Many companies operate with Labor Unions which are organizations formed for the purpose of representing their members' interests and resolving conflicts with employers (Noe, Hollenbeck, Gerhart, & Wright, 2003). Over the last decade unions have declined, due largely to reduction in manufacturing in the United States. In addition employee and management are building relationships causing unions to be ineffective. Organizational behavior can change employee's views and beliefs on unions and an employee's satisfaction can make the difference between a vote for or against joining a union.
Impact of UnionsWhen talk arises in an organization to create a union, there are concerns that it will hurt performance, impacting productivity, profits and stock performance. There are both negative and positive effects on productivity; however studies have found that union workers are more productive than nonunion workers (Noe, Hollenbeck, Gerhart, & Wright, 2003). Some positive impacts are a reduction in turnover, and may cause management to utilize ideas from employees.
The negative impacts of union are sonority based, therefore is often no reason for employees to compete, not even for incentives. If the union wages and benefits are pricy, the profits and stock performance may be affected.
Management will try to convince employees that the union is not beneficial to them, that they will not keep their promises, that they will be subjected to union dues and possible strikes. Management instead tries to convince them that they have provided the employees with a valuable benefits package and fair treatment. Many companies employ Labor Relations managers and staff in their human recourses organization, who are responsible to implement industrial labor relations programs. Labor relations specialists prepare information for management to use during collective bargaining agreement negotiations, a process that requires the specialist to be familiar with economic and wage data and to have extensive...