Theories on Employment Relationship Management - Essay Example

?HRM in Context Table of Contents Table of Contents 2 Introduction 4 Theories on Employment Relationship Management 5 The Harvard Model 6 The Michigan Model 7 Guest Comparative Model 7 The ‘Choice’ Model 8 Practices of Employment Relationship Management 8 Antecedents and Functions of Contemporary HRM 9 Leadership 9 Motivation 10 Herzberg’s Motivation-Hygiene Theory 10 Douglas McGregor’s X Y theory of Management of Employees 10 Maslow's Hierarchy of Needs 11 Succession Planning 11 Example of Employee Relations 13 Enforcing Workplace Policy 13 Identifying Employee Concerns 13 Investigating Complaints 13 Resolving Workplace Issues 14 Employee Relations Issues 14 Legal Issues 14 Conflict Management 14 Attendance 15 Disciplinary Action 15 Conclusion 16 References 17 Introduction Human resource (HR) management is one of the major management functions in an organisation. Without the proper management and implementation of HR process, it becomes impossible for a company to sustain and survive. Employee relationship management (ERM) has over the years emerged as one of the vital constituents of HRM which signifies to managing and establishing the inter-relationship between the varied employees in an organisation. These relationships can occur between the employer and employees and amid employees belonging to a particular level in an organisation. In this context, employment relationship is determined as the lawful association between employees and employers. This association prevails when an individual executes a particular work service or work within certain specified condition in response for remuneration. Employment relationship facilitates to establish the reciprocal obligations along with rights in between the employee and employee. This relationship largely facilitates workers to derive access to their fundamental benefits as well as rights related to their employment (International Labour Organization, 2011). In this regard, it is observed that within the periphery of employment relationship, HRM’s responsibility is to ensure that the employees are always efficient, effective and productive. A few of the employment relationships facets include drafting the best procedure for the recruitment and selection process, preparing job classification inculcating motivation, training and development for the betterment of the employees and organisation, scaling a payment status, performance appraisal along with ensuring sustained guidance to the staff. In relation to the context of motivation, it is observed that employees generally work to fulfil its psychological needs, but they also need to take care of their relationship with the superiors or the employers, which forms one of the crux elements of employment relationships in the contemporary scenario (Budd & Bhave, 2006). With these considerations, the essay intends to discuss the antecedents and functions belonging to contemporary HRM in facilitating organisations to manage employment relationships. Theories on Employment Relationship Management The notion of employment relationships is broadening day-by-day and has become a key factor to ensure that both employees and employers are contented with each other in terms of prevailing work process conditions. The approach of employment relationships actually has been developed from various subjects including economics, sociology, psychology, political science and history. It constitutes certain levels namely international, national, industry, organisational or corporate, workplace and individual (Rasmussen & Lamm, 2002). Within the aspect of employment relationships, the notion of hard and soft HRM needs to be specified. Hard HRM significantly incorporates elements within the aspect of employment relations focusing emphasis on workers’ compliance and quantitative output of the organisation. Similarly, soft HRM is a more long-standing and strategic perspective which supports flexibility, quality, performance, recognition, negotiation and rights in terms of employment relations (Ivo, 2006). Every organisation which follows hard HRM principles needs to abide by certain laid down regulations. In the countries such as the United Kingdom, in the contemporary scenario, certain labour laws have been demarcated that involve relationships between employees, employers and various trade unions. These include National Minimum Wage Act 1998, Working Time Regulations 1998, Employment Rights Act 1996, Transfer of Undertakings (Protection of Employment) Regulations 2006, Trade Union and Labour Relations (Consolidation) Act 1992 and Pensions Act 2004 among others (Oxford University Press, n.d.). In order to comprehended the contemporary endeavours taken by HRM in relation to employment relationships, a few of the crucial employment relationship models comprising the Harvard model, the Michigan model and Guest comparative model among others need to be discussed. The Harvard Model Harvard model works as a strategically based map to direct all the industrial managers to establish a good relationship with the employees. It emphasises more on soft HRM aspects. It follows the phase of recruitment and then selection of the most deserving candidates. The reward system of the organisation keeps the employees motivated to perform better. This model deals with HRM policy choices, HRM outcomes, and long-term outcomes and stakeholders interests. This model intends to influence employees to bring better results (Herzberg, 1987). The Michigan Model One of the hard HRM examples is the Michigan model. This model is structured upon the aspect of strategic control along with organisational culture as well as systems involved for managing individuals. It ascertains the requirement for human assets to be controlled and guided to attain strategic goals. This model values rewards and motivation for mainly attaining the mission as well as goals of an organisation. The advantage of this model is that an organisation following this model aims by minimising the costs of human resources to achieve organisational growth and market performance (McGraw-Hill, 2004). Guest Comparative Model Guest Comparative model works as a set of incorporated HR management practices which result in strong individual and organisational performances. This model has structured its strategies by focusing on aspects such as innovation, differentiation and cost reduction that will lead to better training, job designs, appraisal, rewards, selection, involvement and security which finally would in turn provide desired outcomes, flexibility and commitment. With the proper following of this model, productivity will definitely increase and innovation will be achieved (Tiwari & Saxena, 2012). The ‘Choice’ Model The ‘Choice’ Model is an integrated or holistic nature approach. It facilitates to formulate HR policies and holds those parameters namely organisation, personal and external. There are three sources of this model such as internal sources, personal sources and external sources (Ivo, 2006). Practices of Employment Relationship Management Amongst the all basics aspects of employee relations, related position descriptions and job design are quite vital. A comprehensively designed job structure enables to create job satisfaction for the employees along with revitalising their productivity (Tansel & Gazioglu, 2012). It needs to be designed properly to understand better management practices. It is a unique practice to take new employees in a probation period. It is generally done to ensure that a particular employee is able to meet organisational requirements adequately. In the contemporary scenario, changes in work practices, social attitudes and technology have been a significant factor in establishing employment relationships where the aspects such as providing service from home have come up. In the organisation, certain other practices have also been development with employment relationship such as job share. Job share is a kind of job rotation practice. Another crucial practice is the aspect of Occupational Health and Safety (OH&S) policies which are essentially fundamental to ensure that the employees of the organisation are working in good conditions by minimising health risks (Victorian TAFE Association, 2006). Antecedents and Functions of Contemporary HRM The HRM based models work in various HR functions like recruitment, compensation, training, development of company policies and organisational structure. In the contemporary scenario, HR Department aims to look into the matter intensely regarding the selection of proper employees as per requirement. This is because by the way of it right candidate can be chosen which will lead to higher productivity in future. The respective organisations’ training departments have started to endeavour in terms of providing training and implementing a monitoring system (Victorian TAFE Association, 2006). Leadership Leadership plays an imperative role in the management of employment relationship. It may be of different types like authoritarian leadership (autocratic), participative leadership (democratic), delegative (free rein) leadership and situational leadership. Autocratic leadership is the best applied in the situations when there are less group decision making time period. Here, the leader has the clear expectation about his/her demands. Under this kind of leadership, decision making is less creative. There is definite clear division between the superior and subordinates. On the other hand, democratic leadership is the most useful leadership techniques amongst the other techniques. Here, leader takes ideas from the followers and just because of that employment relationship improves in the organisation which leads to better productivity. Delegative leaders offer very low or little guidance to their subordinates and leave decision making rights to the subordinates. In situational leadership, generally three factors affect the leaders’ decision making like the capability of the followers, the situation, along with the capability of the leader and thus it is advisable that these leaders need to be little more dynamic. From the above discussion, it can be said that participative style is the most appropriate one to have the best employment relationship planning (Group Interactive Solutions, 2012). Motivation Herzberg’s Motivation-Hygiene Theory Herzberg’s motivation-hygiene theory of the two factor theory is one of the best approaches for practicing the study of employment relationships management. In this motivational theory, there are some causes which lead to satisfaction like accomplishments, assigned work, recognition, responsibility, growth and advancement. On the other hand, supervision, company policy, relationship with superiors, work environment, salary and the relationships with the peers cause dissatisfaction. From the above employee oriented theory, it can be concluded that work should be more challenging to understand the full ability of the subordinates. The group of employees, who depict high level of abilities, they should be given higher level of responsibilities. Douglas McGregor’s X Y theory of Management of Employees According to Douglas McGregor, as per theory X, average employees of the organisation dislike their work, and try to avoid them. Thus, the average employees’ need to be forced with the incorporation negative reinforcements so that they become conscious of the requirement at hand. Average person needs more and more direction and guidance to do the work. Thus, with regard to theory Y, average people seek and accept accountability as a work to be fulfilled. With the study of this theory, the employment relationship managers’ can derive an idea about the two kinds of employees working together in the organisation and also they can identify how these employees can be controlled (Learning and Progress Ltd, n.d.). Maslow's Hierarchy of Needs Every kind of employees in the organisation has certain needs which he/she wants to satisfy. As per Maslow's hierarchy of needs theory, human needs are divided into five stages comprising psychological needs, safety needs, social needs, esteem needs and the self actualisation needs. Thus, from the perspective of employment relationship, in order to fulfil these needs the aspects of better salary structure and other allied benefits within a part of employment relationship can play a major role. These aspects can not only facilitate to fulfil various needs but also can enable to increase motivation and productivity (Arab British Academy for Higher Education, n.d.). Succession Planning Succession planning is a procedure for recognising and developing internal incumbents with potential skills to take up vital leadership roles. It increases availability of the experienced workers in the organisations. For providing accurate guidance, knowledgeable Employee Relations (ER) practitioners have been using legitimate statutes as well as regulations, case laws, agency policies, collective bargaining agreement(s) and agency counsel advice instruction. For gaining the trust of supervisors, ER practitioners generally talk to the supervisors frankly and in a straightforward manner and also bound them to work in compliance with legal, regulatory and statutory requirements (United States Office of Personnel Management, n.d.). Example of Employee Relations Enforcing Workplace Policy Human resources department (HRD) training staff uses the employee handbook for employee orientation. Employment relationship managers specially conduct the employee opinion surveys. In the contemporary scenario, many managers focus entirely on the investigation of the employee complaints, which has become a sub-part of this segment (Ipsos, n.d.). Identifying Employee Concerns Employees report their issues to HR staff member when having concerns regarding their working conditions. To uphold better relationship with the employees in many companies a staff member is designated as an employee relationship manager who receives complaints from the employees. To listen to employees concerns, they are trained properly, because it may lead to hamper the organisations’ performances (Ipsos, n.d.). Reviewing Policy After the documentation, the employee relationship manager does a policy review regarding the particular employee who violated the workplace norms. Legal research may be undertaken by the employee relationship manager to disclose the truth (Ipsos, n.d.). Investigating Complaints Employee relationship managers’ duty consist of investing the employee complains, reviewing documents, interviewing witnesses and combining the files are part of a investigation process (Ipsos, n.d.). Resolving Workplace Issues In certain cases, a few of the employees of the organisation may create disputes. For this reason, employment relationship manager needs to settle such disputes for smooth running of businesses. Employment relationship management describes regarding all aspects of the relationships between the management and the workers (Ipsos, n.d.). Employee Relations Issues Human resources personnel, managers and supervisors establish certain policies towards the employees which they need to meet. Managing the employee relations helps the employees to correct their inappropriate behaviour and provides a structured workplace (Ipsos, n.d.). Legal Issues Employment relationship issues generate from a variety of facets of the employment and the labour laws of the respective countries. Workplace harassment, discrimination and equal opportunity are a few of the legal issues which the employees may have to face (Ipsos, n.d.). Employment relationship managers also are entitled to investigate regarding the discrimination allegations and harassment complaints by the employees in the organisations (Ipsos, n.d.). Conflict Management Conflicts may arise in workplace between the managers, co-workers, as well as amid employees. For this reason, managers need to take certain resolution procedures with the aid of mutual understanding development. These are the processes by which the managers decide upon the disputes internally (Ipsos, n.d.). Attendance Every organisation should have a proper attendance procedural system by which the managers can easily check the status of attendance that whether the employee is present in office or not (Ipsos, n.d.). Disciplinary Action Disciplinary action is taken to correct the inappropriate behaviour of the employees. It helps to improve their poor performance. For correcting the inappropriate conduct of the employees, for the very first time, managers generally provide verbal warning to the responsible employee. If the respective employee does not correct his/her behaviour then a written warning is handed over to that employee followed by a final warning before terminating that particular employee (Ipsos, n.d.; Chartered Institute of Personnel and Development, 2005). Conclusion Employment relationship has been playing a major role in the modern day business environment. In order to establish a suitable organisational culture, the use of hard and soft HRM with reference to the practices of employment relationships is crucial factor in the contemporary scenario. The HRM of an organisation need to distinguish varied assortment of strategies which is combination of both hard and soft HRM initiatives. These aspects in the long run can facilitate to develop enhanced employment relationships as the employees are largely driven by their level of contentment with the present working condition which can be developed by the use of proper employment relationships. The HRM functions and antecedents like disciplinary action, conflict management and enforcing workplace policy among others are crucial factors for ensuring superior performance of an organisation. References Arab British Academy for Higher Education, No Date. Maslow's Hierarchy of Needs. 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