Explain a formal or informal mutual agreement, Operation Management

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Explain a formal or informal mutual agreement.

- The mutual agreement may be as given below:

(a) Union security.

(b) Bonus, wages and other benefits.

(c) Terms and conditions of employ, Hours of work, Holidays, Promotion, Safety and health, transfer as well as discharge.

(d) Grievance procedure.

(e) Incentives and

(f) Management responsibilities.

 - If either of the party, later on then feels reluctant in abiding through its commitments under the mutual agreement, the other party can use economic pressures to force which party to meet its obligations.


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