Fairness in the Treatment of Employees and Its Benefits - Essay Example

?INTRODUCTION: It is important for the organisations to make sure that all employees are treated in the appropriate manner. The employees or human resource are one of the vital element for the success of the organisations and for this reason, the management of organisations give due attention to the wellbeing of the employees. In this regard the most important aspect is of fair treatment and organisational justice. There are different rules and regulations regarding the fain treatment of the employees. According to this rules and regulations all employees should be treated equally and there should be no discrimination with any employee on the basis of gender, age, nationality, language, disability, religion, and sexual orientation. Organisations should make sure that the employees are provided with the fair salary, benefits, and growth opportunities on the basis of their performance and abilities. Apart from this all policies and strategies of the organisation should be in compliance with the employment legislations (Koys, 1991). In this paper an attempt has been to understand the concept of the fair treatment of employees and its benefits. Along with this the role of the human resource function has been evaluated in this regard. The impact of employment legislation on the fair treatment practices is also explored. FAIRNESS IN THE TREATMENT OF EMPLOYEES AND ITS BENEFITS: It is highly important for the organisations to treat all employees fairly and equally. The term fairness is interchangeable with the justice. This means that the organisations should treat every individual employee equally irrespective of the cast, colour, gender, or any disability. For this purpose there have been different laws and legislation. The organisations have to make sure that they have effective and efficient compliance management strategy in order to implement and follow all related laws and regulations. There have been several researchers who have worked on different research studies in order to assess and explore the impact of fair treatment and legal compliance on the organisational growth and development. Most of these research studies concluded that fair treatment results in increasing the employees’ motivation and satisfaction level, which in turn directly influence the productivity level of employees. Human resource is one of the most important assets of the organisation and in order to make most out of it the organisation should come up with strategies and policies to increase the motivation and satisfaction level of this vital asset. There are different dimensions associated with the fair treatment of the employees or justice with the employees. Most of the research studies in this regard have been done under the domain of the organisational justice. The organisational justice constitutes of different dimensions which in turn have vital associations with different organisational element and phenomena (Greenberg, 1996). These organisational phenomena includes benefit and compensation systems (Cowherd and Levine, 1992), restructuring of the organisation, the systems for punishment and grievance, and different outcomes like commitment, citizenship, conflict, trust, and several other (Konovsky and Brockner, 1993; Dailey and Krik, 1992; Greenberg, 1993). The organisational justice has been divided into two different dimensions by the researchers in this filed. First is the procedural justice which is about the questions and procedures regarding the fair treatment and process. On the other and the second dimension is of the distributive justice that focuses on the fair allocation and outcomes. According to the research studies of Cohen-Charash and Spector (2001) and Colquitt et al (2001), the organisational justice and fair treatment of the employees result in increasing the job satisfaction, increasing the overall job performance, decrease the different employees’ withdrawal behaviours like turnover and absenteeism, increases the commitment of the employees with the organisation, and high organisational citizenship behaviour among the employees. Hence, it is important and vital for the organisations to make sure that all employees are treated on equal grounds and fairly. This not only helps the organisations in avoiding any legal implications but also in improving and enhancing the overall productivity and performance of the organisation. As a result the organisation can grow at rapid rate and earn considerable amount of profits. THE ROLE OF HR IN IMPLEMENTING LEGAL FRAMEWORK IN ORGANISATIONS: The overall objectives and role of the human resource function or management has been divided into two broad categories which are: efficiency and equity. The efficiency means the effective and efficient use of the human resource and employees for the fulfilment of the goals and objectives of the organisation. On the other hand the equity objective of the human resource management is to make sure that all policies and strategies are in compliance with the legal framework and that all employees are treated fairly. The legal compliance is an external factor which affects the equity objective of the human resource management, whereas the fair treatment of employees is an internal factor (Koys, 1991). In order to understand the equity function of the human resource management and the role of the human resource in the implementation of the legal framework in organisations, it is important to comprehend the attribution theory. According to the attribution theory there is direct relationship between the perception of the management and employees regarding the fair treatment and the overall organisational commitment of the employees. This theory promotes the concept that the fairness motive of the management is mainly responsible for the implementation of the fair and justice practices in the organisation. It is perceived that the trust of employees in the management increases when the human resource management or function is based on the fairness motive (Koys, 1991). The perception of the employees regarding the fairness treatment by the organisations, results in directly influencing the motivation and satisfaction level. If there is increase in the incentives and rewards by the human resource function of the organisation the employees’ perception regarding the fair treatment by the organisation increases and thus the overall organisational commitment increases. On the other hand if the rewards are provided because of the intervention of the labour unions and other institutions then the employees’ perception regarding the fair treatment by the organisation decreases which in turn result in the reduction of the overall organisation commitment among the employees of the organisation (Koys, 1991). On the other hand there is legal compliance motive which is totally an external factor. The legal compliance motive also forces the human resource management to treat the employees with justice and provide them with the basic rights. There are different employment laws and regulations in this regard. Implementation of these laws results in the fair treatment of the employees (Koys, 1991). In order to come up with effective and efficient legal framework the organisations should consider the both fairness motive and legal compliance motive. The organisations have two different orientations or views about the implications of the legal and ethical framework which are: value oriented and compliance oriented. The value orientation is directly dependent on the outcomes which are related with the fair treatment of the employees like increasing satisfaction, motivation, and productivity and hence is based on the fair treatment motive. On the other hand the compliance orientation is directly dependent on the legal compliance motive. There is also a third orientation which is believed to be best In order to make sure that the legal and ethical framework is effective and efficient. This orientation is known as balanced values and compliance orientation. Apart from the orientations regarding the fairness treatment, these orientations and practices should be integrated with the regular functions of the organisation. The human resource function of the organisation allows the organisation to balance the value and compliance orientation and integrate it with the routine activities and functions of the organisation. The basic functions of selection, training, performance appraisal, and reward systems facilitate the organisations in the process of integration and control orientation for the fair treatment. Along with this the human resource management can facilitate the process of implanting legal and ethical framework in several ways, like raising voice on behalf of the employees and representing the reservations and concerns of the employees regarding the fair treatment, show respect and concern for the employees. This in turn will encourage and motivate employees to give their best performance and increase the overall productivity and growth (Weaver and Trevino, 2001). ENGLISH EMPLOYMENT LEGISLATION AND PROCEDURES: In order to make sure that employees are provided with fair and justice treatment and benefit, governments of all countries have come up with employment rules and legislation. In the same manner British government has formulated English employment legislation and law in order to provide the employers with a legal framework for formulating the workplace policies. According to the English employment law all employers have to keep records and procedures related to different employment issues and elements. This includes employment contract, grievance procedure, disciplinary procedure, harassment policy, maternity policy, computer policy, parental leave policy, paternity policy, and equal opportunities policy (British Law). All these policies and procedures defined by the English government and regulating bodies provide the organisations with the required framework in order to make sure that all employees are treated fairly and the procedures and policies of the organisations are in compliance with the stated rules and regulations. The most widely discussed legislation in this regard is the equal opportunity policy which covers the areas of discrimination, equalities, and harassment. The legislation regarding the equal opportunity policy includes: 1. Equality on the basis of Age 2. Equality on the basis of Disability 3. Equality on the basis of Gender 4. Equality on the basis of Race 5. Equality on the basis of religion and belief 6. Equality on the basis of sexual orientation 7. Equality on the basis of transgender Organisations should make sure that all employees should be treated fairly and there should be no discrimination on the basis of age, disability, gender, race, religion and belief, sexual orientation and transgender. Apart from this the organisations should also make sure to create and maintain healthy relations with the employees and for this purpose should have effective and efficient industrial relations policies and strategies. But at the same time organisations should make sure that these industrial relations policies and strategies are in accordance and compliance with the employment laws and legislation. HOW LEGISLATION HELPS TO ENSURE FAIR TREATMENT OF EMPLOYEES: It is important to implement and follow the employment laws and legislation, as these employment laws facilitate in the process of making sure that all employees are treated fair and are provided with justice. Organisations are required to come up with strategies and policies in compliance with these laws and regulations. And organisation which fails to follow these rules and regulations has to undergo different lawsuits and allegations. Employees are provided with the authority and right to appeal against any activity and decision which is not based on the employment laws and regulations. As a result, the organisations have to face severe implications leading to penalties and even to the termination of the right to operate. The employment legislation and laws serve as a guiding map for the formulation of a legal framework for the organisations. The organisations are aware of the importance of these legalities and hence make sure that all employees are given and fair treatment. Apart from this, the employment legislation and laws also facilitate in the process of strengthening the overall corporate governance framework and policies of the organisations. The employment legislation and laws create a legal obligation for the organisations to treat their employees with justice and fairly. This in turn promotes the concept of the fair treatment of the employees. The laws and regulations of almost every country makes it essential for the organisations to provide the employees with not only with fair pay and benefits but with also fair condition and environment in order to work productively. As the employment legislation and laws make it necessary and obligatory for the organisations to provide the employees with the fair conditions and environment and fair treatment, hence as a result there are less chances of unfair treatment with employees. All organisations are aware of the fact that the employees can raise voice against the unfair treatment which will result in legal implications for the organisations. IMPACT ON ORGANISATIONS OF NOT IMPLEMENTING THE FAIR TREATMENT LAW CORRECTLY: The impact on organisations of not implementing the fair treatment law correctly has different dimensions. On one hand the organisations have to face the legal suits and implications and on the other hand the organisations have to face different serious issues and challenges related to the performance and growth. At the same time there are also several social implications of not treating the employees fairly. The legal implications are clear like crystal that the organisations have to undergo a lawsuit leading to different punishments and penalties. The other implications of not treating the employees fairly and justly are related with the overall employee satisfaction and motivation. This in turn directly influences the productivity of the employees and as a result of the whole organisation (Greenberg, 1996). GOOD PRACTICES IN LEGAL IMPLEMENTATION: The implementation of the fairness and justice policy by the organisations is dependent on different factors and elements. These factors and elements can be either internal or external, like the fairness motive and attribute theory is the internal element where as the legal compliance motive is the external factor. There are several organisations which are making sure that the employees are treated fairly and are provided with fair conditions and work environment. In order to make sure that the employment legislations and laws are implemented in effective and efficient manner, the organisations can take guidance from the best practices in the industry in this regard. For instance in order to come up with appropriate strategies and implementation of the gender equality legislation the organisations should gather data on the macroeconomic and microeconomic level. Apart from this the government institutions and regulatory bodies should work for spreading the information regarding the fair practices and equal treatment. It is highly important to raise awareness of both, the employees and the employers in order to make sure that all laws and regulations are implemented and followed in effective and efficient manner (Donlevy and Silvera, 2007). In general the organisations should follow the ten points or steps which are perceived to be the best practices in implementing the employment law (Bernardi). These ten best practices facilitate the organisation in the process of productive workplace creation and avoiding any employment lawsuits. The ten best practices are as follow (Bernardi): 1. The usage of a complete and comprehensive hiring strategy: the organisations should make sure to use well formulated forms and interview questions. Apart from this there should be appropriate performance and evaluation tests of the job candidates in order to make sure that the competent job candidate is hired. 2. The usage of employment agreements: the organisations should use appropriately designed and formulated employment agreements. This in turn facilitates the organisations and employees to avoid from any conflict at later stage. 3. Proper job descriptions: The job descriptions facilitate in the process of defining and clarifying the expectations from the employees and the responsibilities of the employees. However, the management should regularly update the job description according to the changing needs and requirements. 4. Using independent contractors by making enough cross check and only in appropriate situations: the organisations should not hire any individual as a contractor as it has severe negative implications and can be expensive for the organisations. 5. Implementing the employee and work policies: the employee and work policies should not only be formulated but should also be implemented in effective and efficient manner. At the same time it is necessary to make sure that these work and employee policies should be user friendly so that employees can follow them easily and can understand the expectations of the organisation. 6. Using progressive regulation and discipline: it is highly important for the organisations to discipline and regulate the employees which are negatively effecting the working environment of the organisations and are breaking the work policies and rules. Such employees should be given appropriate chance to defend themselves and should be aware of the possible consequences of any further violations of the work policies and rules. 7. Implementing proper harassment policy: the organisations should have proper harassment policy and all employees should be aware of it. In this regard the harassment awareness program and training will be effective. 8. Conducting proper and timely performance evaluations: the organisations should conducted proper and timey performance evaluations in order to evaluate the performance of the employees and informing them about their performance. This also facilitates the organisations in the process of deciding for fair benefits for the employees on the basis of their performance and set future goals and targets for employees. 9. Documentation: it is highly important and vital for the organisations to document everything and keep a record of every dealing and interaction with the employees. The organisations should keep a record of their performance and other related factors including disciplinary issues and problems. 10. Fair treatment: although this is present at last number but this should be number one priority for any organisation. All the above practices help the organisations in making sure that all employees are treated fairly. If the employees are treated fairly and with respect then organisations can enjoy high productivity, performance, and growth. CONCLUSION: The employment legislation and laws are formulated in order to make sure that all employees are treated fairly and with justice and there is no discrimination on the basis of gender, language, race, nationality, religion, and other factors. If organisations are not able to implement the employment legislation and laws in effective manner then there are different legal implications. Hence, the employment legislation and laws help to make sure that organisations implement the policy of fair treatment for all employees and there is no discrimination of any kind. However, it is important to acknowledge here that the organisations are not only motivated and encouraged to implement these rules and regulations because of the legal compliance motive but also because of the attribution theory and fairness motives. It is important for the organisations to treat the employees with fairness and justice as it allows the organisations to increase the job satisfaction and motivation among the employees. Increasing job satisfaction and motivation result in high productivity and performance. There is strong and vital role of human resource function in the process of implementing the legal framework in organisations. All human resource elements and functions facilitate the organisations in making sure that the employees are provided with fair treatment. The human resource department and function plays a vital role in the controlling the orientation and integrating the overall ethics and corporate governance policies. 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(1992). ‘Distributive and procedural justice as antecedents of job dissatisfaction and intent to turnover.’ Human Relations, vol. 34, pp. 305-317. Donlevy, V., and Silvera, R. (2007). Implementing gender equality in enterprises: report on best practices and tools in Europe. Available from http://ec.europa.eu/employment_social/equal/data/document/0801_gender_twinning_en.pdf [Accessed 5 August 2012] Greenberg, J. (1993). ‘Stealing in the name of justice: informational and interpersonal moderators of theft reactions to underpayment inequity.’ Organizational Behavior and Human Decision Processes, vol. 54, pp. 81-103 Greenberg, J. (1996). The quest for justice on the job: Essays and experiments. Thousand Oaks, CA: Sage. Konovsky, M., and Brockner, J. (1993). Managing victim and survivor layoff reactions: A procedural justice perspective. In: R. Cropanzano (Ed.), Justice in the workplace ( pp.135-154). Hillsdale, NJ: Lawrence Erlbaum Koys, D. 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