er - review questions

Review QuestionsTopic 2: The Nature of the Employment Relationship

1. Why is the employment relationship interdependent?In order to tap the creative and productive powers of workers, employers cannot treat them as any other market commodity. Employees can always bargain with their compliance, commitment and effort. Hence, to some extent, employers must seek a cooperative relationship with their workers in order to gain their consent to managerial directives. Employees, on the other hand, are also faced with the pressure of contradictions. Although resisting subordination and exploitation, workers also have an interest in the continuing viability of the organization that employs them and in their individual position within the organization. Herein lies the interdependent nature of the employment relationship. Whereas the employers hold the balance of power by virtue of their ownership of capital, ultimately it is the employees who perform the work tasks. As a result, the employment relationship cannot be viewed as a simple dialectic of (management) control and (worker) resistance. Rather, it involves a ‘fractured interplay of control, consensus and bargaining’.

2. What is managerial prerogative and how far should it extend?The term managerial prerogative refers to the right of managers or business owners to make unilateral decisions about all aspects of their business without interference from government, workers or unions. It should extend with legal prohibition on bargaining over issues such as hiring, promotion, job allocation, firing, demotion, introduction of new technology, occupational health and safety and management communication and consultation with employees.

3. What is the difference between overt and covert forms of industrial conflict? Give some examples of each.Overt (open) manifestations tend to be collective and organized and hence observable to all. Convert (concealed) forms are more likely to be individual and unorganized and are therefore less visible to the public eye. Overt conflicts include strikes, lockouts, picketing, threats of plants closures, outsourcing of tasks while convert conflicts includes absenteeism, labour turnover, sabotage, restriction of work effort, strict disciplinary cods linked to threats of dismissal, etc.

4. How do the unitarist pluralist and radical frames of reference differ in their assumptions about the nature of the employment relationship?Unitarist perspective is the viewpoint that holds the employment relationship is grounded in mutual cooperation and a harmony of interest between employers and employees. Trade unions are regarded as competitors for employee commitment and loyalty to organizational goals.

Pluralist perspective is the viewpoint that regards conflict as inevitable because of the competing interest of employers and employees. Trade unions are the legitimate representative of employee interests and have the right to challenge management prerogative and the state is an impartial protector of the public interest.

Radical/Marxist perspective is the viewpoint that regards industrial conflict as an aspect of class conflict in wider society. Unions are an outcome of the power imbalance inherent in the employment relationship, whereas the State actively seeks to protect the interests of capital.

*5. What is the systems approach and what are its strengths and weaknesses? How applicable is it to Singapore?Unitarist systemStrength: Highlights the common interests shared by all in the organization even if it is just the mutual survival of the enterprise.Weakness: Pluralists and radicials argue unitarists’ view of conflict too narrow. Unitarism too prescriptive and unrealistic. A mere ideology designed to legitimize managerial power.

Pluralist systemStrength: Seen to be common-sense, moderate position.Weakness: Unitarist say it is a reflection of them and use conflictual mindset. Marxist criticizes assumption of balance of power and says pluralism is just a sophisticated form of manageralism and ignores fundamental class divisions.

Radicial systemStrength: Emphasises material conditions the dynamic of society; class analysisWeakness: Obsession with conflict overlooks the apparent trust, cooperation in most workplaces and lack of class consciousness. It is outdated being a 19th century view of capitalism. Society is now too complex to be seen in two-class terms. It is refuted by rise of welfare state, stae autonomy and workers’ improved living standards.

6. What role does freedom and choice play in the employment relationship?

Topic 3: The Changing Context of Employment Relations(Textbook)3-1 The population in Singapore is ageing. Why should a human resource manager worry about such a trend? What is the implication of this trend to trade union leaders?There will be a shortage of workers when these mature employees reach retirement age which is also fuel by shrinking population. Trade unions leader s and government are promoting lifelong learning and retraining to increase older workforce employability.

3-2 The workers of today are better educated. What is the implication of this trend for the human resource manager in a company?Better education has led to an occupational shift in the workforce. The number of people in the higher occupation groups has increased over the last decade. This resulted in an increase in occupation types for professional and manager while a decrease in occupation types for production workers and labourers.

3-3 There is a large pool of mid-career workers in the Singapore labour market. What are their characteristics? How can an employer encourage these workers to continue contribution to the company?Mid-career workers were born during the 1930s to 1940s and educated in the 1940s to 1960s. These were periods of political uncertainty. The standard of living was low and many of these people had to drop out of school to look for jobs. Educational opportunities then were limited. Many of these mid-career workers were educated in non-English schools and thus most of them are not highly competent in English. The language they use most at the workplace is Mandarin, Chinese dialects or Malay. Owing to their low education, their wages are low. In order to supplement their income, many of them perform overtime work or moonlight (take on a second job).

As the retirement age has been legally extended to 62, many of these mid-career workers will remain in the workforce for another 10 years. There is a need to provide them with retraining so that they remain relevant and can continue to contribute to the economy.

3-4 Why is the government paying so much attention to BERI’s ranking of Singapore workers?A high ranking will not only reinforce that Singapore workforce has built up a reputation for quality but also encourage investors to Singapore due to the low risk, stable and easiest environment to do business. The investments will create more jobs and led to continuous economic growth for the country.

3-5 Discuss the impact of the present economic downturn on retrenchment.Most of the retrenchment was in the services sector. Also, the economic downturn has affected more professionals and technicians than clerical and sales workers.

4-1 Discuss the problems involved in encouraging more females to work.The main factors that discourage women from working are childcare and household responsibilities. For the older women, their low level of education and their traditional attitude towards working outside the home are the main factors. For the younger women, the main problem is in making suitable childcare arrangements.

4-2 Suggest some ways to encourage housewives and retirees to work on a part-time basis.The provision of childcare facilities, flexible time and job-sharing needs to be catered for. Thus, companies must provide flexible work arrangements and provision of childcare support. The government has enacted the Childcare Centre Act in 1988 and subsidies childcare centre programmes, many companies have not taken advantage of these facilities.

4-3 Why are some companies reluctant to employ older workers?Companies are reluctant to employ them because of their relatively high wages compared to younger employees. Some companies think that older workers have lower adaptability and performance. Lastly, there is the alternative of the availability of female and foreign workers.

4-4 Discuss the measures used by the government to regulate the inflow of foreign workers.The four measures are expanding employment opportunities for older workers, enhance their cost competitiveness, raise their skills and value and encourage employers and the public to have positive perceptions towards older workers.

4-5 What factors should a company consider before it starts to recruit from overseas?Employers will have to apply for employment pass if they wish to employ a foreign professional, manager, executive, specialist or entrepreneur. They will also have to adhere to the foreign worker levy and quota that the Ministry of Manpower uses to regulate the inflow of foreign workers. The levy for skilled workers is lower than that for unskilled workers.

4-6 What can a company do to overcome the problem of manpower shortage?The companies should recruit technical staff from countries such as the former Soviet Union and India to solve the problem of shortage of skilled manpower.

4-7 What role does the ITE play in supplying technical manpower?The ITE has been providing pre-employment traning for school leavers as well as training for workers. It establishes skil standards, conducts trade test and certifies the attainment of skills. The ITE also conducts worker continuing education courses and offers courses to industrial trainers.

4-8 What are the reasons for encouraging retirees and housewives to return to the workforce? Discuss some of the adjustment problems faced by these “returnees”. How can these problems be overcome?The reasons include flexible working options, training, innovative recruitment, job matching and childcare support. With that, there is the “Back to Work” scheme launch by the government and trade union to encourage housewives and retirees to take up part-time work and for employers to make flexible working arrangement for these workers. The part-time regulations introduced in 1996 give employment benefits such as payment for work on a rest day, rate of overtime pay, entitlement to annual leave and sick leave. Flexitime allows workers to choose their own work hours within a specified period and thus leave the woman to have time for their family and lastly, more childcare centres with the fees within the means of working parents.

4-9 Discuss some of the problems in matching applicants with the right jobs.Some of the problems include the number of years of education and training needed, the entry restriction (qualification and work experience) and the career prospect and status. Also, another issue will be low paid jobs.

Topic 31. What are the implications of the aging Singapore workforce?There will be a shortage of workers when these mature employees reach retirement age which is also fuel by shrinking population.

2. What are some of the difficulties in encouraging greater workforce participation and outline the steps the government, employers and the trade unions can take to redress this issue?Some of the difficulties in encouraging greater workforce participation include companies reluctant to employ older workers and encouraging women to return the workforce and lastly, shortage of skilled manpower. The government has taken a number of measures to prolong employment and increase older workers’ employability by progressively raising the retirement age. In addition, lifelong learning and the training and re-retraining of older workers are being promoted both by the government and the trade union movement.

3. Why does Singapore need foreign maids?Singapore needs foreign maids to support dual income family and nuclear household. It allows better educated women to work and contribute to the economy of Singapore. There is also a need to take care of aging family members. Lastly, the population is more affluent now and thus able to afford foreign maids.

4. What steps has the Singapore government taken to deal with foreign domestic workers?State policy is conceived to ensure that foreign domestic workers are no more than a transient workforce and subject to repatriation during periods of economic downturn. In the long term, the state aims to restructure the economy to manage without such a high dependence on immigrant workers, both skilled and unskilled.

5. Has the Singapore government intervened in the employment relationship between the domestic worker and the employer? What are the outcomes of this?Stringent legislation has been put in place not only to restrict the number of foreign domestic workers and ensure their short-term migrant status but also to govern their employment. First, all employers of foreign maids must pay a monthly levy. Second, all migrant workers are regulated in a stringent allocation system of maids to employers, based on criteria such as employers’ household income. Employer is also required to pay a security bond of S$5,000 to the government which is forfeited should the maid fail to comply with any of the conditions. Lastly, employers are also required to purchase a personal accident insurance policy of at least S10,000 for the maid. Despite an initial, short-lived dampening effect, the demand for foreign maids has continued to rise steadily and rapidly.

6. What are the economic impacts of foreign domestic workers?In the 1980s and 1990s, dependence on foreign sources of labor has been necessary in order for the Singapore economy to achieve a higher growth rate. In the case of a shortage of workers in the workforce coupled with an ageing population, foreign maids will continue to be needed to retain women and older employees in the workforce. This lead to an increase in the number of married and more educated women employed in the workforce to contribute to the economy of Singapore while leaving the low skilled domestic job to foreign domestic workers.

7. What are the political and security impacts of foreign domestic workers?The movement of labor among member states is an integral component of this highly successful regional association which is comprised of both labor-sending and labor-receiving countries. Transnational labor migration issues in the regional context can affect the bilateral ties such as the case of Contemplacion’s execution which deteriorated the bilateral gains between Singapore and Philippines. Many Singaporean executives based in the Philippines left the country after experiencing harassment from locals.

Topic 4: The View from the Organisation – Managing Human Resources

*1. What are the four HR categories under the Harvard model and what ensures their effectiveness?The four human resource (HR) categories are employee influence (is the question of how much responsibility, authority and power is voluntarily delegated by management and to whom), human resource flow (concerns managing the flow of people into, through and out of the organization), reward systems (regulate how employees are extrinsically and intrinsically rewarded for their work) and work systems (are the ways in which people, information, activities and technology are arranged, at all levels of the organization so that work can be performed efficiently and effectively).Policies in these four HR categories must be designed and applied in a coherent (logical) manner, satisfy the many stakeholders of the enterprise such as shareholders, employees, customers, suppliers, trade unions, government, etc and managers making HRM policy decisions should consider the ‘four Cs’ of commitment, competence, congruence (compatibility) and cost-effectiveness.

*2. Why is the Harvard model soft HRM?The Harvard model is soft HRM because it concentrates attention on outcomes for people especially their well-being and organizational commitment. It does not rank business performance or one of the stakeholder interest as being inherently superior to other legitimate interests, such as the community or unions. Organisation effectiveness is represented in the Harvard model as a critical long-term consequence of HR outcomes but alongside the equally important consequences of individual and societal well-being. An organization putting this model into practice would therefore aim to ensure that its employees were involved in their work and able to participate in decision making. HRM policies would be developed and implemented to meet employees’ needs for influence but within the limitation of having to be consistent with the overall business strategy and management philosophy.

*3. What is the main concern of the Michigan model and what are the three important issues in this model?The main concern of the Michigan model is that it focuses on the organization and how it can best rationally respond to its external environment. Focusing on the level of the organization has the advantage of drawing attention to aspects partly under the control of management, such as formal strategy, structure and preferred culture. On the other hand, attending to the organization level may lead manager to assume that, through organizational strategy, structure and HR systems, they have more power than they really have to change individuals and influence the external environment.The three important issues in this model are as follow. First, the mission and strategy must be considered because these are an organisation’s reason for being. Second, the organisation’s structure, personnel requirements and tasks must be formally laid out, including systems of accounting and communications. Third, HR systems needs to be established and maintained because as the authors state, ‘people are recruited and developed to do jobs defined by the organization’s formal structure: their performance must be monitored and rewards allocated to maintain productivity’.

*4. Why is the Michigan model hard HRM?The Michigan model is hard HRM because it is based on strategic control, organizational structure and systems for managing people. It acknowledges the central importance of motivating and rewarding people but concentrates most on managing human assets to achieve strategic goals.

*5. What differentiates Schuler’s model from hard and soft HRM?Schuler’s model emphasis HRM’s contribution to the bottom line of the firm which can be interpreted as consistent with hard HRM insofar as focuses on the needs of the organization. However, in other significant respects, the model has a soft HRM focus characterized by its emphasis on employee development and supportiveness towards management-union relationship. The purposes of HRM given in the model, furthermore, are consistent with soft HRM and with the human relations tradition of promoting productivity alongside quality of work-life and legal compliance.

*6. Are soft and hard HRM approaches alternatives or complementary?Hard and soft HRM share a concern for matching the organisation’s strategic needs. In sum, the hard face of HRM emphasizes the ‘quantitative, calculative and business strategic aspects of managing the headcount resource in as “rational” a way as for any other economic factor’, while the soft face emphasizes ‘communication, motivation and leadership’. These models of hard and soft HRM provide different perspectives but all are unitarist; that is, they assume that management represents the main legitimate interest in a business, and that employees’ interest are largely aligned with those of managers.

*7. Analyse Kochan’s framework and explain how it differs from soft and hard HRM?Kochan’s framework analse industrial relations that addresses the need for transformation of the employment relationship at the level of society rather than at the level of the organization.Kochan’s framework differs from soft and hard HRM by arguing that a stronger partnership should exist between unions, employers and government. It does not advocate (supporter) HRM from a unitarist viewpoint but assumes a pluralist perspective that acknowledges a long-term role for unions working in partnership with employers and government as the most effective means of reconciling their differences.

*8. Do these models of HRM apply equally to all industries?Three common elements of all of these models are unitarism, the need for management to adopt a strategic approach and ensuring that organization achieve new social goals. To a greater or lesser extent, all make the assumption that management’s interest are the most legitimate ones in the running of the business. All advise that HRM ultimately must fit the competitive environment a a prerequisite of this is that organizations be less ad hoc in their management decision making and more strategic. Finally, all predict that HRM innovations will be in the long-term social interest of employees, employers and the nation and thus apply equally to all industries.

Topic 5: Selection and Recruitment

1. How is job analysis linked to job description and person specification?Job analysis is a thorough analysis of the requirements of the job that should be established. Once the job analysis data has been collected, the next stage is to develop a job description. The job description identifies the particular demands of a job and emphasizes those aspects which are crucial to success. The job description is job-orientated, focusing on the work itself while the job specification is worker-orientated, focusing on the psychological and behavioural requirements of the jobs. The job description and job specification provide the necessary information to move to the next stage of the job analysis process which is to develop a person specification. This converts the job specification inho human terms, specifying the kind of person needed to perform the described job. All in all, job description and person specification is part of the overall job analysis phase.

2. What is the significance of the ideas of reliability and validity in selection processes?In evaluating which methods are effective, three basic criteria are normally applied. That is reliability, validity and usefulness. Reliability essentially refers to the consistency of a method used to select individuals. Three most important types of reliability when considering selection methods is the ‘testee’ reliability (if they are going to be of value, they need to provide the same information over time), ‘tester’ reliability (If two people interview a person for a job but one concludes that the candidate is suitable while the other concludes that the person is not, then the selection method is not reliable) and ‘test’ (If there are a number of question which all relate to the assessment of the personality dimension of ‘extroversion’, all these items should have the same scores for the measure of extroversion to be reliable). Validity is establishing the relationship between the predictors (the results from the selection methods used) and the criterion (performance on the job) and one of the most important selection method is predictive validity. For a selection tool to be considered valid, it must discriminate between candidates in terms of subsequent performance on the job.

*3. What are the strengths and weaknesses of different selection methods?Pre-selection methods: Adopting a more objective, statistical approach to this biographical information about a person’s past experiences and achievements has been shown to significantly improve validity. This statistical approach to selection, using biodata with confirmed predictive relations to job performance can, therefore, be useful and some firms now do use common applications in this way as the first part of the selection process. The major weakness is that predictive variables appear arbitrary (subjective).

Interviews: The major weakness is that unstructured interviews are bad predictors because the information which is ‘extracted’ is different for each individual and differs between interviewers and so comparisons between candidates cannot be reliably made. This is resolved by using structured interviews such as situational interview, the patterned interview and the content analytical interview. Subjective biases by the interviewers also occur due to different questions being asked of each candidate. This can be minimized by understanding the sources of unreliability and invalidity. Then again, unstructured interviews can also be a strength as it allows more realistic information from both the interviewer and candidate and negotiating a mutually agreeable ‘psychological contract’. Furthermore, the candidate can learn more about the culture and values of the organization.

Psychological Testing: There has been a substantial increase in their usage and they have become an integral part of the search for greater objectivity in selection. There are two types which is the personality test (provide an assessment of an individual’s general disposition to behave in a certain way in certain situation) and the cognitive test (provide an assessment of an individual’s intellectual abilities either in terms of general intelligence or specific abilities). Cognitive tests in selection were valid predictors in a wide range of job situations with general intelligence predicts at least some of the performance variation in most job situations. Moreover, such tests are relatively simple to administer and score, although the person using such tests needs to be properly trained. The weakness is that for most jobs, the range of intelligence of those applying for the job is likely to be very restricted. Therefore, the consequence of this is that a measure of cognitive ability may not differentiate much between the various candidates. Also, cognitive tests can be biased against certain groups. This certainly raises social and ethical issues which will need to be carefully considered when selecting particular tests.Personality tests selections are useful only when specific personality constructs are linked to specific job competencies. However, the weakness is that very different systems of personality description have been used, making it difficult to compare results. Also, there has been much less increase in usage of personality tests than cognitive test over the course of the 1990s reflect the validity of these test in comparison to other types of test. It is also unlikely that personality tests alone will ever be good predictors of future job behavior. This is because job situations often present strong situational pressures which mean that differences between individuals’ behaviours are minimized and second, it is highly likely that the same job can be done in very different but equally successful, ways by individuals with different personalities. This does not mean that personality measures have no place in the selection process but it raises the question of how such measures are best used within this context.

Assessment centres: Refers to the utilization of a number of different selection methods over a specified period in order for multiple assessors to assess many candidates on a range of identified competencies or behavioural dimensions. A core element is the simulation of actual work tasks in order to observe job-related behaviours. The strength is that first, designing and developing an AC has the potential to improve the validity of selection. Second, many of the problems identified with respect to ACs need to be looked at from a broader perspective than simply their criterion-related validity and a key benefit of using an AC is that it gives the potential recruit an extended opportunity to find out more about the organization. Despite the growing use of it, there is also increasing evidence of their limitations. A key problem appears to be that managers, acting as assessors, are not able to accurately assess cross-situational abilities from the different exercises.

Topic 6: HRM and the New Workplace: Emerging Approaches to Changing Work Organisation

*1. What are the five broad industry trends that indicate forms of flexibility?The five broad industry trends that indicate froms of flexibility are: Firstly, there is a tendency for vertically integrated organizations to use sub-contractors; secondly, internationalization is occurring through the expansion into international markets to increase market share and through the forming of joint ventures, mergers and acquisitions with corporations outside of the domestic sphere; thirdly, there is an increase in investment in flexible automation machinery; fourthly, there is a new focus on satisfying customers through quality improvement and adapting products and services to customer demand using total quality management (TQM) and just-in-time (JIT) methods and; lastly, unskilled, semi-skilled and professional workers are increasingly required to take on a broader range of tasks and there appears to be a move toward increasing the proportion of professional workers compared to semi-skilled and unskilled workers.

*2. What are the four characteristics of flexible specialization and what are the criticisms surrounding it?First, there needs to be flexibility and specialisation. Flexibility is the ability to reorganise the production processes through reorganising the components of production and this is facilitated by new computerised technology. However, the extent of reorganisation is limited by conceptual and physical constraints imposed byspecialisation.Second, limited entry to the community or industry ensures that the “safety nets” are not over burdened by “outsiders”. Entry into the community is based on job placement and this might be achieved through family ties and networks.Third, competition that promotes innovation is encouraged. Innovative firms are considered to gain favourable places within the industry hierarchy, that is, although placement is guaranteed, equality of placement is not. Competition between similar industries is also considered to help the innovative process.Fourth, limits to destructive competition are needed. Wages and working conditions are set within the industry to avoid competition based on cost cutting measures that could lead to “sweating”. That is, employment security and trust are required in order for organisations and industry to remain innovative and take advantage of new technology, and for the community to remain cohesive through periods of reorganisation.The advantages in that long term working conditions and wages will improve; new craft culture is created and skills of workers will increase to include conception and execution of tasks; and lastly increasing a sense of “communitarianism” as cooperation between firms facilitates the regeneration of regional economies.The disadvantages is that it is too simplistic; concludes long hours and poor wages and not technical know-how of workers leads to flexibility; class struggle between capital and labour ignored; and lastly ignores the fact that the means of production are still retained by business owners and it is labour who are displaced during re-organisation.

*3. What are the characteristics of Atkinson’s model of the flexible firm and what are some of its deficiencies?Atkinson’s flexible firm model provides a framework based on breaking internal hierarchical labour markets by creating a “core” and a “periphery” workforce. The core workforce is said to be made up of highly skilled workers who are able to participate in decision making and are directly employed by an organization. Such workers are provided with job security and high salaries that reflect their skill levels and their importance to the organization. The peripheral workforce is characterized by low wages, low job security and having little or no autonomy in their work. The three forms of flexibility are:

Functional flexibility. Allows management to move workers around jobs and tasks as the need callsNumerical flexibility. Allows management to match the need for workers with the number employed and achieved through the use of a variety of short-term employment arrangements that include contracts/part-time work, self-employment, etc.Financial flexibility. Allows the cost of labour to reflect the supply of, and demand for, labour.Some of its deficiencies include restricted autonomy, threat of contracting out used as tactic to change working conditions/practices and empirical evidence show that the model is insufficient to explain the changes observed in organizations and that the theoretical distinction made between core and peripheral workers appears to be unsupported.The characteristics is that it addresses the rigidities associated with the rules of employment established under scientific organization design. Bureaucratic organizational structures designed to increase productivity and management control over workers by establishing rules and procedures. Designing jobs in a scientific way and internal labour markets created career paths. Also, jobs were reduced to routine tasks and rules established in contracts and awards. Thus flexibility at the firm level not only helps remove the rigidities created by these rules but also shed costs in terms of worker benefits associated with the rules. Lastly, it provides a framework based on breaking internal hierarchical labour markets by creating a “core” and a “periphery” workforce.

*4. What are the characteristics of lean production and has it proved to be of benefit to firms?Lean production is developed by Toyota Car Company in Japan. Lean production systems reduce production costs by utilizing sub-contracts and JIT delivery systems. Quality circles are set up to help with continuous improvement and to improve worker participation in the production process. The model argues that increased quality, productivity and flexibility can be achieved by making better use of employees.The advantages include allowing quick response to customer needs; getting things right the first time thus decreasing wastage; increased worker skill and participation allowing quick and effective on the job decisions; and ability to change rapidly to market demand due to adaptable technology and small batch production.The disadvantages include relentless performance demand where employees seldom talked to each other unless work related; employees asked to work overtime in short notice; high incidence of occupational overuse syndrome resulting from the extreme pace and repetitive nature of work; lean production firm is a rigorous factory regime as workplace minutely regulated and personal attributes prohibited; relies on high volume output to remain profitable; and contracting firms usually pay lower wages and that while the manufacturers may operate JIT, the suppliers require buffer stocks to ensure delivery of unpredictable orders.

*5. Why should the flexibility debate be viewed with skepticism?This is because it maintains there is nothing new about segmenting the labour market with some employee groups achieving better working conditions and pay; there is no evidence of strategic commitment by organizations to implement flexible firm structures; the notion that core workers are highly skilled while periphery workers are low skilled is over-simplified; flexibility debates has obscured and overshadowed important changes that have occurred with the reorganization of production; globalization of production and finance are central to contemporary restructuring by large organizations; intensification of work effort required by labour; decrease in safety standards; increased unemployment; widening income gap; power of state more centralized and less focus on welfare; the attempts to develop a general theory based on flexibility to explain changes in work organization have not been able to capture the range of changes that have occurred; and the theories put forward have not been able to predict or explain the consequences of flexibility on realities of working life.

Topic 7: The legal and Institutional basis for employment relations in Singapore

1. Why does the NTUC want to maintain the tripartite relationship?The National Trades Union Congress (NTUC) is the only federation of trade unions in Singapore. A strong tripartism is crucial for a competitive and inclusive workforce. By seeking and nurturing an inclusive workforce in the face of diversity, NTUC’s competitive edge is sharpened. Strengthening the tripartite relationship allow an effective tripartite response to grapple with critical issues such as re-employment of older workers beyond the retirement age, employability and welfare of low wage contract and casual workers, helping more women get back into the workforce and fairness at the workplace. Also, tripartite system provides Singapore with a comparative advantage in attracting investments and creating jobs. It has contributed to Singapore’s attractiveness as an investment location. It has underpinned (formed the basis of) a long period of peaceful industrial relations climate and provides a system where national decisions are made on the basis of consultation and consensus. It has also helped to rally the different partners to act in the common interest of Singapore such as adopting difficult but necessary measures (such as increasing employer CPF contribution rate by 1.5% to 14.5% in 2007) that have put Singapore on a firmer footing for the future.

2. What roles does the SNEF play in the tripartite system and compare that to the NTUCThe Singapore National Employers Federation (SNEF) is the largest employer body in Singapore today and is registered as a trade union under the Trade Unions Act. It is the national trade union of employers representing the interests of all sectors of the economy. SNEF is a trade union of employers dedicated to preserving industrial harmony and helping employers achieve excellence in employment practices, thereby enhancing productivity, competitiveness as well as the quality of their employees’ work life. SNEF is an active player in facilitating the tripartite industrial relations partnership among the Government, employers and unions. It is thus the counterpart of the National Trades Union Congress (NTUC).

3. What role to the three functions of government play in employment relations?The three functions are The Legislature (this branch of the government makes all the laws for governing the country), The Executive (The Executive branch of the government administer the law) and The Judiciary (As provided in the Singapore Constitution, The Judiciary enforces the law independently of The Executive branch of the government). The roles to the three functions of government play in employment relations to ensure a peaceful workplace by administer employment laws by the Ministry of Manpower; assist in the settlement of disputes; and take part in tripartite organizations such as the National Wage Council (The NWC ensure an orderly wage rise and to formlate wage guidelines for the economy).

4. What is the role of the Industrial Arbitration Court?The functions of the Court are award-making, certification and registration of collective agreements (CAs), resolution of disputes (arising out of the operation of an award or certified collective agreement) through a referee, interpretation of an award, setting aside or variation of award, mediation, providing advisory service on matters pertaining to industrial relations. Thus, the main role of the Industrial Arbitration Court is to deal specifically with employment relations matters.

5. What is the role of the Trade Unions Acts and what are its implications for workers and trade unions?The Trade Unions Act defines a trade union as any association or combination of workmen or employers, whether temporary or permanent, whose principal objective is to regulate relations between workmen and employers for all or any of the following purposes including to promote good industrial relations between workmen and employers; to improve the working conditions of workmen or enhance their economic and social status; or to achieve the raising of productivity for the benefit of workmen, employers and the economy of Singapore. Thus, the purpose of the Act is to register and supervise trade unions.

Topic 8: Representing Employee Intersts: Trade Unions

1. What are the “Two Faces” of trade unionism?Monopoly FaceUnions have monopolistic power to raise wages above competitive levels and assuming that the competitive system works perfectly, these wage increases have harmful economic effects, reducing the national output and distorting the distribution of income.The Collective Voice / Institutional Response Face“Voice” refers to the use of direct communication of workers to bring actual or desired conditions closer together. In a political context, “voice” refers to participation in the democratic process, through voting, discussion, bargaining and the like.

2. Which face is most applicable to Singapore? Is there a role for the other face in Singapore?The collective voice / institutional response face is the most applicable to Singapore. There is the Labour Movement which is recognized as a partner in nation building and the presence of workers’ voice in Parliament and cabinet. There is little chance for the other face in Singapore given the tripartite model in Singapore is not equally balance with the paternalistic style of the government. Unions and management are subjected to accepting the policy of the government which clearly give unions little room to exhibit the monopoly face.

*3. What role does management play in what unions do?In the most basic monopoly analysis in which unions can simply raise wages, management’s responses are limited. It can reduce employment, substitute capital for labour or hire more skilled workers to raise labour’s productivity. Since management is assumed to be doing everything just right in the absence of unions, these adjustments are socially harmful.By contrast, the voice/response face directs attention to the possibility that because of incomplete information, lack of coordination in an enterprise and organizational slack, management can respond to unionism in more creative ways which may be socially beneficial. This view is consistent with modern theories of the firm in which management is taken to be not a simple all-knowing profit-maximizer but rather a mediator of the interests of relatively permanent employees, stockholders and consumers.

Topic 9: Representing Employee Interests: Non Union Voice

*1. What is employee voice?Employee voice refers to the participation of employees in influencing corporate decision making. Employees are given a voice through informal and formal means to minimise conflict, improve communication and encourage staff retention through motivation and fair treatment. Employee participation is a form of empowerment and motivation that leads to increased productivity and retention. Informal employee voice mechanisms include general conversation between employees and employers, email communication, employee feedback, social functions and meetings at the workplace. Employees can also influence corporate decision making through their actions, such as turnover and absenteeism. Formal mechanisms include communication tools implemented by an organisations human resource department, such as employee surveys and suggestion boxes. Some organisations promote employee voice through financial participation, such as share ownership and profit-sharing opportunities. Employee consultative committees and representation through trade unions are also formal ways of ensuring employees are informed and are given a voice in decisions that affect their employment.

2. What are the differences between individual and collective voice?Individual voice is where employees can exert influence at their workplace by speaking directly with a supervisor. In companies with open-door policies, they can take a problem to higher management. In companies with internal grievance mechanisms, they can use a formal complaint procedure when they have a problem. In many large firms, workers can also voice their concerns through the opinion surveys of workers that these firms regularly conduct. They can also send e-mail or use suggestion boxes.Collective voice is where employees can affect decisions by meeting as a group with management or by electing representatives to meet with management. In some companies, management gathers all workers together in “town meeting” to discuss common workplace problems. In other companies, management might set up committees of employees to deal with problems. Independently of management, workers might form unions to represent their collective interests.

*3. How does employee voice appear in union and non-union workplace?Unionised companies have grievance procedures laid out in Collective Agreements required by the Industrial Arbitration Court while non-unionised companies usually have grievance procedures in employees’ handbook or HR manuals.

4. Which form of voice is preferable?The preference for an individual or collective voice depends on the particular grievance workers face. Individual voice is preferred for individual grievance such as rejection of annual leaves, harassment / unfair treatment issues while collective voice is preferred for collective grievances such as change of shift work, re-location and health / safety benefits.

Topic 10: Wage Reform and Wage Negotiation

1. Why was the National Wage Council established and how has its role changed through time?In order to avoid a wage explosion because of the tight labour market, the government set up the National Wages Council (NWC) to ensure an orderly wage rise and to formulate wage guidelines for the economy. The effect of the NWC recommendations is that most employers and unions implement NWC recommendations. Furthermore, it has also contributed to industrial peace by moderating extreme wage positions of the unions and the employers. Thus, NWC has played an important role in formulating and issuing wage guidelines based on relevant economic and productivity indicators. Due to the economic recession in the 1980s, there is a need for wage reform to counter rigidity in the wage system such as the seniority-based, fixed annual increments, etc and NWC continue to recommend quantitative guidelines with a gradual transition to qualitative guidelines by sectors and allow market forces to determine the appropriate wage level.

2. Why has the National Wages Council stopped giving quantitative wage increases?Quantitative wage increase recommended by NWC introduces inflexibility into the wage system. By moving towards qualitative guidelines which emphasize the relationship between wage increase and productivity will ensure Singapore remains economically competitive.

3. Discuss the features of the flexible wage system and outline the problems in implementing a flexible wage system?The features of the flexible wage system include a basic wage to reflect the value of the job and provide income stability to the worker; an annual wage supplement (AWS) of one month’s basic wage that may be adjusted under exceptional circumstances; a variable wage component based on company performance to be paid yearly or half-yearly. Other features include a small service increment to reward length of service, loyalty and experience which can either be negotiated annually of fixed for the duration of the collective agreement. Wages should reflect job worth and the maximum and minimum ration in a salary range should be about 1.5 times.Problems in implementing the flexible wage system include wage increases outstripping productivity growth; wage level exceeding job value; lack of a proper performance appraisal system to reward individual performance; capping of bonus at two months’ wages; incorporation of AWS in excess of one month’s salary into the basic wage; difficulties in productivity measurement; different interpretation of the concept of “profit”; and reluctance of some employers to share information with the unions and employees.

Topic 11: Current issues in Singapore employment relations

1. What benefits do the tripartite partners obtain from productivity improvement?For employers, high productivity is important if a company wants to remain competitive. High productivity means that the company is efficient in using its resources. This means lower costs and higher profits. Unions support for productivity improvement by reinforcing training and re-skilling. Also, when a company is profitable, unions can bargain for more favourable collective bargaining for the employees. For government, this will ensure that Singapore companies are productive so that they can compete in the international market.

2. Why do some employers neglect training and what are the benefits of training for employers and employees?Some employers neglect training due to the following reasons as follow. First, employees believe that it may be more cost effective to recruit workers with the necessary skills than to train existing employees. That work itself may be sub-contracted to another company if it is not the main activity of the company. Also, there are some employers that insist that production and sales are the activities that bring profits for the company and thus view training as an expense to be kept at a minimum. Lastly, some employers believe that workers who are over trained will either ask for more pay or join another company where their skills are in demand.Benefits of training for employers and employees are that well-trained employees make quality products and serve their customers better. They will increase profit for the company. Beside, a good training plan tells employees that the company cares about them and is willing to develop their potential and that their future in such a company is brighter than one that does not provide an training.

3. What are the steps in designing a training programme and how are you able to tell if the training has succeeded?In designing a training programme, it is useful to identify training needs (should be examined at the various levels of the organization by looking at the company’s basic objectives; the activities which are carried out to achieve these objectives; the skills needed in these activities; and whether the workers possess these skills), define training objectives (the objectives should spell out the skills to be achieved and the criteria for measuring the level of competence), choosing training methods (as some methods are appropriate for skills training while other are more effective in changing behavior. Some methods include lecture, group methods, behavior modeling, role play, coaching and counseling and self-paced learning or programmed instruction) and lastly evaluating training results (for its effectiveness via questionnaire, pre-course and post-course questionnaire).Training has succeeded if the employees have achieved the basic objective of training of attitude, skill and knowledge. Skills are needed to perform a task after the worker has knowledge of what is to be done. They may also be able to improvise or improve the method of doing the task if they have the positive attitude of wanting to find a better way of doing things.

4. How is the Singaporean workforce changing and what challenges does this pose?Ageing WorkforceDue to a successful family planning programme in the 1960s and 1970s, the population growth in Singapore has slowed down. At the same time, as a result of higher income, better nutrition and good medical care, the life expectancy of the average has increased steadily over the last two decades. This has resulted in an ageing population. Many older workers are at the high end of their salary scale and as an incentive for employers to retain older worker, the government has reduced substantially the employer’s CPF contribution rate for workers who are 55 and above. With the increasing use of new technology, older workers have to upgrade their skills if they want to remain employable. There may be a need to re-design jobs to fit the ability of older workers.

Better EducatedAlso, as a result of a successful education system, the workforce in Singapore has become better educated and the younger workers have higher aspirations than their older co-workers.

More Female WorkersThere are also more female workers as compared to a decade ago. In order to encourage working mothers to remain economically active, there is a need to provide more childcare facilities, introduce part-time jobs or to adopt a flexible work schedule.

Diverse Workforce and Foreign Worker Levy and QuotaDue to an extensive industralisation programme introduced to provide generous incentives for foreign investors to set up export-oriented labour-intensive industries, the unemployment problem was solved in the mid-1970s. Coupled with the small population, Singapore has to depend on foreign worker for its labour-intensive industries especially in construction and marine industries and thus workers today come from many countries such as Malaysia, Thailand, Myanmar, Philippines, China and India. The government imposes a levy on employers to control the number of foreign workers with higher levies imposed on unskilled workers. Managers and supervisors must be aware of the cultural differences in their social habits, communication skills and expectations.

Foreign ProfessionalA high technology company will see many professionals from many foreign countries such as Australia, Britain, Russia, US, China and India. Managers must be able to motivate a group of professional who are highly qualified but culturally diverse. They must assist these foreign talents to adjust to local working environment and at the same time, convince local professional that these foreigners are not a threat to their career advancement.

Miscellaneous

1. The Industrial Relations System in Singapore is often associated with the “GUM Model”. Discuss the “GUM Model” and explain how it fits into the Singapore’s system of industrial relations.GUM stands for Government, union and management which are the three participants in the employment relationship. The relationships among the three participants are linked by a set of belief commonly held by these participants and this ideology helps to bind the system together. In the 1960s, the common objective of the participants was to create jobs and promote economic growth. By the 1980s and 1990s, the shift was towards productivity and maintaining competitiveness in the world market as well as providing quality work life for the workers. By the late 1990s, the priority was to minimize retrenchment of workers and to re-train workers for new jobs. The outcome arising from the interaction among the three participants is a network of rules such as the nation’s manpower policy and an agreement on the general terms and conditions at the workplace.

2. Employment relations in Singapore can be affected by a number of external environmental factors. Discuss one of the external environmental factors that have impact the development of employment relations in Singapore and explain how the Government, working with the NTUC and SNEF, manages to minimize issues and problems arising from these new challenges.In 1998, the Singapore economy was affected by the Asian financial crisis. Many companies retrenched worker to remain in business. The same year, Ministry of Manpower set up a Tripartite Panel on Retrenched Workers. Panel members included representatives from the MOM, EDB, PSB, NTUC and SNEF. The Panel looked into ways to help retrenched workers to get re-employed and to advise employers how to minimize retrenchment by seeking other alternatives which include shorter work week, temporary layoff, re-training under the SRP.

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