7 Recognize the importance of human resources in Canadian business.
It is often said that employees are an organization’s most valuable assets. Today, in an era of rapid change and innovation, this statement has never been truer.
The Changing Business Landscape
Modern businesses are shaped by key forces that make human resources more vital than ever:
Service-Oriented Work: Automation and robotics have transformed traditional factory jobs, shifting the focus to industries where personal service, creativity, and human connection matter most.
Intense Competition: Many businesses offer similar products—think of the banking industry, where every institution provides comparable services. What differentiates them? The customer experience, shaped by their people: personal bankers, financial advisors, and mortgage brokers.
Globalization: With remote work becoming the norm, companies can now source talent from anywhere in the world, bringing together diverse perspectives and skills.
The Power of People in Business
A company’s success depends on how well it attracts, develops, and retains talented individuals. What sets exceptional businesses apart is their ability to foster innovation, competitiveness, and dedication within their workforce. Entrepreneurs and managers must not only recognize these strengths but also cultivate a work environment that nurtures them, creating a mutually beneficial relationship between the organization and its people.
What You Will Learn
This learning outcome will explore:
✅ The culture of organizations and its impact on the workplace
✅ How people work and what drives them
✅ Recruitment—how businesses select the right individuals for the right roles
✅ Training and development—ensuring employees grow and excel
✅ Compensation and rewards—how businesses motivate and retain talent
✅ Managing relationships with unionized workforces
Why This Matters to You
No matter your career path, you will inevitably find yourself in a position where you need to manage or lead people. Doing so effectively is one of the greatest challenges—but also one of the most rewarding aspects of professional life.
To begin this journey, let’s explore the foundation of a thriving workplace: organizational culture. Just like an iceberg, much of an organization’s culture exists beneath the surface, shaping the way people interact, work, and succeed. Read more here.
7.1 Review the role of groups, teams, and communication in organizations.
The Power of People in Business
People are a business’s most valuable asset, and they rarely work in isolation. The ability to communicate and collaborate effectively has become one of the most sought-after skill sets in today’s business world.
Organizational Culture: The Unspoken Framework
Every business operates with its own unique organizational culture—an internal, informal, and often unspoken set of values, behaviors, and expectations that shape day-to-day operations. This culture, combined with an organization’s structure and management approach, forms the foundation of how a business functions.
In Learning Outcome 4, we examined the formal external and internal structures of a business.
In Learning Outcome 5, we discussed how organizational culture is largely shaped by managers and leaders.
Leaders Set the Tone
Managers and business owners must personally set the tone for organizational culture. While formal expressions of culture (such as manuals, websites, and policies) are important, the true culture of a business is reflected in how leaders behave. Employees take their cues from management, so leaders must consistently “walk the talk”—demonstrating the values and behaviors they expect from their teams.
📌 Instructor’s Note: Share examples of workplace cultures you’ve experienced and invite students to do the same.
What Can Harm Organizational Culture?
🚫 Mismatched Actions and Words: When management’s behavior contradicts formal cultural statements, it creates uncertainty and weakens trust.
🚫 Excessive Layers of Management: Too much hierarchy can slow down communication and decision-making.
Rapid Growth Without Acclimating New Employees: Expanding too quickly without properly integrating new hires can dilute culture. Mentorship programs help bridge this gap!
Additional Resource: How Leaders Can ‘Walk the Talk’
Groups vs. Teams: What’s the Difference?
You might be surprised to learn that groups and teams are not the same thing!
In Organizational Behavior (LO7), you’ll explore this further.
“All teams are groups, but not all groups are teams.”
✅ Groups are beneficial because they allow individuals to divide tasks efficiently. “Two heads are better than one,” but group members may still work independently.
✅ Teams, however, take collaboration a step further. They create synergy, where the whole is greater than the sum of its parts. Team members complement one another’s skills, making each other’s work stronger.
Key Differences Between Groups and Teams
|
Working Group |
Team |
|
Strong, clearly focused leader |
Shared leadership roles |
|
Individual accountability |
Individual and group accountability |
|
Same purpose as the broader organization |
Specific purpose defined by the team |
|
Creates individual work products |
Creates collective work products |
|
Runs efficient meetings |
Engages in open discussions and active problem-solving |
|
Measures success by its impact on others (e.g., business performance) |
Measures success by collective work outcomes |
|
Discusses, decides, and delegates |
Discusses, decides, and does real work together |
Many organizations form cross-functional teams, bringing together employees from different departments to collaborate on projects. These teams are often temporary, disbanding once their goal is achieved.
Communication: The Lifeblood of an Organization
The success or failure of a business often hinges on how well it communicates, both within and across groups and teams.
🚀 With more communication tools available than ever, there is no excuse for poor communication! Can you think of some examples?
💡 Remember: Pay attention in Business Communication (BCOM) and apply what you learn!
Formal vs. Informal Communication
📌 Formal Communication follows the organization’s structure, typically flowing along the hierarchy.
🔎 Think back to Learning Outcome 4:
In tall organizations, messages pass through multiple layers of management, increasing the risk of distortion.
In flat organizations, communication is more direct and efficient.
📌 Informal Communication happens outside formal channels and can be extremely powerful.
💡 The Grapevine: An informal communication network that spreads news—both accurate and inaccurate—throughout an organization.
How Can Managers Use the Grapevine Effectively?
✅ Gain Support: Identify informal leaders who can positively influence others.
✅ Control Rumors: Feed accurate information into the grapevine to counteract misinformation.
✅ Gather Insights: Use the grapevine to understand employee concerns and improve decision-making.
📌 Modern Challenges in Workplace Communication
With the rise of remote work, many companies are monitoring workplace communication more closely. But where’s the balance between employee privacy and business security?
🔗 Read more on this debate: Monitoring Employee Communication
Final Thoughts
Organizational culture, teamwork, and communication are not just business concepts—they directly impact your experience in any workplace. Whether you become a manager, a business owner, or a team member, understanding these dynamics will help you contribute effectively and ethically.
🔎 How do you see yourself applying these concepts in your career?
7.2 Discuss human relations and motivation and the theories that drive our understanding of them.
Understanding Motivation in the Workplace
Effective managers recognize the crucial role of motivation in fostering a productive and engaged workforce. A highly motivated team not only enhances employees’ job satisfaction but also strengthens business success by promoting loyalty and increasing efficiency. To remain competitive in a global marketplace, businesses must prioritize employee motivation.
The Role of Human Relations in Motivation
Understanding employees’ needs is fundamental to achieving organizational goals. Human relations focus on employees’ needs, aspirations, and their impact on performance. Social and psychological factors significantly influence productivity and morale. Managers who grasp their employees’ motivations, beliefs, and expectations are best positioned to inspire and lead them effectively.
Factors Influencing Employee Motivation
Motivation can be categorized into two main types:
Intrinsic Rewards
Intrinsic rewards stem from personal fulfillment and a sense of accomplishment. For example, a teacher who feels they are shaping the future by educating young minds derives intrinsic satisfaction from their work. Businesses strive to create environments where employees find intrinsic motivation, though this is often challenging and depends on organizational culture.
Extrinsic Rewards
Extrinsic rewards come from external sources, such as salary increases, promotions, awards, and praise. Different employees value extrinsic rewards differently. While some are motivated by financial incentives, others may thrive on recognition or professional growth opportunities.
Examples of extrinsic rewards include:
Competitive salaries and benefits
Recognition through awards and praise
Career advancement opportunities
While intrinsic motivation is ideal, businesses can cultivate it by fostering a supportive culture. Moreover, extrinsic rewards do not always require financial investment; appreciation and recognition can be just as effective.
Theories of Employee Motivation
There are numerous theories on motivation, but we will focus on seven key models. Students will break into groups, research one theory, and present their findings in a shared OneDrive document, which will be displayed in real time.
1. Classical Theory
This theory suggests that money is the primary motivator. While financial compensation is essential, it is only part of the equation. Providing competitive wages (e.g., increasing minimum wages) and decent benefits can create a strong foundation for employee motivation and business success.
2. Hawthorne Studies
The studies revealed that physical work conditions have less impact on motivation than human attention. Employees respond positively to recognition and engagement. Rather than investing solely in fancy offices and perks, managers should focus on treating employees with respect and consideration.
3. Maslow’s Hierarchy of Needs
Maslow identified five levels of human needs: physiological, security, social, esteem, and self-actualization. Employees must first satisfy their basic needs—such as fair pay and job security—before they can focus on higher-level aspirations like personal growth and self-fulfillment.
4. Herzberg’s Two-Factor Theory
Herzberg distinguished between hygiene factors and motivational factors. Hygiene factors, such as wages, job security, and company policies, prevent dissatisfaction but do not necessarily drive motivation. Motivational factors, such as recognition, meaningful work, and career advancement, encourage employee engagement and satisfaction.
5. McGregor’s Theory X and Theory Y
Theory X assumes employees dislike work and need to be closely controlled and coerced into productivity.
Theory Y assumes employees are naturally motivated, seek responsibility, and will perform well when given autonomy.
Managers who adopt a Theory Y approach—trusting and empowering employees—tend to cultivate more motivated and engaged teams.
6. Theory Z
This theory, influenced by Japanese management practices, emphasizes employee participation in decision-making. Theory Z promotes long-term employment, teamwork, and holistic employee development. Businesses implementing this approach shift from traditional hierarchical management to collaborative leadership.
7. Equity Theory
Equity theory suggests that employees are motivated when they perceive fairness in rewards. If workers feel their efforts are not fairly compensated compared to peers, motivation declines. Managers should ensure transparent and performance-based reward systems to maintain motivation and trust.
Conclusion
Motivating employees is a multifaceted challenge that requires understanding individual and group needs. While financial incentives play a role, factors such as recognition, empowerment, and fairness are equally critical. By applying these motivational theories, businesses can create environments that drive engagement, satisfaction, and overall success.
7.3 Describe some strategies for motivating employees.
Motivating the Workforce: Practical Applications
Now that we have explored the theoretical foundations of motivation, let’s examine how to effectively motivate employees in the workplace.
Behaviour Modification and Reinforcement Theory
As the following video explains, “behaviour modification is the application of reinforcement theory to influence the behaviours of people in organizational settings.”
📺 Watch this video: Behaviour Modification & Reinforcement Theory
This video provides a clear explanation of how positive and negative reinforcement can be used to modify employee behaviour. As you watch, complete the reinforcement grid to distinguish between:
Positive reinforcement (reward)
Negative reinforcement (punishment)
Think of real-world organizational examples for each category. Choose a workplace stimulus and work through an example for each of the four grid squares.
Job Design Strategies for Motivation
Managers can use various strategies to structure jobs in a way that promotes motivation.
Reflect on whether you have encountered any of them in your own work experience. Which strategies do you think would be most effective in different business contexts?
Common Job Design Strategies
Job rotation – Moving employees between different roles to reduce monotony and boredom associated with specialization.
Job enlargement – Expanding the number of tasks within a job rather than treating each task separately.
Job enrichment – Incorporating achievement, recognition, responsibility, and opportunities for advancement.
Flexible scheduling – Allowing deviations from the traditional 40-hour workweek (five 8-hour days) to increase work-life balance and job satisfaction.
The Rise of Flexible Scheduling
Let’s now focus on flexible scheduling strategies and their growing importance, especially post-pandemic.
What do you predict will be the future trends?
Types of Flexible Scheduling
Flextime – Employees choose their starting and ending times within a required core period.
Compressed workweek – Employees work 40 hours in a shorter period (e.g., four-day workweek).
Remote work (Telecommuting) – Employees work from anywhere, which has been shown to boost productivity, reduce absenteeism, and improve morale.
Job sharing – Two employees share responsibilities for one job.
The COVID-19 pandemic significantly changed workplace structures. Many companies that once insisted employees work on-site full-time found that remote and flexible work schedules actually enhanced productivity across many industries.
The Future of Job Design
The challenge now is for businesses to avoid reverting to outdated work models. Instead, successful organizations will embrace flexibility and choice.
📖 Read this article: Google’s 3-Word Plan for Returning to Work
Homework: The Future of Remote Work
🔎 Investigate the future of remote work in 2023: Forbes Article
Motivation at Google: A Case Study
Google dominates the global search engine market, holding 90% of the market share across mobile, web, and in-app searches. As a tech giant, it must continuously motivate employees to drive innovation and maintain its competitive edge.
How Google Invests in Employees
Google fosters a high-performance culture by making the workplace fun, engaging, and innovative.
🔹 Googleplex Campus Perks:
Onsite gyms, swimming pools, bowling alleys, volleyball courts, and high-tech nap pods for optimized rest.
Microkitchens and breakout zones to encourage social interaction.
Googler-to-Googler peer coaching to enhance employee development.
🔹 Remote Work Benefits:
$1,000 home office allowance
Virtual fitness coaching and cooking classes
Google’s Approach to Building Effective Teams
Google ensures that employees feel psychologically safe—encouraging open discussions without fear of rejection, embarrassment, or punishment. Leaders are selected based on their ability to empower teams rather than micromanage them.
Empowering Employees through Autonomy
Google’s decentralized structure pushes decision-making authority down the chain of command, enhancing responsiveness and creativity.
🔹 Key Empowerment Strategies:
Employees dedicate 20% of their time to personal side projects, leading to the creation of successful Google products.
The Google.org Fellowship allows employees to work full-time for nonprofit partners for up to six months.
Conclusion
As businesses evolve, employee motivation remains a critical factor for success. Companies that embrace job design innovation, flexible scheduling, and a culture of empowerment will thrive in the post-pandemic world. Google’s approach serves as an excellent case study of how investing in employees leads to long-term innovation and business growth.
7.4 Define human resources management and explain its significance.
Human Resource Management: More Than Just Hiring and Firing!
What Activities Are Involved in HRM?
Ask students for their input and add their responses, completing as needed:
Planning human resource needs
Attracting and hiring the right people (recruitment and selection)
Providing necessary tools and training (training and development)
Structuring compensation for motivation and productivity (compensation and benefits)
Ensuring employees perform effectively (scheduling, appraisals)
Handling workplace conflicts (employee relations)
Ensuring fair treatment and legal compliance (employment laws and regulations)
Why Is HRM Crucial to Any Organization?
People are the most valuable resource in any organization. HRM plays a key role in aligning employees with business goals, ensuring efficiency, compliance, and overall workplace harmony. HRM serves as the bridge between employees and business owners, ensuring that both organizational and employee needs are met.
Video Assignment: Understanding HRM’s Role
📺 Watch on your own: HRM Explained (This video is too long to watch in class; watch independently via BS.)
As you watch, consider:
Why is HRM crucial to an organization’s success?
Would you be interested in working in HRM? Why or why not?
HR in Startups: A Necessity, Not an Option
It has become trendy to mock HR (e.g., Toby from The Office), but HRM is essential, even in startups!
Discussion Question: Have you ever worked in an organization without HR? What was the experience like? 📺 Watch: Why HR is Needed in Startups
Job Analysis: The Foundation of HRM
Key Terms:
Job Analysis – Identifying tasks, skills, and job environments.
Job Description – A formal explanation of job roles, responsibilities, and relationships.
Job Specification – The qualifications and attributes required for a job.
📌 Why Job Analysis Matters: It is fundamental to HRM, as it impacts recruitment, training, performance evaluation, and compensation. 📖 Further Reading: Job Analysis Explained (Optional, but useful for students considering HR careers.)
Practical Exercise: Analyzing Job Postings
Visit Indeed.com
Search for “business” jobs in “Moose Jaw”
Identify & Compare:
Job Descriptions (about the role)
Job Specifications (about the required qualifications)
This hands-on activity demonstrates how job analysis shapes recruitment and hiring processes. 🚀
7.5 Summarize the processes of recruitment, selection, and turnover of human resources.
Four Stages of the Selection Process
Applications
Most applications are now submitted online.
Interviews
Should move beyond traditional questioning.
Tailor interviews specifically to the job role.
Testing
Personality Tests – Assess cultural fit and interpersonal skills.
Aptitude Tests – Evaluate physical or mental capabilities relevant to the job.
Reference Checking
Final step before hiring.
Verifies information presented by the applicant.
The Importance of Smart Hiring
There is an old saying in HRM: “Hire smart or manage tough.”
What does this mean?
If organizations don’t put enough effort into hiring the right people, they may have to spend even more time managing employees who were never a good fit.
The consequences? Dissatisfaction, lack of productivity, and, ultimately, the need for replacement.
Recruitment is the process of gathering a pool of qualified applicants for a job so that the best one can be selected.
Sources of Recruitment
Candidates can be recruited from two main sources:
1. Internal Recruiting (Hiring from Within)
✅ Advantages:
Cost-effective
Improves employee morale and motivation
Candidates are already familiar with company culture
❌ Disadvantages:
Limited choices
No new perspectives
May not align with diversity goals
Leaves another vacancy to fill
2. External Recruiting (Hiring from Outside)
✅ Advantages:
Expands the talent pool
Brings in fresh perspectives and skills
Helps meet diversity objectives
🔎 Where Do Companies Find External Candidates?
Online job boards (Indeed, LinkedIn)
Employee referrals (incentive-based programs)
Social media recruiting
Headhunting & passive candidate targeting
Artificial Intelligence (AI) tools
Outsourced recruitment agencies
🌎 The Impact of Globalization
With remote work on the rise, businesses can recruit talent from anywhere.
The challenge? Navigating an overwhelming number of candidates and choosing the best fit.
📌 For more innovative strategies, visit: Recruitee Blog on Recruitment Techniques
Selection Process: Choosing the Best Candidate
Once a pool of applicants has been gathered, businesses must select the right one.
🔍 Key Selection Tools
Applications (Screening online submissions)
Interviews (Now shifting to video-based and structured formats)
Testing (Personality & aptitude assessments)
Reference Checking (Final verification step)
Review interview questions: HuntClub Blog: 29 Unique Interview Questions
💡 Interesting Interview Questions to Consider
“What excites you most about this job?” – Helps gauge genuine enthusiasm.
“How would your coworkers describe you?” – Tests self-awareness and teamwork skills.
Class Debate: The Future of Remote Work
📌 Homework: Read Forbes – Future of Remote Work 2023
Debate the impact of remote work from three perspectives: Employees, Employers, and Society.
Debate Arguments: Remote Work
1. Employee Perspective
✅ Pro-Remote Work
Fewer distractions = higher productivity
Flexibility = better work-life balance
Saves money on commuting, clothes, meals
❌ Con-Remote Work
Social isolation
Blurred work-life boundaries
Limited career advancement opportunities
2. Employer Perspective
✅ Pro-Remote Work
Studies show remote workers are 47% more productive
Cost savings on office space
Ability to hire top talent globally
❌ Con-Remote Work
Harder to maintain company culture
Limited teamwork and collaboration
Technological challenges
3. Societal Perspective
✅ Pro-Remote Work
Environmentally friendly (less commuting = reduced carbon emissions)
Less energy consumption in office buildings
❌ Con-Remote Work
Urban decline as businesses move away from city centers
7.6 Summarize the process of training and development of the workforce.
Training & Development (T&D) in HRM
T&D encompasses all activities designed to enhance an employee’s ability to perform their job effectively. While the terms are often used interchangeably, they have distinct meanings in Human Resource Management (HRM):
Training – Teaching employees specific job-related skills, usually for short-term needs. (Example: Learning a new software system.)
Development – Equipping managers and professionals with long-term skills to grow in their roles. (Example: Servant Leadership training.)
Types of Training & Development
On-the-Job Training – Learning by performing tasks under the guidance of an experienced employee.
Classroom Training – Formal instruction using lectures, case studies, conferences, and multimedia.
Apprenticeship Programs – New employees work alongside experienced professionals to master a craft.
Off-the-Job Training – Additional schooling or personal development opportunities outside the workplace.
Online Training – Digital learning programs that employees can complete remotely.
Simulation Training – The use of equipment or virtual environments to mimic real job conditions before hands-on application.
Why Training & Development Matters
Providing employees with opportunities to learn and grow benefits both the individual and the organization. Well-trained employees contribute to business success while experiencing personal and professional growth.
🎥 Watch this video: Why Training and Development Matters
📌 Take notes on these key benefits:
Increased job satisfaction & morale – Employees feel valued and motivated.
Higher skill levels – Leads to greater efficiency (doing things right) and effectiveness (doing the right things).
More engagement & innovation – Employees actively contribute ideas for improvement.
Lower turnover & absenteeism – Well-trained employees are more likely to stay.
Reduced need for supervision – Skilled workers require less managerial oversight.
By investing in T&D, businesses set their employees—and themselves—up for long-term success. 🚀
7.7 Review the ways that an employee may be compensated for their work.
Attracting and Retaining Top Talent Through Compensation
Successful businesses understand that while salaries and benefits often represent the largest expense, compensation is one of the key tools they use to attract and retain top talent. People are the cornerstone of any business’s success, and a competitive total compensation package is essential for bringing in the best candidates from around the world.
Types of Financial Compensation
The most direct way to compensate employees is through financial compensation. Below are several common types of financial compensation, each with its own advantages, drawbacks, and ideal applications:
Hourly Wage
Compensation based on time worked (e.g., minimum wage).
Best for: Positions where quality is more important than quantity, such as assembly line workers, clerks, fast-food employees, and maintenance staff.
Pros: Easy to compute (using timecards).
Cons: Little incentive to increase productivity.
Piecework System
Employees are paid based on the number of items they produce, regardless of time taken.
Best for: Skilled craftworkers, such as carpenters.
Pros: Motivates employees to increase output by supervising their own activities.
Cons: May result in decreased quality control if speed is prioritized over quality.
Salary
A fixed amount of compensation for a specified time period, regardless of actual hours worked.
Best for: White-collar workers and executives.
Pros: Provides a stable income stream.
Cons: May require unpaid overtime, leading to burnout or dissatisfaction.
Commission
Pay based on a percentage of sales generated by the employee.
Best for: Sales positions (e.g., car or house sales).
Pros: Strong incentive for employees to maximize sales.
Cons: Can create income instability.
Bonus
Extra pay given for achieving or exceeding certain goals.
Best for: Motivating employees to maintain or surpass performance targets.
Pros: Provides an incentive to work harder and improve performance.
Cons: Can create unhealthy competition or stress if not managed properly.
Profit Sharing Plan
Employees receive a portion of the company’s profit or shares in the company.
Best for: Long-term employees who are invested in the company’s success.
Pros: Aligns employees’ goals with company success, providing motivation to perform well.
Cons: Profit-sharing may vary depending on company performance, which could lead to uncertainty.
Example: WestJet’s employee profit-sharing plans, which contributed to a motivated workforce until recent changes in labor dynamics.
Non-Financial Compensation and Benefits
In addition to financial compensation, employee benefits have become a critical component of the total compensation package. Many businesses find that the growth in financial compensation has been outpaced by the rising costs of providing benefits.
For many job seekers, the benefits package can be the deciding factor in choosing an employer. Let’s explore some of the most common types of benefits:
Traditional Benefits
Health (physical and mental) and dental coverage
Pensions, life, and disability insurance
Paid vacation and sick leave
Non-Traditional Fringe Benefits
Financial counseling and banking services
Child and elder care support
Fitness and wellness programs
Considering the Pros and Cons of Benefits
As you review the different types of benefits, think about how each one might motivate employees to do their best work and stay with the employer. Are these benefits something that would personally attract or retain you?
7.8 Discuss the management of unionized employees.
Labour Unions: A Representation of Employees’ Interests
A labour union is an organization that represents its members—employees—in matters related to pay, working conditions, work schedules, hiring and firing practices, holiday pay, overtime, benefits, and work standards. The union acts as a representative in dealings with management on these issues. The concept behind unions is that power in numbers gives them more “clout” in negotiations, providing strength that any single employee would lack.
History of Unions
Unions began to form in the early days of industrialization due to intolerable working conditions, including long hours, low pay, unsafe environments, and questionable management practices. Over time, labor unions grew in power, helping to improve working conditions. However, union membership has declined in recent years, though unions still hold significant power in many industries, particularly in blue-collar sectors. In Canada, major unions like CUPE and UNIFOR represent large segments of the workforce.
Despite the decline in membership, the idea of unionization has remained a political and social issue. The Trade Union Act introduced in Canada more than 150 years ago legalized and protected employees, marking a significant moment in labor history.
Collective Bargaining
Collective bargaining is the process through which management and unions negotiate over issues such as compensation, working hours, and conditions. The outcome of this process is the Collective Bargaining Agreement (CBA) or labour contract. The collective bargaining process follows several steps, typically:
Union Preparation: The union prepares a list of demands or concessions they wish to negotiate.
Management Response: Management defines what it is willing to concede while maintaining profitability.
Negotiation: Union representatives and management negotiate the terms of the contract.
Ratification: Union members vote on the contract.
Final Agreement: Once ratified, the CBA becomes a legally binding agreement for a specified period.
Key Issues in Collective Bargaining
Management Focus: Management typically seeks control over aspects such as work schedules, hiring and firing decisions, production standards, and other work policies.
Union Focus: Unions tend to emphasize issues like wage magnitude, holiday pay, overtime, shift scheduling, and benefits.
Grievances and Dispute Resolution
Once a CBA is in force, it doesn’t mean that there will always be smooth relations between management and employees. A grievance occurs when an employee alleges that management has violated one or more clauses of the CBA. Grievances are handled through a formal procedure that may begin with informal discussions and escalate to third-party involvement if necessary.
Labour and Management Tactics
In situations of labor disputes, both sides—labour and management—have various tactics at their disposal to gain leverage or resolve conflicts. Below are some common tactics:
Strike: Workers refuse to work and often engage in picketing to bring attention to their cause. This is one of the most powerful tools for labour, as it disrupts business operations.
Boycott: Workers attempt to stop consumers from purchasing a company’s products.
Lockout: Management’s counter to a strike; management closes the workplace to prevent employees from working.
Arbitration: A neutral third party is brought in to resolve the dispute with a legally binding solution.
Mediation: A neutral third party suggests solutions but does not impose them.
Strike-Breakers: Workers hired by management to replace striking employees, often referred to pejoratively as “scabs.”
Union Membership and Popularity
Union membership has experienced significant ebbs and flows over the past century and a half, and its popularity has been declining in recent decades. However, despite declining membership, union approval remains high in many regions. Unions, like CUPE and UNIFOR, still play a critical role in industries across Canada, especially in blue-collar sectors.
Interestingly, union popularity and membership do not always correlate. Recent trends show a rise in union approval, despite the declining number of union members. The reasons for this shift can be complex, including factors like growing wealth inequality, which is often attributed to the decline of union power and the rise of business-centric policies.
Advantages and Disadvantages of Unionization
Advantages for Employees:
Strength in numbers—unions give employees more power in negotiations.
Unions often result in higher wages and better benefits.
Unions typically help with scheduling and recognition of seniority.
Disadvantages for Employees:
Union dues and fees.
Potential loss of a direct relationship with management.
Stricter rules and terms of employment due to collective agreements.
Everyone is treated the same, which may be a disadvantage for high performers or a benefit for those who feel overlooked.
Advantages for Employers:
Clear terms and conditions of labour are established through collective agreements.
Employers negotiate with a unified employee body, making negotiations more structured.
Disadvantages for Employers:
Increased costs, including wages and benefits.
Reduced flexibility in work arrangements.
Lack of individual motivation due to standardized terms.
Final Thoughts
At its core, unionization is about workers wanting a fair share of the profits generated by the organization where they spend a large portion of their time. Workers want to be treated with dignity and respect, just as management typically desires the same for their teams.
Ultimately, both sides want a productive, positive environment where employees feel valued, and the business remains competitive. The challenge is finding a balance between these competing interests.
7.9 LO7 – Business Plan