Answered Essay: Question 36 What is productivity bargaining? What are the difficulties in making a success

Question 36

What is productivity bargaining? What are the difficulties in making a success of agreements on productivity? [4 Marks]

Expert Answer

Productivity bargaining is an understanding or an agreement between the employer and the employees being the employees offered with higher wages or flexible worktime so that in exchange they agree with the changes that are to be brought in either in working practises or in adopting new technologies,which are analysed to bring more benefit and help in effective and efficient working.It helps the organization in introducing new productive and potential methods and also in improving the standards of living of the employees.

The difficulties faced in the success of agreement are

1.Some peoplefrom the union might oppose this as they would have been deep rooted in the traditional way of working.

2.Few will find difficulty in adopting the changes as of adopting new technology and in the change of the working hours.

3.A financial support should be given from the part of management so as to provide to give training to the employees.

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