Managing Human Resources, Eight Edition

The Impact of Unions on Human Resource Management

In the absence of a union, management is more likely to develop HRM policies based on the principle of efficiency. For example, a nonunion company is more likely to adopt a meet-the-market pay policy because the market wage is the most efficient way to allocate labor costs (see Chapter 10). But when a union enters the picture, management must develop policies that reflect the preferences of the majority of workers who are represented by the union.79 In this section, we look at the changes in staffing, employee development, compensation, and employee relations practices that are likely under unionization.

Staffing

Under a labor contract, job opportunities are allocated to people on the basis ...