Relationship between Employer and Employee - Essay Example

?RELATIONSHIP OF EMPLOYER AND EMPLOYEE 0 From a broader point of view, the relation shared by the employer and the employee is a politicalone in which both the parties strive to gain control over business processes. This relationship is a contractual one, which is conditioned not only by legislature but is also influenced and determined by managerial authority, legal and ethical pronouncements. This makes corporate relationship a dispute- ridden one (Narayan 1999, p. 139- 140). Economy, technology, workplace culture and environment, politics and well as some other external and internal factors exert huge amount of influence on the relationship between employees and the employer. All these features are interrelated. This paper deals with wages and communication as two chief aspects of corporate environment and labor management. Wages and communication also serve as tools for reducing organizational conflict. Thus, organizations need to maintain an effective communication with its employees through discussion and interpersonal relationship for HRM and managing conflicts. 2.0 Introduction Employee- employer relationship has become an integral part of organizational practices at present times. Employee relations are hugely used for business orientation. Within an organization, both the employer as well as the employee desire to maintain a good professional relationship. This has been the reason why numerous organizations are emphasizing on development of relationship- based policies and practices. Changes in corporate business functioning promotes fair and justified behavior on part of management as well as the employees (Gennard and Judge 2005, p. 2- 3). Workplace relationship could lead to both harmony and conflict, as because it is based on paid employment. Within the whole process, every employee is trained, motivated, appraised and rewarded. This leads to development of not only formal institutional behavior, but informal interpersonal relationships as well. Factors that commonly affect relationship of employer and employee are labor unions, company culture, communication, wages, level of competencies, organizational objectives, etc. (Dzimbiri 2008, p. 1- 5) Wage could be considered as one of the determinants responsible for maintaining good terms in employer- employee relationship. Communication is yet another that influences professional relationship. This paper attempts to examine the some of the key aspects that influence the professional relationship shared by the employees and the employer. This paper also explores development of such relationship and also workplace environment due to factors like communication and wages. 3.0 There are numerous factors that influence workplace relationships. Some of them are- Economic factors: The relationship shared by the employees and their employer is more unilateral in nature. Business process works by “downsizing” of the employees and “rightsizing” on part of the employers. Labor reciprocity has performance, appraisals and results for its basis. From economic perspecyive, business operation smoothly functions on mutual delivery of performance, both on part of the employees as well as of their employers. Economic interests of employees are directed towards personal gains, while that of the organizations are directed towards competence and deliverance. (Singh and Singh n.d., p. 128) Institutional factors: Level of competition highly influences workplace relationships. Distribution of work responsibilities, flexible timings, outsourcing have further influenced it. Professional attitude is the chief driving force. As a matter of fact, present age of globalization prefers one- to- one communication once again, but this time in the form of e-HR. Communication is maintained through electronic medium, in a virtual mode. Certain psychological factors are also interrelated to it. In a performance – driven work culture, employees are constantly driven by fears regarding job security. Thus, in industrial relations, counseling and mentoring has become increasingly popular, for they not only motivate the employees and improve workplace environment, but also contribute in employee aspiration and innovation. (Singh and Singh n.d., p. 129) Technological factor: Technological adoption casts influence over work patterns, and hence indirectly influences employee- employer relationship. Description of jobs and negotiation is included within technical aspects. (Singh and Singh n.d., p. 129) Political factor: Organizations of present times are having a separate political environment within organizational premises. Due to economic policies, strategies and other factors, often conflict arises between the employers and management. Moreover intervention of government, trade unions and social and environmental activists are some of the chief aspects that affect relationship management within an organization. (Singh and Singh n.d., p. 129) 3.1 Wage On a general basis, the employers support increase in minimum wage by means of bargaining in between the management and the employee or representatives of the employees, i.e. the union. For managing its workforce, most organizations adopt wage policy. Minimum wage forms the base on which wage policy are developed. The wage policy differs from organization to organization and even within the same organization. Minimum wage is for lowest- paid core workers. Often certain facilities like more leave on same pay are allowed as an appreciation for employee’s efforts. As a measure of managing the labors, management often enters into negotiations with unions, or representatives of workers. Under such circumstances, wages and conditions are discussed in general and not regarding each individual employee. (Piekkola and Snellman 2005, p. 75) According to the employee, wage is a part of total bargaining system. In most cases, the perspectives of professional employees differ from that of their employers. The employees usually prefer collective wage bargaining, but the ultimate say in wage coordination rests with the employers, more precisely with the management only (Piekkola and Snellman 2005, p. 75). In organizations where the wage is totally determined by management, workers try to influence by means of protest, complain and suggestion. Initially the employees prefer to compliant to the supervisors, but if desired effects are not observed, they could directly negotiate with management. Most employees prefer to have provisions for collective gathering within organizational premises to share information. Needs and concerns of the employees are expected to reach management level. (Fashoyin, Sims and Tolentino 2006, p. 53- 55) Regarding wage hikes, employees prefer centralized income policy agreement. Most employees also prefer local bargaining as this result in additional wage increases. For pure localization of wage bargaining, often employees take up the way of lockouts and strikes. (Piekkola and Snellman 2005, p. 75) In small and medium enterprises, there are certain internal and external factors that determine labor- management partnership. More participation of workers in determination of wages ensures better outcome for organizations for it leads more involvement and dedication on part of the workers. In case of strong firms, labor management is done by environmental and communal factors, risk involved in finance and strong personality of the employer. However, due to hostility or poor financial conditions, management often becomes reluctant to opt for any such discussion with unions. This leads to economic trade dispute within an organization. Time to time appraisal of performances of employees and rewarding system is also another major aspect in labor management. In case of any conflict, organizations tend to set a minimum wage to avoid non-performance due to accusation or imbalance in legislation (Fashoyin, Sims and Tolentino 2006, p. 53- 55) 3.2 Communication Communication forms the basis of information technology in a business organization. Independent communication is preferred by both the employee as well as by the employer. Business activities at present times are management- focused. It is noticed that such organizations prefer conveying of objectives and information, with the expectation that the employees would understand organization’s strategy and agendas. In most cases, this is done though media sources. Face- to- face communication is adopted where transfer of information requires quickness, accessibility and more understanding. (Smith 2008, p. 38- 39) From employee’s perspective, workplace communication is effective not only for discussing work related problems but also for exchanging views related to personal interest of employees. For most employees, communication is an inseparable part of job responsibility. Sound internal communication implies that the employees are encouraged and motivated towards their work responsibilities. Most importantly, communication helps in establishing a mental link, due to which everybody tends to perform like a functional whole. (Smith 2008, p. 39- 40) Communication binds the employers and the employees through customized directives and job responsibilities, feedback basing upon unbiased appraisal system, individual needs, goals and objectives of business segments, results, organizational values, and finally scope for employee. Modern means of communication rather aim at maintaining a shared system, and not just one person. Thus, modern organizations are opting more for mass addressing among its workforce. Effective internal and external communication is essential for proper management of workforce. Team- activities yield better results when communication and information flow is smooth. (Maas 2010, p. 26) Communication is one of the most effective modes of conflict handling within the organization. A confusing statement or altogether lack of communication might result into conflict. Conflict management through communication helps in generation of opportunity and motivation (Falconer and Bagshaw 2004, p. 54- 57). Labor management is one of the prime concerns of organizations across the world. However, level of independence has to be maintained in case of communication; otherwise it might give rise to complication, competition and organizational conflict. For these reasons, good communication system is regarded as an organizational resource. Direct communication helps in better understanding of work environment and work- nature of fellow employees. Conflict could be avoided as communication helps in building a common thinking process as team members extend their help for each other (Maas 2010, p. 26). 4.0 Conclusion The relationship between the employee and the employers is often described as a bilateral one. Incomplete contracts are the chief reason. While hiring an employee, the employer only has profit in his mind. The efforts put by the employee directly contribute to gain of the employer. In a successful employment relationship, both the parties choose either negotiation or compromise to arrive at a common point. (Sadrieh 2010, p. 207) Clash of interests between employer and the employees is a commonplace thing, as because the amount of gain of the employee is the cost on part of the employer, which of course the employer tries to minimize with the sole objective of earning profit. Employee response to capitalism has been the chief reason behind intervention of third parties between employee- employer contract, like the labor unions or the State. (Dzimbiri 2008, p. 4) Wage is the mode of appreciation that an employer has for its employees. The employee works with an objective of profit maximization. The wage is first determined according to market economy and then negotiated with respective employees. Bargaining and negotiation are the most popular modes of resolving issues related to financial interest of the employees. This approach is effective in reducing risk of strikes, lockouts and non- cooperation by employees, as was commonly found during twentieth century. Setting up of wage council in private and public sectors have proved beneficial (Bruce, Hall and Roger 1991, p. 140- 152). Gift exchange is another medium that is often taken to improve the relationship between employer and employee. Maintenance of communication helps in smooth conducting of business activities. References 1. Bruce, C. J, Hall, C and Roger, J 1991, Rethinking Labour Management Relations: The Case for Arbitration, Rethinking Labour Management Relations: The Case for Arbitration, Routledge, UK   2. Dzimbiri, L B 2008, Industrial Relations in a Developing Society: The Case of Colonial, Independent One-party and Multiparty Malawi, Cuvillier Verlag, Germany 3. Falconer, H and Bagshaw, M 2004, Irs Managing Conflict in the Workplace, Elsevier, Amsterdam 4. Fashoyin, T, Sims, E and Tolentino, A 2006, Labour-Management Cooperation in SMEs: Forms And Factors, International Labour Organization, Switzerland 5. Gennard, J and Judge, G 2005, Employee Relations, CIPD Publishing, England 6. Maas, H 2010, Management and Organizational Behavior, GRIN Verlag, Germany 7. Narayan, B 1999, Labour Management, APH Publishing, India  8. Piekkola, H and Snellman, K 2005, Collective bargaining and wage formation [electronic resource]: performance and challenges, Springer, New York 9. Sadrieh, A 2010, The Selten School of Behavioral Economics: A Collection of Essays in Honor of Reinhard Selten, Springer, New York 10. Singh, P. N and Singh, P n.d., Employee Relations Management, Pearson Education, India 11. Smith, L 2008, Effective Internal Communication, Kogan Page Publishers, UK Read More