Key Employment Relations Issues for an Australian Company about to Expand Its Operations - Essay Example

Management 3 Key Employment Relations Issues for an Australian Company About To Expand Its Operations into a Country in Europe or Asia Introduction This is a report on the employment relations issues for a country looking to advance business into India. It includes a review of the major challenges and law regulation policies governing business in the country. The laws on employee relations the company must adhere to and follow. How such would affect the company’s policies and practices, including various ways for it to adapt. It also gives view of various unofficial activities the company may conduct to benefit the host society. Executive summary The major aims of any business venture are to make profits, and to expand. Such expansion is usually a resultant of continuous profit making and can either be within or without the business host country. When looking to expand a business into another country, it is vital to take into contemplation numerous factors. The employment relation issue is one key factor including others such as the costs of operations in that business and the trade market exchange prevailing in the country. All these factors are taken into account prior to such ventures in preparation for all and any situations that might arise (Dascalova, 2008: p.82). In an instance like this where an enterprise is venturing all the way into another continent, it is of upmost importance that research and such preparations conducted. This highly attributes to the fact that such places depict remarkably different environments and operational responsibilities, laws and regulations. Employment relations issues mainly deal with the pertinent issues between a business or employer and its employees. The management of employee relations is paramount in ensuring that the business ideals and goals are upheld while also catering for the rights of employees. It advocates for a win-win position on both sides of the business and employees. The business may, for example, may manage this relation by establishing of regulations regarding discipline, performance, conflict of interests and conduct. Employees, on the other hand, are safeguarded labor laws and regulations, employee unions and rights groups among others (Walters, 2011:42). Major Employment Relations Issues India, a country in Asia is well known for its large involvement in commercial and technological development. It is also highly densely populated and developed thus making it a significant target market for most companies. Due to this, the country has stipulated substantial labor laws that are as a hindrance for the current slow pace in developmental growth (McNair, 2009: p.2). There are various employment relation issues in the country that would have significant effects on the human resource management policies of the company. Of these employment relations system aspects, minimum wage due to managerial functions in bargaining scopes, employment conditions of multiple definitions across different legislations and high number of casual and contractual employees due to change of labor. These aspects are all enshrined in view of the 3 system components of privatization, direct foreign investments and development access of business international unions. The access of unions and discouraging of privatization in India Unlike other developing and underdeveloped countries India has employed the play of a minimum wage policy. This means that there are limits of wages for each category of skilled and unskilled labor under which payment cannot be accepted. Direct foreign investments well regulated as it is a country under which the human rights and the employed mass itself are particularly vigilant on their rights. As such, employment conditions in term of the environment and terms of offer are much scrutinized. They term for favorable employment conditions in all sectors of the economy. Again the acquisition and disquisition of labor in this country is a key issue of concern for both the masses and the government (Richardson, 2008: p.8). This includes regulations on maximum employee numbers in various sectors of the economy, employer limitations on layoffs and retrenchments, and bureaucratic formalities governing change of labor disregard of causative economic conditions. Company Policy Effects and Adoption The advent of the company into India’s market would mean the adoption of its policies to accommodate such employment relation issue. The company would have to reorganize its resources in such a way to be able to cater for the minimum wage limit. The various job groups in the company would thus also have to be reshuffled to distribute payment in consideration of the minimum wage limit for the lowest payment job group in the company. Again the company would have to employ safety and friendly working environmental conditions, through the incorporation of local practice and culture. Taking for instance the providence of worship temples, in addition to churches and mosques within the business premises. Other issues such as working hours, rests and off days would also have to be rescheduled in line with the countries calendar of events and cultural practices (Baird and Ellem, 2012:56). Indian labor laws regulate the number of employees per company, and as such this would require a change in operational base. As such, the company would have to fit its business plan and operations in accord to the number of employees allowed. Layoffs and retrenchment practices are also heavily guarded by the rule of law in the country (McNair, 2009: p.4). To adhere to this, it must alter its policies on its send off packages and employment contract life agreement and limitations. Employment of new recruits to the company staff must also be conducted according to laws of the land. This means that the employee binding contract must be changed to include only policies and regulations allowed by law in the country. Benefiting Host Society Taking up social responsibility is one of the best ways to improve employee and social relations of the company. This can be in numerous forms such as the company participating in national awareness and developmental events. These events range from health awareness programs, national celebratory events such as annual show events, and humanitarian actions among others. Through such activity, the company is able to relate with the society at a personal level hence they associate with the company products (Dascalova, 2008: p.71). The company can cater for the cost of such activities through gathering international supports, budgetary cuts and personal company member’s donations towards such courses. This greatly boosts the company’s image hence also its product ranges improving sales and profit margins. Conclusion In conclusion, setting up company in India would mean to deal with such policy reforms as to accommodate the lands regulations and practices. Despite this, there is much needed improvement in this country. The entry of such a company into the market should be able to instill the required changes. This can be through the pushing for issues such as education and training, establishing of [policies that accommodate all workers and being able to control the market resurgence in the country. Bibliography Baird, M. and Ellem, B. (2012). Industrial relations and labor: review article. Australian Journal of Labor and Employment Relation Association. 54(4): 1-120. Dascalova, N. (2008). Features of Industrial Relations Examined: An Introduction, Wiley-Blackwell: Oxford. McNair, B. (2009). Commercial Development: India’s Labor Laws, department of Library Business Columbia University New York. Richardson, D (2008). Social Responsibility: Policies Employee Relations in India, Business Department Stanford University New York. Walters, K. (2011). International Employment relations. International Journal of Comparative Labor Law and Industrial Relations. 12(6): 5-63. Read More