Published on February 14, 2014
Ratiocinative Analysis of Budd’s Model for Effective Partnership (efficiency, equity & voice) Dr. Elijah Ezendu FIMC, FCCM, FIIAN, FBDI, FAAFM, FSSM, MIMIS, MIAP, MITD, ACIArb, ACIPM, PhD, DocM, MBA, CWM, CBDA, CMA, MPM, PME, CSOL, CCIP, CMC, CMgr
“Partnering can range from just sharing information between two parties to full decision-making on the strategic business issues of a company. The problem begin when the concept of partnership is thrown out on the table with little regard for intent and clarity”. - Scott Gorgon, Effects of Comparative Labour Management Relationships
“The economic aspect of employment emphasizes competitiveness, productivity, and profitability (in other words, efficiency). But work is more than an economic transaction- it is a fully human activity with material and psychological rewards undertaken by human beings in a democratic society. As such, employees want and are entitled to fair treatment (equity) and opportunities to have input into decisions that affect them (voice).” - John Budd, Employment with a Human Face: Balancing Efficiency, Equity, and Voice
The Budd’s Model
Voice • • • • A Constituent of Basic Human Right Unfettered Participation A Leverage for Effective Community Evolution A Symbol of Involvement in Decision-Making
Budd’s Two Dimensions of Voice Individual Voice Individual Voice Individual Voice Collective Voice Individual Voice Individual Voice Individual Voice
Unanimity in Group of Individual Voices IV IV IV IV IV IV IV IV IV IV IV IV IV CV
Small Dissent in Group of Individual Voices IV IV IV IV IV IV IV IV SCV IV IV IV IV IV IV
Large Dissent in Group of Individual Voices IV IV IV IV SCV IV IV IV IV IV IV IV IV IV IV IV IV IV IV
Multifocal Dissent in Group of Individual Voices IV IV IV IV SCV IV IV IV IV IV IV IV IV IV IV IV IV IV IV
Self Determination Versus Industrial Democracy IV IV IV IV SCV IV IV IV IV IV Great Contribution IV Great Contribution IV IV Great Contribution Great Contribution IV IV IV IV IV IV
Exercise Discuss the merits and demerits of industrial democracy without self determination.
Equity This focuses on justice and the fairness of outcomes generated by action, processes, policy and procedures.
The Place of Voice & Equity in a Process Voice Equity Equity Equity Equity Equity
Indicators of Equity Assurance in a Process • • • • • • • • • • Dispassionate Focus Neutrality Equal Accessibility Absence of Favoritism Absence of Prejudice Reasonable Decision Effective Remedies Consistency Transparency Accountability
Indicators of Equity Assurance in Individual Transactions • • • • • • • • Recognition of Rights Appropriate Representation Opportunity to Appeal Involvement Sensitivity Impartiality Respect Privacy
Efficiency Efficiency is the standard of performance that depends on appropriate management of resources in the course of process execution.
Efficiency Rating Efficiency Used Resources
Applicability of Budd’s Model for Evaluation • • • • • • • • • • • Bargaining System Unionism Staff Recognition System Codes of Conduct Social Partnership Labour Market Competitiveness Employee-Employer Negotiation Staff Control Employee Empowerment Human Resource Development Government Regulation
Process Polarization A balanced process should satisfy requirements of the three metrics of employment governance. In reality, some processes satisfy voice and efficiency but fail in equity assessment, while some satisfy efficiency but fail in assessment of equity and voice.
The Geometry of Dispute Resolution KEY Voice UEA Unionized Expedited Arbitration Unionized Grievance Mediation NUD Nonunion Unilateral Decision-Making NMA Nonunion Management Appeal Procedures NOD Nonunion Open Door Policies NPR Nonunion Peer Review NOM Nonunion Ombudsperson UGM ELL Employment Law Litigation ELM NPR Unionized Grievance Arbitration UGM UEA UGA ELA Employment Law Arbitration ELM Employment Law Mediation UGA ELL NOM NMA ELA NOD NUD Efficiency Equity Source: John Budd and Alexander Colvin, Improved Metrics for Workplace Dispute Resolution Procedures
The Geometry of Dispute Resolution Voice KEY UGA Unionized Grievance Arbitration UEA Unionized Expedited Arbitration UGM Unionized Grievance Mediation ELM Employment Law Mediation UGM ELM UEA Efficiency Centroid Resolution Systems UGA Equity
The Geometry of Dispute Resolution Voice KEY NUD Nonunion Unilateral Decision-Making Greatest Efficiency, Poorest Equity & Most Suppressed Voice NUD Efficiency Equity
The Geometry of Dispute Resolution Voice KEY ELL ELL Efficiency Employment Law Litigation Greatest Equity, Nearly Medial Voice & Poorest Efficiency Equity
Exercise Using the Geometry of Dispute Resolution based on voice, equity and efficiency as a scorecard, determine the governance position of dispute resolution in your organization.
Dr. Elijah Ezendu is Award-Winning Business Expert & Certified Management Consultant with expertise in HR, OD, Competitive Intelligence, Strategy, Restructuring, Business Development, Sales & Marketing, Interim Management, CSR, Leadership, Project & Programme Management, Cost Management, Outsourcing, Franchising, Intellectual Capital, eBusiness, Social Media, Software Architecture, Cloud Computing, eLearning& International Business. He holds proprietary rights of various systems. He is currently CEO, Rubiini (UAE) and Hon. President, Worldwide Independent Inventors Association. He functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting, Nigeria; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Lead Consultant, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Director, Fortuna, Gambia; Director, The Greens; Director of Programmes & Council Member, Institute of Business Development, Nigeria; Member of TDD Committee, International Association of Software Architects, USA; Member of Strategic Planning and Implementation Committee, Chartered Institute of Personnel Management of Nigeria; Adjunct Faculty, Regent Business School, South Africa; Adjunct Faculty, Ladoke Akintola University of Technology, Nigeria; Editor-in-Chief, Cost Management Journal; Council Member, Institute of Internal Auditors of Nigeria. He holds Doctoral Degree in Management, Master of Business Administration and Fellowship of Several Professional Institutes in North America, UK & Nigeria. He is an author & widely featured speaker in workshops, conferences & retreats. He was involved in developing Specialist Master’s Degree Course Content for Ladoke Akintola University of Technology (Nig) and Jones International University (USA). He also works as Adjunct & Visiting Professor of Universities and holds Interim Management Assignments on Boards of Companies as Non-Executive Director.
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