Shaping the strategies and operations of businesses

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Labor relations play an important role in shaping the strategies and operations of businesses. Management and labor must find goals that bind them together as a means of improving competitiveness. Effective labor relations systems help minimize conflict within organizations, which benefit management, employees, and society as a whole.

The labor relations framework suggests that unions and management make choices related to strategy and labor-management interaction at the functional level and also at a workplace level, where contract negotiations and union organizing occur. These choices are influenced by the four elements John Dunlop describes as important within a labor relations system: 1) an environmental context (technology, market pressures, and the legal framework, especially as it affects bargaining power); 2) participants, including employees and their unions, management, and the government; 3) a "web of rules" (rules of the game) that describe the process by which labor and management interact and resolve disagreements; and 4) ideology.

Read the statements by scrolling your cursor over each. Drag each item into the correct spot on the chart. There will be three statements per category.

Underpaid Management Stance

Formal Representation Shared Vision

Subprocesses Perspective

Framework Grievance Procedures

Access Shared Interests

Bargain Power Bargaining Unit

CHART

Environment Participants Web of Rules Ideology

Reference no: EM132249546

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