An organization employs people of different skills, experiences, and competencies. Collectively, they all have to work together to produce "results" for the organization, first in terms of goods or services - this is called "performance." The performance is then seen as financial results indicators like Turnover, Gross Profit, Net profits, etc. In fact, there are many ways in which to express "results."
The fact is that the prosperity of an organization is seen after the famous "break-even point" where the organization has survived, and it has been able to make neither profits nor has it made a loss. The journey beyond this break-even point is in the profit zone. But the fact is that this journey depends upon the "performance," which in turn depends upon the "collective effort" on the part of the members of the organization.
Generally, members of the organizations can be divided into two broad categories - the bargainables (blue-collared/white-collared employees who, in the eyes of the law, are "workmen") and the other category is the non-bargainable employees. As the name indicates, bargainable workmen can "bargain" for better terms & conditions of employment, including wages and other facilities, as they enjoy "protection" of employment to a large extent under applicable law. The other category has no such protection.
For the non-bargainable employees, competence alone is their employment security, and for the bargainable, in addition to competence, law and the strength of an employee organization (a Trade Union) achieve employment security. Evidently, when this class bargains for better terms, wages, and facilities, the management also and rightly needs an assurance of better efforts for continued profitability, growth, and smooth working. It is at this stage of collective bargaining both parties bargain for their needs.
The organizations need improved quality, quantity, output, productivity, consistency, reliability, etc. Therefore, they are reluctant to grant any wage rise without getting assured enhancement in productivity.
It is this situation that explains itself as productivity bargaining! Simply put, while workmen bargain for higher wages, managements bargain for better productivity. This is called "productivity bargaining." It can be seen in many forms depending on the indicators of productivity the organizations work with.
Sorry about the simple start but your question suggested that I should start at an elementary level and keep the explanation SIMPLE!
Trust this will satisfy your query!
Regards,
Samvedan
March 22, 2011
From India, Pune
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321The fact is that the prosperity of an organization is seen after the famous "break-even point" where the organization has survived, and it has been able to make neither profits nor has it made a loss. The journey beyond this break-even point is in the profit zone. But the fact is that this journey depends upon the "performance," which in turn depends upon the "collective effort" on the part of the members of the organization.
Generally, members of the organizations can be divided into two broad categories - the bargainables (blue-collared/white-collared employees who, in the eyes of the law, are "workmen") and the other category is the non-bargainable employees. As the name indicates, bargainable workmen can "bargain" for better terms & conditions of employment, including wages and other facilities, as they enjoy "protection" of employment to a large extent under applicable law. The other category has no such protection.
For the non-bargainable employees, competence alone is their employment security, and for the bargainable, in addition to competence, law and the strength of an employee organization (a Trade Union) achieve employment security. Evidently, when this class bargains for better terms, wages, and facilities, the management also and rightly needs an assurance of better efforts for continued profitability, growth, and smooth working. It is at this stage of collective bargaining both parties bargain for their needs.
The organizations need improved quality, quantity, output, productivity, consistency, reliability, etc. Therefore, they are reluctant to grant any wage rise without getting assured enhancement in productivity.
It is this situation that explains itself as productivity bargaining! Simply put, while workmen bargain for higher wages, managements bargain for better productivity. This is called "productivity bargaining." It can be seen in many forms depending on the indicators of productivity the organizations work with.
Sorry about the simple start but your question suggested that I should start at an elementary level and keep the explanation SIMPLE!
Trust this will satisfy your query!
Regards,
Samvedan
March 22, 2011
From India, Pune
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When employers and employees enter into negotiations to increase the overall efficiency and productivity of the business, this type of negotiation is almost always seen in factory or construction work. However, it may also be present in the film industry and other heavily regulated workforce areas. It is rarely used in service industries where specific types of employee labor are not required.
Productivity Bargaining
Productivity bargaining is a more specific type of collective bargaining that occurs when managers begin to draw up specific ways that the employer/employee relationship will be changed. The goal of management in this case is to increase the productivity of the workers without having to hire more labor. In return, management agrees to raise the wages of the workers.
From India, Delhi
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Productivity Bargaining
Productivity bargaining is a more specific type of collective bargaining that occurs when managers begin to draw up specific ways that the employer/employee relationship will be changed. The goal of management in this case is to increase the productivity of the workers without having to hire more labor. In return, management agrees to raise the wages of the workers.
From India, Delhi
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Collective Bargaining.ppt
Trade unions and collective bargaining.pdf