Asad Hussain 508195455

MBA HRM

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ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

ASSIGNMENT NO. 2 Labor Management Relations (821)

ON

Models of labor management relations

SUBMITTED BY_ ASAD HUSSAIN SUBMITTED TO SIR MUHAMMAD WASEEM HAYAT SB. ROLL NUMBER 508195455. MOB. NUMBER 03335174447.

Topic:-

Asad Hussain 508195455

MBA HRM

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ACKNOWLEDGEMENT
All praises to Almighty Allah, the most Gracious, the most Beneficent and the most Merciful, who enabled me to complete this assignment. There is always a sense of gratitude one expresses to others for the helpful and needy service they render during all phases of life. I have completed this assignment with the help of different personalities. I wish to express my gratitude towards all of them. It gives me immense pleasure to express my deep regards and sincere sense of gratitude to Syed Basir Ali Shah, Assistant Director, CDA, Islamabad for his support which helped me throughout my assignment. I would also like to thank my teacher MR. MUHAMMAD WASEEM HAYAT SB for steering my confidence and capability for giving me insight into assignment by giving me exposure to the arena of competitive and real world. Lastly I would like to thank my parents and friends for their constant support during the duration of my training. Thank You One and All
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ASAD HUSSAIN. ROLL NO. 508195455. MBA (HRM).

EXECUTIVE SUMMARY
This assignment is a research-oriented activity, which represents both the theoretical and practical implication of the topic. In the first section of this assignment, I explain the theoretical aspect of the topic and all major parts has been explained which are involved in the Labour Management Relation Models. For empirical study, I select Capital Development Authority and analyze the models one which the CDA management and Labour Union based in CDA.

Asad Hussain 508195455

MBA HRM

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CONTENTS:

TITLE PAGE... ACKNOWLEDGEMENT EXECUTIVE SUMMARY.. CONTENTS..... INTRODUCTION HOW INDUSTRIAL RELATION SYSTEM OPERATE. MODELS OF LABOUR MANAGEMENT RELATIONS ONE TO ONE MODEL. TRANSACTIONAL MODEL CASE STUDY.. INTRODUCTION.. HIGHER MANAGEMENT OF CDA.. TRADE UNIONS IN CDA TRADE UNIONS ROLE IN CDA. LABOUR MANAGEMENT RELATION MODELS IN CDA.. MERITS. DEMERITS RECOMMENDATIONS 14 5 6 6 6 7 10 10 11 12 12 13

1 2 3 4

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Asad Hussain 508195455

MBA HRM

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Introduction:The field of industrial relations is also called labor relations. The process by which human beings and their organization interact at the work place, More broadly, in society as a whole to establish the terms and condition of employment. Labor relations can take place on many levels, such as at the regional level, national level etc. The distribution of power amongst these levels can greatly shape the way an economy functions. Finally labor relations is a system in order to emphasize the interrelations among persons, organizations, and standard in the industrial environment. Each workers have their own problems Difficult to manage each worker All complaints/problems combine collectively Appoint representatives

Asad Hussain 508195455

MBA HRM

Roll No.

HOW THE INDUSTRIAL SYSTEM OPERATE?

Management

Government

Trade Union

Functions of Labor Management Relations Economic Legal Social

Models of labour management relations: A model is a mental construct with which people organize their thoughts about a topic. When we consider labor management relations, we usually think about a single company dealing with a single local union. This is of course a model. The figure below show the management of a company. One to One Model

Asad Hussain 508195455

MBA HRM
Managemen t of a company

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Trade Union (CBA)

This company is dealing with Trade Union which represents company As employees. The line between the company and the union has arrows pointing both ways and indicates that each side influences the other. Also, the absence of any other organizations or lines indicates that the relationship between company A and local No. 100 is all there really is to know about the system of labour management relations indicated here. The above figure represents a model, in that is identifies the parties involved, indicates their relationships as insignificant. Transactional Model
Customers of Company A Stock holders in company A Employer Association to which company A belong

Other local unions with which company A has dealing

Management of Company A

Government of regulatory bodies

Employees of Company A

Union Local No. 100 7

Companies in which company A has plants or offices

Asad Hussain 508195455

MBA HRM

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In above figure we examine the web of relation ships involving company A. we see that company A has responsibilities to its stockholders and customers as well as to local no. 100. It also has relationships with other companies through an association to bodies. It has commitments to the communities in which it operates; and it has responsibilities to other unions with which it deals. This is more accurate model of the relationship of company A to local No. 100 because it shows that the company must also deal with these other groups on issues that affect local No. 100. for example in considering where to give into wage demands by local No. 10 or to take a strike, company A must consider the impact of its choice on its customers, it stock holders, the communities in which it operates, its non unionized employees, and the other unions with which it deal. Often the strong preferences of one or more of these groups will determine company As decision. A local union is also involved in a web of relationships. Figure below shows that local No. 100 must consider in its own activities the views of its national union, other unions, the community in which it is located, its political friends (whom it should not embarrass by its activities), other companies with
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which its contacts (if any), and the management of company A it self.
Management of Company A

National Union

Other unions

Union Local 100

Community in which the local is located

Other companies with which local deals Figures 2 & 3 together constitute an alternativefriends of to Figure Political model the local union

01. the alternative is much more complex and shows that there are many more factors involved in the relationship between company A local no. 100 than just the two organizations alone. As such, the more complicated model is generally a more accurate reflections of reality. The model in figure 01 may be referred to as a one to one model. The few situations in which it applies in reality are not

difficult ones to analyze. Most often, however, labour relations are of the type diagramed in figure 02 and 03.

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Case Study

Introduction The Capital Development Authority (CDA) came into existence on June 14, 1960, first by an executive order issued on June 24, 1960 entitled the Pakistan Capital Regulation, which was then superseded by the CDA ordinance issued on June 27, 1960. The CDA Ordinance constituted the Authority, laid down its charter and defined its power, duties, functions and responsibilities. Initially the administration of the Authority and its functions were handed responsibility to a board consisting of three members: the Chairman, Financial Advisor and one other

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Member with the commissioner Rawalpindi acting as an ex-officio Member. With time, experience and added responsibilities, the CDA board is now composed of the Chairman and Members of Planning, comprising Finance, highly Administration, qualified, Estate, Environment and and Engineering. Each member is in charge of various directorates experienced capable professionals in various fields and disciplines. Major Objectives of CDA:City Maintenance. Citizens Satisfaction. Availability of indispensable necessities. Further expansion of city with the passage of time, making amendments to meet requirements of that time. To keep city and its environment clean. Acquire land and undertake works in "Specified Area". Planning and execution of development schemes. Procure plants machinery instruments and materials Enter into contracts. Carry out studies, surveys and research. Removal of any works obstructing in scheme Higher Management of CDA

Chairman

Mr. Imtiaz Inayat Elahi

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Asad Hussain 508195455

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Member Member Member Member Member Member

Finance Administration (P&D) Engineering Environment Estate

Mr. Mr. Mr. Mr. Mr. Mr.

Saeed-ur-Rahman Syed Mustafain Kazmi Syed Tanveer Hussain Bokhari Abdul Jabbar Malano Mazhar Hussain Sultan Mohammad Farooqi

Trade Unions IN CDA

MANAGEMENT OF CDA

PASHAHA GROUP

CH. YIASIN GROUP (CBA)

MUZDOOR DOST GROUP

Trade Unions Role in CDA Collective bargaining with management

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Struggle for employees benefits Fund raising Resolve issues related to workers Employees and Employers Relationship Negotiating Tool of the employees with CDA management Wages and Salaries Working Conditions Discipline Personal Policies Welfare Labour Management Relations Models in CDA
Govt. Regulatory Bodies

Customers

Stockholders

CDA Management

Employees

Trade union

Communities

Merits Trade union work for employees benefits Job security

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Demerits Discrimination among employees. Political pressure Multiple Unions Union Rivalry Low Finances Un-educated union leaders Diversified Workforce Conclusion Models of Labor Management Relations plays a very important role, whether it is one to one model or any other model. Proper implementation of the models effect labor management relations, i.e if the models is good in every aspect then the environment will be good or vice versa. Recommendations Discrimination should be avoided at every stage

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