DUNLOPS IR MODEL:

One of the significant theories of industrial labor relations was put forth by John Dunlop in
the 1950s. According to Dunlop industrial relations system consists of three agents –
management organizations, workers and formal/informal ways they are organized and
government agencies.

These actors and their organizations are located within an environment – defined in terms of
technology, labor and product markets, and the distribution of power in wider society as it
impacts upon individuals and workplace. Within this environment, actors interact with each
other, negotiate and use economic/political power in process of determining rules that
constitute the output of the industrial relations system.

He proposed that three parties—employers, labor unions, and government-- are the
Thus it can be said that industrial relations is a social sub system subject to three environmental
constraints-themarkets,distributionofpowerinsocietyandtechnology.
to be considered in conducting an analysis of the management-labor relationship:

1. Environmental or external economic, technological, political, legal and social forces that
impact employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labor,
management, and government.
3. Rules that are derived from these interactions that govern the employment relationship.

Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of
industrial relations may be regarded as a system in the sense that each of them more or less
intimately affects each of the others so that they constitute a group of arrangements for dealing
withcertainmattersandarecollectivelyresponsibleforcertainresults”.

In effect - Industrial relations is the system which produces the rules of the workplace. Such rules
are the product of interaction between three key “actors” – workers/unions, employers and
associatedorganizationsandgovernment

The Dunlop’s model gives great significance to external or environmental forces. In other words,
management, labor, and the government possess a shared ideology that defines their roles within
the relationship and provides stability to the system.
Dunlop's model identifies three key factors

Organogram

An organogram is an organization chart with names instead of the designations.

An organizational chart of a company usually shows the managers and sub-workers who make up an
organization. It also shows the relationships between directors : managing director chief executive
officer: various departments... In many large companies the organization chart can be large and
incredibly complicated and is therefore sometimes dissected into smaller charts for each individual
department within the organization.
 There are three different types of organization charts:

 Hierarchical
 Matrix
 Flat (also known as Horizontal)

Limitations
There are several limitations of organizational charts:

 If updated manually, organisational charts can very quickly become out-of-date, especially in
large organizations that change their staff regularly.

 They only show 'formal relationships' and tell nothing of the pattern of human (social)
relationships which develop. They also often do not show horizontal relationships.

 They provide little information about the managerial style adopted (e.g. 'autocratic', 'democratic'
or an intermediate style)

 The best structure for one type of business may not be the best for another. The best structure for
a new business may not be suitable as the business expands.

 In some cases, an organigraph may be more appropriate, particularly if one wants to show non-
linear, non-hierarchical relationships in an organization.

 It often does not include customers.

What is "labour turnover"?

Labour turnover refers to the movement of employees in and out of a business. However, the term is
commonly used to refer only to ‘wastage’ or the number of employees leaving.

High labour turnover causes problems for business. It is costly, lowers productivity and morale and tends
to get worse if not dealt with.

Measuring labour turnover

The simplest measure involves calculating the number of leavers in a period (usually a year) as a
percentage of the number employed during the same period. This is known as the "separation rate" or
"crude wastage rate" and is calculated as follows:

Number of leavers / average no employed x 100

For example, if a business has 150 leavers during the year and, on average, it employed 2,000 people
during the year, the labour turnover figure would be 7.5%

An alternative calculation of labour turnover is known as the "Stability Index" . This illustrates the
extent to which the experienced workforce is being retained and is calculated as follows:

Number of employees with one or more years’ service now / Number employed one year ago x 100
Labour turnover will vary between different groups of employees and measurement is more useful if
broken down by department or section or according to such factors as length of service, age or
occupation.

Patterns of labour turnover:

The highest rate of labour turnover tends to be among those who have recently joined an business.

Longer-serving employees are more likely to stay, mainly because they become used to the work and the
business and have an established relationship with those around them.

Causes of labour turnover

A high level of labour turnover could be caused by many factors:

• Inadequate wage levels leading to employees moving to competitors

• Poor morale and low levels of motivation within the workforce

• Recruiting and selecting the wrong employees in the first place, meaning they leave to seek more
suitable employment

• A buoyant local labour market offering more (and perhaps more attractive) opportunities to employees

Costs of labour turnover

High rates of labour turnover are expensive in terms of:

- Additional recruitment costs

- Lost production costs

- Increased costs of training replacement employees

- Loss of know-how and customer goodwill

- Potential loss of sales (e.g. if there is high turnover amongst the sales force)

- Damage that may be done to morale and productivity (an intangible cost)

Benefits of labour turnover

Labour turnover does not just create costs. Some level of labour turnover is important to bring new ideas,
skills and enthusiasm to the labour force.

A "natural" level of labour turnover can be a way in which a business can slowly reduce its workforce
without having to resort to redundancies (this is often referred to as "natural wastage".
 How to reduce Labour turnover: Following actions may be taken to reduce labour turnover
Pay problems: By increasing pay levels to meet competition; Improving pay structures to remove
inequalities; altering pay systems to reduce excessive fluctuations; and by introducing procedures for
relating reward more explicitly to effort or performance.
Employees leaving to further their career: By providing better career opportunities and ensuring
that employees are aware of them; Extending opportunities for training; Adopting and implementing
promotions from within policies and introducing more systematic and suitable promotion procedures.
Employees leaving due to conflict: By introducing more effective procedures for consultation,
participation and handling grievances; improving communications by such means as briefing groups;
using conflict resolution and team building techniques of organization development; educating and
training management in approaches to improving their relationships with employees.

stability index

A stability index indicates the retention rate of experienced employees. An important indication of the
health of the organisation is measured by using the stability index. This give a picture about the stability
of the organisation by measuring the proportion of employees whom have stayed with the organisation
over different periods of time. 

Number of staff with service of one year or more x 100 

Total number of staff in post one year ago

Workers’ participation in management

Workers’ participation in management is an essential ingredient of Industrial democracy. The concept of

workers’ participation in management is based on Human Relations approach to Management which
brought about a new set of values to labour and management. Traditionally the concept of Workers’
Participation in Management (WPM) refers to participation of non-managerial employees in the decision-
making process of the organization. Workers’ participation is also known as ‘labour participation’ or
‘employee participation’ in management. In Germany it is known as co-determination while in
Yugoslavia it is known as self-management. The International Labour Organization has been encouraging
member nations to promote the scheme of Workers’ Participation in Management.
Workers’ participation in management implies mental and emotional involvement of workers in the
management of Enterprise. It is considered as a mechanism where workers have a say in the decision-
making.

Definition:

 According to Keith Davis, Participation refers to the mental and emotional involvement of a
person in a group situation which encourages him to contribute to group goals and share the
responsibility of achievement.
 According to Walpole, Participation in Management gives the worker a sense of importance,
pride and accomplishment; it gives him the freedom of opportunity for self-expression; a feeling of
belongingness with the place of work and a sense of workmanship and creativity.
The concept of workers’ participation in management encompasses the following:
 It provides scope for employees in decision-making of the organization.
 The participation may be at the shop level, departmental level or at the top level.
 The participation includes the willingness to share the responsibility of the organization by the
workers.
Features of WPM:

1. Participation means mental and emotional involvement rather than mere physical presence.
2. Workers participate in management not as individuals but collectively as a group through their
representatives.
3. Workers’ participation in management may be formal or informal. In both the cases it is a system of
communication and consultation whereby employees express their opinions and contribute to managerial
decisions.
4. There can be 5 levels of Management Participation or WPM:
 Information participation: It ensures that employees are able to receive information and express
their views pertaining to the matter of general economic importance.
 Consultative importance: Here workers are consulted on the matters of employee welfare such
as work, safety and health. However, final decision always rests with the top-level management, as
employees’ views are only advisory in nature.
 Associative participation: It is an extension of consultative participation as management here is
under the moral obligation to accept and implement the unanimous decisions of the employees. Under
this method the managers and workers jointly take decisions.
 Administrative participation: It ensures greater share of workers’ participation in discharge of
managerial functions. Here, decisions already taken by the management come to employees, preferably
with alternatives for administration and employees have to select the best from those for
implementation.
 Decisive participation: Highest level of participation where decisions are jointly taken on the
matters relating to production, welfare etc.

Objectives of WPM:

1.       To establish Industrial Democracy.

2.       To build the most dynamic Human Resources.
3.       To satisfy the workers’ social and esteem needs.
 4.       To strengthen labour-management co-operation and thus maintain Industrial peace and harmony.
5.       To promote increased productivity for the advantage of the organization, workers and the society at
large.
6.       Its psychological objective is to secure full recognition of the workers.

Importance of WPM:

 Unique motivational power and a great psychological value.

 Peace and harmony between workers and management.
 Workers get to see how their actions would contribute to the overall growth of the company.
 They tend to view the decisions as `their own’ and are more enthusiastic in their implementation.
 Participation makes them more responsible.
 They become more willing to take initiative and come out with cost-saving suggestions and
growth-oriented ideas.

Essential condition for WPM:

The success of workers portion in management depends upon the following conditions.
 The attitude and outlook of the parties should be enlightened and impartial so that a free and
frank exchange of thoughts and opinions could be possible. Where a right kind of attitude exists and
proper atmosphere prevails the process of participation is greatly stimulated.
 Both parties should have a genuine faith in the system and in each other and be willing to work
together. The management must give the participating institution its right place in the managerial
organization of the undertaking and implementing the policies of the undertaking. The labor, on the
other hand, must also whole heartedly co-operate with the management through its trade unions. The
foremen and supervisory cadre must also lend their full support so that the accepted policies could be
implemented without any resentment on either side.
 Participation should be real. The issues related to increase in production and productivity,
evaluation of costs, development of personnel, and expansion of markets should also be brought under
the jurisdiction of the participating bodies. These bodies should meet frequently and their decisions
should be timely implemented and strictly adhered to. Further,
o   Participation must work as complementary body to help collective bargaining, which creates
conditions of work and also creates legal relations.
o   There should be a strong trade union, which has learnt the virtues of unit and self-reliance so that they
may effectively take part in collective bargaining or participation.
o   A peaceful atmosphere should be there wherein there are no strikes and lock-outs, for their presence
ruins the employees, harms the interest of the society, and puts the employees to financial losses.
o   Authority should be centralized through democratic management process. The participation should be
at the two or at the most three levels.
o   Programs for training and education should be developed comprehensively. For this purpose, Labor is
to be given education not to the head alone, not to the heart alone, not to the hands alone, but it is
dedicated to the three; to make the workers think, feel and act. Labor is to be educated to enable him to
think clearly, rationally and logically; to enable him to feel deeply and emotionally; and to enable him to
act in a responsible way.

BATES BRAND WHEEL FOR employer brand:

The employer brand arose from the existing culture. It was worked on by both internal and external
people through eliciting current views of the company ethos, and gathering aspirations of current
employees.

The concept of the brand wheel was used to define the brand. The brand wheel idea, developed by Bates
North America, is used to define the functional and emotional components of a brand. Bates North
America has developed an impressive reputation for reinvigorating brands. The brand wheel is based on
various concepts that go into creating a brand such as essence, values and personality. The brand essence
is heart or spirit of the brand. The brand values are about how the brand makes a person feel and what it
says about them if they become associated with the brand. The brand personality is a way of talking about
the brand as if it were a person, to get to the emotional content of the brand itself.

THE SIX EMPLOYER BRAND VALUES

Value: integrity

Behaviours:

 Expressing views and opinions in an open, honest and constructive way.

 Consistently delivering on their promises and commitments.
 Taking accountability for decisions and actions.

Value: unity

Behaviours:

 Contributing enthusiastically to team goals, sharing and aligning own objectives with team(s).
 Supporting and encouraging players on their own team and other teams.
 Building personal success on team success and contributing to other teams’ success.

Value: diversity

Behaviours:

 Treating diverse views, cultures and communities with respect.

  Learning from the variety of different cultures, countries, functions and teams within the
organization.
 Acknowledging different approaches and seeking win–win solutions.

Value: performance with passion

Behaviours:

 Setting and exceeding stretching targets, individually and in teams.

 Demonstrating high levels of pace, energy and commitment in achieving goals.
 Finding new opportunities to improve their game and being courageous by trying them.

Value: celebration

Behaviours:

 Sharing success, recognizing and rewarding achievement of other players.

 Encouraging the celebration of success and building a ‘success leads to more success’ culture.
 Having a can-do mentality and encouraging others to do the same.

Value: learning

Behaviours:

 Being proactive in professional and personal development.

 Sharing learning and supporting the development of other players.
 Going outside the ‘comfort-zone’, challenging the status quo, and learning from mistakes.

Employee Engagement INDEX

It is widely known that organizations have traditionally relied on financial measures to determine their
organizational value, success and financial performance through measures such as profitability, revenue
or return on investment. It is also known that many soft measures or human oriented measures of traits,
attitudes and behavior became in the last two decades more and more important determinants of
employees and organizational performance (Peterson et al, 2001).

Many studies have shown the relationship that forms between employee cognitive attitudes, personality
traits and job performance. However it was not clear until recently what is precisely the connection
between all these components and how they can drive and determine organizational performance
outcomes.

After 25 years of interviewing and surveying employees and managers the Gallup Organization has
coined Employee Engagement Index as a driving force of the organization success and performance.
(Little et al, 2006). The studies show that Employee Engagement Index has a significant implications
for customer satisfaction, sustainable growth, real profit increase, stock increase, productivity and
employee retention among the most important influenced factors.

How is Employee Engagement Index measured?

Employee Engaged Index is based on a survey questionnaire that assess the employees effort and
enthusiasm at work and can vary from organization to organization. According with the researchers and
consultants from Burke, a leading international research and consulting firm, there are 6 important
engagement components that determine a substantive Employee Engagement Index:

• Company: satisfaction with the working environment and likeliness to withstand other job offers on the
market

• Manager: satisfaction with the mangers

• Work group: satisfaction with the current working group: colleagues and managers

• The job: satisfaction with the job

• Career/ Profession : satisfaction with the choice of career and career perspectives

• Customer: Satisfaction with the working relationship had with customers/clients

Employee Engagement Index: Analysis and outcomes

According with the research studies underpinned by the Gallup Organization it appears that engaged
employees are more productive, more customer focused and more likely to withstand temptations to leave
the organization.

The same studies frame employees in three categories:

• engaged – work with passion and are profoundly connected to the organization values

• not engaged – put time but not passion in their work and they are not connected to the organizational
values
• actively disengaged – employee busy to act out their unhappiness and undermine what their engaged
colleagues try to accomplish ( Crim et al, 2006)

Based on these categories Gallup built the Engagement ratio which according with them is a macro level
indicator that allows organizations to track the ratio of engaged to actively disengaged employees.

Components of Index
Have an instrument called the Employee Engagement Index in which the index is broken down into the
following segments:
 Employee attitude towards their customers.
 Employee attitude towards their company.
 Employee attitude towards the products or services they are providing.
 Employee attitude towards their immediate management, motivation, recognition and control
structures.
 Employee attitude towards their role, contribution and development.
 Employee loyalty to their contact centre.

Employee Value Proposition 

Employee Value Proposition (EVP) is the commonly used jargon to describe the characteristics and
appeal of working for anorganisation.

An EVP describes the mix of characteristics, benefits, and ways of working in an organisation. It is the
deal struck between an organisation and employee in return for their contribution and performance. This
“deal” characterises an employer and differentiates it from its competition.

Most organisations encounter two main problems when it comes to their EVP:

They struggle to differentiate themselves from their competition They struggle to differentiate themselves
from their competition. Differentiation is crucial if an organisation is to stand out from the “sea of
sameness” that characterises some sectors. Their branding is appealing but it does not accurately reflect
the reality .

An effective EVP enables an organisation to stand out as different but also it ensures that the „packaging‟
reflects the „contents. All too often people join organisations tempted by the „branding‟ and are
disappointed when they experience the reality. You know when you‟ve got it right – you become a
magnet for talent, and have engaged and motivated employees.

An effective EVP can bring an organisation significant benefits. According to the Corporate Leadership
Council‟s research a well thought through and executed EVP can:

Improve the commitment of new hires by up to 29%

Reduce new hire compensation premiums by up to 50%

Increase the likelihood of employees acting as advocates from an average of 24% to 47%
 In addition an effective EVP allows organisations to source more deeply within the labour market,
increasing its access to passive candidates.

This is important for organisations who want to secure the best talent in an increasingly difficult talent
market.

Demographic predictions show that there will be a stark contrast in population growth in certain areas of
the world.

Proposition.[4]

EMPLOYEE VALUE PROPOSITION TEMPLATE   

Responses from Employees 

Why did you decide to join the company in the first place?    

What is it that you like about the company?    

Employee Testimonials:        

Management View 

 Location / condition of premises

  
 Growth opportunities – does the company offer growth?
   
 Atmosphere and culture – safe or challenging?
   
 Social events – is this a fun environment where people make friends?
   
 Flexible hours – is flextime/telecommuting an option
  
 Democratic management style/freedom from controls etc.

Employee absence management

Employee absence has a huge impact on your organisation. It affects staff morale, disrupts the work of
others, and reduces the quality of work outputs. Whether the absence is planned, incidental, or extended,
it carries costs, risks and productivity hits. Costs: On average, around 20 percent of payroll is linked to
employee absence, both planned and unplanned absence. This includes the cost of paying absent
employees as well indirect costs, such as lost productivity and the hiring of replacement workers.

Risks: Without workforce attendance systems to manage employee absence, organisations risk failing to
comply with collective bargaining agreements and government regulations and regulatory leave laws.
Productivity: Absence is a productivity killer — on average, incidental, unplanned absences result in 21
percent of net lost productivity per day1.
To control the impact of absenteeism, you need to see trends so you can control costs. You need to
manage your policies so you can minimise compliance risk. And you need to identify workers with
attendance issues so you can improve workforce productivity.

 comprehensive absence management approach includes:

 Proactive customer service that focuses on your needs and those of your employees
 Highly effective return-to-work solutions
 Proprietary, Web-based technology that integrates data, analytics, case management, and
communications

Types of absence
 
There are many reasons why people take time off work. These can be categorised as:

 short-term sickness absence

 long-term sickness absence
 unauthorized absence or persistent lateness
  Other authorized absences, for example, annual leave; maternity, paternity, adoption, or parental
leave; time off for public or trade union duties, or to care for dependents; compassionate leave;
educational leave.

Bradford Factor:

The Bradford Factor or Bradford Formula is used in human resource management as a means of

measuring worker absenteeism. The theory is that short, frequent, and unplanned absences are more
disruptive than longer absences. According to the Chartered Institute of Personnel and Development the
term was first coined due to its supposed connection with research undertaken by the Bradford University
School of Management in the 1980s. It was developed as a way of highlighting the disproportionate level
of disruption on an organisation's performance that can be caused by short-term absence compared to
single incidences of prolonged absence. It was originally designed for use as part of the overall
investigation and management of absenteeism. In contrast, if used as part of a very limited approach to
address absence or by setting unrealistically low trigger scores it was considered short-sighted, unlikely to
be successful and could lead to staff disaffection and grievances.

The Bradford Factor is calculated as follows:

where:

 B is the Bradford Factor score

 S is the total number of spells (instances) of absence of an individual over a set period
 D is the total number of days of absence of that individual over the same set period.

Bradford Factor and Disability Rights Legislation

The British Disability Discrimination Act 1995 and 2005 (DDA), creates a duty on employers to tailor
their actions to the individual circumstances of disabled employees. As certain disabilities may lead to a
greater likelihood of short-duration absences or to a higher total of days of absence, caution is needed in
taking action as a consequence of the data generated from the application of the Bradford Factor. The
DDA allows disabled employees to request 'reasonable adjustments' in situations where they are
disadvantaged by generic processes, failure to provide these reasonable adjustments, or to adequately
justify why they cannot be provided, may leave the employer open to civil action for breach of the DDA
in an Employment Tribunal. Reasonable adjustments in the case of the Bradford Factor might include
recording Disability-Related Absence separately from Sickness Absence, or individually tailoring targets.
Reasonable adjustments may also be requested by disabled employees for relief from any negative
consequences of application of the Bradford Factor, such as disciplinary action or reduced salary awards.