What is the general method used to determine the relative value or worth of jobs to an Organisation?

Imagine that see a job posted on the internet. It reads, "Office Assistant wanted, starting at $8.00 an hour." How did the manager decide to pay $8.00 per hour? Why did he or she decide that was fair? In this subchapter, we will cover the two types of "fairness" important in designing a base pay system.

Internal Equity

The first consideration is that the base pay system needs to be internally equitable: the amount of base pay assigned to jobs needs to reflect the relative contribution of each job to the company's business objectives . In determining this, the manager should ask, "How does the work of the office assistant described above compare with the work of the office manager?" Another question to be asked is, "Does this worker contribute to solutions for customers more than another?"

What is the general method used to determine the relative value or worth of jobs to an Organisation?

This graph shows that compensation and wages have been more or less stagnant since the 1970's.

Internal equity implies that pay rates should be the same for jobs where the work is similar and different for jobs where the work is dissimilar. Compensation specialists use two tools to help make these decisions: job analysis and job evaluation.

What is Job Analysis?

A job analysis is a systematic method to discover and describe the differences and similarities among jobs. A good job analysis collects sufficient information to adequately identify, define, and describe the content of a job. Since job titles may be misleading (for example, "systems analyst" does not reveal much about the job) the content of the job is more important to the analysis than the title.

In general, a typical job analysis attempts to describe the following:

  • skill (the experience, training, education, and ability required by the job);
  • effort (the degree of effort actually expended in performing the job);
  • responsibility (the degree of accountability required in the performance of a job); and
  • working conditions of each job (the physical surroundings and hazards of a job, including dimensions such as inside versus outside work, heat, cold, and poor ventilation).

What is a Job Evaluation?

A job evaluation is a process that takes the information gathered by the job analysis and places a value on the job. It is the process of systematically determining the relative worth of jobs based on a judgment of each job's value to the organization. The most commonly used method of job evaluation in the United States and Europe is the "point method." The point method consists of three steps:

  1. defining a set of compensable factors;
  2. creating a numerical scale for each compensable factor; and
  3. weighting each compensable factor.

Each job's relative value is determined by the total points assigned to it . The result of the job analysis and job evaluation processes will be a pay structure or queue in which jobs are ordered by their value to the organization.

What is the general method used to determine the relative value or worth of jobs to an Organisation?

New college graduates are scarely earning more than they did a few decades ago.

External Equity

"External equity" refers to the relationship between one company's pay levels in comparison to what other employers pay. Some employers set their pay levels higher than their competition, hoping to attract the best applicants. This is called "leading the market."

Other employers set their pay levels lower than their competition, hoping to save labor costs. This is called "lagging the market." The risk in lagging the market is that the company will be unable to attract the best applicants.

Most employers set their pay levels the same as their competition. This is called "matching the market." Matching the market maximizes the quality of talent while minimizing labor costs. An important question in external equity is how you define your market. Traditionally, markets can be defined in one of three ways:

  • By identifying companies who hire employees with the same occupations or skills
  • By identifying companies who operate in the same geographic area
  • By identifying direct competitors, that is, those companies who produce the same products and services.

Once you have defined your market, the next step is to survey the compensation paid by employers in your market.

Combining Internal and External Equity

How do companies combine internal and external equity to decide the pay associated with each job?

  • First, they analyze the content of each job.
  • Second, they assess the value each job contributes to the company.
  • Third, they price each job in the market.
  • Finally, they look at the relationship between what they value internally and what the market values externally.

By following each of these steps, a company will have a fair base pay system, which will lead to attracting and retaining the best employees.


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Job design is defined as the allocation of specific work tasks to individuals and groups (Schermerhorn, Job Design Alternatives, 2006). Allocating jobs and tasks means specifying the contents, methods and relationships of jobs to satisfy technological and organizational requirements as well as the personal needs of jobholders. If successful job design is not implemented, than the companies general strategy and direction will be strongly diverted. Meaningful jobs must also exemplify the company's goals and culture.

Elements to Job Design

In order to better understand job design it is helpful to define some key elements and their relationship with job design processes.

A task is a piece of assigned work expected to be done within a certain time. It is important to strictly and thoroughly identify tasks that need completion. In addition, it is essential to design jobs that motivate employees. Motivation describes forces within the individual that account for the level, direction, and persistence of effort expended at work (Schermerhorn). In job design, it is necessary to identify and structure jobs in a way that the company's resources are being efficiently used. Resource Allocation occurs when organizations decide to appropriate or allocate certain resources to specific jobs, tasks or dilemmas facing the organization.

Jobs need to be constructed so that efficiency of the worker or department is maximized. Organizations need to use the resources and creativity of their employees effectively and efficiently. Reward systems also play a role in job design. Reward systems include compensation, bonuses, raises, job security, benefits, and various other methods of reward for employees.

Traditional Approaches to Job Design

Frederick Taylor developed a theory in an effort to establish a science for every job within an organization (Taylorism or Scientific Management) . The principles of Taylorism are as follows:

What is the general method used to determine the relative value or worth of jobs to an Organisation?

Frederick Winslow Taylor lived from 1856 to 1915. Taylorism was named after him.

  • Create a standard method for each job;
  • Successfully select and hire proper workers;
  • Effectively train these workers;
  • Support these workers.

Hertzberg's Motivation-Hygiene Theory attempts to uncover psychological needs of employees and enhance employee satisfaction. Employers are encouraged to design jobs that enhance and motivate employees beyond simply meeting a daily or weekly quota. This theory highlights the importance of rewards systems and monitoring when and how employees are rewarded.

Edwin Locke's Goal Setting Theory mainly focuses on the motivational properties of task goals (Schermerhorn). Task goals can be highly motivating when set and managed properly. One of the problems with a goal setting theory in job design is that individuals are more strongly motivated by establishing or setting their own personal goals. If organizations set these goals for their employees, then the effectiveness of this technique is diminished.

Current Approaches to Job Design

Technology and the flattening of the global economy have contributed greatly to the changes we now see in jobs and job content across the world. We now recognize that a person presented with quality meaningful work is more likely to do that work well. Because of this insight, job design presently takes some prominent forms.

The first of which is designed around the evolution from individual work to work-groups. This job design practice is called "socio-technical systems" (STS) approach. This approach has the following guiding principles:

  • The design of the organization must fit its goals.
  • Employees must be actively involved in designing the structure of the organization.
  • Control of variances in production or service must be undertaken as close to their source as possible.
  • Subsystems must be designed around relatively self-contained and recognizable units of work.
  • Support systems must fit in with the design of the organization.
  • The design should allow for a high quality of working life.

Another modern job design theory is the Job Characteristics Model (JCM), which maintains five important elements that motivate workers and performance:

  • Skill variety,
  • Task identity,
  • Task significance,
  • Autonomy,
  • Job feedback.

The individual elements are then proposed, which lead to positive outcomes through three psychological states: experienced meaningfulness, experienced responsibility, and the knowledge of results (Parker & Turner, 2002).

Steps to Effective Job Design

The key to effectively crafting a meaningful job for an employee is starting the thought process by looking at the values and strategy of the organization. By framing the job in these contexts, the job design process is more likely to align potential employees with the purpose of the company. Once you have this context, the following steps will ensure both meaningful and effective job design:

  1. Assess skills, needs, abilities, and motivations of employees and the organization.
  2. Design the job to meet those needs, abilities and motivations.
  3. Implement the new job design.
  4. Audit the success of the job design and begin with step one periodically as well as when problems have been identified.


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Typically, the chief executive officer (CEO) directs the fortunes of the company. It helps that the CEO has a good team that includes the chief operating officer (COO) who leads the operations of a company, and chief financial officer (CFO) who manages the finances. Also important in different companies are the chief marketing officer (CMO) and the chief information officer (CIO), who manages the information systems. When looking at the long-term prospects of the company, a good CEO will assemble and maintain a top-notch management team and nurture leaders to take over.

Controversy Over Executive Compensation

Executive pay (also known as executive compensation) is financial compensation received by an officer of a firm. It is typically a mixture of salary, bonuses, shares of and call options on the company stock, benefits, and perquisites, ideally configured to take into account government regulations, tax law, the desires of the organization and the executive, and rewards for performance.

Many policy makers are concerned about the huge growth in executive compensation and the lack of a relationship between performance and compensation. An example from the recent financial crisis are the CEOs who led their companies into insolvency and bankruptcy yet were still given huge pay packages .

What is the general method used to determine the relative value or worth of jobs to an Organisation?

During the financial crisis of 2008, many CEOs led their companies into insolvency and bankruptcy yet were still given huge pay packages.

In general, the compensation of CEOs in the United States has risen to over 400 times the salary of the average U.S. worker, compared to about 30 times only a few decades ago . This is different from other countries where the disparity is not so great.

What is the general method used to determine the relative value or worth of jobs to an Organisation?

The compensation of CEOs in the United States has risen to over 400 times the salary of the average U.S. worker, compared to about 30 times only a few decades ago.

The explosion in executive pay has become controversial, criticized by not only leftists but conservative establishmentarians such as Ben Bernanke, Peter Drucker, John Bogle, and Warren Buffet. The idea that stock options and other alleged pay-for-performance are driven by economics has also been questioned. A 2001 article in Fortune, "The Great CEO Pay Heist" drew criticism for this line of thinking: instead of arguing that "the stock isn't moving, so the CEO shouldn't be rewarded", it instead argued that "the stock isn't moving, so we've got to find some other basis for rewarding the CEO. " This line of thinking is exactly why executive compensation has come under so much criticism.

Defenders of high executive pay say that the global war for talent and the rise of private equity firms can explain much of the increase in executive pay. For example, while in conservative Japan a senior executive has few alternatives to his current employer, in the United States it is acceptable and even admirable for a senior executive to jump to a competitor, to a private equity firm, or to a private equity portfolio company. Portfolio company executives take a pay cut but are routinely granted stock options for ownership of 10% of the portfolio company, contingent on a successful tenure. Rather than signaling a conspiracy, defenders argue, the increase in executive pay is a mere byproduct of supply and demand for executive talent. However, U.S. executives make substantially more than their European and Asian counterparts.

As of 20120, the current ratio of CEO pay to average worker pay was:

  • Japan 11
  • Germany 12
  • France 15
  • Italy 20
  • Canada 20
  • South Africa 21
  • Britain 22
  • Hong Kong 41
  • Mexico 47
  • Venezuela 50
  • United States 475


Page 4

Sexual harassment is bullying or coercion of a sexual nature, or the unwelcome or inappropriate promise of rewards in exchange for sexual favors. Harassment can include unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature. Sexual harassment can includes a range of behavior from mild transgressions (like jokes or innuendos) to sexual abuse or sexual assault, but laws against sexual harassment typically don't prohibit simple teasing, offhand comments, or minor isolated incidents. In the workplace, harassment may be considered illegal when it is so frequent or severe that it creates a hostile or offensive work environment, or when it results in an adverse employment decision (such as the victim being fired or demoted, or when the victim decides to quit the job). Sexual harassment may occur in a variety of circumstances. Often, but not always, the harasser is in a position of power or authority over the victim (due to differences in age, level of employment, or years with the company). For many businesses and other organizations, preventing sexual harassment—and addressing any incidents of it— has become a major priority within their ranks.

Effect on Victims

Effects of sexual harassment can vary depending on the individual victim and the severity and duration of the harassment. Psychologists and social workers report that severe or chronic sexual harassment can have the same psychological effects as rape or sexual assault. Victims who do not submit to harassment may also experience other forms of harassment including retaliation in the form of isolation or bullying. Common psychological effects of sexual harassment and retaliation that could affect your academic, professional, financial or social life include:

  • Decreased work or school performance as a result of stress conditions, including increased absenteeism in fear of repeated harassment;
  • Fear of being fired or refused a promotion or job opportunity; loss of job or career, and loss of income;
  • Having one's personal life offered up for public scrutiny—the victim becomes the "accused," and his or her person, appearance, lifestyle, and private life can often come under attack;
  • Becoming publicly sexualized (i.e. groups of people "evaluate" the victim to establish if he or she is "worth" the sexual attention or the risk to the harasser's career);
  • Defamation of character and reputation;
  • Loss of trust in environments similar to where the harassment occurred;
  • Loss of trust in the types of people that occupy similar positions as the harasser or his or her colleagues; difficulties or stress with peer relationships, or relationships with colleagues;
  • Extreme stress on relationships with significant others, including personal sexual life, sometimes resulting in divorce;
  • Weakening of support network, or being ostracized from professional or academic circles (friends, colleagues, or family may distance themselves from the victim, or shun him or her altogether);
  • Having to relocate to another city, another job, or another school.

Organizational Policies and Procedures

When organizations do not take the satisfactory measures for properly investigating sexual harassment, do not offer psychological counseling and guidance, or just decide to ignore the problem or not take it seriously, this could lead to:

  • Decreased productivity and increased team conflict;
  • Decreased study or job satisfaction;
  • Loss of students or staff;
  • Resignations of alleged harassers;
  • Increased absenteeism by staff or students experiencing harassment;
  • Decrease in success at meeting academic or financial goals;
  • Increased health care costs and sick pay costs because of the health consequences of harassment and/or retaliation;
  • High jury awards for the victim of the harassment;

If the problem is ignored or not treated properly, a company's or school's image can suffer. Moreover, the knowledge that harassment is permitted can undermine the ethical standards of the organization in general, as staff and/or students lose respect for, and trust in, their superiors or supervisors who indulge in, turn a blind eye to, or handle incidents of sexual harassment improperly.

Studies show that the organizational climate (an organization's tolerance, policies, procedures, etc.) and workplace environment are essential for understanding the conditions in which sexual harassment is likely to occur, and the way its victims will be affected. According to Dr. Orit Kamir, the most effective way to avoid sexual harassment in the workplace, and also influence the public's state of mind, is for the employer to adopt a clear policy prohibiting sexual harassment and to make it very clear to his or her employees.

What is the general method used to determine the relative value or worth of jobs to an Organisation?

Historically, sexual harassment has been prevalent in the military. Pictured here are members of I.A.M. Strong, the Army's campaign to combat sexual harassment and sexual assaults.


Page 5

Providing benefits such as childcare, maternity/paternity leave, flexible working, and emergency leave is critical for helping employees keep a healthy work/life balance. The responsibilities of parenting require a great deal of time and energy, and supporting new parents as they find time for everything can significantly improve employee satisfaction, retaining key talent through good benefits and employee support. 

The scope of a child care program is up to the business itself, as well as the decision to create this benefit in house or to outsource it. Most commonly, businesses will create agreements with childcare providers in the local area, covering or sharing the costs of childcare while the parents are at work. However, not all programs will fit all age groups. Larger organizations may want to consider partnerships for the following:

  • Infant care (0-1 year old)
  • Corporate child center (0-3 years old)
  • Corporate kindergarten (3-6 years old)
  • Corporate camp for holidays (3-14 years old)

Through providing childcare benefits, employers can potentially realize the following benefits:

  • Reduced employee absenteeism
  • Increased focus at work
  • Decreased healthcare costs
  • Development of a strong, family-oriented culture
  • Increased employee loyalty
  • Reduced HR costs (recruiting/onboarding new employees)

Other Parental Support Programs

New parents need more than childcare to fully balance work and life demands. Providing ample time for maternal and paternal leave is critical to empowering employees to adjust to their new responsibilities. Parents need time to organize their new lives, and create a strong ecosystem for their family to thrive.

Along similar lines, emergency leave is also absolutely necessary in case something happens. Employees who are afraid of getting in trouble for having to leave work early will be less loyal, less focused and more anxious about the demands of their home and work lives. Trusting employees to get the job done when and how they can, and providing a flexible and family-oriented work culture, is an incredible advantage.

What is the general method used to determine the relative value or worth of jobs to an Organisation?

This image shows children at a daycare, where employee children can socialize and learn while the parents are at work.

This image depicts children at daycare, where they can learn and socialize while parents are at work.


Page 6

When employees discuss the subject of examinations for illegal or illicit chemical use, there is almost always a negative tone to the discourse. No person really likes the idea that he or she is in any way suspected of such activity. As an unfortunate consequence of our societal behavior, however, a company requiring a drug test is reasonable, and can be done without rancor.

As with almost any managerial policy, the more the workforce understands about why it was created and what it entails, the less resistance there will likely be.

The Purpose of Drug Testing

There are two kinds of employment drug testing: pre-employment drug screening and publish-employment drug testing.

Pre-employment testing is carried out prior to recruiting individuals to make certain that drug abusers do not enter into the business. This is done under the premise that human assets are the biggest assets of a reputed organization. Talented staff members have a positive impact on productivity. However, this productivity is jeopardized when a company's workers use illicit drugs.

In accordance with the most recent reports (2009) released by Compound Abuse and Mental Health Expert services Administration (SAMHSA), out of 19.3 million illicit drug abusers aged 18 many years or older, 12.9 million had been employed full time or part time in United States. This knowledge signifies that many illicit drug users are finding employment and that they may well impact the organizational lifestyle.

Pre-employment drug testing can help in generating a sense of fear in people looking for work, as the odds are, if they use drugs, their application will be rejected due to them screening positive.

Comparing it with the automatic process undergone by everyone in federal service will help clarify the importance of having "clean" employees, as the idea of impaired FBI agents is clearly problematic to all. Relating that to the performance of duties at the corporate level is not a huge leap of logic.

Drug Screening and Constitutional Law

Some states do not have specific laws addressing this issue, so it is up to corporate policy to determine the best approach.

The Fourth Amendment ensures protection against unreasonable search and seizure, and these examinations have been held to be covered by this provision. One issue that comes up in the practice of conducting these processes is how much is too much. Even people who understand the rationale and grudgingly approve of it become incensed if the checks occur too often. All citizens are protected against the denial of life, liberty and the pursuit of happiness, and this has been ruled to mean excessive intrusion on person or privacy.

Making Employees Understand the Necessity of Drug Testing

One key to approaching the subject with the workforce is to address it in the venue of safety.

Most employees feel the purpose of drug screening is to identify people doing something illegal off duty and then punish them. Keeping the focus on what the real point is, which is the prevention of impaired workers from hurting themselves or others, can be key to acceptance. Many employees do not consider the ramifications to the enterprise or employer should their actions result in loss, injury, or fatality. They do not know the legal responsibility an employer has to ensure that employees are competent and ready to work.

Knowing that their mishaps could cost the employer will help employees realize why it is important that everyone be substance free on the job. Even though they understand the reasons for it, the physical process of the examination is ultimately humiliating and degrading, with some workers tolerating it better than others. Choosing a company that has a good reputation, who are willing to collect feedback from those who are examined will also ease the effort. Testing at the workplace, instead of some third-party location, is less disruptive and faster.

Nevertheless, the practice of drug testing in a company protects everyone. Remaining careful to avoid any perception of bias through uniform and fair exercise will appease workers as much as possible. Following proven process guidelines will ensure that any challenge to the program will result in a finding for the company.

What is the general method used to determine the relative value or worth of jobs to an Organisation?

A strand of hair is all it takes to tell the story of illicit drug use.


Page 7

What is the general method used to determine the relative value or worth of jobs to an Organisation?

Unfortunately, most employee conflicts aren't as good-natured as this pillow fight.

Human resource managers report spending 24% to 60% of their time dealing with employee disputes.

According to a study by the Society of Human Resource Management (SHRM), the number of violent incidents in the workplace has been increasing. Nearly 60% of respondents said violence had occurred in their organization during the past three years, and they identified "personality conflicts" as the leading cause.

Why Conflicts Arise

Conflict arises when one or more person tries to ensure their preferred outcome is achieved to the exclusion of the preferred outcome of others. Causes of conflict within an organization include:

  1. Poor organization structures where people may feel alienated or isolated, thus the spirit of competitiveness and non-cooperation may be strong.
  2. Poor communication where people don't have the opportunity to express how they feel or to clear up causes of conflict which may arise.
  3. Personality conflicts which cause people to clash with each other due to different styles of interaction or differing values or beliefs.
  4. Poorly managed change within an organization, which can lead to people feeling insecure and threatened.
  5. Lack of teamwork /poor performance, where some members of the team believe other colleagues are not competent in the jobs they do.

Overall, conflict arises when there is a non-acceptance of the differences which exist between people at work. It is also more likely to happen in organizations where there is a high level of uncertainty, or where there are poor industrial relations. The atmosphere this causes can result in a raising of tension levels and poor relationships at work.

Conflict Resolution Strategies

The following strategies can help effectively resolve worker conflict:

  1. Be a good listener. The parties involved should all want to tell their story. Even though getting people to speak freely can increase the level of conflict, it's a good idea to get all the complaints and issues out so you can begin working on a solution.
  2. Stay impartial without getting the the staff to hate you and the establishment. If your staff has been divided into camps, each espousing one idea over another, make sure you understand the motivations of each group.
  3. Stay logical. Don't let your feelings for the people on staff influence your decision. If you don't get along with the people in one group, do not dismiss their ideas and claims.
  4. Agree an action plan. Who will do what , when and how. Monitor progress and review within an agreed period. Move on from the conflict once it has been resolved.


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Employees are the resources of an organization in much the same way as material assets. They are also the firm's stakeholders.

The concept of employees as stakeholders refers to the interest employees have in the success of the company and the fact that actions taken by the organization directly affect the employees (Olson, 2003). Though employees are the stakeholders who are arguably most visible to management on a day-to-day basis, they do not often command the majority of attention in terms of decision-making influences.

Employees can get their Voices Heard

Employers benefit from the increased trust that comes from sharing information and giving employees influence (Pfeffer & Viega, Putting People First for Organizational Success, 1998). However, managers who are used to having control often find it "disconcerting, difficult and even impossible" to share power in the form of influence in exchange for the many organizational benefits (Marken, 2004).

Employees can obtain influence in organizational decisions in several ways :

What is the general method used to determine the relative value or worth of jobs to an Organisation?

They can obtain influence in organizational decisions in several ways.

  • Grievance and due process systems allow employees to address grievances and to argue their point if they feel they are wronged by management or another employee.
  • Many different participation systems can be implemented to authentically get employee input and to capitalize on the benefits associated with employee influence.
  • Open-book management empowers employees with the information they need to see the reality of the organizational situation and to give relevant and helpful input (Case, 1997).
  • Similar to open-book management are open-door policies, where management makes it clear that employees can informally raise issues or give input at any time.
  • Feedback programs, sometimes implemented in the form of employee surveys or through direct employee-management interaction, can be a less expensive way to get feedback from employees concerning specific programs or policies (Solnik, 2006).
  • Team mechanisms such as quality circles, work teams, and total-quality management teams provide employees with the ability to synthesize their individual input into a better solution to organizational problems.


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A strike action, also called labor strike, is a work stoppage caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances.

Strikes became important during the Industrial Revolution when mass labor became important in factories and mines. In most countries, strike actions were quickly made illegal, as factory owners had far more political power than workers. Most western countries partially legalized striking in the late 19th or early 20th centuries.

Why Do Workers Strike?

Most strikes are undertaken by labor unions during collective bargaining. The object of collective bargaining is to obtain a contract (an agreement between the union and the company) which may include a no-strike clause or penalizes the union and/or the workers if they walk out while the contract is in force. The strike is typically reserved as a threat of last resort during negotiations between the company and the union.

Occasionally, workers decide to strike without the sanction of a labor union. This is either because the union refuses to endorse the tactic, or because the workers concerned are not unionized. Such strikes are often described as unofficial.

Strikes without formal union authorization are also known as wildcat strikes. In many countries, wildcat strikes do not enjoy the same legal protections as recognized union strikes, and may result in penalties for the union members who participate.

What Happens During A Strike?

  1. A strike may consist of workers refusing to attend work or picketing outside the workplace to prevent or dissuade people from working in their place or conducting business with their employer.
  2. Less frequently workers may occupy the workplace, but refuse either to do their jobs or to leave. This is known as a sit-down strike.
  3. A similar tactic is the work-in, where employees occupy the workplace but still continue work, often without pay. This tactic attempts to show they are still useful, or that worker self-management can be successful. This occurred with factory occupations in the Bienno Rossi strikes-the "two red years" of Italy from 1919-1920.
  4. Another unconventional tactic is work-to-rule, in which workers perform their tasks exactly as they are required but no better. For example, workers might follow all safety regulations in a way that it impedes their productivity. Such strikes may be a form of "partial strike" or "slowdown. "

What is a Strikebreaker?

A strikebreaker continues to work during strike action by trade unionists or acts as a temporary or permanent replacement worker hired to take the place of those on strike.

The act of working during a strike – whether by strikebreakers, management personnel, non-unionized employees or members of other unions not on strike – is known as "crossing the picket line," regardless of whether it involves actually physically crossing a line of picketing strikers. Crossing a picket line can result in passive and/or active retaliation against that working person.

What Methods do Employers use to Deal with Strikes?

Most strikes called by unions are somewhat predictable; they typically occur after the contract has expired.

  1. Strike preparation: Companies which produce products for sale will frequently increase inventories prior to a strike. Salaried employees may be called upon to take the place of strikers, which may entail advance training. If the company has multiple locations, personnel may be redeployed to meet the needs of reduced staff.
  2. Companies may also take out strike insurance prior to an anticipated strike, helping to offset the losses which the strike would cause.
  3. One of the weapons traditionally wielded by already-established unions is strike action. Some companies may decline entirely to negotiate with the union, and respond to the strike by hiring replacement workers. This may create a crisis situation for strikers — do they stick to their original plan and rely upon their solidarity, or is there a chance that the strike may be lost? How long will the strike last? Will strikers' jobs still be there if the strike fails? Are other strikers defecting from the strike? Companies that hire strikebreakers typically play upon these fears when they attempt to convince union members to abandon the strike and cross the union's picket line.
  4. Another counter to a strike is a lockout, the form of work stoppage in which an employer refuses to allow employees to work.

Unions faced with a strikebreaking situation may try to inhibit the use of strikebreakers by a variety of methods:

  • establishing picket lines where the strikebreakers enter the workplace
  • discouraging strike breakers from taking or keeping strikebreaking jobs
  • raising the cost of hiring strikebreakers for the company
  • employing public relations tactics

What is the general method used to determine the relative value or worth of jobs to an Organisation?

Members of the Teamsters union wielding pipes clash with armed police during a 1934 strike in Minneapolis.


Page 10

Union boycotts, or secondary action, is industrial action by a trade union in support of a strike initiated by workers in another, separate enterprise .

What is the general method used to determine the relative value or worth of jobs to an Organisation?

Also known as secondary action, is industrial action by a trade union in support of a strike initiated by workers in another, separate enterprise.

The term "secondary action" is intended to be distinct from a trade dispute with a worker's direct employer, and so may be used to refer to a dispute with the employer's parent company, its suppliers, financiers, contracting parties, or any other employer in another industry.

In most countries there are limits on the purpose for which people can go on strike, and in many English-speaking nations restrictions have been placed on which organisations trade unions may strike against. In the U.S. and U.K., workers can typically strike against their direct employer only.

In continental Europe, secondary action is generally lawful and the right to strike is seen as a part of a broader political freedom. Secondary action is illegal in the United States. It is banned by the Sherman Antitrust Act and by the Taft-Hartley Act, which amends the Wagner Act of 1935.

Because farm laborers in the United States are not covered by the Wagner Act, the United Farm Workers' (UFW) union has been able to legally use secondary boycotting of grocery store chains as an aid to their strikes against California agribusinesses and to their primary boycotts of California grapes, lettuce, and wine. The UFW's secondary boycotts involved asking consumers to stop shopping at a grocery store chain until such time as the chain stopped carrying the boycotted grapes, lettuce, or wine.


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Most strikes called by unions are somewhat predictable; they typically occur after the contract has expired. However, not all strikes are called by union organizations. Some strikes have been called in an effort to pressure employers to recognize unions. Other strikes may be spontaneous actions by working people. Spontaneous strikes are sometimes called "wildcat strikes;" they were the key fighting point in May 1968 in France. Most commonly, they are responses to serious (often life-threatening) safety hazards in the workplace rather than wage or hour disputes, etc.

Whatever the cause of the strike, employers are generally motivated to take measures to prevent them, mitigate the impact, or to undermine strikes when they do occur.

Strike Preparation

Companies which produce products for sale will frequently increase inventories prior to a strike. Salaried employees may be called upon to take the place of strikers, which may entail advance training. If the company has multiple locations, personnel may be redeployed to meet the needs of reduced staff.

Companies may also take out strike insurance prior to an anticipated strike, to help offset the losses which the strike would cause.

One of the weapons traditionally wielded by already-established unions is strike action. Some companies may decline entirely to negotiate with the union, and respond to the strike by hiring replacement workers. This may create a crisis situation for strikers. Do they stick to their original plan and rely upon their solidarity, or is there a chance that the strike may be lost? How long will the strike last? Will strikers' jobs still be there if the strike fails? Are other strikers defecting from the strike? Companies that hire strikebreakers typically play upon these fears when they attempt to convince union members to abandon the strike and cross the union's picket line.

Unions faced with a strikebreaking situation may try to inhibit the use of strikebreakers by a variety of methods, establishing picket lines where the strikebreakers enter the workplace; discouraging strike breakers from taking, or from keeping strikebreaking jobs; raising the cost of hiring strikebreakers for the company; or employing public relations tactics. Companies may respond by increasing security forces and seeking court injunctions.

Strikebreaking

Some companies negotiate with the union during a strike; other companies may see a strike as an opportunity to eliminate the union. This is sometimes accomplished by the importation of replacement workers, strikebreakers, or "scabs. " Historically, strike breaking has often coincided with union busting. It was also called "Black legging" in the early twentieth century, during the Russian socialist movement.

What is the general method used to determine the relative value or worth of jobs to an Organisation?

Strikebreaking tactics are often met with hostile reactions from strikers

Union Busting

One method of inhibiting or ending a strike is firing union members who are striking, which can result in elimination of the union. Although this has happened, it is rare due to laws regarding firing and "right to strike" having a wide range of differences in the United States, depending on whether union members are public or private sector. Laws also vary country to country. In the United States, it is legal to fire striking public sector employees if the strike is illegal. Conversely in the United Kingdom, "It is important to understand that there is no right to strike in UK law." Employees who strike risk dismissal, unless it is an official strike (one called or endorsed by their union), in which case they are protected from unlawful dismissal and cannot be fired for at least 12 weeks.

Another counter to a strike is a lockout, the form of work stoppage in which an employer refuses to allow employees to work. Two of the three employers involved in the Caravan park grocery workers strike of 2003-2004 locked out their employees in response to a strike against the third member of the employer bargaining group. Lockouts are, with certain exceptions, lawful under United States labor law.

Violence

Historically, some employers have attempted to break union strikes by force. One of the most famous examples of this occurred during the Homestead Strike of 1892. Industrialist Henry Clay Frick sent private security agents from the Pinkerton National Detective Agency to break the Amalgamated Association of Iron and Steel Workers strike at a Homestead, Pennsylvania steel mill. Two strikers were killed, 12 wounded, along with 2 Pinkertons killed and 11 wounded. In the aftermath, Frick was shot in the neck and then stabbed by Alexander Berkman, surviving the attack, while Berkman was sentenced to 22 years in prison.


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Since the middle of the twentieth century, the American labor movement has been in steady decline. In the early 1950s, a third of the United States' total labor force was unionized; by 2012, the proportion was 10%, falling 5% for the private sector.

Over the last decades, unions' influence has waned, and workers' collective voice in the political process has weakened. As a result, wages have stagnated, and income inequality has increased. By 2011, fewer than 7% of employees in the private sector belonged to unions.

The UAW's numbers of automobile union members are representative of the manufacturing sector:

  • 1,619,000 active members in 1970
  • 1,446,000 in 1980, 952,000 in 1990
  • 623,000 in 2004
  • 377,000 in 2010 (with more retired than active members)

Reagan and Unions

Most unions were opposed to Reagan in the 1980 presidential election.

On August 3, 1981, the Professional Air Traffic Controllers Organization (PATCO) union, which supported Reagan, rejected the government's pay raise offer and sent its 16,000 members on strike to shut down the nation's commercial airlines. They demanded a reduction in the work week to 32 from 40 hours, doubling of wages, a $10,000 bonus, and early retirement.

Federal law forbade such a strike, and the transportation department implemented a backup-plan (of supervisors and military air controllers) to keep the system running. The strikers were given 48 hours to return to work or be fired and banned from ever again working in a federal capacity.

A fourth of the strikers came back to work, but 13,000 did not. The strike collapsed, PATCO vanished, and the union movement as a whole suffered a reversal, accelerating the decline of membership across the board in the private sector.

Rise of Public Sector Unions

In 1958, New York Mayor Robert Wagner, Jr. issued an executive order, called "the little Wagner Act," giving city employees bargaining rights, and their unions exclusive representation.

Wisconsin, New York, and other states saw the emergence of public-sector unions, including:

  • Teachers
  • Clerks
  • Firemen
  • Prison guards

At the federal level, President John Kennedy, in 1962, issued Executive Order 10988, upgrading the status of unions of federal workers.

After 1960, public sector unions grew rapidly and secured good wages and high pensions.

While manufacturing and farming steadily declined, state- and local-government employment quadrupled from 4 million workers in 1950 to 12 million in 1976 and 16.6 million in 2009. Adding in the 3.7 million federal civilian employees, in 2010, 8.4 million government workers were represented by unions, including:

  • 31% of federal workers;
  • 35% of state workers; and
  • 46% of local workers.

Daniel Disalvo notes, "In today's public sector, good pay, generous benefits, and job security make possible a stable middle-class existence for nearly everyone from janitors to jailors. "

In 2011, as states faced a growing fiscal crisis and the Republicans made major gains in the 2010 elections, public sector unions came under attack in Wisconsin, Indiana, New Jersey, and Ohio from conservative Republican legislatures.

Women in Unions

As the manufacturing industries that have constituted the strength of the American Labor Movement declined, such as the steel and auto industries, the rise of the service sector began to see major growth.

White-collar jobs in the service sector, often filled by women workers, include:

  • Clerical workers
  • Nurses
  • Social workers
  • Teachers

Traditionally, women had been under-represented in union organizing due to the belief that "it was a woman's 'nature' to be a loyal 'office wife'" and not show disloyalty by joining a union. Also, it was commonly held that women would not remain in the work force long and would return to the the home when married. Therefore, efforts to mobilize women in unions were considered a poor use of resources.

As the industrial sector declined, attention has turned to organizing women in white-collar service jobs. The increased membership of women has also shed light on gender issues, with family issues and other women's concerns gaining more legitimacy in the workplace.

According to Richard Trumka, AFL-CIO President :

What is the general method used to determine the relative value or worth of jobs to an Organisation?

Richard Trumka of the AFL-CIO is one of the most prominent union leaders in America

"....in a global economy, we have no alternative but to build truly global unions. Unions with the ability to confront corporate power wherever it rears its head, whether it's a call center in Bangalore, a shoe factory in Vietnam, or a coal mine in Colombia. "

There is a relatively new body, the International Trade Union Confederation (ITUC). It appeared after a merger of two global bodies in 2006, and currently has a membership of about 175 million workers in 155 countries. Linked to the ITUC, but autonomous, are the global union federations, which seek to bring unions together along sectoral lines.

Then there are scores of inter-regional federations, such as the European Trade Union Confederation, the International Confederation of Arab Trade Unions, and the Organization of African Trade Union Unity.