EMPLOYEE

RELATIONS,
ENGAGEMENT, AND
TERMINATION
LECTURE - 15
LEARNING
OBJECTIVES
1 2 3

To get familiarized To understand the To develop an

with the concept of meaning and understanding of the
employee relations framework of employee concept of employee
and the shift in its engagement and the termination and identify
approach strategies ways
to improve of improving retention
engagement
 EMPLOYEE RELATIONS
Employment relationships concerning management
and employees or among employees and their
associations.
• Traditionally, the term ‘industrial relations’ has been
commonly used.
• The scope of industrial relations includes both
preventive machinery (for example,
grievance redressal, disciplinary measures, standing
orders, code of conduct, discipline procedures, collective
bargaining, and participatory schemes) and
settlement machinery for dispute settlement (for
example, mediation, conciliation, arbitration, and
adjudication).

Industrial relations is increasingly being called employment

relations or employee relations because of the importance of non-
industrial employment relationships.
TRADE UNIONISM
• A trade union, through its leadership, bargains with the employer and negotiates
labour contracts.
• A trade union is supposed to be internally democratic, have a strong and popular
leadership, and work to promote industrial peace and harmony.
• There are various types of trade unions depending on membership, structure, goals,
and style of functioning.

• Trade unions in Pakistan are regulated under provincial industrial relations acts.

• Under the Constitution of Pakistan, labour is considered a shared responsibility of the federal
and provincial governments.
• The latest Industrial Relation Act was circulated on 12 March 2012 by President of Pakistan.
• The onetime dominant ‘blue collar’ workforce has evolved into ‘knowledge assets’, with
very different work orientation and aspirations.
• They are more professional and are partnering with social and civil rights activists, media,
academics, equality campaigners, international bodies, and social movements
• Under such settings, the need for trade unions has lost its relevance to some extent.
 Chamberlain and Kuhn identify two major forms or

Collective
models of bargaining, namely cooperative
bargaining and conjunctive bargaining.

Bargaining
Cooperative bargaining involves negotiation of an issue
on which both the parties may gain, or at least neither
party loses.

Conjunctive bargaining arises from the requirement that

ILO defines collective bargaining as negotiation about
some agreement may be reached so that the operations
working conditions and terms of
on which both are dependent may continue. It is
employment between employers and employees
competitive in nature.
It may be characterized by mutual coercion and
hostility.
THE COLLECTIVE
BARGAINING PROCESS
PRE-NEGOTIATION PHASE NEGOTIATION PHASE POST-NEGOTIATION PHASE
• Preliminary request • Setting the stage/Ice-breaking •Final documentation Once bargaining
• Both parties try to develop the issues This involves shaping some is done, the contract agreement is
that they believe are most important. attitudes such as trust, developing a written down including the agreed
• This phase involves placing initial congenial bargaining environment, and matters as also the frequency of its
demand by one party and working out the modalities. review.
consideration of the demand by the • Propose This phase involves the initial • Arbitration clause The agreement
other party. opening statements and the possible must include an arbitration clause.
• Preparation of collective bargain options that exist to resolve them. Whenever the parties have any
• This involves determination of issues • Discuss Each party may discuss pros differences pertaining to the matter, an
for bargain. and cons in detail. This phase could be arbitration clause can be resorted
• Composition of negotiation teams described as ‘brainstorming’. to.
may be required. • Bargain and decide Negotiations are • Implementation of contract
• Determination of scope and level easy if a problem-solving attitude is agreement This stage is described as
may also take place and agenda of adopted. consisting of effective joint
bargain may be spelled out. This stage comprises the time when implementation of the agreement in a
‘what ifs’ and ‘supposals’ are set forth. fair and justifiable manner
Give-and-take is decided and final
decision taken.
 EXAMPLE OF
COLLECTIVE BARGAINING
IN PAKISTAN

https://paycheck.pk/labour-laws/collective-agreements-databas
e/collective-bargaining-agreement-between-atlas-honda-limited
-and-atlas-honda-limited-mehnatkash-union---
2014
EMPLOYEE PARTICIPATION IN
MANAGEMENT
Participation refers to the involvement of
a person in a group situation that
encourages him to contribute to group
goals and share the responsibility of
achievement.
 Different Levels of Participation

Information Consultative Associative

participation participation Here, Administrative Decisive
participation It is
It ensures that workers are participation participation
an extension of
employees are able consulted on the It ensures greater This is the
consultative
to receive matters of employee share of workers’ highest level of
participation as
information welfare, such as participation in the participation
management
pertaining to the work, safety, and administration of where decisions
here is under the
matter of general health. However, various functions are jointly
moral obligation to
importance. final decision always that concern them taken by
accept and
rests with the (for example, employees and
implement the
top-level canteens, welfare managers.
unanimous
management. Facilities.
decisions of the
employees.
 EMPLOYEE PARTICIPATION
Employee participation may take various forms.

Direct/Formal Indirect/Informal
Participation Participation
• Board-level participation • Collective Bargaining basic level of participation where workers have a
• Work councils and joint platform to express, discuss, and negotiate.
• Job enlargement and enrichment Job enlargement refers to expanding
committees the job content or adding task elements horizontally. Job enrichment refers to
• Financial participation adding ‘motivators’ to the job (for example, status and autonomy) to make it
more rewarding
• Suggestion schemes Employees’ views are invited and incorporated in fin
decisions and rewards may be given for the best suggestion.
• Total quality management and quality circles
• Autonomous/empowered teams
EMPLOYEE ENGAGEMENT
Engagement at work is conceptualized as the ‘emotional connection of organizational members’ to their
work roles and tasks.
Engagement means involvement—physically, cognitively, and emotionally—during role performance

Engaged employees are likely to

Job involvement Flow stay with the company, be an
the degree to which an Work becomes part advocate of the company, and
employee identifies of contribute to bottom line success.
with their work, actively an individual’s
participates in it, and interest. Engagement requires a two-way
derives a sense of self- relationship between employer
worth from it. and employee.
Typology of Employee
Engagement
The Cost of Disengagement
Direct Cost
• Disengaged employees generally take more leaves, are
often absent, are negligent, miss deadlines, and show poor
results.
• Disengaged employees create disengaged customers
because they naturally pass on their negativity.
• Disengaged employees cause damage to company property
and indulge in theft of office equipment.
Decrease in Company Performance
• Highly profitable companies have more engaged employees
versus unprofitable companies.
Turnover and Training Costs
• Disengagement leads to talent loss.
• Further, the cost of fresh recruitment and training is also
high.
• There is also a interval or growth period involved in this
process.
EMPLOYEE RETENTION
AND TERMINATION

Termination Planning

• Voluntary termination
• Involuntary termination
 ISSUES IN
TERMINATION
PLANNING AND
STRATEGY

• Termination target selection

• Termination notice and etiquette
• Preparing for reactions
• Informing the team
• Compensation and benefits of separation
• Handing over charge
• Protecting data
• Exit interview
• Post-termination formalities and
strategies
EMPLOYEE RETENTION
Turnover results in loss of corporate knowledge or
memory. Retaining employees, especially the top talent is
a priority for every organization.
The following strategies may help curb turnover and
improve retention:

• Strategic HR planning and

staffing
• Onboarding and orientation
• Recognition and rewards
systems
• Work–life balance
• Learning and development
• Communication and feedback
• Fostering teamwork
Thank you!
Any Questions?