All Flashcards

(77 cards)

1
Q

Managerial Prerogative and what does it include decisions of?

A

Is the notion that in a capitalist society, the owners of a business - or the managers to whom owners have delegated their authority, have the right to determine how their businesses are run.

Includes decisions about
Number of employees hired
Employment conditions
Work practices
Location of businesses
Appropriate technology
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2
Q

How do different managerial styles come to exist in organisations?

A

Result of basic frames of reference
Influenced by prevailing social norms
Legislative frameworks

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3
Q

What is the assertion of managerial prerogative

A

Assumption that managers have a “right to manage” is a fundamental aspect of employer attitudes in most capitalist economies

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4
Q

What law was managerial prerogative derived from?

A

Contract Law
Law of master and servant

Early 1800s the employment relationship involved dealings between wealthy and domestic servants. Created sense of rights and obligations. Master had to provide food and shelter and in return had their right to enjoy unquestioned loyalty.

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5
Q

How is managerial prerogative justified?

A

Onset of Industrialism
Courts required legal model
Same ideological basis from law it arose
Used to rationalise expressions of self interest and economic self interest

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6
Q

Two alternative ways of justifying managerial prerogative

A

Legal Justification

Functional Justification

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7
Q

What is legal justification of managerial prerogative

A

Company law - management acts as a agency or trustee of company’s law

Has all rights, privileges, powers and immunities associated with ownership.

Can be conflicts between interests of shareholders and employees

In defence of legal ownership rights and interests of shareholders - management will often resist employee or union demands for a share in decision making.

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8
Q

What does the legal justification of managerial prerogative rest on?

A

Identification of the managers with the owners of the organisation
The exercise by the managers of the owners property rights

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9
Q

What is agency theory?

A

Whereby in large scale organisations, managers have generally been left to control their own departments, there is generally the feeling they own their company’s. Often creates a control problem.

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10
Q

What is employee influence?

A

Influence given to employees at the discretion of the management.

Participative management - any way in which workers become involved in the traditional role of managers. Any structure or process by which workers exercise a share in managerial work.

Workers have a greater access to information
Workers have a say in decisions

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11
Q

What is financial employee participation?

A

Employee participation in ownership and/or profits
Employee shareholding or access to income flow
Profits when dividends declared
Stand to benefit from capital gains

Not owners in strict legal sense
Based on idea that financial input leads to higher psychological commitment
Often found in management

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12
Q

What are some of the employee participative structures

A

Found in NZ & overseas - aligned with many management fads

Joint Consultation
Quality Circles
Task Forces
Job Enrichment
Autonomous Work Groups
Collective Bargaining
Co-Management
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13
Q

Types of Financial Employee participative structures?

A

Profit Sharing

Employee Shareholding

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14
Q

Scope of EU employee participation

A

Long standing in EU 100+ years
Persistent pressure based on rights of social model
State seen as provider of regulations to enhance democratic employee rights
Fine tuned and integrated - now a norm

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15
Q

What is a dual labour market?

A

Theory suggests that labour market is divided into 2 separate independent working worlds

Primary Labour
Secondary Labour

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16
Q

What are the features of a primary labour market?

A

Affluent, well trained, enjoy employ security and high status, well paid jobs, opportunities for promotion, and career development

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17
Q

What are the features of a secondary labour market?

A

Marginalised, low status, low paid jobs, vulnerable to employment at short notice, skills not highly valued, more transient between jobs without gaining improvements in working status - usually smaller organisations, weak bargaining power, union activity not effective

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18
Q

What are the barriers to mobility moving from secondary to primary labour markets?

A

Job characteristics: Career/Promotion Opportunities/Reward structures
Industry characteristics: Size of firm and competitiveness
Worker characteristics: Sex/ethnicity/skill/educational attainment
Recruitment and employment policies of all employers and attitudes to work

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19
Q

What are dismissals?

A

Termination of an employment contract

At some point every employment contract will come to an end - usually through resignation

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20
Q

What are the features of lawful dismissal?

A

Termination initiated by employer are those that draw the most amount of attention and most difficult in practice

Lawful when:
Adequate notice is given to employer - not enough to dismiss
Sufficient cause/Justification
Carried out in a fair and reasonable manner

If not can be challenged under a PG because of “good faith and bargaining”

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21
Q

Justifiable means of dismissal

A

Misconduct
Capacity
Economic Reasons

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22
Q

What are the features of misconduct?

A

Assessed on own merits

Failing to carry out reasonable and lawful command
Breaching work rules
Breaching terms of contract
Insubordination
Assault
Dishonesty

Usually must take place in terms of agreement (ie not outside hours)

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23
Q

What are the features of capacity in dismissal?

A

Refers to ability of employee to perform the job to the minimum standards required by the employer
Meet specified standards
Have certain skills

If employee unwilling or unable to do so, may be justified in dismissal

Problem must be shown to be ongoing

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24
Q

What are the features of economic reasons in dismissals?

A

Redundancy - where a person is considered superfluous to requirements
Restructure
Closure

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25
What is required under redundancy dismissal?
Courts can determine if genuine in order to prevent dismissal which may result in a PG Employer can determine the adequacy of their own commercial reasons for disestablishing roles
26
Discuss procedural fairness in dismissal
Carried out in accordance with rules of natural justice - fair and reasonable Told of offence and consequences Employee side of story Decision made after assessment of all facts
27
What is summary (instant) dismissal? When is it used?
Sacked on spot - must be so serious that it has caused an irreparable break down of the employment relationship. Serious Misconduct Wilful disobedience Serious neglect of duty Gross incompetence
28
What is constructive dismissal?
Occurs when an employee resigns but the resignation is arguably a dismissal When employee given choice of dismissal or resignation Employer carries out acts designed to coerce resignation Employer fundamentally breaches employment contract in such a way employee resigns Can cause a PG for unjustified dismissal;
29
What is "contracts of service" vs "contracts for service"?
Employees work under contracts of service Independent contractors work under contracts for services Definition of an employee is of considerable importance in establishing whether a contract of employment exists
30
Features of an independent contractor
Do work desired by their client but not under kind of direct supervision or control that an employee typically receives from employer
31
Differences between features of "contracts of service" vs "contracts for service"?
``` Protection of legislation Collective agreements and passing on Employers liable for acts of employees not contractors Tax deductions Disputes arising and mediation ```
32
What is social action theory?
Gives primary attention to the "actors" and their choices and behaviours in employment relations system (contrast to systems theory)
33
Features of social action theory
Ascribes an active role to actors and gives weight to active participants views of work situations Meanings that individuals and groups give to their experiences in workplace Goals being pursued at work Expectations about appropriate behaviour Fundamental values, beliefs, and attitudes of participants
34
Conflict and social action theory
In trying to predict ER conflict and cooperation necessary to understand something of the subjective meanings that individuals use to interpret their situations and the extent to which that is shared at an organisational level People may not bind together but that need not be a bad thing as long as their beliefs and goals are acknowledged.
35
Which areas of employment have unions been most effective in helping?
Trade unions most successfully challenged managements traditional authority in the areas of recruitment, dismissing, wage & salary fixing, promotion and disciplinary procedures (Where management decisions and policies directly impinge on economic welfare of employees)
36
Which areas of employment have unions been least effective in helping?
Job content Work allocation Rate of work Other matters not in contract Might be accorded consultation but advisory only Management retain authority to make final decision
37
Which areas of employment might employers only be afforded consultation but only advisory?
Financial decision making Raising of capital Size of dividends Investment in new technology
38
What kinds of rights do employees have?
Right to information Right to consultation Right to shared decision making Employees and unions can try and assert their strength to point that practice becomes a norm
39
Which kind of forums would you see employee rights featured in?
H&S, Training & Development Workplace partnership, Consultative committees
40
Why are mediation services required in the Employment Relations Act?
ERA retained and enhanced many of the existing employment institutions with purpose of preventing and resolving employment relationship problems
41
When to get a mediator? What are their features?
``` If two parties cant resolve an issue No cost Not advocate for either party Voluntary, neutral, confidential Assists to reach a solution ```
42
What happens if cant reach a settlement?
If both parties agree the mediator can make a decision This then becomes "med/arb hybrid"
43
Debate about value of mediation model
The terms of confidentiality Ability of third party to be neutral Power imbalance Dissatisfaction
44
What is employment relations?
The relative powers and interests of key parties (employees, employers and government in the regulation of employment conditions and the establishment of workplace rights) The strategies adopted by employees, employers and government and their agents to influence, regulate or control the employment relationship. The formal and informal rules and processes that are used to establish and regulate the employment relationship. The cultural, social, economic, political, legal and institutional contexts within which the powers and interests of the key parties are established and exercised and within which the rules and processes that regulate employment relations are formulated and implemented.
45
What do advocates of flexibility think?
Most debated idea of the last 25 years. Advocates of greater flexibility argue that it will break down labour market rigidities and improve adaptability.
46
What do opponents of flexibility think?
See as an attack against minimum wage, job security and trade unions.
47
What prompted the idea of flexibility?
Unsatisfactory economic performance in 70s and 80s - However a lack of concept developed around the idea.
48
What does flexibility mean?
Can mean different things to different people. Little empirical evidence to support the positives and negatives.
49
What are some of the issues on the discussion of flexibility?
Does flexibility debate contain recommendations for particular practices? or just market change analysis? Tendency to dull distinction between micro and macro analysis - cant tar all organisations with the same brush Seldom clear what processes surround the implementation of flexibility Who chooses? Who are the winner and losers? Mainly driven by employers - affect on employers and contractors less clear.
50
What is a flexible firm?
Atkinson (1984) model illustrates relationship to segmented labour theory Core workers - Highly valued, skilled, permanent, well paid (Job or functional flexibility) Peripheral - Less skilled, often casual, poorer employment conditions, disposable, may or may not be directly employed. (Contractual or numerical flexibility)
51
What is job/functional flexibility? and what is numerical/contractual flexibility?
Core workers vs. Peripheral Workers
52
Issue with flexible firms
Reinforce market labour segmentation by taking core workers from population which are advantaged and then from peripheral which are usually poor, ethnic minorities, less educated
53
What do flexible typologies provide?
Conceptual framework but as there is no direct link between measured labour market trends and types of flexibility in place (or being introduced) it is difficult to answer the previous questions.
54
What are some of the measures for flexibility taken by both workers?
Labour market flexibility is affected by measures taken by workers as well as those by employers. QUANTITY: Labour force participation / Retirement Age / Holidays / Normal hours of work / Geographic intensity and area of job search QUALITY: Participation in formal education and training / Training at work / Effort at work / Occupations willing to work in WAGES: Wage rates / Wage like payments (e.g. promotion) / Piece Rates PRODUCTION: n/a
55
What are some of the measures for flexibility taken by both employers?
QUANTITY: Recruitment age / dismissal policies / leave policy / attrition and redundancies QUALITY: design of jobs / contractors / skill based entry requirements / in house training / management system WAGES: wages paid / over time rates paid / non wage benefits / promotion rates PRODUCTION: Product innovation / inventory changes / technology of production These tables provide an overview of possible response patterns which can be used for strategic planning.
56
What are some of the types of flexibility in NZ (Under ERA)?
Contractual flexibility - short term, fixed term, casual, agency Pay Flexibility: Pay levels are based on employers "ability to pay" drive wages down and reduce overtime, penal and seniority rates Job Flexibility: Optimal use of labour during production of provision or services (functional flexibility) - less demarcation between job functions. 1987 Labour relations act provided some flexibility but there were constraints on contract, wage and jobs.
57
Features of job flexibility
Thought to be due to move towards more enterprise based organisations, less restrictive collective agreements and more IEAs. Growing use of salarisation
58
Features of pay flexibility
Some reintroduction of OT & Penal rates due to tight labour market but not common Statutory minima - more pervasive and important Tight labour market influenced pay levels across the labour market. Pay increases outpaced consumer inflation Makes sense to have more flexibility Bonuses/Performance Payments/Frequent Pay Reviews
59
Positives of flexibility
Can make job more interesting Works for lifestyles Can keep business costs down
60
Negatives of flexibility
Negative impact on working conditions | Some critics argue its about driving wages down
61
What is a zero hours contract
Regular contract but with no promise of hours | Labour agency also another form
62
Negatives of zero hours
``` Nepotism/Cronyism Hard to budget Hard to plan a life Abuse by managers Scared to take sick leave Abuse of health and safety Breeds a culture of pitting staff against each other ``` "Working poor"
63
Positives of zero hours
Good for students and retirees - who maybe don't have the same social demands as others Employers argue they need the competitiveness to ensure that all shifts are filled.
64
What is free-riding?
Free-riding is the "passing-on" of union negotiated deals to non union employees.
65
Who are free-riders?
Non union employees who receive a free-ride because of the employer practice of passing on improvements of terms and conditions gained in the union negotiated collective agreements
66
Why do employers pass-on?
Rational option as maintains parity and simplify administration by creating standard employment agreements across workforce minimising cost Non union workers accept because they are able to gain without contributing to union costs.
67
Negatives of passing on
Used to undermine union recruitment campaigns - little incentive to join Pre 2005, -0% could benefit from free-riding
68
What are some of the attempts to overcome passing on?
Amendment Act 2004 made it a breach of good faith if the passing on had the intent/effect of undermining union bargaining However unions and employers could agree to Ts and Cs to get substantially same provisions through negotiation.
69
Some other strategies used to minimise negatives of passing on?
Persuade employers to delay increases to non union staff | Advocating bargaining fees to non union staff
70
Why become a union member if many of the benefits can be obtained through passing on?
Redundancy and long service leave Improvements over statutory minima Security/Philosophical reasons Decline in private sector indicates that collective bargaining perceived as offering too little or nothing at all.
71
What is freedom of association?
Is a potential breach of freedom of choice if not passed on to non union members (pressure on people to join a union)
72
What is conflict theory?
Systems view of ER which emphasises - setting up of institutions and procedures to regulate conflict by formulating rules agreed to and followed by actors in the system Recognises power and status of actors in system, and reflect power and status in broader community/society Tends to insulate ER from broader social, economic and political context due to its focus on rules and structures.
73
What are the three types of power/conflict models in conflict theory?
Unitary Model Pluralist Model Radical Model
74
Features of Unitary Model?
Conflict is dysfunctional, unnecessary and regrettable Managerial Model, all should accept management in pursuit of its goals, any objecting views are irrational Team/Family Paternalistic Unions views as a mechanism of employee greed ER like HR and can be left in managements hands
75
Features of pluralist model?
Conflict is inevitable and potentially positive in a democratic system Coalitions of individuals and groups - all pursuing their own goals, dependent on others for mutual survival Terms of collaboration established through bargaining A balancing act to satisfy all parties Management must actively purse consensus Trade unions as expressing legitimate concerns, may sometimes have to accept terms which they deem arbitrary
76
Features of radical model?
Conflict is seen as a necessary means through which power relationships can be changed and Marxist ideologies - challenge assumption of balance of power between parties to employment relationship and direct attention to underlying inequalities Less focus on institutional aspect and more on the underlying social and class structures and culture as well as issues to power distribution
77
Marxist ideologies in the radical model
Economic relationships intertwined with other relationships in society Acceptance of change Recognition of contradiction, opposing and conflicting forces Belief we shape our own history Organising and acting collectively Emphasis on ER being ever changing has become part of mainstream ER thinking as have the impact of underlying social and economic influences