Will labour unions in IT firms improve their efficiency? What kind of management would want labour unions in the IT firms? What are some of the 'social goods' which are creating synergy in IT firms?
The first labour union in IT firms happened in West Bengal in 2006 by CITU. Labour unions in IT are like a double edged sword. On one hand it forms a medium for collective action and a representative of the employees who has very less bargaining power with the management individually. On the other hand, it may hamper the peaceful environment in which the IT companies are working now. A management who is complying to all regulations and offering more benefits than legal stipulations may be willing to have unions since tendency to collectivise is a basic human behaviour.
Labour unions might not improve efficiency in an IT atmosphere. They are already facing a lot of competition, so are working efficiently. The employees are paid handsome salaries, so there is no need for their representation. A management who is facing some communication issues with the employees can afford to have labour unions, so that they can be sorted. There are various luxuries and facilities provided to the employees, that help them in creating synergy in IT firms
The pertinence of labour unions for an IT firm depends on the issues raised by it. In case the issues are related to creating more congenial environment for the overworked employees, then definitely it is worth implementation. However if the unions start functioning like the groups having lost their way in the desert and start behaving like the unions (in Kolkata)who often hijack the firm with their ever growing trivial demands instigated by political under currents, then it is really harmful for the firm.
The IT firms works in an environment called 'survival of the fittest' and expects the best of its employess and they are paid well for it. CITU of West Bengal is more of a political stint(as set up of unions in 70's for benefitttig ruling party) and I dont think it will enhance efficiency as such since it is still growing. It will benefit permanent employees and not on contracts or projects. Incentives and perks are opening synergy gates and employers who forecast dissatisfaction or want employees to have a platform to express may encourage unions.
Labour unions were a phenomenon after the industrial revolution in order to support the necessities of labor such as wages and the working conditions. In case of IT firms there is high degree of professionalism and the employees are divided on the basis on different projects and other requirements. Thus the mobilization of work force id difficult to form a labour union. also the professionalism focusses on top down flow of information which wants healthy relationship between boss and his subordinates, labour unions won't support such cohesion and will not improve the efficiency of the organization.
IT firm employees are already facing cut throat competition among themselves, as generally their performance is judged on the basis of project assigned to them and successful completion of projects. Introduction of labour unions may have both sided impact on efficiency, as unions might help employees to create lobbies and in turn might implant idea of equality of work among employees. Management which will comply with employee’s social, mental and physical, needs and problems would be preferred by labour unions. Perks and social status can be considered as social goods' which are creating synergy in IT firms.
IT firms operate in an environment where the demand for employees is more and supply is less, so already the employees are in a demanding position which reflects in the pay packages and need for labour unions a distinct necessity. However there are some evils like long working hours, hire and fire policies in this industry. A management which would look to provide greater say to the employees in management decisions would encourage Labour unions and it could be used to control attrition. However a labour union even though formed would not sustain for long.
Labour unions in IT firms will hardly increase efficiency as the employees in such places are highly educated, are generally aware of their rights and in more favourable positions to negotiate. The employees are compensated well and have higher access to information. Moreover, they enjoy the status of being a part of management. Therefore, the underlying cause to form a labour union is absent in first place. No management would like to have a labour union. Accessibility to information and transparency are some of the social goods creating synergy in IT firms.
Labour union in IT firms might not lead to an improvement in efficiency as there are multiple roles present within the IT industry with a fragmentation of work force. The functioning of labour unions becomes very difficult in such a rapidly changing environment. Managements wouldn’t prefer to have labour unions as they see it as hampering its growth. With the advent of IT parks, large number of employees gets together at a single place leading to a growth of demand for services like child care facilities, schools in the nearby locations.
I don’t really think that there is need of labour union in IT sector. The IT professionals already have an upper hand vis-à-vis their employers. There is a great competition among the employers to hire more and more resources but there seems to be a shortage of the resources. Moreover the productivity of an IT firm depends on the physical as well as mental well being of the employee to a large extent so a lot of care is already being taken of them.
Since labour union is a medium of voicing the opinion of the labour in front of the management where the workers and the management are quiet distantly placed and in case of IT companies, the communication channels are much more efficient therefore labour union in IT firms might not improve the efficiency of the employees. A management that wants to create constructive conflict environment to bring out the best from the employees might want labour union in its company. Some of the social goods creating synergy in IT firms are various perks, facilities and flexible timings.
Labour unions are set up to address the concerns of the employees and to bargain for the employees with the management. In the IT sector the employees are getting good salaries and a conducive work environment. But there may be some underlying problems which may be better addressed by a labour union. Labour unions would be wanted by a management that wants a better communication channel between its employees and itself. ‘Social goods’ such as good salary and the facilities provided to the employees are creating synergy in IT firms.
Labour union like any other sector will address problems of IT employees like flexible working hours of women, security concerns etc.Since employees are engaged in works all the time it helps to establish a formal communication.It is desirable by management untill and unless it does not turn radical
The distinction between top level management and labour in the factor is clearly visible in the sectors like manufacturing. We’re as the situation in IT firms is quite different were everyone is made to believe that he plays a major role in decision making and running of organization. I think such kind of atmosphere is creating synergy in IT firms.
Labour unions are made to secure the rights of the employee and to prevent them from exploitation. But the IT industry is demand drive in case of the employee. The employee in it industry are given adequate liberty to work efficiently. But the recession in 2008 shows the real picture when lots of it employee were fired on the name of recession. In that context there is the need of labour union. The management which want more formalization might want labour union. Learning opportunity and incentives create synergy in it firms.
Labour unions in IT firms might not help in improving the efficiency of the firm because the purpose of labour union which majorly is to put its voice in front of top management is quite effectively handled in IT sector where the employees are given a good say in management decisions. The problems which union would handle are almost taken care effectively in the present system. Apart from these things like perks, incentives, good working culture, etc are few social goods which create synergy in IT environment.
Since the IT industry is currently in its phase of extended boom in the country, the employees have great bargaining power vis-a-vis their employers and would scarcely feel the need for unionising. Moreover, with the perks that are made available to IT executives, such as ESOPs, flexible work hours etc create a congenial work environment, which again would not really make the case for unions. As such, labour unions are unlikely to improve the efficiency in IT firms.
The environment of an IT firm is dynamic and depends a lot on the market for their products. As technology changes rapidly IT firms need to cope up with it. Labour unions in such may not lead to any improvement in efficiency as there are many employees that are part of more than one projects. Labour unions will help in the case where benching ratio is very high and employees are just made to sit and not given any work. This leads to dissatisfaction in employee and its learning is also hampered.
An IT company which acknowledges its employees’ participation for the optimal working of the company can give the space for forming labour unions. Companies which have adequate perks for their employees commensurate to their work would never view forming unions as a threat. But for organizations where the employees are underpaid, room for the formation of unions would be viewed sceptically. In this latter case formation of unions will increase efficiency from the oppressed point of view. Innovative practices of recognizing employees’ needs, providing performance linked benefits, improved social space and providing good work-life balance creates the much needed synergy.
Having experience of over two years in a major IT firm, I would doubt the concept that efficiency of IT firms would improve with the introduction of labour unions. The IT workers are paid handsomely and it is never that from where they would get their next bread. Moreover, IT individuals have a dual life and may be totally different in real life as compared to the one they pose in their office.
The efficiency of the IT sector and consequently its success in the country is primarily because software professionals here are paid a fraction of their American counterparts. So, unions which protest for better pay among other things will not increase efficiency per se. Further, the attrition rate shows that workers are more than willing to switch jobs in case they feel underpaid. Thus probably a manager who wants to broker a deal with the union regarding this could want a union. The standard HR policies which is made clear to the workers is creating synergy in the IT firms.
I do not think it is a very good idea. Work conditions in IT firms are very different from traditional manufacturing firms ( which focus on standardization of products as control mechanism) where the union can negotiate a good deal for the workers from the management, the work in IT is highly specialized and knowledge based and employees have plenty of options to switch and exploitation is very less. Any unionization will tend to reduce employee productivity and efficiency and isn’t thus suited due to the highly non standardized nature of the output.
With a booming IT sector, labour unions may not improve the efficiency. IT sector has a high demand but the supply is also adequate. Most of the IT firms have affable culture and the most of the employees earn a handsome salary as they deserve it. Even if there are any hostile conditions, instead of labour unions they can use the weapons of the weak to show resistance, by deliberate slow down in their work leading to a gradual slow down in the organization, in such cases the organization has to cater their problems without sacking them.
Unions ensures they are there to create an ambience which are conducive to employees, give them more bargaining power as a group . A management which has faith in its workforce , committed to their welfare and wants to create a bond which will help it win the trust of their employees would welcome such a change. HR may pose it redundant but truth is its policies ultimately represents the management and the open door policy look attractive in today's scenario when there are opportunities galore but may not be true few years down the line with an stabilized industry.
The role of labour unions is not of much significance in the IT industry as it was in the manufacturing industries in the 70s or 80s. The labour unions there played a different role and there was increased co-operation among labourers as they were mostly unskilled. The case is entirely different in case of IT industries where individuals have specifics skills, its not subsistence based and individually they have greater to lose by joining in labour movements. The role of labour unions here is merely to facilitate communication and socialisation process between employer and employees.
26 comments:
The first labour union in IT firms happened in West Bengal in 2006 by CITU. Labour unions in IT are like a double edged sword. On one hand it forms a medium for collective action and a representative of the employees who has very less bargaining power with the management individually. On the other hand, it may hamper the peaceful environment in which the IT companies are working now. A management who is complying to all regulations and offering more benefits than legal stipulations may be willing to have unions since tendency to collectivise is a basic human behaviour.
Labour unions might not improve efficiency in an IT atmosphere. They are already facing a lot of competition, so are working efficiently. The employees are paid handsome salaries, so there is no need for their representation. A management who is facing some communication issues with the employees can afford to have labour unions, so that they can be sorted. There are various luxuries and facilities provided to the employees, that help them in creating synergy in IT firms
The pertinence of labour unions for an IT firm depends on the issues raised by it. In case the issues are related to creating more congenial environment for the overworked employees, then definitely it is worth implementation. However if the unions start functioning like the groups having lost their way in the desert and start behaving like the unions (in Kolkata)who often hijack the firm with their ever growing trivial demands instigated by political under currents, then it is really harmful for the firm.
The IT firms works in an environment called 'survival of the fittest' and expects the best of its employess and they are paid well for it. CITU of West Bengal is more of a political stint(as set up of unions in 70's for benefitttig ruling party) and I dont think it will enhance efficiency as such since it is still growing. It will benefit permanent employees and not on contracts or projects.
Incentives and perks are opening synergy gates and employers who forecast dissatisfaction or want employees to have a platform to express may encourage unions.
Labour unions were a phenomenon after the industrial revolution in order to support the necessities of labor such as wages and the working conditions. In case of IT firms there is high degree of professionalism and the employees are divided on the basis on different projects and other requirements. Thus the mobilization of work force id difficult to form a labour union. also the professionalism focusses on top down flow of information which wants healthy relationship between boss and his subordinates, labour unions won't support such cohesion and will not improve the efficiency of the organization.
IT firm employees are already facing cut throat competition among themselves, as generally their performance is judged on the basis of project assigned to them and successful completion of projects. Introduction of labour unions may have both sided impact on efficiency, as unions might help employees to create lobbies and in turn might implant idea of equality of work among employees. Management which will comply with employee’s social, mental and physical, needs and problems would be preferred by labour unions. Perks and social status can be considered as social goods' which are creating synergy in IT firms.
IT firms operate in an environment where the demand for employees is more and supply is less, so already the employees are in a demanding position which reflects in the pay packages and need for labour unions a distinct necessity. However there are some evils like long working hours, hire and fire policies in this industry. A management which would look to provide greater say to the employees in management decisions would encourage Labour unions and it could be used to control attrition. However a labour union even though formed would not sustain for long.
Labour unions in IT firms will hardly increase efficiency as the employees in such places are highly educated, are generally aware of their rights and in more favourable positions to negotiate. The employees are compensated well and have higher access to information. Moreover, they enjoy the status of being a part of management. Therefore, the underlying cause to form a labour union is absent in first place.
No management would like to have a labour union.
Accessibility to information and transparency are some of the social goods creating synergy in IT firms.
Labour union in IT firms might not lead to an improvement in efficiency as there are multiple roles present within the IT industry with a fragmentation of work force. The functioning of labour unions becomes very difficult in such a rapidly changing environment. Managements wouldn’t prefer to have labour unions as they see it as hampering its growth. With the advent of IT parks, large number of employees gets together at a single place leading to a growth of demand for services like child care facilities, schools in the nearby locations.
I don’t really think that there is need of labour union in IT sector. The IT professionals already have an upper hand vis-à-vis their employers. There is a great competition among the employers to hire more and more resources but there seems to be a shortage of the resources. Moreover the productivity of an IT firm depends on the physical as well as mental well being of the employee to a large extent so a lot of care is already being taken of them.
Since labour union is a medium of voicing the opinion of the labour in front of the management where the workers and the management are quiet distantly placed and in case of IT companies, the communication channels are much more efficient therefore labour union in IT firms might not improve the efficiency of the employees. A management that wants to create constructive conflict environment to bring out the best from the employees might want labour union in its company. Some of the social goods creating synergy in IT firms are various perks, facilities and flexible timings.
Labour unions are set up to address the concerns of the employees and to bargain for the employees with the management. In the IT sector the employees are getting good salaries and a conducive work environment. But there may be some underlying problems which may be better addressed by a labour union. Labour unions would be wanted by a management that wants a better communication channel between its employees and itself. ‘Social goods’ such as good salary and the facilities provided to the employees are creating synergy in IT firms.
Labour union like any other sector will address problems of IT employees like flexible working hours of women, security concerns etc.Since employees are engaged in works all the time it helps to establish a formal communication.It is desirable by management untill and unless it does not turn radical
The distinction between top level management and labour in the factor is clearly visible in the sectors like manufacturing. We’re as the situation in IT firms is quite different were everyone is made to believe that he plays a major role in decision making and running of organization. I think such kind of atmosphere is creating synergy in IT firms.
Labour unions are made to secure the rights of the employee and to prevent them from exploitation. But the IT industry is demand drive in case of the employee. The employee in it industry are given adequate liberty to work efficiently. But the recession in 2008 shows the real picture when lots of it employee were fired on the name of recession. In that context there is the need of labour union. The management which want more formalization might want labour union. Learning opportunity and incentives create synergy in it firms.
Labour unions in IT firms might not help in improving the efficiency of the firm because the purpose of labour union which majorly is to put its voice in front of top management is quite effectively handled in IT sector where the employees are given a good say in management decisions. The problems which union would handle are almost taken care effectively in the present system. Apart from these things like perks, incentives, good working culture, etc are few social goods which create synergy in IT environment.
Since the IT industry is currently in its phase of extended boom in the country, the employees have great bargaining power vis-a-vis their employers and would scarcely feel the need for unionising. Moreover, with the perks that are made available to IT executives, such as ESOPs, flexible work hours etc create a congenial work environment, which again would not really make the case for unions. As such, labour unions are unlikely to improve the efficiency in IT firms.
The environment of an IT firm is dynamic and depends a lot on the market for their products. As technology changes rapidly IT firms need to cope up with it. Labour unions in such may not lead to any improvement in efficiency as there are many employees that are part of more than one projects. Labour unions will help in the case where benching ratio is very high and employees are just made to sit and not given any work. This leads to dissatisfaction in employee and its learning is also hampered.
An IT company which acknowledges its employees’ participation for the optimal working of the company can give the space for forming labour unions. Companies which have adequate perks for their employees commensurate to their work would never view forming unions as a threat. But for organizations where the employees are underpaid, room for the formation of unions would be viewed sceptically. In this latter case formation of unions will increase efficiency from the oppressed point of view. Innovative practices of recognizing employees’ needs, providing performance linked benefits, improved social space and providing good work-life balance creates the much needed synergy.
Having experience of over two years in a major IT firm, I would doubt the concept that efficiency of IT firms would improve with the introduction of labour unions. The IT workers are paid handsomely and it is never that from where they would get their next bread. Moreover, IT individuals have a dual life and may be totally different in real life as compared to the one they pose in their office.
The efficiency of the IT sector and consequently its success in the country is primarily because software professionals here are paid a fraction of their American counterparts. So, unions which protest for better pay among other things will not increase efficiency per se. Further, the attrition rate shows that workers are more than willing to switch jobs in case they feel underpaid. Thus probably a manager who wants to broker a deal with the union regarding this could want a union. The standard HR policies which is made clear to the workers is creating synergy in the IT firms.
I do not think it is a very good idea. Work conditions in IT firms are very different from traditional manufacturing firms ( which focus on standardization of products as control mechanism) where the union can negotiate a good deal for the workers from the management, the work in IT is highly specialized and knowledge based and employees have plenty of options to switch and exploitation is very less. Any unionization will tend to reduce employee productivity and efficiency and isn’t thus suited due to the highly non standardized nature of the output.
With a booming IT sector, labour unions may not improve the efficiency. IT sector has a high demand but the supply is also adequate. Most of the IT firms have affable culture and the most of the employees earn a handsome salary as they deserve it. Even if there are any hostile conditions, instead of labour unions they can use the weapons of the weak to show resistance, by deliberate slow down in their work leading to a gradual slow down in the organization, in such cases the organization has to cater their problems without sacking them.
Unions ensures they are there to create an ambience which are conducive to employees, give them more bargaining power as a group .
A management which has faith in its workforce , committed to their welfare and wants to create a bond which will help it win the trust of their employees would welcome such a change.
HR may pose it redundant but truth is its policies ultimately represents the management and the open door policy look attractive in today's scenario when there are opportunities galore but may not be true few years down the line with an stabilized industry.
The role of labour unions is not of much significance in the IT industry as it was in the manufacturing industries in the 70s or 80s. The labour unions there played a different role and there was increased co-operation among labourers as they were mostly unskilled. The case is entirely different in case of IT industries where individuals have specifics skills, its not subsistence based and individually they have greater to lose by joining in labour movements. The role of labour unions here is merely to facilitate communication and socialisation process between employer and employees.
Post a Comment