The Role of a Management and Strikes in an Organization - Research Paper Example

Strikes The management ensures that a business is running smoothly and the employees are fully satisfied. Although unions have declined tremendously, some organizations still have unionized employees. Therefore, unions make certain that the rights of the employees are protected and in case of disagreement, they have a right to take industrial actions such as strike. In that case, the management should ensure they consult with the union leaders when making major decisions. This treatise kicks off by discussing the role of the management in an organization. Subsequently, it analyzes the role of a union and the impact it has on the management of a firm. As a means to an end, it recommends strategies that an organization can implement to maintain a successful working relationship with the unions. Strikes Introduction The management plays a pivotal role in a firm. It ensures that the working environment is conducive for the employees; hence, reducing cases of strikes. It also works jointly with the unions to improve the welfare of the workers and ensure high productivity. Additionally, it controls and manages the activities of the firm to guarantee smooth running of the business. Most of the organizations have unionized employees; thus, the unions ensure that the rights of the workers are fully protected. On the same note, they impact organizations negatively and positively. For instance, they ensure increased profitability, reduced turnover, and improved relationships with the employees. However, in case there are disagreements, there is likelihood of engaging in strikes; hence, low profit and negative publicity. In that case, organizations need to work jointly with the unions by seeing them as partners and developing a strategic partnership with them that is based on respect and trust (Ghosh, 2005; Tschida, 2006). This discourse focuses on discussing the role of the management and unions in an organization. It also gives a detailed summary of the effects that unions have on the management. Finally, it recommends strategies that organizations can implement to create a productive working relationship with the unions. It is without doubt that the trade unions play a major role in enhancing productivity; thus, managers should work together to maintain a positive working setting that is based on mutual trust and social cohesion. The Role of a Management in an Organization Managers are paramount in a firm as they ensure all activities are in accordance to the stipulated goals. The main role of an organization’s management is to guide firms towards accomplishing their goals as well as delegating diverse roles to the staff members. It is to be understood that all firms exist for certain goals and purposes; hence, managers help in combining as well as using resources to make sure that their businesses achieve their intended goals. Therefore, the management also makes certain that all activities are done accordingly; hence, the production of each employee contributes towards a competitive edge. They also take care of time and money to complete given tasks. Various scholars agree that the best managers are those that listen to their workers and prioritize on their needs. Consequently, there is less likelihood of employees getting into strikes; thus, there is high productivity. For instance, the human resource managers have a major impact on various segments in a firm. In that case, the peaceful coexistence between the public and the workers is their responsibility (Daft, 2009). Moreover, managers systematically review the progress of each employee and come up with ways to enhance productivity. For instance, they use the motivation theory to enhance worker’s morale, meet their needs, and ultimately ensure reduced turnover and high levels of satisfaction. Therefore, by motivating the workers, organizations get affirmative results such as high productivity, immense focus on the firm’s objectives, and reduced rates of absenteeism among employees. Some of the ways in which managers motivate the workers is by increasing their salaries, offering non-monetary benefits such as medical insurance and paid leave, and promoting them (Rout & Omiko, 2007). If managers were only obligated to offer employment, it is without doubt that businesses would end up failing. It is therefore vital that the management focuses on addressing as well as handling the needs of its workers fully. Therefore, the management is involved with planning, which entails evaluation of the current dynamics and future strategies to ensure success. It also organizes its resources to implement a sound course of action to enhance productivity. Subsequently, it determines the structure of the internal organization, maintain solid relationships, and allocate the necessary resources. On the same note, it directs and influences the behavior of the workers in achieving goals. Such influence is gained through department dynamics, leadership, effective communication, and rational motivation strategies. For instance, research shows that having effective communication in a firm is vital in maintaining productivity, building affirmative relationships, and solving problems. Furthermore, managers are involved in controlling, which entails establishing sound performance standards based on the objectives of the firm and reporting as well as evaluating organizational performance. For that reason, through controlling, the management is in a better position to identify problems and take imperative preventative measures (Ghosh, 2005). In that case, managers need to know that all issues that they deal with have a direct effect on workers. It is essential to let workers know that their opinions and needs are held at high esteem. This means that they should be made to feel that they have the aptitude and right to approach the organization’s management with any grievance. Therefore, the issue of communication is critical to ensuring success; thus, should be comprehensive and immediate to address issues such as pay, benefits, working environment, business operations, and counseling resources among others. Moreover, it is the work of the management to work together with the trade and labor unions to achieve the set objectives and reduce the negative impacts that come with employees’ dissatisfaction such as strikes. Consequently, they ensure that businesses are competitive and successful. This can only be done by the management’s desire to keep up with the latest trends that affect negatively on employment relationships, economics, and the labor market. This is because when things go wrong, the workers rely on the veracity and aptitude of the human resource management to advise and manage issues without being biased. Moreover, the management develops and trains staffs to ensure that the business performs as required, meets its goals, and improves within the legal frameworks. They are also involved in hiring staff, dispute resolution, performance management, ensuring safety, and rewarding workers. Therefore, they must have excellent communication skills, critical thinking abilities, creative mind, and portray affirmative leadership skills (Career View, 2010). Swanepoel et al. (2005) argues that when employees are satisfied, cases of strikes and industrial action are reduced. Therefore, the management works towards maximizing investment for the firm’s capital and reducing financial risks that come with strikes. They also ensure that they develop a contingency plan before a strike occurs and appoint a strike-handling group, which is competent and informed in managing such issues. On the same note, the management such as that of the United Automobile Workers (UAW) is responsible for actively negotiating for no cases of strikes during their meetings with the trade unions. Therefore, the management ensures that its employees do not strike by signing an agreement and including a no strike clause in their business operations. According to Karnes (2009), business ethics have immensely affected the relationship that exists between managers and employees. Therefore, the success of a dispute resolution highly depends on the relationship between the two stakeholders. In that case, managers have a major role to play in improving relationship with the employees. The Role of a Union in an Organization The trade unions play a fundamental role on both unionized as well as non-unionized workers. For instance, they help in raising wages among workers by approximately 20% and raise their benefits by roughly 28%. In that case, they reduce inequality as far as salary is concerned, since they are focused on raising wages for both low and middle wage employees. In addition, solid unions set a payment standard that non-union organizations follow. Moreover, the unionized workers are highly likely to receive fringe benefits such as paid leave, better pension plans, and health insurance (Mishel & Walters, 2003). Moreover, Estlund (2011) and Kearney (2010) assert that unions play a major role in improving the bargaining powers of the workers. However, they often face immense challenges in advocating for the rights of the employees and organizing strikes because it is always challenging to mobilize workers. This means that although such unions are seen to be united and have a common goal, they at times fail in organizing industrial actions such as strikes, since some workers are afraid of losing their jobs and are unwilling to be involved in the action. Consequently, there have been reduced cases of strikes from the 1960s to date (Godard, 2011, pp. 282-287). Moreover, various scholars argue that despite the numerous benefits that come with trade unions, their popularity has continued to decline over the years since employers have been presented with sound alternatives to represent the employees that have weakened the unions. For instance, most of the modern organizations such as Chrysler have included a no strike clause in their agreement with the employees; hence, most of the workers are non-unionized (Patmore, 2013; Logan, 2002). Despite the weakening of the unions and reduced strikes, it is illogical to dispute the fact that they play various significant roles in an organization. For instance, in firms whose members are unionized, the unions use collective power to directly influence on the decisions of the firm on behalf of their members. In that case, they ensure that their members are treated fairly and in case they are not, they resort to industrial actions such as strikes. A right to strike has been globally recognized as a vital element of ensuring a solid collective bargaining. Therefore, with the help of the unions, employees engage in industrial action as one means in which they can protect and promote their social and economic interests. Moreover, such strikes help in resolving industrial disputes. However, The International Labor Organization often attempts to make sure that the right of the parties to undertake an industrial action is fair and balanced against the rights of the employees, public, and the workers. In that case, the government often misunderstands such concept; thus, in their attempt to protect the interests of the public, they impose unsound constraints that limit successful industrial strikes. As a result, the role of the union as far as collective bargaining and taking industrial actions is impaired (Bryson, Forth & Kirby, 2005). Despite the challenges they continuously face, the unions work together with their members to develop rational changes they would want in the company and use their power to negotiate with the management. Moreover, they are involved with intervention salary bargaining; hence, impacting affirmatively on the country’s economy. They also set sound standards as far as jobs are concerned and create industrial democracy in the organizations, whereby, workers are free to air their grievances. This also means that unionized employees have autonomy to file grievances against their companies; thus, leading to positive changes (Bryson, Forth & Kirby, 2005). It should be noted that disagreements between employees and employers ought to be sorted out fairly. Therefore, effective industrial relations lead to a competitive edge. However, disagreements in an organization are inevitable due to issues such as wages, working conditions, overtime, safety issues, and job losses among others. Therefore, in case there are disagreements in regard to such issues, the union leaders help in negotiating with the management and coming up with sound intervention strategies. However, in case the two sides disagree, the trade union uses other strategies such as banning of overtime where employees work only for basic hours, refusing to do extra work. This is often a winning tactic in case the employer has a lot of work pending and is trying to meet a deadline or high levels of demand. In addition, they can resort to strikes, which is complete withdrawal of labor. Nevertheless, strikes are used as the last resort since both sides tend to lose as far as worker’s income is concerned, lost profits, and dissatisfied consumers. In that case, it is undoubtedly that the British record in regard to industrial actions has enhanced over the past 20year. However, the new realism is due to the legislation of the trade unions, which works towards limiting their powers. In that case, the trade unions are less powerful though have imperative role to play and directly influences the decision of the management (Bryson, Forth & Kirby, 2005). Summary of the Impact that Unions have on the Management of an Organization The trade unions play a significant role in defining employee relationship within a firm. According to the National Labor Relations, employees, have a right to form, organize, and assist in labor organizations using collective bargaining. Therefore, unions have a direct influence on the management as it is their role to ensure that the employers are properly representing their employees and there are fair working practices. On the same note, unions ensure that employees improve their livelihood and working environment. This is due to the fact that through them, workers are able to bargain their salaries and get other compensation benefits that are non-monetary. In nations such as the UK, having a recognized trade union is affirmatively associated with sound policies that contribute to high productivity in the workplace. In addition, various scholars argue that unionized organizations lead to high performance in the workplace, since employees are highly likely to be satisfied and empowered. On the same note, in a survey undertaken in regard to the Labor Force in the year 2003, it was determined that union presence in an organization led to increased levels of training. It was alleged that 39% of the unionized members were undergoing training as compared to 26% of the non-unionized workers. Therefore, it is apparent that the management is highly influenced by the unions since it is able to come up with rational training programs that are meant to empower employees and ensure a competitive advantage (Boheim & Booth, 2003). The unions serve as instruments of social change in the workplace and work towards ensuring high productivity, better accountability on management, and effective communication between employers and the employees. According to Verma (2005), unions enhance efficiency by guaranteeing sound production standards to preserve high profits and wages. Research shows that unions have positive and negative impact on management. For instance, among the affirmative effects of the unions include better management and communication strategies, effective balance between the interests of the employers and that of the employees, and high levels of satisfaction among workers. Consequently, there are low rates of turnover and absenteeism. However, the actions of the union can restrain success mostly in cases of strikes, whereby, employers lose profits and undergo a competitive disadvantage. In addition, unionized systems tend to lack flexibility since there are fixed wages and wage compression unlike in the non-union systems that are highly likely to adopt various incentives as well as contingent payment systems. Nevertheless, the positive effects outdo the negative ones, considering that unionization comes with better management incentives in regard to health and safety as well as the training of employees. Additionally, unions affect the recruitment and the selection process of the management. This is because unionized firms are likely to have few recruitment methods such as use of agencies and newspapers. On the same note, unionized firms tend to use formal employment tests, which require the management to make specific formal decisions to ensure success. Research also reveals that unions often insist on promoting internally. Consequently, it causes the management to limit its external recruiting channels and in most cases use only physical tests when selecting. In that case, it is sound to argue that they affect the management in issues regarding job evaluation, training, performance appraisal, promotion, incentive systems, workplace culture, communication, and recruitment as well as selection among others (Verma, 2005). It is apparent that the unions have an immense impact on the management of an organization as far as their decision-making is concerned. For instance, it is argued that well organized strikes play an affirmative role in guaranteeing growth in an organization and making sure that the management is focused on solving the grievances of the workers. However, such disputes also have negative effects on the management as it can lead to loss of income and poor relationship between the organization and the consumers. Moreover, unions ensure that the management is always updated on the rights of the employees in regard to their wages, working hours, overtime, and leave among others. For that reason, they make imperative decisions that are employee oriented to enhance their welfare as well as that of the organization (Verma, 2005). Strategies that an Organization can implement to maintain a Productive Working Relationship with Unions The management and the unions should collaborate to achieve the stipulated goals. There is a need to understand that when unions and the management partner together, they both tend to benefit. One way in which the management can ensure a productive working relationship with the union is by perceiving it is as a business partner and not necessarily a group that is focused on creating chaos through strikes and bringing disharmony. Organizations should consult and involve the union representatives in major decisions to avoid future controversy. This also means they should share their problems with the union leaders and come up with sound solutions. For that reason, partnering with the unions can prove to be a successful strategy for managers who are going through rough times. In addition, the management should try and focus on the positive issues. This is because the only interaction between the managers and the union leaders is when something is amiss. This means when a relationship is built on stressful and complex situations, it is highly likely that the two parties will have friction. Therefore, both the union and the management should endeavor to create a better working environment. Moreover, the management should focus on growing its partnership with the unions strategically by building respect and trust. One way of ensuring strategic relationship is by documenting conversations. Consequently, knowing and comprehending what each party said would help in maintaining a strong relationship that is based on respect (Tschida, 2006). Blackard (2000) asserts that an improved relationship with the unions lead to enhanced organizational performance. When the relationship between the management and the union is broken, it is obvious that daily routines tend to be tiresome, overwhelming, and expensive to maintain. In such a situation, an organization can create a joint management-labor committee that is focused on success and conflict resolution. Moreover, the management should ensure that they involve the union leaders in the planning, adoption, as well as evaluation of various organizational programs such as disability management. As a result, this helps in reducing financial and human costs incurred in solving disputes and ultimately improving the management-union relationship (Jodoin & Harder, n.d; United States Bureau of Labor Statistics, 2008). Organizations such as Telkom recognize the need for having solid relationships with the trade unions to ensure just, reasonable, and equitable conditions as far as employment is concerned. This also means that with such strong relationship, Telkom’s management is able to protect the rights of its employees; thus, ensuring high productivity and increased levels of satisfaction. In addition, with such relationship, they are able to avoid strikes, which cause financial loss and negative publicity of the company. In that case, to ensure they work harmoniously, they came up with a Recognition Agreement, whereby, the parties agree to maintain a positive working relationship, requiring good faith and utmost cooperation (Telkom SA SOC Limited, 2014). Conclusion Research shows that unions play a major role in ensuring success of an organization. However, in cases of disputes, unionized employees are likely to engage in strikes, causing poor productivity and negative publicity. In that case, for the management to ensure that it fulfills its role fully in achieving the goals of a company, it should work together with the unions by forming strategic partnerships that are based on trust and respect. In addition, organizations should stop perceiving unions as instruments of failure but rather as partners. Therefore, when making decisions, they should consult with the union leaders to get more options and related advice. 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