Foundations of Human Resource Management - Essay Example

? Foundations of Human Resource Management Foundations of Human Resource Management Introduction The evolution of Human Resource Management in an organization over the recent years has lightened up the need of maintaining employment relations. For many years in the history of the corporate world, employees were considered a commodity and not the prime asset of the company. The relationship between the employer and employees were termed as a contract in which both parties serve each other some benefits under a defined set of rules (Williams & Smith, 2010). Moreover, the globalization in the business world diverted the attention of managers and owners of companies towards comprehending relationships and interests of customers with the company. For this reason, many times employees’ interests were ignored and the increasing pressure of competition and customer satisfaction further amplified this practice of managers (Marchington, 2008). HRM practices of many companies illustrate that, company’s success is not solely dependent on its quality of product and services but also on its workplace environment and employer-employee relationship. On this basis, it is pertinent to develop an understanding regarding the nature of employment relationship within an organization, and it effects on the perception of employees about the company (Sisson, 2010). In comparison of today’s corporate environment with that of some four decades ago, a major change in employees’ practices can be observed. Employee unions have been weakened in the recent times and their power over company’s policies has also been reduced. Low wages and more work are consequences of the change in business environment and have changed the attitude of employees towards their company too. Moreover, the turnover ratio of employees has also increased significantly over the years, particularly in the Western countries. These factors amplify the need of understanding employment relations in the light of contemporary environment and challenges in the globalized business society (Sisson, 2010). Nature of the Employment Relationship An existing dilemma in the corporate environment today is choosing between production-oriented management and people-oriented management. For production management, the hiring and firing of personnel are on the basis of target meeting and providing benefits to the sales or reputation of the company. On the other hand, people oriented management is concern with the code of conduct and personal practices of the labor force. These management practices define the nature of the organization and its interest towards employment relationship. The problem with the nature of the employment relation is that at any time either the interest of employees or the interest of the organization are been compromised (Williams & Smith, 2010). When the company is outsourcing resources, it is paying for the quality of the product the other company is offering. However, in the case of employment, the deal is between wage and the work done by the employees. Therefore, considering this relation between the employer and employees as solely contractual is not appropriate. It is because in a commercial contract, both parties have more or less equal position in the contract and have the power of denial or asking for accountability. Contrary to this, employees working in an organization have fewer power in the contact and are oblige to perform whatever been asked for the sake of money. The commonly heard terms of work pressure, offensive work environment and negligence of employee rights are thus the consequences of an imbalance in the contractual standings of the two parties (Budd, 2004). Interests of both employer and employees also hold an important place in formulating the nature of the employment relation. Interests of the employer are to provide the company’s product to its customers at the right quality, price and time. On the other hand, interests of employees are to earn living in a secure and encouraging environment. It is evident that interest of both parties goes in parallel to each other and recognition of common interest grounds helps the company to grow and maintain a healthy work environment (Williams & Smith, 2010). However, often in industries and organization, employees are asked to fulfill all interests of the company, but in return all interests of employees are never fulfilled. Job securities, equal chances of recognition and talent exposure are often compromised by high or comparatively high wages for the work. This again shows the low position of employees in an employer-employee relation and that diminishes demotivation and spirit of the employees of the company (Williams & Smith, 2010). Perspectives of Employment Relationship There have been many researches in the field of employment relation due to the increasing number of disputes between the management and the employees of the company. For a long time, employment was considered as an integrated function of the company and was assumed to have the same bonding and interest with the company as executives and owners. However, the recent trends depicts that 1. Unitary Perspective Unitary perspective describes the ideal nature of employment relation, picturing a company as one big family. By this perspective, employers and employees work for a common goal, are loyal to each other, and therefore, share the same ground of interests and are correspondent to each other. For this reason, the need of employee union is no more required as each unit is working for the rights of others. This model of perspective shows a very good image of how employee management should be directed and how the employer and employees can match each other’s interest, without sacrificing one’s own interests. However, it is hard to believe existence of a company without the presence of politics, favoritism and game for power (Article Base, 2009). 2. Pluralistic Perspective This perspective provides a contrast to the image depicted by the unitary perspective. It defines that the workplace is divided into several group and each group work for their own interests and not of others. For this reason, people in the top management won’t be bothered about rights and needs of people in lower management and therefore, creates antagonism between employees of different levels and backgrounds. Several evidences show that employees prefer their interest over company’s or employer’s interest and the same is true for employers. For this reason, unitary perspective fails to relate to a realistic image of an organization. Absence of a union can result in depriving employees from their basic rights and would turn employees into servants (Article Base, 2009). Therefore, pluralistic perspective brings to light the dynamism in management and organization leadership to cater these issues which exist in practicality. This complicates the nature of employment relationship by integrating components of employee and trade union with the main management of the company. Another problem with this perspective is that the imbalance in employer and employee position in the company continues to exist and often ignites the hatred between the two parties. In the 1970s, the pluralistic perspective in the UK had allowed unions to gain more power than owners and this resulted in a serious loss to many companies and the overall economy of the state (Article Base, 2009). 3. Radical Perspective The radical perspective sees status and power groups as a part of every organization and explains that its existence cannot be neglected. It also briefs that forming of unions in conflict to the organization policies is also a natural and part of almost every organization. Therefore, believing that both employer and employees can have common interests is not practical and believing that unions will weaken managers’ authority on employees is being superstitious. To maintain a healthy environment of the workplace and the nature of the employment relation has to be evaluated rather than assuming or ignoring (Article Base, 2009). This perspective advocates that the power of unions can in no case be greater than the power of employers. It is the misconception that prevails in many employers as they fail to understand the cause of conflict of the employee union. If the management considers union a collaborative body rather than an opponent, than actually both can meet one common ground, as the aim of both parties is same to benefit the company and to be benefited by the company (Gennard & Judge, 2005). Influencing Employment Organizations: Role of Institutions It is not simply the workplace environment or the internal culture of the company that shape employment relations, but there are some other factors of influence too. Institutions of trade unions and NGOs that work for employees’ rights also has a big influence on the practices of employment relations within a country or community. Trade Union In many underdeveloped and countries, low level employees always remain deprived of their full rights and are considered weak by the top level employees or employers. In such a case, the trade union helps to protect the rights of labors and act as a communication bridge between employees and employers. The sole purpose of forming trade unions is to maintain harmony and growth in the organization by keeping a balance in labors’ and owner’s interests (Wright, 2011). Moreover, issues of internal conflicts and ethical indiscipline are quite common in workplaces. Often the top level managers do not have time to look over personal issues. This creates an air of distrust and disrespect between employees and managers. Under such a situation, the role of the trade union is very vital, where it examine such indiscipline and forward rules and policies for such conducts. This helps employees to feel safe within the company and also benefits employers to find the black sheep within the organization (The Advocates for Human Rights, 2003). NGOs The contribution of NGOs is also significant in sustaining sound employment relations within employees of different levels. Over the years, many non-profit institutions have been working to protect rights of minority people in either religion, sects or gender. Employment relations are disturbed if equality is not maintained the workplace and minority groups suffers from physical or mental torture or being suppressed by the majorities. In many countries, social violence issues with working women are very common, which displays the cruelty of the workplace. Trade unions are mostly concerned with the economical issues and rights of the workers, and often ignore the violation of social and ethical practices. Therefore, the role of NGOs is also vital in maintaining social and economic balance in an organization. This contribution of NGOs builds a mutual relation between diverse workers and labors and thus improves the employment relation management of the organization (International Institute for Sustainable Development , 2013). List of References Article Base, 2009. Theories of Industrial Relations. [Online] Available at: http://www.articlesbase.com/college-and-university-articles/theories-of-industrial-relations-1095618.html [Accessed 20 February 2013]. Budd, J., 2004. Employment with a Human Face: Balancing Efficiency, Equity, and Voice. Research Report. Minnesota: ILR Press University of Minnesota. Gennard, J. & Judge, G., 2005. Employee Relations. 4th ed. London: CIPD. International Institute for Sustainable Development , 2013. The rise and role of NGOs in sustainable development. [Online] Available at: http://www.iisd.org/business/ngo/roles.aspx [Accessed 20 February 2013]. Marchington, M., 2008. Where next for HRM? Rediscovering the heart and soul of People Management. Research Report. Manchester: IES Working Paper University of Manchester. Sisson, K., 2010. Employment Relations Matters. Research Report. Warwick: Cornell University ILR School University of Warwick. The Advocates for Human Rights, 2003. The Role of Trade Unions and Collective Bargaining. [Online] Available at: http://www.stopvaw.org/the_role_of_trade_unions_and_collective_bargaining [Accessed 20 February 2013]. Williams, S. & Smith, D., 2010. Contemporary Employment Relations: A Critical Introduction. New York: Oxford University Press. Wright, C., 2011. What role for trade unions in future workplace relations? Research Report. Cambridge: ACAS University of Cambridge. Read More