The Training Implications of Manpower Productivity Agreements

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ED 048 563 AC 010 151

TITLE The Training Implications of Manpower Productivity Agreements. Information Paper Number 4. INSTITUTION Chemical and Allied Products Industry Training Board, Staines (England). PUB DATE Nov 70 NOTE 16p.

EDRS PRICE EDRS Price MF-$0.65 HC-$3.29 DESCRIPTORS Administrative Personnel, *Collective Bargaining, Costs, *Educational Needs, Employees, *Industrial Training, *Manpower Utilization, Organizational Change, Performance, *Productivity, Wages IDENTIFIERS Great Britain ABSTRACT This paper is concerned with the training implications of productivity agreements which seek the achievement of high stable earnings through the improved use of manpower leading to efficient low cost production, by making changes which could not be achieved by, traditional wage negotiations. Consideration is given to the training problems arising where a comprehensive form of agreement containing a number of changes is introduced covering the entire workforce in a unit or factory. In order to establish a systematic approach for management contemplating the introduction of a comprehensive agreement, a typical plan of action is set out under the following steps: diagnosis of existing situation; definition of objectives; determination of the means of achieving objectives; drawing up the detailed agreement; negotiation; implementation; and follow-up. The training needs arising at various levels are suggested at each major step. Six appendices are included: example of a short seminar for senior managers; course for senior managers on productivity agreements; course for shop stewards; suggested reading list; productivity agreement--consultative arrangements made by a firm negotiating agreement; and summary of training needs by categories of employees. (PT) U S DEPARTMENT OF HUM EDUCATION 8 WELFARE OFFICE OF EDUCATION

THIS DOCUMENT HAS BEEN REPRODUCED EXACTLY AS ,.LIVED FROM THE PERSON OR ORGANIZATION ORIGINATING IT POINTS Of VIEW OR OPINIONS

STATED DO NOT NECESsARIIY REPRESENT OFFICIAI OFFICE OF EDUCATION POSITION OR POLICY Index Page No. Membership of Working Party Inside Front Cover Introduction 1 Plan for a Productivity Agreement 1 (indicating training implications of each step) Step 1 / Diagnosis of the Existing Situation 2 Step 2 / Definition of Objectives 2 Step 3 / Determination of the means of achieving the Objectives 2 Step 4 / Drawing up of the detailed content of the Agreement 3 Group A / Changes in Working Practice 3 Group B / Improvement of Performance 3 Group C / Organisation Changes 4 Group D / Changes in Relationships and Attitudes 4 Step 5 / Negotiation 5 Step 6 / Implementation 5 Step 7 / Follow-up 5

Appendices 1 / Example of Short Seminar for Senior Managers 6 2 / Chemical Industries Association course for Senior Managers on Manpower Productivity Agreements 7 3 Example of a course for Shop Stewards 9 4 / Suggested Reading List 11 5 / Consultative arrangements made by a firm negotiating an Agreement 12 6 / Summary of Training Needs by Categories of Employee Inside back cover

Members of the Working Party on the Training Implications of Productivity Agreements Chairman C Denard, BP Chemicals (UK) Limited Members D Basnett, General & Municipal Workers' Union J Birch, University of Warwick K Briscoe, Hickson & Welch Limited M Cowan, Lever Brother? & Associates Limited G Llywelyn Jones, South-West London College M H C Pery, Alginate Industries Limited R M Simpson, Philblacx Limited Tallon, Amalgamated Union of Engineering & Foundry Workers A M Viviani, Chemical Industries' Association Limited D Wilson, ICI Limited DD 2 Chemical and Allied Products Industry Training Board Information paper No. 4

The training implications of manpower productivity agreements Introduction

1. Productivity Agreements are a compara- participative policies which is the distinguish- tively new field covering a wide range of ing feature of the Productivity Agreement management activities, and it is difficult to approach. define the term precisely. For the purpose of this Information Paper, concerned as it is 5.In thinking of the training implications of solely with the training implications, a an agreement, the position of the smaller eN Productivity Agreement has been accepted as company is given most consideration. It hO an arrangement which seeks to establish a should be emphasised, however, that many situation in which high stable earnings can be smaller companies do not suffer from the 1S achieved through the improved utilisation of restrictive practices found in larger centres 0 manpower leading to efficient low-cost nroCuc- of employment and could, therefore, make tion, by making changes in working practices changesin manpower usage withlittle D or in the terms of employment which could formality. not be achieved by means of traditional wage 6. , negotiations. It is considered vital that the appropriate trade union officials and shop stewards should 2.The Board considers that the introduction be involved from the earliest planning stage of a payment-by-result scheme, a revised pay to the completion and implementation of the structure or other single change in personnel agreement and the assessment of results. policy cannot of itself be properly regarded as a Productivity Agree.t..: at. Consideration Implicit in all that follows is the belief is given, therefore, to the training problems that training to help bring about effective arising where a comprehensive form of agree- productivity agreements is not all of one type, ment containing a number of changes is and that different sorts of training are introduced covering the entire workforce in required at different stages for the various a unit or factory. groups involved. An attempt is made to separate target groups for particular kinds of 3.In order to identify any training needs, it is training and to draw a broad distinction necessary to establish a systematic approach between 'attitude' training and 'technique which any management contemplating the and implementation' training. introduction of a comprehensive agreement can follow. A typical overall plan is set out in PLAN FOR PRODUCTIVITY para 8. AU R III ENT

4.Itisdifficult to decide the depth of s.The main steps of what might be a typical treatment necessary, in that producing a plan of action are: formidable list of training recommendations might discourage managements from embark- Step 1 Diagnosis of the Existhig ing on what could be a profitable productivity Situation exercise. Much, for example, has been said about the need for management and work- Step 2 Definition of Objectives force attitude training, and it is certain that little would be achieved with autocratic or Step 3 Determination of the Means of entrenched attitudes on either side. While Achieving the Objectives this view is accepted, it is felt that an enthu- siastic and reasonably informed management Step 4 Drawing up of the Detailed could achieve a successful Productivity Agree- Content of the Agreement ment by means of sound consultation and involvement of the workpeople. Valuable Step 5 Negotiation agreements have, in fact, been achieved with no other training than that directly arising Step 6 Implementation from the content of the agreement. This is not to underestimate the time and effort Step 7 Follow-up needed to achieve a. satisfactory agreement and the importance of thorough training The possible content of each step, together wherever this is necessary, particularly in with an indication of the training implica- view of the change from authoritarian to tions, is set out in detail below.

(-1 STEP 1 DIAGNOSIS OF THE EXISTING STEP 2 DEFINITION OF OBJECTIVES SITUATION 13.Following diagnosis and a decision to take 9.While each situation will vary, the follow- remedial action where necessary, it is useful ing are examples of factors which have led to to set out clearly the objective or objectives. the negotiation of Productivity Agreements: Typical objectives may be to: Technological innovation requiring Reduce non-productive time. LIEliminate over-manning. greater versatility of the workforce. Reduce average hours worked by a stated Increase in competition demanding amount. greater efficiency. Eliminate restrictive practices. Over-manning. Developasimplifiedwagestructure Need for improvement in 'hourly paid' emphasising status. status (staff conditions, fringe benefits, Improve fringe benefits. etc.). Bring about an improvement in attitude. Pressure for wage increases. Excessive overtime pointing to loss of 14.Training Needs management control. It is not thought that any training need arises Existence of local or traditional practices in the establishment of objectives, but the which impede efficiency. value of seeking the agreement of all levels of Change in top management requiring management and workpeople's representa- reorganisation. tives is emphasised. Growth giving rise to need for change in STEP 3 DETERMINATION OF THE organisation. MEANS OF ACHIEVING THE Poor profit trends. OBJECTIVES 15.The importance is stressed of discussing 10.Incertainsituationsthere may be and agreeing in suitable wor'-'ig parties, obstacles to the immediate negotiatf on of a constituted at plant err' ,..rkshop level, Productivity Agreement which will require changes in working practices. In this way the prior attention. ultimate proposals will have been debated Examples are: before being collated in the formal agreement Widely differing performance standards and will, therefore, be more readily compre- between departments or individuals. hensible and acceptable. Firmly agreed, and Anomalies arising from unsatisfactory fully understood, commitments at plant level incentive schemes. are vital elements in control and application. An example of this approach, which was used 11.In making a diagnosis, managements will to good effect by one company in the indus- require adequate cost information. Appropri- try, is described at Appendix 5. ate Work Measurement techniques may also 16.Training Needs be helpful in determining performance levels. Regardless of the method chosen, some Activity Sampling has been found useful in investment of time in training in discus- assessing overall factory performance levels. sion- group leading and improving communications is likely to be needed at all 12.Training Needs levels. When firms are considering whether embark LIAll members of management including on an agreement, the following courses and supervisorswill be affected in some information may be helpful for management measure by the agreement and may benefit and shop floor representatives: from an appreciation of motivational A one-day seminar for senior managers on theories. the lines set out in Appendix 1. Shop-steward ti lining may alsobe The Chemical Industries Association necessary, andcourse on productivity Management Course on Productivity bargaining has been set up following Agreementssee Appendix 2. recommendations by the Manpower Sub- An information course for shop stewards Committee of the Economic Development on the scope and range of Productivity Committee for the Chemical Industry. Agreementssee Appendix 3. The course is of one week's duration, and El A suggested background reading list on is organised and administered by the 2 Productivity Agreementssee Appendix 4. General and Municipal Workers' Union. 4 STEP 4 DRAWING UP OF THE Training Needs 1)ETAiLED CONTENT OF THE It is necessary to identify the training AGREEMENT needs associated with the implementation 17. of the particular parts of the agreement. [-]This step will, in effect, be a summary of These training needs are entirely practical the agreed changes, together with details and arise from the changes in working of any improvement in employment con- practices or changes in working condi- ditions, and will possibly include an tions, improved plant layout and increased enhanced provisional wage or salary scale. mechanisation. The training would prob- Experience has shown that the best results ably best be carried out by existing are obtained when a senior member of line operators and/or craftsmen, preferably management is designated to be respon- after an appropriate course in instruc- sible for the preparation and negotiation tional techniques. In certain cases attend- of the agreement. ance at a TWI Institute for trainers 18.In compiling the content of this section would be appropriate for one or two an extensive list has been made of items which supervisory instructors who would then might conceivably be included in an agree- be in a position to pass on the techniques ment. It is not thought likely that all would to others. Whatever method is chosen, the feature in any one agreement, but merely need is stressed for a clearly defined and that any might feature in a particular deal. accepted training programme with respon- For ease of consideration, the items include sibility resting on one man. the associated training needs and are grouped If formal method study or measurement under four main headings, namely: techniques are to be introduced, there will be a need for appreciation courses for both GROUP A workforce and supervisors. Changes in Working Practice. 22. GROUP B Improvement of Performance. GROUP B Introduction of Measurement and Per- Improvement of Performance. formance Control. GROUP C The National Board for Prices and Incomes Organisational Changes. Report No. 36 stresses the need for objec- tiveassessment:of changes in work GROUP D standards; and many agreements make Changes in Relationships and Attitudes. use of work measurement techniques for planning and performance control. Among 19. GROUP A the techniques which may be included Changes in Working Practice. under this Ileading are job analysis and Intercraft flexibility. target setting. Where these are intro- Craft/non-craft flexibility. duced, it is likely they will be used in Non-craft/non-craft flexibility. preparing the data on which the agree- Changes in working methods, including ment is based, as well as for subsequent the elimination of unproductive work. follow-up and control of performance. Increased geographical mobility. Introduction of Piecework or Incentive Schemes. Increased or diminished use of contractors. Agreements may contain provisions under Improved working conditions. this heading, and the schemes brought Improved plant layout. into operation will be those suited to the Increased mechanisation. nature of the work performed. Such 20.General schemes are widely felt to be appropriate Arising from the changes outlined in this only to certain activities. group, there is a special need to ensure that Control of overtime. middle management and supervisors have a Most agreements are concerned with the thorough understanding of the agreement in reduction or elimination of overtime order that maximum gain for both manage- working. While overtime may always be ment and workpeople can be obtained from necessary to meet essential needs, the the provisions. introduction of relief systems, together 3 with the abolition of restrictive practices, Ii1 Improvement of Status. etc., should enable it to be kept firmly This may take the form of closing the gap under control. An adequate overtime between shop floor and traditional staff. record system is essential, and the use of I7Job Evaluation. production planning techniques should In some cases, the introduction of the ensure even distribution, of work load. system of job evaluation may form an [1Reduced manning. important part of the productivity pro- Better use of resource', where this affects posals. the workforce. 25.Training Needs Apart from the introduction of job evalua- 23.Training Needs tion, the changes listed in this group may Appreciation courses in the relevant be such as to require only explanation or aspects of work study will be reauired for appreciation treatment and can therefore all levels of management and supervision. be dealt with on an informal basis. Never- Training in depth will also be necessary theless, they should not be overlooked. for selected employees such as estimators H Where a system of job evaluation is intro- or plarners, where such techniques form duced, there will be a substantial training part of the agreement. need for both management and supervision F-1 It is essential that there should be general in the operation and administration of the understanding of the purpose of planning scheme.Appreciation coursesforall and measurement by all employees. employees will also be needed to ensure a Ci In the case of changes induced by agreeing thorough understanding of the system limits on the use of overtime, there may and its operation. be a need for training in production planning techniques. 26. GROUP I) Where job analysis and target setting Changes in Relationships and Attitudes. techniques Ere introduced, appreciation Removal of other Artificial Restrictions courses will be necessary both for the on Work Performance. supervisors and the workforce concerned. Such restrictions might be the creation of unnecessary overtime working, or the establishment of group output norms. 21. GROUP C 11Increased Personal Responsibility. Organisational Changes. The changes listed could result in the Revision of Working Hours. enhancement of personal skills, and the Under this heading there may be changes opportunity might be taken to make use in normal day work hours and an extension of job enrichment techniques in drawing of shift and rota working. up revised job content. Every effort should Improved Management Organisation be made to ensure that operatives are Structure. able to achieve greater responsibility and In certain cases, following productivity are encouraged to work with less direct agreements or in preparation for them, supervision.

companies have changed their manage- I More Effective Formal and Informal ment structure by, for example, elimina'6- Communication. ing a level of supervision, or perhaps by This would cover oral and written com- merging maintenance and process depart- munications and discussion-group leading. ments into a combined operations unit. Change in the Promotion System. 27.Training Needs The agreement may make it possible to A short training course for plant managers bring about changes in promotion systems. and supervisors on the way in which discus- Introduction of Revised Payment Systems. sion groups should be organised and led is Here, there may be a movement away from important in obtaining the most effective hourly paid systems to weekly or annual co-operation from the shop floor. In addition, salaries. Payment-by-result schemes may all levels of management would gain from be abolished and a variety of existing training in effective oral and written com- payments may be consolidated into the munications. An understanding of motiva- annual salary. tional theories can provide stimulation for 6 the enrichment of jobs to provide greater STEP IMPLEMENTATION responsibility and satisfaction for the indi- 31.General vidual and greater efficiency in job perform- Li Once an agreement has been signed, the ance (cf. Appendix 4, Part B). next vital step is that of implementation, and here it is extremely important that 2S.Safety Training all members of management, and particu- In the atmosphere of change, safety more larly first-line supervision, should thor- than ever should be an essential part of oughly understand the entire content of all job training. It is not recommended the agreement, its objectives and how best that it should be treated as a separate they are to be achieved and developed. entity except in induction or general It is essential for the workforce to under- preparatory courses, but rather that it stand the agreement. It would therefore should be a vital part of tile normal team- be advantageous if a detailed description ing or re-learning process, particularly of the agreed changes to be introduced is where chantare made in accustomed given by section or plant managers to practices. their employees as and when the changes are to be made. Additionally, it may be STEP 5 NEGOTIATION useful to give employees a precis, in a 29.General reasonably permanent form, containing This stage will normally follow a con- the main features of the agreement, so siderable activity amount of shop floor that they have a ready reference on discussion and working party activity. important points. If this is in a loose-leaf At this point a draft agreement will folder, amendments can be added as probably have been tabled and a Joint necessary. Management/Union Working Party will (71 It has been found essential in units operat- probably be formed to review the content ing productivity agreements that a joint of the agreement and to ensure there is management/workforce committee should general understanding of the words and be set up to minimise misunderstandings their meaning. This is the stage at which and to ensure the smooth introduction the salary and/or wage improvements and continued development of the agree- offered will be negotiated. It will be necessary for management to ment. give a clear explanation of the financial 32.Training Needs savings achieved under the agreement and No training needs additional to those identi- to show how it is proposed to distribute fied earlier in this paper arise under this step. these across the workforce. It is desirable that the savings should be expressed in :qTEP 7 FOLLOW-UP terms of man-hours. These can then be readily converted into monetary savings 33.General in a way which will be understood by all This process, which is primarily a manage- involved. ment responsibility, will begin from the date LIIt should be emphasised that in soundly of implementation and can develop into a evolved Productivity Agreements there continuing forum for management/shopfloor will be a minimum of pure negotiation. co-operation in the improvement of produc- The content of the agreement will have tivity. Regular checks will need to be made been agreed and accepted item by item, on the progress of the agreement. and all that remains to be negotiated will be the division of the savings achieved 34.Training Needs and the arrangement of the enhanced It is not considered that follow-up gives rise salary/wa,gescales and possiblyshift tospecifictraining needs;training and allowances. re-training needs may well arise as a result of the review of the progress of the agreement. 30.Training Needs Full-time trade union officials may be con- 35.Summary of Training Needs cerned with this phase, but there would be A summary of the training needs for the little additional training need other than that different categories of employee in each stage required for normal wage negotiations. of the agreement is at Appendix 6. Appendix 1

Example of Short Seminar arranged for Senior Managers PAYMENT AND PRODUCTIVITY

Explanatory note: This seminar is devised to provide senior management contemplating a productivity bargaining operation with an appreciation of the problems likely to be encountered and of methods by which they can be diagnosed. For the purpose of the seminar the term 'senior management' is taken to mean the chief executive, functional heads, and heads of departments in an organisation. The outline programme is based on actual programmes designed for the use of senior managers within a single organisation, but it is considered applicable to senior managers from more than one organisation. Evening Session: 16.00-16.45 Nature of productivity bargaining. 16.45-18.30 What would senior management like to achieve in improved productivity and reduced costs? What are the obstacles? Syndicate exercise followed by model exercise on how to establish and operate a working party to identify potential improvements and obstacles. 20.00-22.00 Managing for optimum results: What type of management down the line gets the best results? What is the current managerial style? Making an inventory for change. Films.

NEXT DAY 10.30-12.30 Payment Systems and Produc- tivity: Basic relationships between prs.;,-- ment systems and results. What are the weaknesses of current payment system? 1:1 Role of measurement. Evaluating inventory of changes. Restructuring a payment system. 14.00-15.15 Motivation of Employees: What do workpeople want? Work needs and their satisfaction. Organising for job involvement. 15.15-16.45 Planning and Programming a Productivity Bargaining Operation. 6 Appendix 2 Chemical Industries Association Course for Senior Managers on Manpower Productivity Agreements The purpose of the course is to consider the various aspects of Manpower Productivity TUESDAY Agreements so that those taking part are 09.15-10.45 Changing Attitudes. helped to formulate their own ideas and plans 11.00-12.30 Communications, Participation by discussing the experience and knowledge of and Leadership. others. In the design of the course an attempt The speaker describes the approach has been made to focus attention on the more used by his firm to 'Joint Produc- important aspects about which information tivity Planning'. This lays heavy is available. Considerable use is therefore stress on the need for involvement made of speakers from industry who have been of all concerned if the commitment personally involved in all stages of a produc- of individuals and groups to an tivity agreement. agreement is to be achieved. The The number of course members is limited to means by which such commitment 24 and for the purposes of the discussion is attained is described in detail. groups the courseisdivided into three 14.00-15.30 A Productivity Share Plan as syndicates. developed in a small works. The following course programme is virtually The objective is to describe an that relating to the fourth course held in approach to a Productivity Agree- May 1969, but includes a session with Trade ment in a small works which Union National Officers which is normally already has a fair measure of included but was not possible on that occa- flexibility, but in which the means sion. About half of each session is devoted to to achieve increased productivity a talk by the speaker and the remainder to is discussed with everyone involv- questions and discussion. The discussions ed and the rewards for the increase during the discussion-group sessions are used determined by sharing the savings to relate each course member's experience in unit labour costs. and problems to the content of the day's 15.45-17.30 Modern Views on Motivation. programme. Inthissessionawell-known American consultant describes the MONDAY Lunchtime (Course convenes): basicessentialsof behavioural science, their applications to industry and in particular their role 14.00-14.15 Introduction to Course. in relationship to the development of Productivity Agreements. 14.15-15.30 Opening address, 'The Need for 17.30-19.00 Discussion Groups. Improved Productivity and Indus- trial Relations'. This is intended as a keynote WEDNESDAY speech to set the right tone for the course. 09.15-10.45 Wage Structure. This is a review of the development 15.45-16.30 Productivity Agreements and the of complicated superstructures in Role of the CIA. the chemical industry during the This talk is concerned with a last 25 years, and indicates the consideration of the basic features opportunity whichisprovided and objectives of Manpower Pro- by Productivity Agreements to ductivity Agreements and of the rationalise and stabilise the wage part playod by CIA. structure in a works. 11.00-12.30 Manpower Utilisation and Pay- 16.30-19.00 Review of the experience of course ment Structure. membersDiscussion Groups. A representative of ICI Manage- Each individual in the groups des- ment describes the various deve- cribes his company's attitudes and lopments in ICI Agricultural Divi- problems in regard to Productivity sion from the initial stages of the Agreements, as well as the stage MUPS Agreement to the present which has been reached should the development of the Weekly Staff process already have been started. Agreement. 7 9 14.00-15.30 A Productivity Agreement. 15.45-17.301 This is a case study of the development of a productivity agreement in a medium-sized works and shows how a situation of relatively high overtime has been reduced to one of virtaally nil overtime with the introduction of staff status, the abolition of overtime pay and the development of better relationships within the works. 17.30-19.00Discussion Groups. THURSDAY 09.15-10.45 A Comparison of Productivity Agreements. A consultant gives an outsider's view of the development of three productivityagreements,high- lighting the important points of each and their general implications. 11.00-12.30 The Trade Unions' Attitude to Productivity Agreements. The main object of this session is to give course members the opportunity to question trade union repre;-.6.atatives and to understand their attitude and commitment to the development of Productivity Agreements within the context of theCIA/TradeUnions'Joint Agreement. 14.00-15.30 Another Company's 15.45-17.30 Experience. Speakers describe the company's efforts as a first stage to reduce high overtime levels without loss of earnings and then to move on to an examination of working methods, etc., in order to reduce the manning levels. This session stresses strongly the importance of communications. 17.30-19.00 Discussion Groups. FRMAY 09.15-10.30 A case study of one of the most important and fundamental 10.45-11.45 agreements developed in the Chemical Industry. This is regarded as a highlight of the course, which explains the deliberatepositioningofthe session at the end. 8 11.45-12.30 Summing-up. 10 Appendix 3

Example of a Course for Shop Stewards

INTRODUCTION PR OGRAM31E Sunday, May 11 As a result of discussions on shop stewards' 18.00Dinner training in productivity by the Manpower 18.45Introduction to Course Sub-Committee of the Economic Development Group Discussions Committee for the Chemical Industry, the Trade Union members of the committee have Monday, May 12 arranged for this training course to be held 09.30The Trade Union Attitude to at 'Woodstock', the Training College of The Productivity Bargaining General and Municipal Workers' Union at 10.45Coffee Long Ditton, Surbiton. 11.00The Trade Union Attitude to The aim of the course is to give shop stewards Productivity Bargaining (cont.) a thorough working understanding of the 11.30 An Analysis of Productivity Agree- subject. Subjects for discussion include: the ments in the Chemical Industry attitudes of the Trade Unions, employers and 13.00Lunch the State to productivity bargaining; analysis 14.00 An Analysis of Productivity Agree- of Productivity Agreements in the chemical ments in the Chemical Industry industry; the place of management techniques (cont.) in productivity bargaining; costing a Produc- 15.15Afternoon tea tivity Agreement; and theprocessesof 15.30Group Reports on Sunday evening's negotiation and implementation. Group Discussions The course is the product of three factors: 17.30Dinner The traditionally good climate of indus- 18.45Group Discussions on Guidelines for trial relations within the industry. Productivity Bargaining The activities of the EDC in this field, Tuesday, May 13 notably the Manpower Mission to the USA in the autumn of 1966. 09.30The Employers' Attitude to 0 The recently negotiated Joint Agreement Productivity Bargaining on Principles and Procedures of Produc- 10.45Coffee tivity Bargaining in the Chemical Indus- 11.00The Place of Management Tech- try. niques in Productivity Bargaining The course is organised by The General and (speaker from Associated Industrial Municipal Workers' Union, and the course Consultants) members are shop stewards drawn from a 13.00 Lunch number of the unions involved in the chemical 14.00Costing a Productivity Agreement industry. (speaker from AIC) 15.15Afternoon tea 15.30Group Reports on Monday evening's Group Discussion 17.30Dinner 18.45Group Discussions on Motivation Wednesday, May 14 09.30Group Reports on Tuesday evening's Group Discussions 10.45Coffee 11.00Negotiating and Implementing a Productivity Agreement 13.00Lunch 14.00Preparation for Case Study Exercise 15.15Afternoon tea 15.30Preparation for Case Study Exercise (cont.) 17.30Dinner 18.45Preparation for Case Study Exercise (cont.) Thursday, May 15

09.30Case Study Exercise 10.45Coffee 11.00Case Study Exercise (cont.) 13.00Lunch 14.00Case Study Exercise: Evaluation 15.15Afternoon tea 15.;.A_ The State Attitude to Productivity Bargaining 17.30Dinner 18.45Preparation for Course Review and Open Forum

Friday, May 16

09.30Course Review 10.45Coffee 11.00Open Forum 12.00Lunch

10 1 Appendix 4

Suggested Reading List This reading list seeks to help senior managers PART B who wish to decide in broad terms whether Human Behaviour in Organisations. productivity bargaining deserves further detailed study as a possible means of making Pamphlets, short papers, etc. the production part of their enterprise more Industrial Sociology and Industrial Relations, flexible and responsive to change. Royal Commission on Trade Unions and It is divided into two parts by subject and Employers' Associations, Allan Fox, Research separated into parallel lists by complexity Papers No. 3, September 1966, HMSO, 4s. and length of treatment. Part A seeks to answer the question: An Introduction to People and Productivity, `What particular evidenceisthere from Allan Fox, Take Home Books/Productivity existing productivity bargains and inter-firm Progress, Pergamon Press Ltd., 2s. 6d. comparisons of use to other employers?' Part B seeks to answer the question: Books 'What theories exist about human behaviour Organisational Psychology, E. H. Schein, in organisations which make it a reasonable Prentice Hall, 32s. working hypothesis that productivity bargaining may achieve its aims?' The Motivation to Work, J. Wiley, Herzberg, Mausner & Snyderman, 47s.

PART A The Human Side of Enterprise, D. M. McGregor, Evidence about existing productivity agree- McGraw-Hill, 65s. ments and inter-firm comparisons. The Human Organisation, Rensis Likert, Pamphlets, short papers, etc. McGraw-Hill, 35s. Productivity Bargaining and Restrictive Labour Practices, Royal Commission on Trade The Professional Manager, D. M. McGregor, Unions and Employers' Associations, Research McGraw-Hill, 57s. Papers No. 4, November 1966, HMSO, 7s. National Board for Prices and Incomes, Productivity Agreements, Report No.36 CMND 3311, June 1967, HMSO, 6s. 6d. Report No. 123 CMND 4136, August 1969, HMSO, 6s. Manpower in the Chemical Industry, Chemical EDC, April 1967, HMSO, 5s. Productivity Bargaining, K. Jones and J. Golding, Fabian Society, November 1966, Research Pamphlet 257, 4s. 6d. Productivity Bargaining and the Engineering Industry, Engineering Employers' Federation, Federation Research Paper No. 1, March 1968, 6s. DSIR Pamphlets of Progress in Industry No. 11 Money for Effort, Tom Lupton, 1961, reprinted 1968, HMSO, 4s. Books The Fawley Productivity Agreements, Allan Flanders, Faber & Faber, 50s. Productivity Agreements and Wage Systems, D. T. B. North and G. L. Buckingham, Gower Press, 75s. 11 Appendix 5 Productivity Agreement Consultative Arrangements made by a firm Negotiating an Agreement A working party was set up consisting of the Whilst the committees were sitting the draft Shop Stewards and their Deputies, together agreement was drawn up by the Personnel with a cross-section of Managers and Super- Officer as a gradual process, taking into visors; where there was no shop steward in a account various points of view. At the same department, an employees' representative time he was developing a wage structure, nominated by the appropriate Union was based on the necessity for the scheme to be included. The Chairman of the working party self-financing. was the Works Manager and the Secretary A draft agreement and wage structure were was the Personnel Officer. then produced to a meeting of the Trade Union The Company Chairman attended the first District Officers who did not consider the meeting and assured employees that no document but accepted the wage structure, redundancies would arise out of a Productivity after a general rise in the level of pay, as a Agreement at this meeting. Broad objectives basis for negotiation. were proposed, and it was agreed that departmental committees should be set up with the Discussions on the draft agreement then Personnel Officer as Chairman of each as he continued with the Shop Stewards, rather would co-ordinate the discussions and guide than the departmental committees, and be- them towards the desired ends. Each Commit- came a matter of negotiation rather than tee consisted of Shop Stewards, Deputy Shop discussion. Stewards and a cross-section of Managers and Proposed changes were discussed by the Foremen. There were also nominated employee Personnel Officer with managers and super- representatives where there was no Union visors separately. official in the department. Management repre- The District Officers were again convened and sentation was uneven due to the desire to a new wage structure accepted together with include supervisors without creating large the terms of the agreement. committees, so that in some cases a supervisor of a department was a member whilst his When the agreement came into force the manager was not. consultative machinery set up was maintained A meeting was then arranged with the Trade in a modified form. The departmental com- Union DistrictOfficers who agreed that mittees now had the Departmental Manager discussions could proceed to work out methods 'isChairman with the Personnel Officer of achieving the agreed objectives. attending as Secretary ond as guide and In practice it was found that the main work- mentor on the agreement. The Industrial ing party had little to do, with departmental Engineer also attended departmental Produc- committees doing most of the work. The tivity Committee meetings with the aim of working party, therefore, met on only two or taking up any question of manning or effi- three occasions, wL:le meetings of the com- ciency and reporting his findings back to the mittees were frequent and often very lengthy. Committee. A Works Joint Productivity The minutes of all meetings were circulated Committee took the place of the working and posted on notice boards. A special notice party and also the place of the Works Council, which had consisted of elected men's repre- board was provided for these. sentatives. Consultation, therefore, became a It was understood and continually emphasised Union matter and all the men's representa- that the committees were not committing tives on the committees were either now shop either side and that the final agreement might stewards or men nominated by the Union. contain items not favoured by the men's representatives on the committees. At a later stage it was decided to wind up the There was no attempt to put forward company Works Safety Committee in order that safety proposals, although the company view was could be dealt with by the Works Productivity expressed on any items which were discussed. Committee and the departmental Produc- Neither was there any attempt to get the tivity Committees. committees to write up the agreement. Meetings of departmental committees are Apart from committee sittings, the Personnel held monthly with the main committee meet- Officer held discussions with individual offi- ing every two months. At the same time cials of the Unions and individual members regular managers' staff meetings and meetings of management and supervision, obtaining as between supervisors and their men have been wide a variety of views as practicable. developed. Appendix 6

Summary of Trainin reds by Categories of Employee

Stage of Agreement Category of EmployeePossible Training /Appreciation Needs Depending on the content of the agreement.

Diagnosis Management and Corporate/Manpower Planning Supervision Organisational Analysis Motivational Theories Scope of Manpower Agreements

Shop Stewards Scope of Manpower Agreements

Means/ Management and Oral Communications Detailed Content Supervision Work Study Appreciation Discussion Leading Planning Techniques Job Analysis Job Evaluation Motivational Theories Group Behaviour Problem Solving Specialist Work Studyrelevant aspects Job Evaluation Shop Stewards/ Work Study Appreciation Shop Floor Motivational Theories Group Behaviour Problem Solving

All Safety Implementation Shop Floor Job Training

Follow-up All Communics: ,,ions

Management r.,,n d Evaluation Activity Sampling Supervision Work Measurement Shop Stewards Evaluation Standards

ERIC Cletirinebouse

APR 2 71971 on Adult Education

Although this seems a formidable list, it should be stressed that the main requirement of a Productivity Agreement is that all concerned should have a clear understanding of the proposals and their effect. In most cases this can be achieved by short appreciation sessions. Training in depth may be required only where, for example, measurement techniques such as the use of Basic Work Data require existing employees to become estimators or planners. -- tit - , 1