Question

Group work #2 Case Study The "XYZ company decided to implement a new performance management system based on employees' performance and merit. During its 50 years of existence, the company practiced "paternalistic" HRM system with the following features: Jobs, not skills or performance, are the foundations of HR decisions Performance appraisal does not take into account the merit of the employees Compensation system is based on jobs rather than performance or skills . The new performance management system was decided by the top management in response to growing competitive pressures. Indeed, the company is paying colossal amounts of salaries while the overall performance of employees remains largely under the market average The 650 employees of "XYZ" received an email from the HR Director. The email reads: Dear esteemed employees, kimdly be informed that we will be implementing a new performance management system based on performance. This is for your strier adherence. Warmest Regards Obviously confused, the employees didn't understand the rationale for the new system. Besides, they think that the current system is working well. Some of them attempted a direct communication with the HR Director who referred them to their line managers. When solicited by their subordinates, line managers stated that they have small chunks of information of the system and that the HR Director promised them to provide a training, which did not materialize In the months following the introduction of the new system, employees grew totally uncomfortable. Rumors spread that the company is preparing a layoff plan, and productivity and quality dropped sharply. Absenteeism seems now to be a voluntary response of employees to the lack of information and transparency. Interpersonal conflicts emerged, creativity and innovativeness hibernated, and the entire organization seems to wander without a clear roadmap. The company started to lose customers, and market shares shrunk. Group Work #2 1) Identify the conflict that is taking place at "XYZ" and sate whether it is "covert" or "overt" 2) Analyze the main reasons of such a conflict. 3. If you were the HR Director, how you would have prevented this conflict? is iH the industrial environment. .LO 9.4 Discuss how negotiations can be managed to resolve conflict SourceDessler, Gary. Human Resource Management, Global Edition, 15 Edition, Pearson Education 2017 php2id-313 Unions and labour relations Goals of unions Unions - organisations formed for the purpose of representing their members' interests in dealing with employers Labour relations- field that Obtain pay and working conditions that satisfy and give members a voice in decisions that affect them emphasises skills managers and union leaders can use to minimise Unions achieve results by gaining power in numbers Unions want to influence the way pay and promotions are determined costly forms of conflict (such as strikes) and seek win-win solutions to disagreements 5/21/201 Types of conflict Industrial action Overt conflict includes actions such as stop- work meetings or strike action by employees or lockouts by the employer. Employees may choose to ban using certain equipment or introduce overtime bans When there is a dispute, employees who are covered under an agreement vote for or against industrial action The determination needs the majority of the employees to vote, that is more than 50%, and then the majority decision of the voters is the result Covert conflict is more difficult to identify and place a cost against, and includes absenteeism, increased turnover of staff, reduced productivity etc. Other dispute resolution Improving employee relations Better communication includes - Clear policies and procedures -Open-door policy, peer review, mediation no secrecy processes Negotiation: if both parties have received training and also have had experience in negotiating then this can be very beneficial to the parties and the organisation - Employee surveys on an annual basis Solid feedback loops which are acted upon positively - Developing meeting skills in key employees -Ensuring there is negotiation equality Mediation is a process where the parties have the assistance of an individual person who acts as a mediator. It is not suitable if there is no trust amongst the parties 5/21/20119 Enterprise agreements Negotiating enterprise agreements An enterprise agreement sets out the terms and conditions of an employee or employees and an employer at a particular workplace. This is the difference between an enterprise agreement and a modern award Need for Purpose is to improve the relationship between the employer and employees and work together to improve productivity and flexibility Both parties need to meet with adequate noice at reasonable times . Two types of agreements: and a group of employees 2. Multi-enterprise agreements: between two or more employers and groups of their employees Consider in good faith other parties' suggestions Bargaining representative can be appointed by ether party Minimising IR conflict Negotiating enterprise agreements Conflict may result due to an employer ntroducing new processes, new technology managerial decisions, new management or direction of the organisation An enterprise agreement covers rates of pay, employment conditions such as hours of work overtime rates, annualised salaries and deductions from wages that are authorised by the employee. It needs to incorporate consultative mechanisms and dispute resolution procedures Draft agreement needs to be voted on by employees in a pre-determined method If conflict is not managed appropriately then it could lead to this conflict manifesting in a number of ways Conflict can be very expensive to an organisation .Cannot include objectionable or illegal terms Includes an agreed dispute resolution process Negotiation skills Be prepared Listen effectively Give credit- acknowledge and praise Compromise on non-core issues to obtain win-win agreements Finalise outcomes by gaining agreement to outcomes from all stakeholders Copyright 2014 McGraw -Hill Education (Australia) Pty Ltd Noe, Hollenbeck, Gerhart, Wright, Steel, Mcci, Dein, Human Resouree M Graw

Answer 1

1. The conflict taking place at "XYZ" is covert in nature. The top management of the "XYZ" company realized the need to change their promotion system to a performance based system. This is in line with the need of increased performance and output in today's market. They have employed the new system without giving any training or explaining the employees the reason of change. Also, the pattern of assessment is not conveyed properly to employees. This causes a very unclear picture to the employees. When the company fails to communicate the exact goals of the changes, the employees start assuming things on their own. This causes more confusion and lowers the motivation levels. Employees feel insecure and their efficiency drops considerably.

2. The main reason for the conflict is lack of proper communication. Upward as well as downward communication is essential in an organization. In order to motivate employees, the company must ensure they have trust in the company. Also, any change should be implemented only after properly educating all about the new system and the benefits the employees will receive from it.

3. If I were the HR Director, I would first have a meeting with all the managers and convey the need for change in system and the new system requirement and benefits. Once they would be clear on the changes, they can help convey to their sub-ordinates. This would facilitate communicating company's motive in changing the system to a more performance-based system. This should be later followed by a formal e-mail stating the guidelines for new system. All queries should be resolved and then only should the new system be commenced.

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Negotiations help resolve conflicts by creating a win-win situation. Instead of fighting and arguing, both the parties can sit together, convey their opinions and wants to each other. The negotiator then understands the situation and finds a win-win solution to the problem. This solution tends to satisfy the needs of both parties either completely or partially. Thus avoiding unnecessary violence and confusion. Thereby instilling harmony and peace in the system.