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Explain the importance of Collective Bargaining in Personnel Management
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(1) From management point of view- The main object of the organisation is to get the work done by the employees at work at minimum cost and thus earn a high rate of profits. Maximum utilization of workers is a must for the effective management. For this purpose co-operation is required from the side of the employee and collective bargaining is a device to get and promote co-operation. The labour disputes are mostly attributable to certain direct or indirect causes and based on rumours and misconceptions. Collective bargaining is the best remedial measure for maintaining the cordial relations. Strikes, go-slow tactics are avoided which result in increasing the production. It promotes industrial democracy.
(2) From labour point of view—Labour has poor bargaining power individually a worker has no existence because labour is perishable and therefore, the employers succeed in exploiting the labourers. The working class in united form becomes a power to protect its interests against the exploitation of the employers through the process of collective bargaining. The collective bargaining imposes certain restrictions upon the employer. Unilateral action is prevented. All employees are treated on equal footings. The conditions of employment and rates of wages can be changed only through the negotiations with labour. Employer is not free to make and enforce decisions at his will.
(3) From trade union point of view-collective bargaining can be made only through the trade unions. Trade unions are the bargaining agents for the workers. The main function of the trade unions is to protect the interests of workers through constructive programmes and collective bargaining is one of the devices to attain that objective through negotiations with the employers)Trade unions may negotiate with the employer for better employment opportunities and job security through collective bargaining. It also satisfies the ego of the workers. ,
(4) From Government point of view—Government is also concerned with the process of collective bargaining. Government passes and implements several labour legislations and desires it to be implemented in its true sense. If any person violates the rules and laws, it enforces it by force. Collective bargaining prevents the Government from using the force because an amicable agreement can be reached between employer and employees for implementing the legislative provisions. Labour problems shall be minimised through collective bargaining and industrial peace shall be promoted in the country without any force.