1111191Organisational justice, culture and behavio.docx

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Organisational justice, culture
and behavioural ethics
Dr Igor Menezes
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Organisational Justice
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- Greenberg (1987):
Organisational justice refers to an employee’s perception
of their organisation’s behaviours, decisions and actions
and how these influence the employees own attitudes
and behaviours at work.
Organisational justice
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- It refers to the extent to which employees perceive
workplace procedures, interactions and outcomes to be
fair in nature.
- Its concept extends traditional models of work behaviour
that tend to conceptualise job demands, job control and
social support as the main factors determining individual
well-being and productivity.
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- Often the notion of organisational justice will only
become relevant and tangible when a violation of said
justice occurs.
- Perceived injustices might include:
■ unequal pay for men and women doing the same job
■ performance reviews being conducted by someone with
whom the employee has had little previous contact
■ the use of personality inventories to select new staff
■ arbitrary dismissals.

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- Distributive justice
Types of organisational justice
Wages
Social approval
Job security
Promotion
Career opportunities
Education
Training
Experience
Effort
Inputs Outcomes
Equity principle
(Adams, 1965)
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- Distributive justice
- Policies and practices related to the equity principle:
• Predetermined job grades and salary bands.
• Universal training and development opportunities.
• Avoidance of ‘favouritism’ in showing approval.
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- Equity vs Equality
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- Procedural justice
- It is concerned with the fairness of the decision
process leading to a particular outcome.

- Procedural justice can outweigh distributive justice, in
that people may be willing to accept an unwanted
outcome if they believe the decision process leading
up to it was conducted according to organisational
justice principles.
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- Procedural justice: Voice principle
- Importance of voice and communication: perceptions of
procedural
justice are likely to be enhanced if they are given the
opportunity to
present information and voice their concerns before decisions
are taken.
- Simple activities, such as managers lunching with lower-level
colleagues, operating open-door policies, or engaging in ‘walk-
arounds’,
can enhance the feeling among employees that they are being
listened
to.
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- Procedural justice: Other determinants
- Consistency: The same allocations are made across
persons, situations and time.
- Neutrality: Decisions are based on facts, not on vested
interests or personal feelings of the decision maker.
- Accuracy: The information used to formulate and
justify the decision is up to date and correct.
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- Procedural justice: Other determinants
- Correctability: Provisions exist for challenging and/or
reversing
ill-advised decisions, such as grievance or appeal procedures.
- Representativeness: All those whom the outcome will affect
have their concerns taken into account.
- Morality and ethicality: Age, gender, nationality and other
extraneous factors have no bearing on the decision that is
made.

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- Interactional justice
- It is the degree to which the people affected by decision are
treated by dignity and respect (quality of the interpersonal
treatment received).
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- Interactional justice: key aspects
- Truthfulness: Information that is given must be realistic and
accurate, and presented in an open and forthright manner.
- Respect: Employees should be treated with dignity, with no
recourse to insults or discourteous behaviour.
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- Interactional justice: key aspects
- Propriety: Questions and statements should never be
‘improper’
or involve prejudicial elements such as racism or sexism.
- Justification: When a perceived injustice has occurred, giving
a
‘social account’ such as an explanation or apology can reduce
or eliminate the sense of anger generated.
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Authority
- Perceptions about a manager’s authority can affect procedural
justice judgements.
- Three aspects of authority having a bearing on this judgement
are trust, neutrality and standing.

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Positive effects of organisational justice
- Sheppard et al. (1992):
Equitable pay improves individual performance.
Equal treatment raises group spirit.
Voice creates commitment to a decision.
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Positive effects of organisational justice
- Organisational justice promotes positive attitudes of job
satisfaction, commitment and trust.
- Procedural justice is positively related to organisational
citizenship behaviour (courtesy, conscientiousness, altruism
and sportsmanship).
- Organisational justice was found to be a reliable predictor of
employee health and well-being (Kivimäki et al., 2004)
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Responses to injustice
- Exit behaviours (negative/active) e.g., leave the organization
- Withdrawal behaviours (negative/passive) e.g., reduce one’s
efforts
- Voice behaviours (positive/active) e.g., file a grievance
- Loyalty behaviours (positive/passive) e.g., ignore or try to
rationalise the injustice.
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Attempts to recompense themselves
- Theft.
- Wasting company materials.
- Taking erroneous sick days.
- Disobeying instructions.
- Spending time on personal matters at work.
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Applications of organisational justice
- Performance appraisal.
- Disciplinary procedures.
- Training managers in key aspects of procedural and
interpersonal
justice.
- Conflict resolution.
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Applications of organisational justice
- Layoffs and terminations: nearly 15 per cent of dismissed
employees
who felt they had been treated unfairly proceeded to file claims
against
their former company, even if they did not expect to win.
- Selection and staffing.

- Organisational change: communication and involvement.
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- Social identity plays a crucial role in how people respond
behaviourally to perceptions of justice or fairness.
- Goal: to examine whether self-reported misbehaviours are
associated with scientists’ perceptions of organisational justice
(both distributive and procedural), and whether perceived
threats to one’s identity as a scientist affect the strength of the
relationship between perceptions of procedural justice and
behavioural responses.
Research paper: Scientists’ Perceptions of
Organisational Justice and Self- Reported Misbehaviours
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- Findings suggest that early- and mid-career scientists’
perceptions of organisational injustice are associated with
behaviours that may compromise the integrity of science and
may lead to ethical, legal, or regulatory problems for scientists
and their institutions.
Research paper: Scientists’ Perceptions of Organisational
Justice and Self- Reported Misbehaviours
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- At the institutional level, perceived injustice in distributions
of
responsibilities or unfairness in the decision processes that
generate these distributions may contribute to an environment in
which scientific misbehaviour increases.
Research paper: Scientists’ Perceptions of Organisational
Justice and Self- Reported Misbehaviours
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Behavioural ethics
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- Until recently, little empirical attention was given to how
people
actually behave when they face ethical dilemmas and decisions
or to how their behavior can be improved.
- Behavioural ethics is a field of study that seeks to understand
how people behave when confronted with ethical dilemmas.
Behavioural ethics

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- The study of systematic and predictable ways in which
individuals make ethical decisions and judge the ethical
decisions of others that are at odds with intuition and the
benefits of the broader society.
Behavioural ethics
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- Ethical blindness, also known as ‘ethical fading’ or ‘moral
myopia’, is a temporary and subconscious state in which a
person is unable to see the ethical dimension of the decision
they are making.
Example: NASA engineers who voted for the Challenger space
shuttle to take off despite their concerns for its safety.
Behavioural ethics: Predictors of ethical risks

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- Moral disengagement is where an individual is aware of the
ethical aspects of a decision and actively choses to disengage
from these and behave unethically.
- Corporate culture of an organisation can influence whether
employees are able to disengage from the morality of a
decision.
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Ethics Alarm s: Unethical
Rationalizations and
M isconceptions
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- Perfect rationality, which forms the basis of many classical

economic theories, is not an accurate description of how people
make their decisions.
- Multiple social identities: People are likely to put aside their
personal moral standards at work if they think this is what is
expected from their role.
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- Ethics needs to become part of the reward, recognition and
promotion system.
- Time pressure can have a negative impact on organisational
culture and the ability to consider the ethical implications of a
decision.
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- Internal communications and the language used within an
organisation can have a significant impact on the ethical

culture.
- Individual responsibility for values and associated behaviours
needs to be encouraged.
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Nudge theory
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- A nudge, as we will use the term, is any aspect of the choice
architecture that alters people's behavior in a predictable way
without forbidding any options or significantly changing their
economic incentives.
Nudge theory
Thaler and Sunstein (2008)
Putting fruit at eye level counts as a nudge.
Banning junk food does not.
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- It suggests that a positive reinforcement and indirect
suggestions can be more effective to produce the desired
behaviour than direct instructions, legislation and enforcement.
“By knowing how people think, we can make it easier for them
to
choose what is best for them, their families and society” (Thaler
&
Sunstein, 2008).
Nudge theory
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- Automatic enrolment scheme for private sector workers the
Government in 2012.
Nudge theory
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- Nudges can’t undermine welfare, autonomy, and dignity.

- Two main points to consider in the domain of ethics:
1. Be honest: framing true information (e.g. 70% of your
colleagues are saving for retirement vs. 30% of your colleagues
are not saving for retirement) vs false information (e.g. 99% of
your colleagues are saving for retirement).
Is nudge theory ethical?
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- Two main points to consider in the domain of ethics:
2. Who is the beneficiary of the nudge? If the company and the
employee benefit, or the employee mainly benefits and the
company receives some indirect benefit, this is a more ethical
approach.”
Is nudge theory ethical?
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Activity

In teams of two or three:
1. Do you agree that nudge theory may manipulate people?
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Organisational culture
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Organizational climate and organizational culture are
two alternative constructs for conceptualizing the way
people experience and describe their work settings.
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OrganisaQonal culture is connected with the nature of
beliefs and expecta/ons about organisaQonal life, while
climate is an indicator of whether these beliefs and
expectaQons are being fulfilled.
(Bowditch and Buono)
OrganisaQonal culture is recognised as one
determinant of how people behave, more or less
ethically, in organisaQons.
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Organizational culture may be defined as the shared
basic assumptions, values, and beliefs that characterize
a setting and are taught to newcomers as the proper
way to think and feel, communicated by the myths and
stories people tell about how the organization came to
be the way it is as it solved problems associated with
external adaptation and internal integration (Schein
2010, Trice & Beyer 1993, Zohar & Hofmann 2012).
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Organisational Culture: HSBC
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Emerging from a
conceptual and
methodological base in
anthropology.
CollecQve was the
natural unit of theory
and analysis.
What the employees
perceive and how this
perception creates a
pattern of beliefs, values,
and expectations.
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“OrganizaQons have cultures” perspecQve
Researchers are concerned with the ways in which organizations
differ and
are usually pragmatic in terms of their focus on organizational
effectiveness
and organizational change (Alvesson 2002, Weick & Quinn
1999).
The research approach from this
perspective is typically com parative — to
explore those attributes of organizations
that differentiate the m ore effective
from the less effective.
Survey approaches have
dominated research on
culture from this perspective
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“OrganizaQons are cultures” perspecQve
The researcher’s goal is description and understanding,
including how
organizational members develop meaning and come to share the
very basic
assumptions—the root metaphors (Smircich 1983)—that guide
the way they as
the organization function.
Researchers from this perspective
almost exclusively use qualitative
methods in their research
Permit the identification of the unique
manifestations of culture in settings
and permit the identification of
ambiguity in “the” culture as an
attribute of a setting.
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There is not agreement on what
culture is nor how it should be studied

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It notes that people occupy
sub-cultures in organizations
(by function, by occupation,
by gender, and so forth) and
thus may have different
experiences and may even
attach different meaning to
the same events.
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Schein’s (2010) proposed three levels of organizational
culture: artifacts, espoused beliefs and values, and
underlying assumptions.
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Artifacts represent the outer
layer of culture and include
rituals, language, myths, dress,
and the organization of space.
Values are the conscious,
affective desires or wants of
people that guide their
behavior. An individual’s
personal values guide behavior
on and off the job.
Underlying assumptions: indicate why organizational members
go
about their day-to-day work lives as they do, and they are
frequently
so ingrained that they cannot necessarily be easily articulated,
requiring in-depth interviewing to illuminate them.
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How Employees Learn Culture
Stories
Anchoring the present
in the past and
legitim ating current
practices
include narraQves about
the organizaQon’s
founders, rule breaking,
rags-to- riches successes,
reacQons to past mistakes,
and organizaQonal coping.
“A number of senior Nike executives spend much
of their time serving as corporate storytellers.
When they tell how co-founder (and Oregon track
coach) Bill Bowerman went to his workshop and
poured rubber into his wife’s waffle iron to create
a better running shoe, they’re talking about Nike’s
spirit of innovation. When new hires hear tales of
Oregon running star Steve Prefontaine’s battles to
make running a professional sport and attain
better performance equipment, they learn of
Nike’s commitment to helping athletes”

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Rituals
are repetitive
sequences of
activities that express
and reinforce the key
values of the
organization
w hat goals are m ost
im portant and w hich
people are im portant
and w hich are
expendable
Company Culture
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Material

Symbols
The layout of
corporate
headquarter
size of offi ces,
the elegance of
furnishings.
the types of
autom obiles top
executives are
given.
These convey to em ployees who is im portant, the degree of
egalitarianism
top m anagem ent desires, and the kinds of behavior that are
appropriate,
such as risk taking, conservative, authoritarian, participative,
individualistic, or social.
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Language
language to
help members
idenQfy with
the culture
help
preserve
culture
unique terms
describe
equipment,
officers, key
individuals
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OrganizaAonal Culture and Societal
Value Systems
Society’s values have an impact on organizational values
because
of the interactive nature of work, leisure, family, and
community.
Does the value mix change or is it different for women, African
Americans, Hispanics, immigrants, physically challenged
workers, and

others who are increasingly joining the workforce and
contributing to
organizational success? This is a question that empirical studies
and
extensive analysis and debate will need to cover more
thoroughly in
the next few decades.
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Imagine this scenario: David's boss has asked him to
manage a large, global team. In this new role, he'll be
working closely with people in several different countries.
He's excited about the opportunities that his
connectedness will present, but he's also nervous about
making cross-cultural faux pas.
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Psychologist Dr Geert Hofstede published his cultural

dimensions model at the end of the 1970s, based on a decade
of research. Since then, it's become an internationally
recognized standard for understanding cultural differences.
Hofstede studied people who worked for IBM in more than
50 countries. Initially, he identified four dimensions that
could distinguish one culture from another. Later, he added
fifth and sixth dimensions, in cooperation with Drs Michael
H. Bond and Michael Minkov.
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These people worked in the local subsidiaries of one large
multinational corporation: IBM. Most parts of the organization
had
been surveyed twice over a four-year interval, and the database
contained more than 100,000 questionnaires.
Patterns of correlation at the country level could be strikingly
different from what was found at the individual level, and
needed
an entirely different interpretation. One of the weaknesses of
much
cross-cultural research is not recognizing the difference
between
analysis at the societal level and at the individual level; this
amounts
to confusing anthropology and psychology.
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Hofstede’s Cultural Dimensions
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Types of Culture
Theorists and researchers have offered and discussed
various listings of different cultures.
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Types of Culture
Bureaucra'c Culture
An organization that emphasizes rules, policies, procedures,
chain of command, and centralized decision making has a
bureaucratic culture. The military, government agencies, and
firms started and managed by autocratic managers are
examples of bureaucratic culture. Some individuals prefer the
certainty, hierarchy, and strict organization of such a culture.
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Types of Culture
Clan Culture
Being a part of a working family, following tradition and
rituals, teamwork, spirit, self- management, and social

influence are characteristics of the clan culture.
In a clan culture, employees are socialized by other
members. Members help each other celebrate successes
together.
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Entrepreneurial Culture
Innovation, creativity, risk taking, and aggressively seeking
opportunities illustrate an entrepreneurial culture.
Employees understand that dynamic change, individual
iniQaQves, and autonomy are standard pracQces.
Types of Culture
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Types of Culture
Market Culture
InnovaQon, creaQvity, risk taking, and aggressively seeking
opportuniQes illustrate an emphasis on sales growth,
increased market share, financial stability, and profitability
are alributes of a market culture.
Employees have a contractual relationship with the firm.
There is little feeling of teamwork and cohesiveness in this
type of culture.
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Organizational Subcultures
Within this dominant culture are sub-cultures.
Teams, projects, divisions, regions, and
units may or may not have their own
subcultures.
Subcultures can form around types of work,
such as doctors, nurses, and administrators
in health care organizaQons.
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Cultural Fit
Cultural fit is the likelihood that someone will reflect and/or be
able to adapt to the core beliefs, antudes, and behaviors that
make up your organizaQon.
It’s a key trait to look for when recruiQng. The result of poor
culture fit due to turnover can cost an organizaQon between
50-60% of the person’s annual salary, according to the Society
for Human Resource Management (SHRM).
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Organisational culture and ethics
- In any organization, culture is a complex and multi-
system framework that must be aligned to encourage
ethical behaviour (Trevino & Nelson, 2018).
- Values within the culture of the organisation influence
the perception of situations and problems, the entire
process of choice in decision making as well as set
limits to ethical behaviour in decision making.

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Organisational culture and ethics
- Creating a unitary cohesive culture around core moral
values helps to enhance ethical behaviours.
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Filabi & Bulgarella, 2018
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Activity
1. Is it possible to change an organizational culture?
2. How could a change in organisational culture reconfigure

employment relations?
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Organizational Culture and Societal
Value Systems
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New ways of working and
diversity in the workplace
Dr. Igor Menezes
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The concept of diversity includes acceptance and respect. It
means
understanding that each individual is unique, and recognising
our individual
differences.

These can be along the dimensions of race, ethnicity, gender,
sexual
orientation, socioeconomic status, age, physical abilities,
religious beliefs,
political beliefs, or other ideologies.
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Benefits of diversity:
Higher revenue, more innovation, better decision making,
higher rates of job
acceptance when you make offers to qualified candidates, and
better
performance than competitors (The Top 5 Diversity Workplace
Statistics,
Medium).
When your employees feel they have to hide or mask core parts
of
themselves at work because they feel unsure, unsafe, or
invisible, it can take
a toll on motivation, engagement, and (ultimately) employee
retention and
turnover rates.
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It is the exploration of these differences in a safe, positive, and
fostering
environment.
It is about understanding each other and moving beyond simple
tolerance to
embracing and celebrating the rich dimensions of diversity
contained within
each individual.
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Diversity is:
- A set of conscious practices that involve understanding and
appreciating
interdependence of humanity, cultures, and the natural
environment;
- Practicing mutual respect for qualities and experiences that are
different
from our own;
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Diversity is:
- Recognising that personal, cultural, and institutionalised
discrimination
creates and sustains privileges for some while creating and
sustaining
disadvantages for others; and
- Building alliances across differences so that we can work
together to
eradicate all forms of discrimination.
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Workplace diversity refers to the variety of differences between
people in an
organisation. That sounds simple, but diversity encompasses
race, gender,
ethnic group, age, personality, cognitive style, tenure,
organisational function,
education, background, and more.
Diversity involves not only how people perceive themselves
but also how they perceive others.
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Diversity management is a process intended to create and
maintain a
positive work environment where the similarities and
differences of
individuals are valued, so that all can reach their potential and
maximise their
contributions to an organization’s strategic goals and
objectives.
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Diversity in Relation to Culture and Performance
As the importance of diversity in the organizational context has
increased
manifold, most organisations would like to research on
diversity-
organisational culture linkage, its effect on diversity openness,
and between
diversity and performance both at individual and organizational
levels.
Despite the technological wonders of today’s communication,
international
relations require us to deal with one another on a person-to-
person basis.
For this to be effective, one has to overcome language and
stereotype
barriers.
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Patrick (2010) found that diversity determines not only the
effects of
the diversity within an organisation but also the level of
openness to
dissimilarity characteristics among the organization’s members,
work
groups, and culture.
Despite the technological wonders of today’s communication,
international relations require us to deal with one another on a
person-to-person basis. For this to be effective, one has to
overcome
language and stereotype barriers.
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Stereotype barriers: require the mental elimination of terms like
alien and view the individual as having a background that is
different (Moran, Harris, & Moran, 2011).

Stereotypes: over-generalized belief about a
particular category of people. It is an expectation
that people might have about every person of a
particular group
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Simlin (2006) found that as the age increases, the perception of
diversity
openness decreases, and hence it is important to orient the older
employees also about the presence and need of diversity
openness in
organisations through training, workshops, group discussions,
and so on.
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Researchers have suggested that diversity has enhanced
performance by

broadening the group’s perspectives.
There is a strong empirical confirmation that successful
diversity
management and a resulting improvement in organisational
performance are positively correlated (Ozbilgin and Tatli,
2008).
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There is a consistent finding that differences should be sought
in
moderation studies.
Group members’ ability to elaborate diverse information may
also develop
over time as members become more familiar with each others’
perspectives
and develop transactive memory.
Transactive memory system: is a mechanism
through which groups collectively encode, store,
and retrieve knowledge.
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This suggests that, especially for diverse work groups, it is
important that
they can reach more extended tenure, and that they are allowed
a more
extended start-up phase than more homogeneous groups
(Knippenberg, de
Dreu, & Homan, 2004).
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“The current generation is so much different than my
generation.”
“New generations bring new ideas, new
behaviours, and new ways of looking at the issues
with which we have been concerned for years.”
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v Millennials have outpaced Generation X as the largest age
group in
the workforce as of early 2015 (Brownstone, 2014).
v The term Millennials refers to people born

between 1982 and 1999 (Twenge and
Campbell, 2008), and other common
names for this age cohort include GenY,
nGen, and GenMe (Twenge, 2010).
17
v Millennials are painted as the “selfie” generation, a
generation who
cares more about sharing pictures of themselves than about the
contributions they make at work.
v Other more positive articles often highlight the creativity,
technical
ability, concern for social values, and inclusive attitudes
towards
diversity associated with Millennials.
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v Although these viewpoints conflict, they indicate that there is
clearly a
perception that Millennials are most assuredly different than
their

predecessors with respect to ideas, behaviors and viewpoints,
and that
organisational leaders will have to lead these employees, by
necessity,
differently.
v A recent review provides evidence that attitudes and values
have changed
across the generations (Lyons & Kuron, 2014)
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v Changes in work values have been quite dramatic from the
Baby Boomers to the
Millennial generation. Examples of changes include
v These results suggest that
these generational
differences may call for
adaptations to our
current theories of
leadership and diversity
programmes.
increases in the
desire for leisure
work-life balance individualism
desire for greater
support from
m anagers

self-involved and
narcissistic
tendencies
the relationship
between job
satisfaction and
turnover intentions
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v Millennials are more likely to value working for supervisors
they like than
previous generations (Twenge et al., 2010).
v Post-Baby Boomer employees have very different work-
related values and are
more likely to quit than employees of yesteryear if their needs
are not met (Lu
and Gursoy, 2013).
v These changes in the personalities, needs, and
work values of Millennial employees not only
highlight the importance of high-quality
leaders, they call into question the application
of current leadership theories to 21st century
employees.
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v Generation gaps
Employee attitudes towards work: Work centrality is becoming
less and less
important across the three generations, being least important to
the Millennial
generation (Twenge and Kasser, 2013).
Employees in the younger generation value work-life balance
and meaningful
lives outside of work, including leisure activities, more than
their predecessors
(Ng et al., 2010; Twenge, 2010).
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v Generation gaps
Employee attitudes towards work: Employees of the more recent
generations
also have different motivational drivers than their predecessors.
Results from several studies show that Millennials are more
likely to be
motivated by extrinsic rather than intrinsic rewards (Twenge,
2010; Twenge et
al., 2010). Research suggests that this generation is highly
sensitive to monetary

compensation (Johnson and Ng, 2015) and that Millennials
expect to be paid
well and to be promoted quickly (Ng et al., 2010).
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v Generation gaps
Employee attitudes towards work: Millennials feel very
comfortable
challenging authority figures, but they also rely on praise and
rewards from
those same sources (Ahmed, Scott-Young, Ahmed, and Fein,
2013).
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Equality Act 2010: brings together over 116 separate pieces of
legislation
into one single Act.

The Act provides a legal framework to protect the rights of
individuals and
advance equality of opportunity for all.
It provides Britain with a discrimination law which protects
individuals from
unfair treatment and promotes a fair and more equal society.
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The nine main pieces of legislation that have merged are:
the Equal Pay Act 1970
the Sex Discrimination Act 1975
the Race Relations Act 1976
the Disability Discrimination Act 1995
the Employment Equality (Religion or Belief) Regulations 2003
the Employment Equality (Sexual Orientation) Regulations 2003
the Employment Equality (Age) Regulations 2006
the Equality Act 2006
the Equality Act (Sexual Orientation) Regulations 2007
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Workers often experience discrimination, disadvantage, and
inequality in
employment relations on the grounds of their social
characteristics.
For many years, the principal focus of studies of workplace

inequality
concerned the status divide between manual and non-manual
workers.
The focus of attention then switches to the importance of other
manifestations of inequality and disadvantage in work and
employment
relations, based on shared social characteristics such as gender.
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10
Traditionally, the most fundamental divisions in society are
those that are
seen to arise from social class.
The concept of class refers to hierarchical divisions in society
which reflect
differences in people’s access to material resources (refer to
Marx and
Weber).
Social inequality and disadvantage are the consequences of
differences in
people’s life chances, including access to education and
employment
opportunities, which reflect their class position.

28
Historically, class differences in society both reflected, and in
turn exercised
an important influence over, work and employment
relationships.
Someone’s economic situation, in particular their occupation, is
a major
determinant of their class position.
The term 'working class’ is associated with routine, manual
labour in factory
settings.
29
In manufacturing industry, manual workers enjoyed less
favourable terms
and conditions of employment, including a longer working
week, shorter
holidays, and fewer fringe benefits.
Non manual work, largely undertaken in office environments,
was
associated with higher status and greater job security. White-
collar
employees were more likely to benefit from sick pay
arrangements, and
enjoy longer holidays, a shorter working week, greater

opportunities for
promotion, and more autonomy at work.
30
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11
But in the twenty-first century does the concept of
social class, with all that it entails for employment
relations, still have any relevance?
The status divide remains a durable feature of employment
relations, and thus a source of workplace inequality.
31
Politicians often refer to the UK as a 'classless society’,
implying that the
importance of social class as a source of disadvantage has
diminished, and
that it no longer acts as a barrier to individual self-
advancement.
It is often held that the salience of class has declined (e. g.
Pakulski and

Waters 1996), and that other sources of social identity, like
gender or
ethnicity for example, have become more important sources
of disadvantage.
32
Alternatively, inequality may also reflect variations in the talent
and ability
of individual workers, and thus their capacity to improve their
livelihoods
and advance their careers.
BBC’s ‘Great British Class Survey’ (2013): it is inappropriate
to conceive of
class largely in relation to occupation and employment
relationships.
Rather, people’s class position is the outcome of the interplay
between
‘economic capital’ (wealth and income), 'cultural capital’
(tastes,
interests,and activities), and 'social capital’ (social networks,
friendships,
and associations).
33
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12

As a result, the traditional distinction between the upper,
middle, and
working classes is no longer valid. Instead, seven new social
classes can be
identified:
34
https://w w w.bbc.co.uk/new s/m agazine-22000973
35
Top 6% of British society
Average household incom e £89,000
Average house price was £325,000
G raduates of elite universities are over-represented
36
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13
25% of British society
M any graduates; professional and m anagerial fam ilies

37
G raduates from established and prestigious
universities w ith strong reputations for science
Low est num ber of social contacts of
any of the classes, though these do
tend to be high status
38
G ood econom ic capital, relatively poor status of
social contacts, 'em erging' cultural capital
They tend to com e from non-m iddle-
class fam ilies, and few have been to
university.
39
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14

Social contacts are low and the status of contacts are m oderate
Few are graduates, m any
filling traditional w orking-
class occupations
40
It has little savings and is likely to rent
Poor econom ic capital, but reasonable household incom e, m
oderate social contacts
41
It has little savings and is likely to rent
Their social contacts are few and of low status, cultural capital
is low.
42
11/18/19

15
It fails to conceive of class in relational terms, but rather treats
it as a cluster
of attributes which can be used to categorise people.
It neglects the important extent to which classes influence, and
interact
with, each other.
There is also something of an over-reliance placed on people
cultural
activities, at the expense of their occupation and the nature of
their work
and employment relationships.
Criticism
43
For an approach which seemingly plays down the relevance of
occupations,
most of the seven categories, especially those in the ‘middle’
reflect broad
occupational types. Yet, people from the same occupation (e.g.
care
workers) are present in more than one class. As a result, the
model lacks
coherence (Bradley 2014).

Criticism
44
Class-based disadvantage is thought to be related to the claimed
diminution
of social mobility that fewer people from modest circumstances
are able to
progress up the occupational hierarchy and secure better-paid
managerial
and professional jobs.
A lack of social mobility is held to be responsible for the
persistence of
inequality, for example by limiting access to top jobs and
reducing
opportunities for people from low-income backgrounds to
progress up the
career ladder.
45
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16
The UK government social Mobility and Child Poverty

Commission (SMCPC)
asserts that although 'people can, and do, move up and down the
class and
income scale... being born to a less privileged family is still far
too likely to
mean disadvantage as an adult’ (SMCPC, 2015).
Understanding White Privilege Through a $100 race
46
What is meritocracy?
“A system in which advancement is based on individual ability
or achievement” (The American Heritage Dictionary).
Some companies have used the idea of meritocracy trying to
defend their
lack of diversity or their unwillingness to take steps to increase
diversity.
Meritocracy without equity often results in only rewarding
those who are
already set up for success and have adequate tools, resources
and support.
47
How can we promote equity within our organizations?

Recognise potential over experience: When we look to hire or
promote, or
even when we have new opportunities for our employees, we
need to
consider the core attributes of a successful candidate, not just a
checklist of
experiences or learned skills.
Look for value-adds over culture fits: Placing value on
collaboration,
transparency and work ethic, rather than personality traits.
48
https://www.youtube.com/watch%3Fv=C17LiVmGyaU
11/18/19
17
How can we promote equity within our organizations?
Help grow the “required” skills: Creating systems that provide
training,
mentorship and internal opportunities for employees who have
not had
access to them.
Set goals bigger than the status quo: In order to create truly
equitable
companies, we have to think bigger, set goals that go beyond
just

comparing ourselves to other companies, and aim to
continuously be
better.
49
Studies of professions, like law and accountancy, demonstrate
the large
extent to which entry to elite firms and access to top positions
are
dominated by people from privileged backgrounds, especially
the privately
educated. Just 7% of children attend private, fee-paying
schools.
Yet, top jobs in business and the professions are
disproportionately filled by
people educated outside the state system – 74% of judges, for
example, and
48% of senior civil servants (Kirby 2016).
50
Firms focus their recruitment activities on a small number of
supposedly
'elite’ universities, which are dominated by students from well-
off and
privately educated backgrounds.
Their approach to what constitutes ‘talent’: moreover, is imbued

with class-
based values and assumptions, such as the degree of ease with
foreign
travel, that favour privileged candidates.
51
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18
Only 9.7% of executive positions in
the FTSE 100 companies are held
by women. Currently, only 29% of
British MPs are women.
52
Utilising the full potential of black and
minority ethnic (BME) individuals can
contribute £24 billion to the UK
economy after a year (McGregor-
Smith Review).
However, the underemployment rate
for the BME population is still higher
(15.3%) than that for white workers
(11.5%) in the UK.
53

While UK legislation – covering age, disability, race, religion,
gender and
sexual orientation among others – sets minimum standards, an
effective
diversity and inclusion strategy goes beyond legal compliance
and seeks to
add value to an organisation, contributing to employee well-
being and
engagement.
54
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19
What would you say is the most difficult part of implementing a
D&I program?
What's the difference between diversity and inclusion?
55
Inclusion requires that everyone's contributions be valued, that
individuals,
regardless of the diversity dimension, have the opportunity to
do their best
work and advance.

“In an inclusive workplace, all people are encouraged to
contribute fully and
effectively; they are respected and valued for their ideas and
opinions.
Inclusion is more than a mere representation of diversity – such
as a certain
percentage of women or minorities. Inclusion involves
accessing cognitive
differences and acting on them (CMI, 2018).”
Delivering diversity (CMI)
56
Different cultural backgrounds lead to different ways of
perceiving the
world and cultural differences affect individuals’ ethical
reasoning.
Research shows that individuals from diverse cultures differ in
their
sensitivity to ethical situations, perceptions, ethical values, and
ethical
behaviors.
Given an organizational environment, individuals’ ethical
reasoning may
vary depending upon cultural background.
57
https://www.youtube.com/watch%3Ftime_continue=76&v=LU4o

R__3eaw&feature=emb_logo
11/18/19
20
Local legislation: What local legislation related to equality and
diversity is in
place, and how does this differ from the location’s
headquarters? This might
also extend to human rights legislation and protection more
broadly.
Local culture: What is the ‘starting point’? How progressive is
the region
when it comes to equality? Is D&I culturally accepted as a
legitimate area, is
it seen as a priority and do employees feel safe to raise issues
relating to
this?
Improving D&I strategy in multinational organisations.
58
Local social issues: What are the local-level priorities in
workforce diversity?
For example, some countries may focus more on social mobility
or

socioeconomic status than on legally protected groups; or may
see different
strands of diversity (ethnicity, gender, and so on) as presenting
the most
pressing issue in inequality.
Improving D&I strategy in multinational organisations.
59
Extensive research on 850 US workplaces over a 30-year period
by Dobbin,
Kalev and colleagues found that most D&I practices fail
because they
restrict managers, limiting their autonomy or discretion.
Managers may refuse to use required tests when recruiting
employees, or
may ignore the results; and similarly, structured performance
management
systems have the potential to advance equality and diversity
but, in
practice, ‘raters tend to lowball women and minorities in
performance
reviews’.
60
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21

15 Ways To Improve Diversity And Inclusion In The Workplace
Extensive research on 850 US workplaces over a 30-year period
by Dobbin,
Kalev and colleagues found that most D&I practices fail
because they
restrict managers, limiting their autonomy or discretion.
Managers may refuse to use required tests when recruiting
employees, or
may ignore the results; and similarly, structured performance
management
systems have the potential to advance equality and diversity
but, in
practice, ‘raters tend to lowball women and minorities in
performance
reviews’.
61
Ways to improve diversity and inclusion in the workplace
1. Evaluate your executive team – do they portray diversity and
inclusion?
2. Acknowledge and honor multiple religious and cultural
practices
3. Foster a company culture where every voice is welcome,

heard, and
respected
4. Open a dialogue about gender pay inequality.
w w w.socialchorus.com /15-ways-to-im prove-
diversity-and-inclusion-in-the-w orkplace/
62
5. Welcome a multilingual workforce
6. Foster diverse thinking
7. Build a multigenerational workforce
8. Reflect everyone’s needs and preferences at everyday
gatherings
63
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22

9. Strengthen anti-discriminatory policies
10. Make your workspaces inclusive
11. Eliminate bias in the evaluation process and promotion
opportunities
12. Segment employee engagement surveys by minority groups
64
13. Use independent groups to conduct focus groups
14. Personalize one-on-one discussions.
65
Diversity and new ways of working

Workplace culture will face some significant challenges and
shifts by 2030.
“What we’re seeing today will be dramatically, dramatically
accelerated [in a
decade]” (William Gibson’s)
66
11/18/19
23
Teams will be more diverse and inclusive than ever
As a shortage of knowledge workers forces organisations to cast
a wider net
for talent, tapping new regions or underutilised demographic
segments,
cultures will need to focus on inclusion to create harmonious,
productive
work environments.
Teams may be more far-flung, have different backgrounds, and
have varied
communication preferences.
67

Tech solutions will play a role in this culture shift, facilitating
collaboration
across time zones, providing accommodations for people with
disabilities,
and even helping managers conquer their own biases.
Using virtual reality, gamification, and other tools, various
exercises
challenge user biases by encouraging them to think differently.
68
Trying to convince people that they’re biased is a challenge–
few people
believe they are. But when they’re in a situation where they see
their own
reactions, they can then figure out how to improve.
Such tools, as they evolve, will help both employees and leaders
see where
their biases or problematic behaviour are and work to correct

those issues,
leading to more effective interaction and inclusive
environments.
69
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24
Being an effective communicator is going to be tougher
Finding employees and leaders with great communication skills
is a
perennial challenge for companies now. And our current
workplaces don’t
do much to cultivate these skills.
A decade from now, the communication skills gap will likely
widen. In
addition to voice, text, and video, advances in virtual reality
(VR) will change
the way people meet and interact, and being an effective
communicator is
going to include mastering various media.
70

The trust factor will be trickier
As artificial intelligence (AI) and machine learning (ML)
permeate virtually
every area of work, employers will have access to a great deal
more data
about employees, productivity, and work patterns.
This transparency will allow employers to find ways to improve
productivity, such as providing training in areas where
employees seem to
be struggling.
71
However, such data will also lead to new concerns about
privacy and trust.
Leaders will need to analyze and check data to ensure that
they’re
“reading” it correctly and balancing decisions about individual
employees
with their own knowledge.
72

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25
Employees will also need to feel that employers are
safeguarding the data
collected about them, so being transparent about how data is
collected and
used will be necessary to foster trust between the employer and
employee.
73
Workers will always be upskilling
As technology automates more rote tasks and changes the jobs
that need to
be done by humans, it also creates anxiety about being “left
behind”.
Workers and employers will need to partner to create lifelong
learning
pathways to keep pace with technology and other workplace
developments.
74

Workers will always be upskilling
As AI and ML change the nature of work, leaders who wish to
retain their
investment in talented employees will need to be explicit about
their
commitment to them.
If 20% of a job is being taken over by an AI solution, “I want to
know what
the commitment is of the organization to ‘upskill’ me so that I
continue to
have a job”.
75
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26
Effective work spaces may make offices popular again
Culture is also affected by the spaces in which people work:
create more
flexible, thoughtfully designed workplaces that facilitate

employees’
workflow and needs (e.g., private spaces and work stations).
76
Conclusions
Inequality and disadvantage cannot be understood just in the
context of the
workplace, but are also informed by wider economic, political,
and social
influences that transcend particular employment situations.
Equal opportunities policies, which emphasize the need to treat
everybody
the same regardless of their social characteristics, are strong on
rhetoric,
but often short on action.
77
Conclusions
Greater trade unions presence can exert pressure on employers
to deliver a
more effective set of equality policies, such as better work-life
balance
arrangements.
While anti-discrimination and equality laws have been in place

since the
1970s, in general they lack effectiveness.
78
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27
Conclusions
Business leaders are responsible for the corporate culture and
how ethics
and diversity issues are viewed.
Every business should establish ethics policies and a code of
conduct. For
example, if a company is driven by high-moral standards, it
might adopt a
policy of "do the right thing”. Importance of ethical leadership.
79
What are the main challenges you have faced when dealing with
someone culturally, racially, or ethnically different from you?
How have you handled it?

80
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1
Organizational / managerial
responses to the current
pressures in the system:
Performance management and
increased flexibility
Dr Igor Menezes
1
Managing employment relations
Twentieth century: employers recognised unions for collective
bargaining
so as to mitigate disruption and foster order and stability
(Hyman, 1975).
Acceptance of union legitimacy but with the intention to restrict
its
influence over employment relations in the workplace.
Decline of the unions: managers have more opportunities to
shape and
influence employment relations.
2

Unsophisticated managerial control systems, the lack of
complex
managerial hierarchies in firms, and the slow and relatively late,
diffusion of
scientific management techniques (Tolliday and Zeitlin 1991 ;
Gospel1992).
Managers were encouraged to take greater control over
employment
relations in the workplace by formally recognising the
legitimacy of shop-
floor unionism rather than by trying to extinguish it, something
that would
only cause greater disruption.
Donovan identified managerial weakness as a prime source of
Britain’s
employment relations problems: managers should secure greater
control
over workplace employment relations (Royal Commission
1968).
3
10/26/19
2
To encourage order and stability: productivity bargaining
(Reaching an

agreement between employers and employees in which
employees agree
to measures wanted by the employer that will raise productivity,
in return
for an increase in pay or improvement in other working
conditions).
It represented an attempt by management to secure control of
the
workplace through cooperative means, by explicitly recognising
the
legitimacy of the unions as the representatives of the workforce,
rather
than trying to marginalise or exclude them (Flanders, 1964).
4
Limited productivity gains; the agreements ultimately
undermined union
power in the workplace.
Closed shop agreement: a contract between an employer and a
labour
union that stipulates that the employer will only hire workers
from a
specific union and those workers can only remain with that
employer while
they are a part of the union that the agreement covers.
5
Challenging trade unionism
1980s to 1990s: substantial fall in the incidence of union

recognition,
particularly in the private sector (Blanchflower and Bntson
2009 ; Simms
and Charlwood 2010).
Employers increasingly turned 'their back on trade unions’.
Employers were
never legally obliged to deal with a union.
Employers attempted not to recognise unions, challenge their
role,
suppress trade unions, by victimizing union representatives for
example.
6
10/26/19
3
Challenging trade unionism
Outcome of the 1997 Labour government’s commitment:
introducing a
measure that would oblige employers to recognize a union
where the
majority of the workforce wanted it (DTI 1998).
However, it ended up being favourable to employers: narrow
conception of
what constitutes legitimate union representation, based on
demonstrating
majority support in a workplace ballot.

Nearly half of all employees (47%) are in workplaces where
there is a
recognised union.
7
Employers’ responses to union
recognition claims
Declining number of newrecognition agreements:
union suppression: use of anti-union consultants, the
victimization of union
activists, and other intimidatory tactics designed to forestall a
union
presence.
Attempt to influence the outcome of a recognition ballot by
threatening
that unionization could damage the interests of the business,
perhaps by
putting future investment plans in jeopardy, and thus pose a risk
to jobs.
8
Employers’ responses to union
recognition claims
Substitutionist approach: providing employees with alternative,
in-house
methods of representation such as a company council, or using
rewards,
like pay rises, to demonstrate that union recognition is
unnecessary.

Companies like The Body Shop and Pizza Express have
developed employee
involvement and communications arrangements in an attempt to
demonstrate to their staff that they do not need union
representation.
Refusing to engage meaningfully with the union even after
recognition has
been granted.
9
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4
Sophisticated HRM and
employment relations
Sophisticated HRM vs Personnel Management: issues that arose
from
having to deal with unions vs developing and sustaining a
climate in which
individual employees feel valued and engaged, in a way that
promotes trust
and enhances organizational performance (Emmott 2005, 2015).
Greater emphasis on the fit between employment policies and
the overall
business objectives of the organization.
Preference for weak or non-existent trade unions. Threatening
unions by
seeking to bind individual employees to the organization and

reducing the
potential for conflict of interest.
10
Sophisticated HRM and
employment relations
Could a sophisticated HRM hinder the recognition of trade
unions?
Could “seeking to bind individual employees to the
organization”
reduce the potential for conflict of interest?
Do you agree with this?: “Under a sophisticated HRM regime
there is a
greater emphasis on techniques for managing organisational
culture
(Bolton, 2004; Legge, 2005).
Do you believe that monitor and manage employee performance
is a way of
exerting tighter control over the activities of the workers?
11
Employee Voice
Employee voice is the means by which people communicate
their views to
their employer.
It’s the main way employees can influence matters that affect
them at
work.

For employers, effective voice contributes toward innovation,
productivity
and organisational improvement. For employees, it often results
in
increased job satisfaction, greater influence and better
opportunities for
development.
12
10/26/19
5
Employee Voice
There are two main types of activist reactions to discontent with
organizations to which one belongs or with which one does
business: either
to VOICE one's complaints, while continuing as a member or
customer, in
the hope of improving matters ; or to EXIT from the
organization, to take
one's business elsewhere.
“There is an emphasis on conveying information to employees,
with the
aim of influencing their behaviour, rather than allowing
employees
opportunities to exercise genuine voice” (Danford et al. 2005)
13

Employee Voice
Giving employees greater influence and voice over the
organization of their
work and changes in work processes is essential if companies
are to secure the
levels of commitment necessary for the production of high-
quality goods and
services, and thus thrive in increasingly competitive global
markets (Boxall and
Purcell 2011 ).
14
Employee Engagement
The importance of
Organisational Commitment
$720 million spent on improving employee
engagement (Bersin and Associates, 2012) and
that it was projected to rise to over $1.5 billion
(HBR, 2015).
15
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6
Employee Engagement
Organisational commitment is "the relative

strength of an individual's identification with and
involvement in a particular organization"
(Mowday, Steers & Porter, 1979, p.226).
16
Correlates of commitment
Identification
(A sh fo rth & M a e l, 1 9 8 9 ;
B ro w n , 1 9 6 9 ; H a ll &
Sc h n e id e r, 1 9 7 2 ; Le e , 1 9 7 1 ;
M o w d a y, Ste e rs & P o rte r,
1 9 7 9 ; R ike tta , 2 0 0 5 ; Ta jfe l,
1 9 7 8 )
Organisational
Commitment
Involvement
(Etzio n i, 1 9 7 5 ; Lo d a h l & K e jn e r, 1 9 6 5 ;
M o rro w , 1 9 8 3 ; M o w d a y, Ste e rs & P o rte r,
1 9 7 9 )
Citizenship
(K a tz & K a h n , 1 9 7 4 ; La th a n ,
M illm a n & K a ra m b a ya , 1 9 9 7 ;
O rg a n & R ya n , 1 9 9 5 ; P o rto &
Ta m a yo , 2 0 0 3 ; R e g o , 2 0 0 2 )
Psychological Contract
(R o b in so n & R o u sse a u ,

1 9 9 4 ; R o u sse a u , 1 9 8 9 ,
1 9 9 5 )
Loyalty
(B e ye r, H a n n a h & M ilto n ,
2 0 0 0 ; C h e n , Tsu i & Fa rh ,
2 0 0 2 ; C h e n e y, 1 9 8 2 ;
P a tc h e n , 1 9 7 0 ; U g b o ro ,
1 9 9 3 )
Obedience (C o sta &
Silv a , 2 0 0 9 ; K e lm a n ,
1 9 5 8 ; O ’R e illy &
C h a tm a n , 1 9 8 6 )
Entrenchment
(A g u ia r, 2 0 0 9 ; C a rso n ,
C a rso n & B e d e ia n , 1 9 9 5 )
17
Organizational Commitment is a core
predictor of employee’s attitude to the
organization and is a strong indicator
of turnover behaviour.
18

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7
Allen & Meyer (1990)
19
Employee Voice
For Purcell (2014: 244), the purpose of employee engagement is
to get better
workers and indoctrinate them on organizational goals and their
role in
achieving them... Taking us back to a dangerously simplistic
view of work
relations'.
20
Employment relations and performance
Sophisticated HRM:
emphasis on managing employees in a way that enhances
business
performance
vs
Traditional pluralist approach:
manage with, and accommodate the effects of, trade unionism
and collective

bargaining.
21
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8
There are four types of practice deemed to be particularly
powerful when it
comes to generating commitment (White et al. 2004 Kersley et
al. 2006):
• The presence of formal team working arrangements
• The existence of a functionally flexible workforce
• The operation of employee voice and involvement practices.
• The use of sophisticated reward mechanisms which offer
incentives to
workers for demonstrating commitment and performing well.
High commitment practices are claimed to improve business
performance by
producing a better quality workforce who are more committed
to, and engaged
with, business goals because they enjoy more fulfilling working
lives.
22

There is no consensus about the implications of sophisticated
HRM for
organisational performance:
1. The prevalence of high commitment practices remains rather
Iow. The high
commitment approach to managing people at work is present in
only a
minority of workplaces, and does not appear to have become
more
widespread.
2. Research studies in this area tend to exaggerate the
association between
high commitment HRM and business performance.
3. There is no consensus on what practices should comprise the
high
commitment management approach.
23
HRM for
4. One of the key assumptions underpinning the high
commitment approach -
that improvements in business performance result from a better
quality of
working life for employees because it raises their productivity -
is
questionable.

5. In the high commitment approach there is often a tendency to
treat human
resource practices as formal managerial interventions, readily
identifiable
and thus, when presented as variables, making the effects of
their presence
supposedly easy to measure.
24
10/26/19
9
HRM for
6. The research methodology that underpins studies of the
relationship
between sophisticated HRM and performance raises doubts
about the
appropriateness of the high commitment paradigm and its
contribution.
Use of high commitment practices can be patronising and
insulting if workers
perform well due to strict control and need to conform with
tight financial
constraints and job instability.

25
Human relations movement
It was initiated by Elton Mayo, a social scientist from Harvard
University, with a
series of investigations conducted at the Hawthorne works of
the Western
Electric Company in Chicago, between 1927 and 1932.
Hawthorne experiments
26
New Human Relations: 1950
• It recognises that employees have great potential to perform
and they should
not be treated as submissive, compliant creatures.
• Focused on the psychological needs of employees.
• Studies covering a variety of perspectives in neo-human
relations were
conducted by researchers.
27
https://www.youtube.com/watch?v=RV3_ae3Kjyk&feature=yout
u.be
10/26/19

10
• 1972 creation of the Work Research Unit in the UK
Department of
Employment.
"promote applicable research, and to encourage the application
of
organizational principles and working practices that would
enhance both
industrial efficiency and the quality of working life" (Shimmin
& Wallis, 1994).
28
Quality of working life (QWL)
• Adequate and fair remuneration.
• Safe and healthy work environments.
• Work routines that minimize disruption to leisure and the need
of families.
• Jobs that develop human capacities.
29

Quality of working life (QWL)
• Opportunities for personal growth and security
• A social environment that promotes personal identity, escape
from prejudice,
a sense of community, and upward mobility.
• A right to personal privacy and right to dissent.
• Organizations that are socially responsible.
30
10/26/19
11
Working Time and
Employment Relations
• Working time (length, pattern, and use): exchange of wages
for latent labour
power. Employer buys time.
• Working time has long been an issue on which trade unions
have campaigned,
for a shorter working week in particular.
• Attracted attention: harmful effects of excessive hours (‘long
hours culture’).
• Affected by a greater degree of legal regulation ; in particular,
the European

Union (EU) Working Time Directive has attracted rather a lot of
controversy.
31
Working Time and
• Employers are interested in how working time can be arranged
in ways that
improve organizational efficiency and generate performance
improvements.
• Policy-makers have taken measures to encourage more flexible
working time
arrangements, not least because of the potential they have to
improve
gender equality (Grimshaw and Rubery 201 0 Eurofound 2012).
32
Working Time and
United Kingdom labour law: Regulates the relations between
workers,
employers and trade unions
• The Working Time Regulations 1998 (SI 1998/1833) is a
statutory instrument
in UK labour law which implements the EU Working Time
Directive 2003.
• The Working Time Regulations create a basic set of rights for
the time people
work, particularly 28 days paid holidays, a right to 20 minute

paid breaks for
each 6 hours worked, a right to weekly rest of at least one full
24 hour
period, and the right to limit the working week to 48 hours.
33
10/26/19
12
Working Time and
Maximum weekly working hours
• Working time directive: You can’t work more than 48 hours a
week on
average - normally averaged over 17 weeks.
• You can choose to work more by opting out of the 48-hour
week. Your
employer can ask you to opt out, but you can’t be sacked or
treated unfairly
for refusing to do so. You can opt out for a certain period or
indefinitely. It
must be voluntary and in writing.
• Under 18: can’t work more than 8 hours a day or 40 hours a
week.
34
Working Time and

Trade-off: During the 1980s and 1990s engineering unions in
Germany and
Britain successfully used industrial action to reduce the length
of the working
week. BUT, as employers conceded fewer hours in return for
greater flexibility
over the utilization of working time.
After 2008, some companies voted to reduce their weekly hours
of work, helping
to avert proposed job losses arising from a fall in demand for
the company’s
products.
35
Working Time and
The decline of the trade unions and the diminishing scope and
importance of
collective bargaining mean that in general joint regulation plays
a less powerful
part than it once did, with employers enjoying greater freedom
to manage
working time issues unilaterally (Grimshaw and Rubery 201 0 ;
Blyton 2011)
36
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13
Working time duration:
patterns and trends
Until the 1990s: reduction in the average number of weekly
working hours for
full-time employees.
During the 1990s: British full-time employees have the longest
average working
week in the EU.
Rise of the 'long hours culture’ (mainly after 2008): Greater
competitive
pressures encouraged many businesses to find ways of
increasing output while
freezing, or even reducing, staff numbers. White-collar jobs
were obliged to
work more hours, usually unpaid, to take up the slack.
37
Working Time and
Employees in the UK were found
to work 42.3 hours per week on
average, Eurostat data shows.
The Dutch, famous for having
the best work-life balance of all
OECD countries, have the
shortest week, clocking in for an
average of just 30.3 hours.

38
patterns and trends
The long-term diminution of 'long hours’ working has been
largely concentrated
among men and it is a trend evident across Europe (Messenger
2011 ; Eurofound
2012).
Overtime unpaid hours are concentrated among certain types of
workers (e.g.,
managers, professionals, manual, transport, manufacturing,
process, etc).
The TUC estimates that 5 million people perform some unpaid
overtime, worth
some £31.5 billion to the economy.
39
10/26/19
14
patterns and trends
People who work for lots of hours seem to have greater job
satisfaction; they
may put in more working hours because they find their jobs
interesting and
gratifying (Green and whitfield 2009; Walsh 2010), or because

the prospect of
additional overtime payments is seen as desirable.
Overtime working is a potentially very inefficient way of
organizing working
time; workers may work more slowly during their normal
contractual working
hours in order to ensure that overtime is needed to complete
their tasks.
40
patterns and trends
Negative effects of night work and other unsocial hours of work
on employees’
physiological and psychological well-being; increased risk of
strokes and heart
disease; mental ill health, diabetes, and bowel problems, lower
levels of well-
being.
41
Future of Work
- Production methods have changed and attitudes to work have
evolved significantly.
- Lifelong employment is almost over, 9 to 5 workdays are a
thing of the past,
the concept of command and control relationship has become
obsolete:
individuals want to thrive at work, be on equal terms with their
superiors,

organise their working time according to their own desires and
constraints
and negotiate tailor-made working conditions.
Role of Work
42
10/26/19
15
Future of Work
- The workforce has never been so diverse and educated: While
the
20th century was largely characterised by the white male
breadwinner, diversity is driving today’s workforce: women,
students
working to fund their education, people with disabilities, self-
employed people returning to work, pensioners wishing to keep
a
professional activity, etc.
Key trends
43
Future of Work
- The world of labour has become flat and globalised: the global
working population has almost doubled to reach more than 3
billion
people in 2015 (an addition of around 1.5 billion compared to

1989).
- Explosion of migration: more than one billion people crossed
borders in 2009.
Key trends
44
Future of Work
- Ageing global working population: 60% of people now live in
countries with stagnant or shrinking populations.
- Hyper-connected workforce: New technologies allow for more
flexible workplaces, with people working outside the standard
core
hours and a large number of employees not just leaving the
office
and their work behind them.
Key trends
45
10/26/19
16
Future of Work
- Flexible work environment/connects to work.
- Prime trends impacting flexible work:

Behaviors shaped by social media
technologies, globalization, technology,
mobility, millennial workforce.
M organ (2014)
46
Future of Work
- Work anytime: ability to set schedule.
- Work anywhere.
- The overall focus on employee outputs not just on
inputs: what employees produce and the quality of
what they produce is what matters.
Flexible work
47
Future of Work
- Organization that offers flexible work environments is more
attractive to prospective hires than one that doesn’t.
- According to flexible staffing firm MomCorps, 45% of
working
adults would be willing to take around a 9% pay cut to be able
to have a more flexible work schedule.
Flexible work
48

10/26/19
17
Future of Work
- Organization that offers flexible work environments is more
attractive to prospective hires than one that doesn’t.
- According to flexible staffing firm MomCorps, 45% of
working
adults would be willing to take around a 9% pay cut to be able
to
have a more flexible work schedule.
- MomCorps also found that 73% of working adults look at
flexibility
as one of the most important factors when considering looking
for
a new job or deciding what company they should work for.
Flexible work
49
Future of Work
- The 2013 Regus Global Economic Indicator of 26,000 business
managers across 90 countries revealed that 48% of them are
now working remotely for at least half of their work week.
- 600,000 employees in the United States travel 90 minutes and
50 miles to work (each way) and 10.8 million employees travel
an hour each way (U.S. Census Bureau, 2013).

- This is the virtual equivalent of having a part-time job while
sitting and driving in your car.
Flexible work
50
Future of Work
- Numerous research reports show that employees who work
from
home are actually more productive and have better quality of
life.
- Research published in 2011 from the Umea University in
Sweden found that “couples in which one partner commutes for
longer than 45 minutes are 40 percent likelier to divorce.”
Flexible work
51
10/26/19
18
Future of Work
- Not only that, but the companies who support flexibility are
themselves able to save many millions of dollars.
- According to Global Workplace Analytics, a typical business
would save approximately $11,000 per employee per year if that

employee were allowed to work from home just half the time.
- The employees themselves would save between $2,000 and
$7,000 per year.
Flexible work
52
Future of Work
WHAT ABOUT FACE-TO-FACE COMMUNICATION?
53
Future of Work
- We are social beings and it’s hard to think of anything more
depressing than employees sitting around their homes staring at
faces on screens all the time.
- Sociologist T. J. Allen: once employees are approximately 200
feet away from each other, their chances of communicating and
collaborating falls to zero.
Face-to-face communication
54
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19
Future of Work

- Coworking is a style of work that involves a shared
workplace,
often an office, and independent activity. Unlike in a typical
office,
those coworking are usually not employed by the same
organization.
- They are convenient and provide for an ad hoc and convenient
location for meeting or working and offer all of the amenities
that
you would expect to find in any type of office.
Coworking
55
Future of Work
- One of the many popular benefits that employees enjoy at
coworking locations is the ability to work side-by-side with
people
at other companies.
- Company offices are not going to go away.
- Some organizations will utilize their offices as coworking
spots,
others will utilize the space in other ways such as creating large
auditoriums for events, and others will be getting rid of their
large
and expensive offices and real-estate properties.
Coworking
56

Future of Work
- It allows employees to un-pigeonhole themselves in their
careers.
It’s about putting the career paths in the hands of employees.
- Three types of customization: based on voice, based on self-
organization, and based on choice.
Customized work
57
10/26/19
20
Future of Work
Customized work
- Customization Based on Voice: Internal social networks and
collaboration platforms afford employees a new and unique
opportunity to be heard.
- Customization Based on Self-Organization: employees can see
what projects are available and select the ones they want to
participate in (or create their own).
58
Future of Work

Customized work
- Customization Based on Choice: dynamically change work
preferences: For example, how many hours you can work a
certain
week, where you want to work, how often you want to travel,
what
projects you want to work.
- The ability for employees to shape and create their own career
paths is going to be the standard.
59
Future of Work
Customized work
- There’s no reason why employees who get hired in a particular
area or industry need to stay in that area.
- Our interests, passions, and ideas are constantly changing and
the ability to adapt our work to those changes is not only
valuable
but crucial.
- One of the top reasons why employees change jobs is to focus
on
career growth.
60
10/26/19

21
Future of Work
Customized work
- They want to improve their skills, learn new ones, and move
into
areas where those skills can be developed.
- Organizations are always on the hunt to recruit and retain top
talent
but research shows that the cost of finding someone outside of
the
company can be almost two times as expensive as recruiting
within.
- The data shows that hiring internally is cheaper, quicker, and
that
there’s a better fit.
61
Future of Work
- It allows employees to select the projects they work on the
same
way they would if they were freelancers.
- Employees pick and choose the things that interest them
instead
of being told what to do and what projects to be a part of (e.g.,
game companies).
Modular work

62
Future of Work
- Social media platforms such as Facebook, Twitter, Yelp,
LinkedIn, and others came around, which in our personal lives
enabled us to share, collaborate, and communicate in an
open, easy, and scalable way.
- Employees who share information are those who will get
recognized by their peers and managers and these are the
people who will build powerful networks within their
organizations.
Information sharing
63
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22
64
Future of Work
65
Future of Work
66

10/26/19
23
Future of Work
67
Future of Work
- The emergence of these three worlds is going to create fresh
challenges for HR.
- Organisations currently grapple with the realities of skills
shortages,
managing people through change and creating an effective
workforce.
pwc report
68
Future of Work
- By 2022, the radical change in business models will mean that
companies will be facing further issues such as:
• The need to create ever more sophisticated people
measurement techniques
to monitor and control performance and productivity.
• The boundary between work and personal life disappearing as
companies
assume greater responsibility for the social welfare of their
employees.

pwc report
69
10/26/19
24
Future of Work
- Most of the HR professionals in their survey don’t believe
they’re
prepared for meeting the needs of a workforce that demands
more
freedom, autonomy and flexibility.
- Only around 20% report that they’re ready to embrace the role
of
technology and automation in replacing knowledge workers,
even
though most recognise this is something they should consider.
pwc report
70
71
Flexibility has its limits…
72

10/26/19
25
2. In what ways are employment relations expected to change in
order to fit in with these new trends (e.g., flexible work, gig
economy, retail crisis)?
Activity
1. If flexible work is so great, why isn’t everyone doing it?
What
are the main drawbacks of flexible work for companies and how
could it impact the employment relations?
73
The Decline of Collective Bargaining and its influence on Pay
Management in Britain
Table of Contents
2The Decline of Collective Bargaining and its influence on Pay
Factors behind Collective Bargaining Decline
3
Globalization
3
Technology
3
Public Sector and Decline of Collective Bargaining
4
Private Sector and Decline of Collective Bargaining

4
Impact of Economic Recession
6
Employment Growth Differences
6
Pay Determination in face of the Declining Collective
Bargaining
7
The Pay Determination outside Labor Union Influences
9
Redefinition of Collective Bargaining in Future – Less Role in
Pay Determination
11
Conclusion
12
References
14
The Decline of Collective Bargaining and its influence on Pay
Pay determination and management is an area of fundamental
importance in employee relationship. The very construct of
employee relationship is formed around the labor payment. The
strategy of pay determination in Britain has gone through many
changes over the past few years, especially in the face of
declining trade union influences and increasing competition.
The paper looks into the management of pay and its
determination over the course of recent years as a result of
declining collective bargaining in UK. The individual discretion
that an employer can exercise is also discussed in the face of
changing industrial climate. The paper goes into a literature
review and theoretical discussion of pay management and its
ability to secure productive effort. The trade union’s role is
examined in the face of the declining collective bargaining in
Britain. The influence is examined along with discussion of
employer pay strategies in firms around the world.

Collective bargaining refers to the representation of employees
through unions in the bargaining matters with employers
including the pay determination. Jose (2000) observed that trade
unions have been, for quite a long time, an important institution
of the very industrial society. Their past roles have been
extremely important in their ability to legitimize the struggles
of the laborers, empowerment of the labor union members and
working towards a balance of power between the employers and
the employee. The post 80s era has seen greater difficulties for
trade unions in the recruitment processes. In the public sector as
well, the union density has declined in almost all of the
European countries (Ebbinghaus and Visser, 2000). There was a
greater degree of decline in union membership in OECD
countries situated outside the Europe (Traxler, Blaschke and
Kittel, 2001). While some scholars have believed that the
European Social Model, one that stresses on a collective model
of employment regulation, is a reason of less weaker labor
union in Europe as compared to other countries (Streeck, 1999).
However scholars have agreed that the decline in density of
trade unions is a pressing problem and can be explained. The
changes in socio economic landscape around the world as well
as the growth of private sector is one of the biggest reasons
behind the decline in density of labor unions in the public
sector (Ebbinghaus and Visser, 1999).
Factors behind Collective Bargaining Decline
A decline in the density of trade unions has been seen in most
of the developing countries over the course of the past 25 years
(Visser, 2003). There has been significant decrease in the
workplace level union acknowledgement by firm management in
pay determinations and bargaining. This decline in trade union
density can be explained due to a number of reasons. While the
change in the structure of economy around the world is one of
the most obvious reasons, this decline can also be seen as
voluntary in nature.
Globalization

Globalization of the economy around the globe is one of the
primary factors behind the decline of density in labor unions.
The evolution of globalization has meant a greater resulting
pressure on all local firms to become more competitive. This
requires greater flexibility in terms of the productivity of the
human resources resulting in the very way of organizing labor
and functioning as an organization. Some of the most relevant
changes have been a much more flexible job design, broadening
of the definition of the roles, greater set of skill requirements as
well as a consistent form of human resource development.
Globalization and the resulting need for being more competitive
has also resulted in the need for greater numerical flexibility as
well. This implied practices that required part time jobs, per
hour job rates, outsourcing of certain business processes and
contractors/consultants.
Technology
Another important factor behind the decline in trade union
density is the evolving role of technology. Greater technology
has meant a much different logistics for organizations. It is now
possible for production to be distributed as set of processes
across the world. This has strong implications for human
resources and where they need to be placed. This means a
number of labors intensive machine intensive processes are now
replacing processes. These two changes in the environment have
meant strong implications on the effectiveness of collective
bargaining around the world. Public Sector and Decline of
Collective Bargaining
The public sector trade unions seem to have been able to
survive the decline in trade unions in countries that can rely in
institutionalized partnership such as Germany and Italy (Thelen,
2001). However, as compared to the private sector, the public
sector continues to remain the most organized sector. In some
Nordic states such as Sweden and Finland, union membership in
the public sector is significantly higher than that of the private

sector (Thelen, 2001). Less risk of unemployment in public
sector is seen as one of the reasons there is less decline in the
trade union. In Britain, the union density is three times as
compared to the private sector. The Public Sector provides
better recruitment conditions for the trade unions as compared
to the private sector (Keller, 2001). Some of the reasons trade
union density decline is lesser in public sector include the
greater acceptance to collective bargaining of payment, greater
bureaucracy, greater says of unions in staff policy (resulting in
greater effectiveness) and acceptance of union membership by
the employers themselves as a choice. Traxler (1999) believed
that since the state is the employer, the ability to regulate the
relationship with a union in a much better way.
Private Sector and Decline of Collective Bargaining
The decline in the density of trade unions within the private
sector can also be attributed to a decline in recognition. In
Britain, before 1979, the recognition rate of unions in
workplaces was double as compared to 1980s and later. Milward
et al (2000) observed that one could trace this move away from
the recognition of union to as early as post World War II.
Blanchflower and Bryson (2005) seem to disagree with their
observation. They showed that the recognition rate of trade
unions was 50 percent before 1979 and fell to as low as 32
percent in 2004. This 1/3 rd decline is extremely prominent in
this era as compared to earlier. Earlier studies such as Willman
et al. (2007) had argued that the decline of density in trade
unions could not be attributed to de-recognition, specifically in
Britain. Since the closure rates of workplaces have been
observed by scholars as being non-dependent on the
phenomenon of trade unions (Bryson and Dale-Olsen, 20008),
therefore one could attribute the decline in trade union densities
in old workplaces to de-recognition. Bryson and Gomez (2003)
observed from their studies that the recognition of trade unions
has lesser probabilities in workplaces where the proportion of
manual workers is low. Bryson and Gomez (2003) also observed
a favoring relationship between low ratio of female employees

and union recognition. Since these factors have changed and
disappeared over the course of past three decades, the effect on
recognition can be seen as weakening too (Bryson and Gomez,
2003).
Millward et al (2000) argued that the decline in the destiny of
trade unions could be attributed, mainly, to the decline of old
industries and workplaces of large scales that created room for
strong trade unions. Blanchflower and Bryson (2005) disagreed
with this hypothesis and proved that the density of trade unions
declines across all industries and categories of workplaces.
They concluded that the size of industries and scale of
workplaces did not account largely for the decline of the unions.
They believed that two-third of the decline in trade union
density can not be explained by compositional changes such as
structure of workplaces and their sizes. This is a high
percentage of the decline and has been as a change that comes
in the form of choices made by employers. Bryson et al. (2004)
concluded with the same results. They believed that the biggest
reasons for the decline in trade union density is explained by
choices made voluntarily by employers by preferring a state of
non-union or de-recognizing them.
These choices made by employers can be explained by the costs
that have evolved over the course of past thirty years by
keeping unions in a workplace. In order to understand this, one
needs to look into the effects of unions on both workplaces with
unions as well as the ones without them. Freeman and Medoff
(1984) observed that unions have a strong impact on a
workplace as a voice overall and specifically on pay
determinations. The power of unions have been seen to be
declining primarily as a cause of greater competition from the
sector that is non unionized as well as competition with lower
costs of labor around the world. Successful bargaining on the
side of unions in getting wages above the market rates will
always result in a decreasing competitive advantage unless it is

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