General Management

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General management

Case II:

1. Discuss merits/demerits of the role of strike, agitation and legal approach in union management relations?

The principal engagement of Union with management is though their actions like lobbying, politics, and the community which extends to strike, agitation and legal approach. Strikes first became important during the industrial revolution, when mass labor became important in factories and mines while legal approach is the latest trend which is picking up at faster pace.

Here are some merits of actions of role of strike, agitation and legal approach on union management relations:

1. One of the positive effects can be increase in productivity as apart from lower quit rates, existence of union (thus, strike, agitation and legal approach) ensures better management accountability.

2. Unions can improve efficiency by putting pressure on management to tighten job production standards and accountability in order to preserve profits in the face of higher wages

3. The strike could lead to immediate realization of demands of the laborers as when the strike begins, the owner primary focus is to discuss and settle those demands.

4. Management strategy to improve organization performance such as creating ‘learning organizations’ found genuine union involvement crucial to achieving outcomes. The existence of strong independent representation of employee interests reduced mistrust and skepticism that could otherwise undermine management strategy

Besides owning the advantages, the labor strike also has disadvantage:

1. Unions appear to insist on promotion-from-within and the related use of internal posting-and-bidding. This, in turn, causes management to limit its channels of external recruiting 2. The company will incur losses because the company cannot produce its goods during the period of strike

3. Strikes, agitation or legal approach can be fatal to union management relationship if union action leads to loss of client because of the pending production and loss of company’s credibility.

4. Strikes influence the political and economical stability thus, making it worse for management


2. What role does mutual trust play in building union-management relations?

Union and management relations historically are based on mistrust, conflict of interest, and ingrained adversarial attitudes. While most organizations perceive the Union and Management relationship to be adversarial in nature, the reality is that both have a common set of desired goals. Mutual trust acts as a social lubricant and thus plays an important role in building union-management relations and steering the company towards common goals. Apart from this, Mutual trust can lead to increase efficiency, increased employees’ satisfaction and higher profits as illustrated below:

1. Mutual trust can create balance of power between unions and management at the workplace and thus, increasing efficiency at work place.

2. Mutual trust between union and management helps to create an atmosphere of mutual cooperation, confidence and respect which improves the employees’ satisfaction.

3. It increases faith of management in collective bargaining and encourage unions to use peaceful methods of settling disputes thus reducing the potential losses to organization

4. Mutual trust helps employees raise their voices and preferences in cordially manner and contributes to better organization policies.

Case III:

1. What were the strengths and weaknesses of VSNL?

Ans:The VSNL, apart from being the oldest and the only player in the market...
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