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Adding Value to Public Organizations: Labor Relations in a Changing

Environment

Photograph by Michael Rock, Alameda County

Submitted by

Aracelia G. Esparza

Labor Relations Analyst

Alameda County Human Resource Services

for

The California Public Employers Labor Relations Association

Academy Master Certificate

February 2013

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Adding Value to Public Organizations: Labor Relations in a Changing

Environment

Introduction

The movement towards new public management and the demands

based on environmental factors (e.g., technology and performance

management directives) have created a need for public organizations to

undergo changes in culture, values, structure, systems, and work processes.

In today’s environment, changes are inevitable and difficult to manage due

to resistance that is most likely to exist. For changes to be successful,

effectively managing the human side of organizations is essential. According

to McNabb (2009), the function of labor relations is a key driver in

facilitating and implementing changes throughout the entire organization.

Labor relations professionals, as a strategic partner, can help organizations

deliver services in a more efficient and cost-effective manner. Therefore,

organizations are recognizing the value of engaging labor relations

professionals in the planning process of change management initiatives.

Background and History

Through policies, procedures, practices, programs, and initiatives,

public organizations implement changes and systems to motivate and train

human capital and increase performance, service delivery, trust, and

accountability. In order for these changes to be successful, buy-in and

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support from relevant parties, including the board of supervisors,

department heads, leadership, union organizations, and employees are

critical. The process of including relevant stakeholders from the beginning

helps obtain buy-in and facilitates the transition. Therefore, spending a

sufficient amount of time analyzing and planning is important to clearly

understand what is involved, the issues, the impacts to employees, and work

volume. During the planning and change management processes, human

resources professionals play a key role in providing specialized labor

relations consultation to executive staff to ensure changes are implemented

in an efficient and effective manner.

Human resources professionals in a strategic role anticipate important

potential changes and help shape strategies based on their insights of the

organization’s environment, challenges, and opportunities. Human resources

programs, policies, and initiatives are developed to support the

organization’s long-term goals and to help the organization be effective and

efficient. The essential competencies for human resources professionals in a

strategic role according to the Harvard Business School Press (2006) are as

follows:

(1) understand the organization’s service delivery, challenges, and

opportunities;

(2) translate organizational strategies into human resources

implications;

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(3) engage line managers and other stakeholders in the designing of

human resources initiatives;

(4) assist executives and management staff to motivate and develop

staff;

(5) predict human resources issues, develop a plan, and send tough

messages to management when necessary;

(6) obtain support and buy-in for strategic change throughout the

organization; and

(7) steer and manage the organization’s culture and changes

The role of human resources has changed over the years. Human

resources management has gone from an undervalued function to a vital

function in all organizations (Harvard Business School Press, 2006). Due to

the complexity and high-level issues, human resources professionals in labor

relations must have the competencies to analyze, make recommendations,

and develop systems that support the organization’s direction. According to

the 2007 Human Resources Competency Study, human resources

professionals are expected to play the strategic and customer service roles

and will be required to obtain new competencies in order to succeed in

today’s work environment (Grossman, 2007).

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Labor Relations in the Planning Process

Predict & Plan for Human Resources Issues. Public organizations

are facing the need to continuously implement changes in order to improve

efficiency and effectiveness in the delivery of public services. Public

administrators are obligated not only to achieve efficiency and effectiveness,

but to be responsive to the many bodies that help define the public interest

(Denhardt, 2009). Labor relations in government are influenced and shaped

by many complex factors, including: historical events, social and economic

forces, politics, characteristics of work and organization, and public policy.

Therefore, public administrators must be mindful of the following three

concerns when implementing changes: managerial, political, and ethical.

In implementing changes, public administrators have an obligation to

comply with federal, state, and administrative laws, including the Meyers

Milias Brown Act (MMBA). The MMBA requires public agencies in California to

meet and confer in good faith on matters within the scope of representation

(e.g., hours, wages, and working conditions) prior to implementation. Failure

to do so can result in Public Employment Relations Board (PERB) charges,

delays in implementation, perceptions of unfairness, lack of trust, and a

decrease in employee-motivation. All of these factors negatively impact the

human-side of the organization and the change management efforts. When

change is poorly managed, these changes are likely to cause resentment and

resistance among the workforce (Cooke, 2006). Therefore, it is essential that

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public organizations identify mandatory subjects of bargaining under the

MMBA during the planning process and incorporate such process into the

project timeline.

In Alameda County, labor relations analysts participate in

departmental leadership meetings where potential organizational changes

and initiatives are discussed. Labor relations analysts have the opportunity

to identify if certain changes require a meet and confer and provide

consultation accordingly. A proactive approach has been taken to: (1)

research and analyze the impact, risks, and cost; (2) strategize with

relevant stakeholders; (3) develop action, contingency, and communication

plans; and (4) notify union organizations. As a result of proper planning,

change initiatives have been supported by necessary parties (e.g., board of

supervisors, department heads, employees, and union organizations) and

successfully implemented without significant delays.

Leadership staff has reported that labor relations analysts have

provided specialized strategic consultation, which has positively impacted

decision-making and implementation. Additionally, they stated that they

appreciated the labor relations analysts’ in-depth understanding of labor law

and the consultation on the pros and cons of the different options from a

labor relations perspective. According to the Deputy Director of Social

Services, “The agency has greatly benefited from the labor laws and

organizational knowledge that labor relations brings to the leadership table.

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They help us to focus, organize, and stay on track with the process.”

Assistant Agency Directors indicated that labor relations analysts have

helped them navigate through difficult labor relations issues and be more

consistent in human resources practices when managing change.

Additionally, Labor Relations Analysts have established a satisfactory

balance between compliance with legal mandates and management rights

and discretion, which has decreased liability risk and grievances, and

improved working relationships between employees, union organizations,

and departmental management staff.

Consultation. To endure change in public organizations, the following

activities are essential: (1) clarifying the purpose; (2) understanding the

environment; (3) engaging stakeholders; and (4) building commitment to

change (Popovich, 1998). As a strategic partner, labor relations

professionals provide specialized consultation to executive and leadership

staff in developing a plan of action and strategies that will ensure

achievement of the desired results, objectives, and commitment.

Additionally, the knowledge and expertise in collective bargaining

negotiations will result in a successful change management process.

During the planning process, labor relations consultation has steered

the organization in the right direction. Labor relations analysts in Alameda

County actively participate in executive and leadership meetings when the

departments and County are planning change initiatives and proposals. In

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their strategic role, labor relations analysts have developed a good

understanding of the County and its departments, including environmental

and political factors. Labor relations analysts have been instrumental in

identifying risk and opportunities, and ensuring that such initiatives are in

alignment with the departments’ and County’s mission, vision, and values.

At the bargaining table, labor relations analysts have been able to

identify barriers and opportunities and advise leadership and executive staff

accordingly. Labor relations analysts have implemented negotiation

strategies to problem-solve and compromise on outcomes that will work well

for both, the County and the union organization. This has been achieved

through:

reviewing and analyzing proposals;

understanding both parties’ position and needs;

identifying possible solutions by finding middle grounds;

establishing flexibility; and

influencing both parties to compromise

Data Analysis. It is essential that public organizations conduct useful

organizational assessments during the planning process. One of the key

elements of bargaining starts with cultivating an understanding of how a

business runs (Krell, 2009). Data analysis and assessments will provide such

understanding. With an in-depth understanding of the organization, labor

relations professionals can help motivate change throughout the

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organization, select opportunities, and monitor progress. Additionally,

adequate planning prior to going to the bargaining table is required for

change management to be successful. For these reasons, it is essential that

labor relations professionals play a key role in analyzing data and making

recommendations during the planning and decision-making processes.

In Alameda County, labor relations analysts conducts organizational

studies, needs assessments, and internal and external surveys to identify

organizational structures, positions, classifications, salaries, benefits, costs,

and current trends and practices. Labor relations analysts have presented

such information in executive meetings which has been found to be very

effective in identifying problems, gaps, and solutions, and in formulating

initiatives and proposals. The participation of labor relations analysts in the

planning process prior to initiating negotiations has provided the ability to

conduct comprehensive research and to interpret written materials. Thus,

labor relations analysts have provided valuable consultation to leadership

staff on labor relations issues. Therefore, well-informed decisions and

proposals have been made with the support of the departmental executive

teams.

During the negotiation process, labor relations analysts have

presented data and information, which was gathered and analyzed during

the planning process. Labor relations analysts have coordinated and ensured

that all data and information was reviewed by all stakeholders before it was

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presented at the bargaining table. The presentation of accurate and relevant

data to union organizations is beneficial in identifying problems, establishing

credibility, and keeping both sides focused on developing solutions. As a

result, meet and confer sessions are more productive and are finalized in a

shorter period of time.

Communication Plan. For change to be successful, a structured and

proactive communication plan must be developed and implemented. The

communication plan should include a comprehensive road map to obtain

support and commitment from all levels of the organization and include

contingency plans outlining how to manage resistance. According to Price

Waterhouse Change Integration Team (1995), the five Cs of successful

communication plans are as follows:

Candid: Always tell the truth; your employees will probably know

when you don’t.

Constructive: Guard against counterproductive comments that work

against team and stakeholder unity.

Contextual: Provide your stakeholders with the “big picture” as you

explain the relevance of the project to the organization.

Consistent: Ensure that verbal, written and nonverbal forms of

communication are consistent from message to message, and that

your actions support your messages.

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Continuous: Provide ongoing reinforcement of your commitment to

the change initiative.

As emphasized by Ulrich and Brockbank, “as change agents, HR

strategic partners diagnose organization problems…help set an agenda for

the future and create plans for making things happen” (2005). Labor

relations professionals can help organizations effectively communicate what

is changing, the reason for the change, and how the change will affect

employees and the work environment. Labor relations professionals help

diagnose and solve communication problems, both vertically across levels

and horizontally among units, which is a critical prerequisite to the strategic

planning efforts (Condrey, 2010). For change management to be successful,

effective communication is critical throughout the entire process and at all

levels of the organization.

In Alameda County, labor relations analysts have provided

consultation to executive and leadership staff on when and how to

communicate change to avoid wrongful perceptions that may create

resistance to change. Strategies may include, when and how to raise issues

with the County Administrator, Board of Supervisors, union organizations,

and employees. Through the development of relationships and

collaborations, labor relations analysts have been able to obtain support and

commitment from key stakeholders. Additionally, labor relations analysts

have facilitated internal county discussions to provide clarification, ensure

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consistency, problem-solve, and help establish a uniform direction. As a

result, changes in county and departmental policies and procedures have

been successfully implemented.

Conclusion

Public administrators are expected to transform their units, divisions

and organization to a more business-centered and customer-driven system.

Major changes can affect organizations across all levels of the organization.

As change initiatives become more frequent, effectively managing

employees through change is highly important. The consequences for not

effectively managing change initiatives are employee dissatisfaction,

resentment, and distrust, and a decrease in employee morale, motivation,

and productivity.

To increase efficiency and effectiveness, public managers must

collaborate and partner with relevant stakeholders. Labor relations

professionals play an important and critical role in planning and

implementing organizational changes by providing strategic consultation and

helping public organizations avoid pitfalls, risk, and liability that threaten

success. Including labor relations in the change management process will

help organizations consider political impact of proposed changes,

communicate and clarify the purpose of the change, identify environmental

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factors, and obtain cooperation and support from stakeholders and

employees throughout all levels of the organization.

References

Condrey, S. (2010). Human Resource Management in Government (3rd ed).

San Francisco: John Wiley & Sons, Inc.

Cook, F. (2006), Modeling an HR Shared Services Center: Experience of an

MNC in the United Kingdom. Human Resource Management. Retrieved

January 15, 2013, http://0-proquest.umi.com.library.ggu.edu

Denhardt, J. & Denhardt, R. (2009). Public Administration: An Action

Orientation. Belmont: Thomson Wadsworth

Grossman, R. (2007). New Competencies for HR. HR Magazine. Retrieved

January 15, 2013, from http://www.shrm.org

Harvard Business School Press. (2006). Strategy and the HR Professional.

The Essential of Strategy (pp.1-19). Boston, MA: Harvard Business

School Publishing Corporation.

Krell, E. (2009), The Rebirth of Labor Relations. Society for Human Resrouce

Management. Retrieved January 30, 2013 http://www.shrm.org.

McNabb, D. (2009). The New Face of Government. New York: CRC Press.

Price Waterhouse Change Integration Team. (1995). Better change: Best

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practices for transforming your organization. New York: Irwin Professional

Publishing.

Ulrich, D., & Brockbank, W. (2005). The HR value proposition. Boston, MA:

Harvard Business School Press.

Author:

Aracelia G. Esparza Labor Relations Analyst

Alameda County Human Resource Services 1401 Lakeside Dr., Suite 200

Oakland, CA 94612