Understanding Industrial Relations - Essay Example

Industrial Relations Name Institution Tutor Course Date: Introduction Industrial relations is the study of the relationship that exists between the employers and the employees. It is also called employment relationship. It is aimed at solving problems in the work place, enhancing code of ethics and science building (Peetz, 2006). In science building, it seeks to understand how the employees and employers relate at the work place. That is the management of the human resources, the laws regulating employment and payment of wages and salaries (Waring, 1999). It also seeks to ensure that policies and institutions are designed to ensure peaceful coexistence at the work place either between the employees or between the employer and the employees (Budd, 2004). It contains ethical codes that help foster good relationships so that there is ethical practices and relationship based on the existing laws. These ethical issues include fair remuneration and treatment, non discrimination, normal working hours and the right to expression and association (Bray, Waring & Cooper, 2011). How can one therefore determine whether a country has sound industrial relations or not? There are some elements that if present would support this fact. It should be one in which there is a clear cut distinction between the state, the employees and the employer. But these three entities should be able to exist in harmony and cooperate with one another (Waring, 1999). Hence conflict is avoided to help create an enabling environment that is necessary for achieving efficiency in production. In addition the workers feel motivated through which the employer gains their trust and loyalty. Thus creating mutual understanding based on well established laws and respect for each of the parties (Kaufman, 2004). There are three levels at which industrial relations operate. The presence of these three levels in a country comprises a sound system in its industrial relations. These levels are the national level, industrial level and the firm’s level. Effectiveness at one level affects other levels too and vice versa (Waring, 1999). At industry level it brings about collective bargaining and setting of rules that govern the industry. Wages and salaries too are determined at this level. At the lowest level trade unions represent the views of the employees. Effectiveness of the unions enhances trust and confidence building between the employees and their employers. At the top level, the national level, it useful in creating confidence and trust (Bray et al., 2011). There must be policies established to regulate labor management and relations. These policies should ensure job security and encourage creation of more employment opportunities. The employment opportunities should be accompanied with better working conditions and improved terms (Mullins, 2005). Consequently the employees will realize improved living standards. The policies should also enable the firms to be more productive to gain economies of scale and competitive advantage in the industry (Peetz, 2006). More so the policies are also useful in helping minimize conflicts and thus encouraging peaceful and harmonious coexistence at the work place. In addition when conflicts arise by whatsoever means, the policies will help solve them in an amicable way. Another very important element of industrial relation is favorable industrial relations climate. The employees, workers, general public, government and other stakeholders should coexist in harmony. Harmony among these parties is useful in promoting efficiency, quality and productivity. Hence the firms are able to increase their sales volume and profitability which is for the common benefit of all. Therefore industrial relations that seek to secure necessary cooperation for increasing productivity is a sound one (Bray et al., 2011). Aspects of Industrial Relations There are three aspects or theories of industrial relations namely the unitary theory, radical theory and the pluralist theories. According the pluralist theory the organization taken to consist of very powerful but divergent sub-groups (Waring, 1999). Consequently there are two groups, the management and the trade unions. Each of the groups subscribe to its policies to which it pledge its loyalty. The employees are represented by the trade union and its actions are recognized by law to be distinct from those of the employees. Thus in most cases the two sub-groups consult in order to ensure smooth running of the organization (Bray et al., 2011). In the unitary theory the organization exists as a unit. The management and other stakeholders exist for a common purpose. A lot of emphasis is laid on mutual cooperation where loyalty is pledged to the management (Nichols, 1997). As a result there is no need for the trade union because conflicts are not expected. In this theory the workers cannot participate in collective bargaining because it is viewed as unethical. The radical theory is also called Marxist theory. According to this theory the organization consists of the capitalists who aim at wealth accumulation at the expense of the employees. The employees are there accumulate wealth for the capitalists and have no say in the organization. Upon the realization of how they are being exploited, the employees will group and gang up against the capitalists by forming a trade union. As a result conflict is in evitable and trade unions rise naturally to counter the behavior of the capitalist (Waring, 1999). A flexible work arrangement refers to a situation where the employers accept that the employee can vary the beginning and end of the working day. It enables a business to modify the patterns of work in order to make work suitable for a particular industry. In addition the employees are provided with an opportunity to balance their duties at the work place and their personal commitments. This help creates conducive working environment where employees are recognized in decision making based on a common understanding. Thus they can still be productive by meeting their responsibilities despite lack of physical presence at the work place (Waring, 1999). It is one of the current trends in employment schedules that can be used by employers to enable them attract highly specialized and qualified staff that is instrumental in steering the business to achieve its objectives (Peetz, 2006). Roles of Flexible Work Arrangement There are various roles that that flexible work arrangement. It enables a country and thus a firm to increase their ability in attracting, retaining and motivating the highly qualified personnel. In the global competitive labor market, laborers change job from time to time. They keep on looking for greener pastures despite the fact that they are already in employment. The demand for highly qualified personnel is very high and firms, organizations and government do pouch them (Waring, 1999). This category of people is not looking for better wages, which they already have. There are basically looking for flexible opportunities that encourage personal development. Such opportunities require flexible work arrangements. As a result where these kinds of arrangement exist, workers move in masses to seek opportunities in such firms. Thus it is suitable for attracting, retaining and motivating the highly qualified people (Bray et al., 2011). Flexibility in the work place helps in reducing absenteeism at their places of work. This arrangement implies that there is a mutual agreement in the organization. The workers’ rights are granted and they are able to express themselves without fear of victimization (Waring, 1999). This creates an intrinsic motivation in the workers and they feel part and parcel of the organization. In the event that they have to absent themselves they would feel so bad. Therefore they always try not to absent themselves from work. This is very vital for increasing productivity, efficiency and profits (Peetz, 2006). In the third place the employees are able to manage their responsibilities even when they are out of their work place. For example through telecommunication a worker is able to perform his/her duties despite the distance from the work place. They can be in their houses but still performing their duties (Ackers, 2002) Finally people in flexible work arrangement are known for the highest satisfaction at the work place. They are also very creative and are able to deal with stress in a better way than people not in such arrangements. This arrangement also provides impetus to the employees to forge ahead and achieve higher productivity and efficiency. As a result, employees who are satisfied at their work places positively affect the economy of Australia; an economy where people are not forced to work but instead work voluntarily (Peetz, 2006). Forms of Flexible Work Arrangement There are different forms of flexible work arrangements. The first form is that of flexible time where employees are allowed to choose different times of the workday when they can start or end their work. Secondly employees can be allowed compressed work weeks (Bray et al., 2011). In this case they work for fewer days though longer in order to achieve the minimum working hours per week. For example, if one is expected to work for 8 hours per day for five days, he/she is allowed to work for 10 hours per day for four day (Waring, 1999). This leaves him with an extra day that he can choose to relax or attend an overtime job. The third form of flexible work arrangement is where the employee is allowed to telecommute. In this case the employee does not necessarily attend his/her duties in the usual office. But instead he/she is allowed to work from home or from another approved remote location at specified times (Hyman, 1975). Fourth is where employees are allowed to work on part-time basis or they are allowed to share a specific job. In this case they work for fewer hours or a given position is shared between two employees who agree to split and share their responsibilities (Waring, 1999). In Australia employees have the right to flexible work arrangement. This right of employees is protected by federal laws or state and territorial laws. As result an employer who fails to grant this right to an employee who is responsible for a child under school age is required by law to provide sufficient grounds for such a decision. In addition the law also prohibits discrimination against any employee based on age, sex, family responsibility and marital status (Peetz, 2006). In order to achieve success with the flexible working arrangement the employers should avoid limiting themselves to fixed timing such as 5 days per week. Instead they should devise methods that can help them measure the results. Employees are able to achieve better results in a shorter or longer time. Thus they would work longer than the fixed time so as to attain a measurable result. Finally employers should make use of appropriate technologies that make the employees productive whether they are out of their work place or beyond the working time (Waring, 1999) Advantages of Flexible Work Arrangements Proponents of flexible work arrangements say that it is very vital for economic progress of the country. This is due to the many advantages it has towards the employees and the employers. There are several benefits it has towards the employees. In the first place it enables the employees to be able to meet their personal and family needs. They also have sufficient time to meet other life responsibilities that they have. Secondly, a lot of costs and time are saved since employees need not to necessarily travel to their work place daily. This also helps the employees avoid stress of traffic and commuting that accompanies every day journey to the work place (Bray et al., 2011). Other costs such as baby care costs are also reduced because bone is able to schedule his/her work to start when the other partner is from job. Since they are involved in decision making regarding the time that suits them, they feel that they are personally in control of when to go to work as well as the work environment. Finally flexible working arrangement makes it possible for employees to work when they are in the right mood of working especially when they are fresh and able to achieve the most at the time when they would enjoy working (Peetz, 2006). On the other hand flexible work arrangement is also beneficial to the employers. First it enables an organization to increase its productivity. The cause of this is that the employees are self-motivated and as a result they show greater commitment and engagement in the company. Secondly the reduction in employee absenteeism enables the organization to maximize the time and potential of its workers. The flexibility in the employment also has the effect of attracting highly qualified staff hence the organization is able to attract and recruit staff with outstanding performance. In addition this will help reduce the incidences of turnover of its highly valued staff. The reduced turnover of the valued staff will in effect enable the organization tap the potential of its workers when they can give their best to the company so that they can be recognized and gain the best rewards. Workers thus get psychological satisfaction which they reciprocate by higher productivity for the benefit of the employer (Salamon, 2000). The organization is also able to extend the time of operations since the workers can work even when out of their offices. Employer’s image is also boosted because it promotes the freedom of choice hence the flexible working hours. In return the organization is able to attract highly qualified staff that is required to propel it to greater heights with respect to its objectives (Bray et al., 2011). References: Ackers, P., (2002) “Reframing Employment Relations: The Case for Neo-Pluralism,” Industrial Relations Journal . Kaufman, Bruce E. (2004) The Global Evolution of Industrial Relations: Events, Ideas, and the IIRA , International Labour Office. Bray, M., Waring, P. & Cooper, R., (2011). Employment Relations: Theory and Practice, 2nd Ed. Sydney: McGraw-Hill. Budd, J.W., (2004). Employment with a Human Face: Balancing Efficiency, Equity, and Voice. Cornell University Press. Hyman, R., (1975). Industrial Relations: A Marxist Introduction. Macmillan. Kaufman, B., (2004). Theoretical Perspectives on Work and the EmploymentRelationship. I ndustrial Relations Research Association. Mullins, L., (2005). Management and Organisational Behaviour. FT Prentice Hall. Nichols, T., (1997). The Sociology of Industrial Injury.. London: Mansell Publishing Limited Peetz, D. (2006) Brave New Workplace. Crows Nest: Allen and Unwin Salamon, M., (2000). Industrial Relations: Theory and Practice. Prentice Hall. Waring, P. (1999) ‘The rise of individualism in Australian industrial relations’ New Zealand Journal of Industrial Relations, 24(3), 291-318 . Read More