Ratiocinative Analysis of Budd's Model for Effective Partnership

(efficiency, equity & voice)

Dr. Elijah EzenduFIMC, 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

Collective Voice

Budd’s Two Dimensions of Voice

Individual Voice

Individual Voice

Individual Voice Individual Voice

Individual Voice Individual Voice

Unanimity in Group of Individual Voices

CV

IV

IV IV

IVIV

IV

IV

IV

IV

IVIV

IV

IV

Small Dissent in Group of Individual Voices

SCV

IV

IV IV

IVIV

IV

IV

IV

IV

IVIV

IV

IV

IV

Large Dissent in Group of Individual Voices

SCV

IV

IV IV

IVIV

IV

IV

IV

IV

IVIV

IV

IV

IVIV

IV

IV

IV

Multifocal Dissent in Group of Individual Voices

SCV

IV

IV IV

IVIV

IV

IV

IV

IV

IVIV

IV

IV

IV

IV

IV

IV

IV

Self Determination Versus Industrial Democracy

SCV

IV

IV IV

IVIV

IV

IV

IV

IV

IVIV

IV

IV

IV

IVIV

IV

Great Contribution Great Contribution

IV

Great Contribution

Great Contribution

Exercise

Review 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

Source: John Budd and Alexander Colvin, Improved Metrics for Workplace Dispute Resolution Procedures

Voice

Efficiency Equity

UGM

ELM

UEA UGA

NPR ELLNOM

ELANMANOD

NUD

KEY

UGA Unionized Grievance Arbitration

UEA Unionized Expedited Arbitration

UGM 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

ELL Employment Law Litigation

ELA Employment Law Arbitration

ELM Employment Law Mediation

The Geometry of Dispute Resolution

Voice

Efficiency Equity

UGM

ELM

UEA UGA

KEY

UGA Unionized Grievance Arbitration

UEA Unionized Expedited Arbitration

UGM Unionized Grievance Mediation

ELM Employment Law Mediation

Centroid Resolution Systems

The Geometry of Dispute Resolution

Voice

Efficiency Equity

NUD

KEY

NUD Nonunion Unilateral Decision-Making

Greatest Efficiency, Poorest Equity & Most Suppressed Voice

The Geometry of Dispute Resolution

Voice

Efficiency Equity

ELL

KEY

ELL Employment Law Litigation

Greatest Equity, Nearly Medial Voice & Poorest Efficiency

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); Hon. President, Worldwide Independent Inventors Association; Special Advisor, RTEAN; Director, MMNA Investments Limited. He had functioned as Chair, International Board of GCC Business Council (UAE); Senior Partner, Shevach Consulting; Chairman (Certification & Training), Coordinator (Board of Fellows), Lead Assessor & Governing Council Member, Institute of Management Consultants, Nigeria; Lead Resource, Centre for Competitive Intelligence Development; Turnaround Project Director, Consolidated Business Holdings Limited; Lead Consultant/ Partner, JK Michaels; Technical Director, Gestalt; Chief Operating Officer, Rohan Group; Executive Director (Various Roles), Fortuna, Gambia & Malta; Director, The Greens; Chief Advisor/Partner, D & E; Vice Chairman, Refined Shipping; Director of Programmes & Governing 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 & Chairman of Editorial Board, Cost Management Journal; National Executive Council Member, Institute of Internal Auditors of Nigeria; Member, Board of Directors (Several Organizations). 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 (Nigeria) and Jones International University (USA). He holds Interim Management Assignments on Boards of Companies as Non-Executive Director.

Thank You