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The employees at your organization have formed a union, and the bargaining process now begins. Write a case study in which you analyze the situation. First, begin with background information about the negotiation, and make certain to address the areas below.

Identify the state where the organization is located. Is the state a right-to-work state? If yes, explain what this means. If no, explain what this means. Why are the employees deciding to unionize? What are the mandatory bargaining subjects? Other than wages and hours, what are five other terms and conditions of employment? What are permissive bargaining subjects that will be negotiated? List at least five.
Second, you need to select members of your bargaining team. You will select four supervisors who were identified in the Unit VI Lesson. Discuss why you selected each supervisor, and compare/contrast their conflict management styles. Each supervisor must have a different conflict style. Explain how each supervisor can contribute to conflict resolution strategies used during negotiation.
Third, explain the two collective bargaining strategies, and identify which one you will recommend your team to use. Explain and support your rationale.
Finally, what will you propose happens if a labor management agreement is not reached by your team and the employee representatives?

Sample Solution

 

The organization is located in the state of California, which is not a right-to-work state. This means that employees do have the legal right to form a union and engage in collective bargaining negotiations with their employers. The employees are deciding to unionize as a way to gain better job security, fair wages, and improved working conditions.

Mandatory Bargaining Subjects: Wages, Hours, Grievances & Discipline Procedures, Health & Safety Issues, Benefits (Vacation Time, Sick Leave)
Permissive Bargaining Subjects: Retirement Plans & Pension Funds; Job Security Provisions; Seniority Rights; Transfer & Promotion Procedures; Work Schedules & Flexible Work Arrangements
Conflict Management Styles: Competing – This style involves individuals taking an assertive stance on their beliefs while trying to get what they want out of negotiation without caring about the other parties’ feelings or interests. Collaborating – This style involves both parties coming together in order to work towards mutual understanding and agreement by addressing both needs of each party

Sample Solution

 

The organization is located in the state of California, which is not a right-to-work state. This means that employees do have the legal right to form a union and engage in collective bargaining negotiations with their employers. The employees are deciding to unionize as a way to gain better job security, fair wages, and improved working conditions.

Mandatory Bargaining Subjects: Wages, Hours, Grievances & Discipline Procedures, Health & Safety Issues, Benefits (Vacation Time, Sick Leave)
Permissive Bargaining Subjects: Retirement Plans & Pension Funds; Job Security Provisions; Seniority Rights; Transfer & Promotion Procedures; Work Schedules & Flexible Work Arrangements
Conflict Management Styles: Competing – This style involves individuals taking an assertive stance on their beliefs while trying to get what they want out of negotiation without caring about the other parties’ feelings or interests. Collaborating – This style involves both parties coming together in order to work towards mutual understanding and agreement by addressing both needs of each party

Excessive competition from deregulation and universal banking practices can engender insolvency and instability of the industry as banks fall prey to moral hazard, information asymmetry and pursue riskier strategies to mobilise more deposits. World Bank (2014) indicated that with GDP of USD 38.62 billion and population of 26.79 million, Ghana could boast of 29 universal banks whereas Nigeria had GDP of USD 568.5 billion, population of 177.5 million and 22 universal banks. Beck (2008) and Claessens (2009) opined the necessity of restraining competition in the banking system in order to sustain stability since undue competition could result in vulnerability to systemic risk (Allen & Gale, 2004; Carletti & Hartmann, 2003).

The energy crisis that plagues Ghana adversely affects economic growth culminating in increasing operational costs, declining business income and profitability (Adom, 2011; Anane, 2015; Andersen & Dalgaard, 2012; CEPA, 2007). The 2012-2016 energy crisis contributed to decline in real GDP growth rate from 8.8% in 2012, 7.3% in 2013, 4% in 2014 to 3.9% in 2015. Banking industry operating assets dropped to 19% in 2015 from 38% in 2014 (Anane, 2015, PwC, 2016). Rising average inflation rates from 9.1% in 2012, 11.5% in 2013, 15.5% in 2014 to 17.1% in 2015 coupled with depreciation of the cedi and imbalances in other macroeconomic variables impede development of the banking sector. Athanasoglou, Brissimis and Delis (2005), Kosmidou, Pariouras and Tannz (2005), Kutsienyo (2011) and Sibindi and Bimba (2014) documented empirical evidence of GDP growth impacting positively on the banking sector and rising inflation adversely affecting banking sector growth. IMF (2011) reported the possibility of poor asset quality of Ghanaian banks should the macroeconomic imbalanced linger on.

 

 

The 70% growth on non-performing loans from 2015 to 2016 is undesirable for bank profitability, solvency and economic development (BoG, 2016, IMF, 2016). Baabereyir (2009) and Ngwa (2010) opined that credit risk is the most significant risk banks are susceptible to and Ghanaian banks are no exception.

Provision of mobile money services by telecommunication companies is viewed as a threat by 55.6% of Ghanaian banks in the 2016 banking survey. While mobile money balance on float grew 2,695 times from 2012 to 2015with transaction volume of 266.3 million, traditional bank deposits grew by 116% from

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