Industrial Relations

 One of the ironies of modern business life is that whenever anyone uses the term ‘industrial relations’ they are almost certainly referring to poor relationships.  

Similarly, the ‘industrial relations industry’ is about handling (and dealing with the consequences of) poor industrial relations.

So, how do we avoid the pitfalls associated with these poor relationships.

Well, it starts at the top - in all senses of the word.  

It clearly starts with the senior executive team and/or the business owner(s).  They set the tone, the atmosphere  and the organisational culture in which relations with the rest of the organisation are developed.

Secondly, it starts with the ‘top’ of the strategic hierarchy of the way in which the organisation operates-  the culture, mission and, especially, the values set.  A key value required by the top people in the organisation is empathy - the ability to put themselves in the place of others and understand their views, concerns and motivations.

You need to understand why other stakeholders take the stance, or carry out the actions, that they do.  What you do, every day - and what you plan for the future - must be informed by that understanding.  Good fortune and rewards should be shared; good performance should be acknowledged.   Equally, of course it must be clear that behaviour inconsistent with the core values of the organisation will not be tolerated.

It is, of course, generally easier to maintain good industrial relations in times of success, and when the organisation is not being threatened by damaging external factors.  It. Is at these times when effective communication is important  so that stakeholders understand the threat and the reasons for ‘defensive action’.

Industrial relations is not an exact science. There is no formula for success  - but a strong will to communicate based on basic empathy and a supportive culture will prove invaluable.

Sometimes we need inefficiency

 Productivity equals efficiency.  Yes?  

Well, yes - by and large.

But sometimes we need something else … something more.

The recent problems with supply chains (after both the COVID pandemic and the Russian invasion of Ukraine) reminded us that resilience is also important - but may use additional resources, and therefore be ‘less efficient’.

In fact, risk reduction. In general causes an organisation to be less efficient.

Similarly, compliance with regulation can add cost and lower resource efficiency. Yet society needs transparency and compliance in some areas.  Think food production and distribution, for example. 

Of course, one can see compliance here as being a mark of ‘quality’, so it may add value even while adding cost.

It is important, though, to recognise when total concentration on efficiency must be mediated by other desirable or essential factors.

Sometimes such factors might make your organisation more productive in the longer term - employee training and well-being are obvious examples.  They cost you money - but without them, your long-term future may be bleak.

So, let’s hear it for essential inefficiency!

Laughter is the Best Medicine

 If they see employees laughing, some managers make negative comments which can be summarised as ‘You are here to work, not to have fun’.

However, humour has positive benefits form an organisation.

It promotes and strengthens social relationships; reduces stress, and even has a positive effect on people’s bodies. strengthening the immune system. 

So, treat laughter as a positive sign of an engaged and motivated workforce.

Workplaces and work environments that favour humour will bring benefits not only for the employees, but also for the company..

So, let them laugh.

Poor Relations

 One of the ironies of modern business life is that whenever anyone uses the term ‘industrial relations’ they are almost certainly referring to poor relationships.  

Similarly, the ‘industrial relations industry’ is about handling (and dealing with the consequences of) poor industrial relations.

So, how do we avoid the pitfalls associated with these poor relationships.

Well, it starts at the top - in all senses of the word.  

It clearly starts with the senior executive team and/or the business owner(s).  They set the tone, the atmosphere  and the organisational culture in which relations with the rest of the organisation are developed.

Secondly, it starts with the ‘top’ of the strategic hierarchy of the way in which the organisation operates-  the culture, mission and, especially, the values set.  A key value required by the top people in the organisation is empathy - the ability to put themselves in the place of others and understand their views, concerns and motivations.

The senior team need to understand why other stakeholders take the stance, or carry out the actions, that they do.  What they do, every day - and what they plan for the future - must be informed by that understanding.  Good fortune and rewards should be shared; good performance should be acknowledged.   Equally, of course it must be clear that behaviour inconsistent with the core values of the organisation will not be tolerated.

It is, of course, generally easier to maintain good industrial relations in times of success, and when the organisation is not threatened by damaging, external factors.  It. Is at these times that effective communication is important  so that stakeholders understand the threat and the reasons for ‘defensive action’.

Industrial relations is not an exact science. There is no formula for success  - but if you have a  strong will to communicate based on basic empathy and you have created a supportive culture you are much more likely to create and maintain good relations with your employees.

Mind the Gap

Firms who wish to be fully productive need a workforce that is engaged, motivated and fully skilled.

Firms who do not have fully skilled employees are, in effect, giving away capacity..  Firstly, of course, employees who do not have all of the skills they need to carry out their role properly will be slower at completing designated tasks.  They are also likely to make more mistakes and errors.  They may also get frustrated as they identify their own poor performance -or have it pointed out to them by their supervisor.

Putting them in this position is not fair on them - and is s significant drain on organisational productivity.

So, undertake regular skills reviews of your workforce, identify the skills needed and the skills currently available. This should show up any skills gaps and ‘all you have to do’ is to fInd ways of  filling them.

Simple, isn’t it?