includes holidays, vacation time, and shifts. Working conditions encompass safety rules, promotions, layoffs, and grievance procedures. The process of agreeing on a labor contract is known as collective bargaining. Mandatory Bargaining Topics Wages include things such as minimum salary, bonus payments, and benefits. Hours focuses on work scheduling and includes holidays, vacation time, and shifts. Working conditions encompass safety rules, promotions, layoffs, and grievance procedures.
  • 25. Collective Bargaining Actions Failure to reach agreement results in a work stoppage. A work stoppage can be initiated by either the employer or the union. Types of work stoppages: lockout occurs when an employer shuts down operations during a labor dispute. Members of the union are prohibited from working and are not paid. strike occurs when union members collectively refuse to perform their jobs. Striking employees may also encourage consumers or other companies not to purchase the company’s goods or services, which is known as a boycott. Failure to reach agreement results in a work stoppage. A work stoppage can be initiated by either the employer or the union. Types of work stoppages: lockout occurs when an employer shuts down operations during a labor dispute. Members of the union are prohibited from working and are not paid. strike occurs when union members collectively refuse to perform their jobs. The Bargaining Atmosphere Source: Information from Natasha Caverley, Bart Cunningham,
  • 26. and Lari Mitchell, “Reflections on Public Sector-Based Integrative Collective Bargaining,” Employee Relations 28 (2006): 62-75. Interest-Based Negotiation Source: Information from Federal Mediation and Conciliation Service, Interest-Based Negotiation: Participants’ Guidebook. Figure 13.7 Interest-Based Negotiation Process WHAT IS THE GRIEVANCE PROCESS? (LO5) Grievance procedures generally follow a multi-step process. The number of steps, and the actions associated with each step, vary across organizations. In general, however, the steps move from informal discussions to formal mediation. The grievance process normally begins when an employee feels that he or she has been treated unfairly and goes a supervisor with this complaint. In some cases, the initial complaint is made in writing, but in many instances the first step is simply a verbal statement that informs the supervisor of the concern. A majority of grievances are resolved at this first stage.
  • 27. Grievance procedures generally follow a multi-step process. The number of steps, and the actions associated with each step, vary across organizations. In general, however, the steps move from informal discussions to formal mediation. The grievance process normally begins when an employee feels that he or she has been treated unfairly and goes a supervisor with this complaint. In some cases, the initial complaint is made in writing, but in many instances the first step is simply a verbal statement that informs the supervisor of the concern. A majority of grievances are resolved at this first stage. The Grievance Process The employee often obtains help at this point from the union steward, who is a representative of the union that advocates for employees. From the management’s side, additional steps in the grievance process usually involve leaders higher in the organizational hierarchy. Department or division managers listen to appeals, and human resource representatives often play a supporting role. If the grievance is not resolved at the first step, the employee then moves to a step that involves more people. The employee often obtains help at this point from the union steward, who is a representative of the union that advocates for employees.
  • 28. Many unions also have a grievance committee and national representatives who get involved if a resolution is difficult. From management’s side, additional steps in the grievance process usually involve leaders higher in the organizational hierarchy. Department or division managers listen to appeals, and human resource representatives often play a supporting role. Arbitration The final step in most grievance procedures is arbitration, which is a type of judicial process. Management and union representatives act much like attorneys to present facts and arguments supporting their side of the disagreement. The arguments are heard by an arbitrator, a neutral third party who has a role similar to that of a judge. After hearing the arguments, the arbitrator makes a ruling, which is usually binding on both parties. The final step in most grievance procedures is arbitration, which is a type of judicial process. Management and union representatives act much like attorneys to present facts and arguments supporting their side of the disagreement. The arguments are heard by an arbitrator, a neutral third party who has a role similar to that of a judge. After hearing the arguments, the arbitrator makes a ruling, which is usually binding on both parties. Only about 2 percent of grievances actually reach the arbitration stage.
  • 29. Week 6 Discussion TemplateEthics in the Workplace Considering the background information in the Week 6 Discussion area: · Select a topic from this week's readings that interested you the most. Prepare a substantive posting (200 words minimum) on the material. · Describe a real-world situation involving ethics that relates to or could be addressed utilizing primary concepts from the assigned readings. Explain how the primary concepts could address the situation. · Explain the ethical and legal responsibilities of employers to both their employees and the community at large in this situation. Post your response by Day 4. Your post should be approximately 200–250 words in length. Below are three UNRELATED EXAMPLES of how to cite within a paragraph in APA format. You need to cite resources in your Discussion Post to support and justify your thinking: Haag and Cummings (2003) base their information on their experience and concepts of IT at the time, and... The authors base their information on their experience and concepts of IT at the time, and... (Haag & Cummings, 2003). The authors base their information on their experience and concepts of IT at the time. They stated that “…IT is the most important aspect that needs attention by upper management” (Haag & Cummings, 2003, p. 89). Now, draft your response of at least 200–250 words below:
  • 30. After you have finished addressing all elements of the Discussion prompt, do not forget to include your references in APA format. You will need to write the references to any resources that you cite in your Discussion Response. Below are examples of references, including your course text. When complete, please copy and paste your response in the appropriate thread in the Discussion Forum. References Stewart, G. L., & Brown, K. G. (2014). Human resource management: Linking strategy to practice (3rd ed.). New York, NY: Wiley. Below are UNRELATED REFERENCES from a journal, a newspaper, and Web site. These references are only intended to illustrate correct APA formatting: Ismail, A., Mohamad, M. H., Mohamed, H. A.-B., Rafiuddin, N. M., & Zhen, K. W. P. (2010). Transformational and transactional leadership styles as a predictor of individual outcomes. Theoretical and AppliedEconomics, 17(6), 89–104. Porter, E. (2014, May 13). The politics of income inequality. The New York Times. Retrieved from http://www.nytimes.com/2014/05/14/business/economy/the- politics-of-income- inequality.html?module=Search&mabReward=relbias%3Ar%2C %7B%222%22%3A%22RI%3A18%22%7D Walmart. (n.d.) Our business. Retrieved from http://corporate.walmart.com/our-story/our-business/ © 2015 Laureate Education, Inc. Page PAGE 2 of NUMPAGES 2