Managing the Employment Relationship - Research Paper Example

 Managing the Employment Relationship [Student Name] [Student ID] [Lecturer] [Submission Date] [University] Assignment 1: Evaluate the strengths and weakness of joint consultation committees as a means of employees influencing management decision making. Managing the employer-employee bond is a comprehensive job. As the management of an association, your utmost responsibility is to produce a capable, proficient workforce at the same time making certain that your policies and guidelines are just and are in conformity with the law. It is the management’s duty to look upon each employee’s role in sustaining discipline and enforcing the rules that apply to the entire team top to bottom (Towers, 2004). The management needs to look at the core facets of formal disciplinary and complaint measures and discover how to ensure their approach so the discipline remains reasonable and lawful (Bratton & Jeffery, 2000). For progressive development of a business today, it is extremely necessary to fabricate its standing as a forward-thinking business by generating a workforce that mirrors modernity and innovation. It is vital to make the most of an extensive array of workforce resources, talents and competence. Dealing with meager discipline is imperative before it adversely influences business performance. It will also aid in preventing resignations and sustain employee self-confidence by deciphering grievances promptly and effectively. With changing times and the rapidly changing work culture there is a need for the employees to take part and give suggestions in all jobs in progress. They need to be reflected as an integral part of the organization. Therefore, by taking an expert approach we can surely retain control and ensure compliance with the ruling authorities by handling the staff fairly and preventing bias. A type of employee participation is joint consultation. Joint consultation is an approach through which the management includes the employees through their representatives to dialogue on pertinent issues that concern or cause apprehension amongst those they represent (Gollan, 2005). This practice provides employees the chance to influence the suggestions before the final management makes a final decision regarding them. Joint consultation distinguishes from collective bargaining in that it demonstrates issues of shared, not diverse opinions and does not result in a joint decision. Through joint consultation, the union and possibly non-union representatives have a possibility to give their views and opinions that can influence management decision-making, but still the real decisions continue to be with the management. Partially for this particular reason, it has been evaluated as of constraint value by some trade unionists and has often been limited to less significant matters mostly related to petty administrative issues (Gennard & Jugde, 2005). Though its model differs extensively, joint consultation is presently strongly recognized in a majority of countries around the globe. Truly, alternative forms of employee participation in managerial decision making like opting for a joint consultation committee can aid in providing the foundation for enhanced teamwork. Joint consultation stands upon the theory that employees and managers share to a great level a general interest and that there is shared benefit in its identification. The issues that are usually brought forward by the employees are concerning selection and promotion based on merit, job security, generous employment benefits, fair salaries, and the adoption of a formal equal opportunity policy (Hyman & Mason, 1995). The significance of joint consultation is evident of its numerous strengths as a development to resolve contradictory interests in employment relations, but its weaknesses have also become noticeable within the organization. Within the organization, it imparts an inadequate basis for the legality of managerial decisions, often not taking into consideration an extensive array of decisions of immense magnitude for the wellbeing of employees. Conflict is unavoidable in employee-management relations, but with no reciprocated cooperation and only standing upon a philosophy that makes it possible to expand positive industrial relations, the wonders of advanced technology and hoisted prospects may escort towards a catastrophe (Miles & Smith, 1969). Where there are several strengths of joint consultation like employees getting an opportunity to contribute and getting a right to be heard in front of the management there is a huge weakness of it if we see from the management’s perspective as well, that their decision making power, the only power that was solely handled by them now gets highly influenced by the employees and at some point disregards their decisions (Walpole, 1944). But again, today for an organization to boom and run efficiently it’s important that the people who make the organization have an active role of participation which will not only boost their morale but also make them feel integral in the organization hence reflecting in their outstanding performances as well as assisting in the organization’s prospective future. Employee involvement through joint consultation facilitates in efficient performance of not only the employees but the company as a whole as their aptitude, enthusiasm and opportunities are improved, more prospects are sought, talents are recognized, refined and exploited while motivation is augmented. More rigorous selection and better training systems assist in increasing aptitude levels, more wide-ranging inducements can be established to augment inspiration, and participative structures that improve opportunity for the employees to contribute (Leat, 2001). This way the managers play a fairer role, management and employees both will work with dedication towards the organization, and the employees will be treated with respect. For the employers, joint consultation brings the benefit of better flexibility, higher efficiency, and enhanced industrial relations. For workers it brings greater employment security and better work conditions. Employer’s interest in joint consultative agreements is likely to be determined by a realistic concern to counter to the rapidly changing work conditions and implementing workplace transformation issues (Moores, 1995). An approach like opting for joint consultative committees may be seen to compose good industrial relations practice and a more feasible means of reaching an adjustment with workers and their representatives than traditional methods. It endows upon a chance to converse operational issues in a problem-solving manner. A more positive employee-management relationship is developed (Dundon & Rollinson, 2004). For the management it is a prospect to answer to productive ideas and convincing complaints. For the employee it is a prospect for continuing communiqué with management. An opportunity to provide constructive contribution into operational issues and resolve enduring problems on both ends resulting into utmost performance to outshine the organization. Bibliography BRATTON, John & Gold, Jeffery. (2000). Human Resource Management: Theory & Practice. Lawrence Erlbaum Associates DUNDON, Tony & Rollinson, Derek. (2004). Employment Relations in Non-Union Firms. Routledge GENNARD, John & Judge, Graham. (2005). Employee Relations. Chartered Institute of Personnel and Development GOLAN, Paul. (2005). Employee Relations: The International Journal: Voice and the Non-Union Workplace. Vol. 27 HYMAN, Jeff & Mason, Bob. (1995). Managing Employee Involvement and Participation. Sage Publications LEAT, Mike. (2001). Exploring Employee Relations. Butterworth-Heinemann MILES, A & Smith, Duncan. (1969). Joint Consultation: Defeat or Opportunity. King Edward’s Hospital Fund MOORES, Roger. (1995). Joint Consultation: Making it Work. Industrial Society TOWERS, Brian. (2004). A Handbook of Employment Relations: Law & Practice. Biddles Ltd. WALPOLE, George. (1944). Management and Men: A Study of Theory and Practice of Joint Consultation. J. Cape Word Count: 1,014 Assignment 2: You have been asked to give advice to a small organization which has recently expanded and now employs over 100 employees. The growth of the company has meant a lot of change in recent years, communication with staff has suffered, and now a number of the staff has informed management that they wish to be represented by a trade union and for management to recognize that trade union. Prepare a report for management which outlines what implications this may have for the organization and makes suggestions for future action. Introduction to the Report In this report, we will analyze some serious issues being faced by United Enterprises, a developing company devoted to analyzing high-tech industry. It was once a very small enterprise but now is expanding into a growing company, embracing advancement and innovation and hiring new employees. Due to the rapid expansion of the company the staff is undergoing some serious issues which are affecting their work performance and will in the end reflect in the company’s growth as well. Basic Issues being faced by Employees of United Enterprises Issues that have been reported in United Enterprises come mostly from those employees who have been serving the company since long and are working under the newly hired managerial staff, when the enterprise had expanded it had hired staff around 30 new members on managerial posts providing them with good wages and benefits. But those who had been serving the organization since the beginning and who are the real deservers they did not get any increase in their wages or benefits. These staff members who have been serving the organization and are below managerial levels had reported to the HR members some serious complaints that they had with the management. Firstly they believe that when once the organization was small had lesser people it was easy to communicate with the management. But now as the company is expanding, new roles have entered so there has appeared a huge gap between the management and employees, because there is no direct contact with them, any issue that is reported to the managerial staff does not realistically go up to the management as it is which even widens the communication gap more and further increases the frustration of the employees. There are no equal opportunities provided to all staff members, where the managerial staff is provided the opportunity to attend seminars and workshops and get them reimbursed all employees who come under the managerial staff, the real teams who give their best for genuine fruitful results do not get any such benefit, their medical policies also vary, they are not given a good percentage of appraisal like they get, they are not provided with equal number of leaves, and moreover they are not even provided flexible time options like the managerial staff does (Bacon & Coates, 1996). All these inequalities de-motivate the overall staff and affect their work performance therefore, they want to opt for forming a union to make their voices heard and bring about the issues they are facing on front desk with the management and get them resolved so as to work efficiently. Analysis of Issues The issues that were reported to HR were that being an expanding company United Enterprises is just willing to go to about any length to accommodate the recently hired managerial staff whom they see as their only assets in the organization now. What about those who have been serving them since years and have actually assisted them in the organization’s growth and expansion. They are not even provided with motivating raises to give more of their capabilities and assist the organization in further growth. Their raise rate does not exceed than a 5% annually which is genuinely very depressing. Flexi time schedules are also offered only to the managerial staff though they can easily take work home and manage it there but what about those who have to meet deadlines and produce results they have to do it there and then. Why cannot their schedules be more flexible? Why cannot they be provided with late morning arrivals if they sit back late at nights. Why are the schedules so rigid for them while the managerial staff gets all the ease without paying a penny? It is the same with the benefits. The company pays a fixed percentage of health care costs, the managerial staff pays only a 6% of their salaries for medical insurance while the staff below them pays around 15% which again is not at all fair as their salaries are way too less than what the managerial staff is getting. Then there are the vacation packages, if you are a managerial level employee you will practically get unlimited amount of personal emergency time, and a three week vacations. But for the staff below managerial level in order to avail these facilities they have to serve for five constant years. These people have not even been provided promotions within the organization, though they are working day and night in expansion of the enterprise, instead of them being rewarded by getting promotions and good raises new staff was hired to serve on the managerial posts which again serve as a big de-motivation (Bacon & Hoque, 2005). The managers get reimbursed for any workshops they wish to attend but the lower staff members don’t even get reimbursed for continuing their education even, they are not allowed to go for workshops or seminars until and unless the organization aligns in for them – all these unjust practices have led the staff members unite to form a union in order to put forward their views and issues that they have been facing. Trade Union & its Functions A trade union stands for an association of employees whose main objective is to effectively workout the bond between the employers and employees. Trade unions are basically formed to stand up for and fight for employees’ rights. Usually trade unions are totally independent of any employer; it is a complete worker’s association. The basic purpose of a trade union is to enhance close working relationships with employers (Booth, 2002). The integral service a union gives its members is negotiation and representation. There are several other benefits workers obtain by being members of trade unions: Negotiation Representation Information and Guidance Services for Members Negotiation Negotiation is where the representatives of the union confer with the management all those concerns which involve employees functioning in the organization. The union examines the representatives’ analysis of the situation and conveys these opinions to the management. There might be a variation of views between the management and union members but negotiation is about discovering a clarification to these differences. This progression is also termed as collective bargaining. In many organizations there is an official agreement among the union and the corporation which states that the union has all the rights to bargain with the employer. In these organizations, unions are termed to be accepted for collective bargaining reasons. Remuneration, work hours, holidays and revolutionizing working practices are the various types of concerns that are bargained upon. Employees who work in organizations where unions are officially recognized are much better salaried and are less likely to be made outmoded than employees who are employed in organizations where unions are not officially recognized. Representation Trade unions also signify individual employee members when they have a crisis at work. If a worker senses that they are being treated unjustly, he or she can take help by involving the union representative to manage out the intricacy with the boss or the management. If the difficulty cannot be solved harmoniously, the issue may go to an industrial board. Industrial boards make sure that employment rules and regulations are appropriately adhered to by both the employers and the employees. They are made up of a group outside the organization who take note of the employer's and the employee's point of view and then make a verdict about the case. Majority of the cases that go to industrial boards are about remuneration related issues, unjust release, joblessness or favoritism at work (Dundon & Wilkinson, 1999). Information and Guidance Unions have an asset of information which is constructive to the employees at work. They can counsel on a variety of concerns like how much leaves you are permitted to annually, how much compensation you will receive if you avail a maternity leave, and how you could attain training at work (Marlow & Gray, 2005). Services for Members Through the last few years, trade unions have augmented the variety of services they recommend to their members. These consist of: Edification and Training – Majority of the unions run guidance courses for their members on workers’ rights, health and safety and other related issues. A number of unions also aid members who have imparted school with little schooling by presenting courses on fundamental skills and courses important for proficient training. Authorized Support – They also aid by providing lawful advice on employment related issues, some unions also assist with special issues, like lodging, wills and liabilities. Monetary Concessions - Employees can get concessions on mortgages, insurance and credit from unions (Bogg, 2009). Wellbeing Benefits - One of the earliest functions of trade unions was to look after members who are undergoing difficult times. Many of the older unions extend monetary assistance to their associates when they are unwell or jobless. Main Objectives of a Trade Union Trade unions are structured for fortification and encouragement of benefits for their members in particular and employees in common. It normally follows the subsequent extensive objectives: Secure employment Secure employment is something which the company by itself may not be able to pledge to the employees. Accomplishment of this ambition may therefore engage employees in opinionated deeds, through their unions, for safeguarding of full employment. Validation of Human Resources’ policies The economic security of an employee is determined not only by level of remuneration and extent of his service but also by management’s human resources policies. In its choice of staff for dismissal, economizing, shifting and promotion, the task of workers to jobs etc. If these decisions stand upon on prejudiced assessment; there is no protection for employees (Scase, 2003). If such integral decisions are administered by proper rules and coherent regulations, there is superior reassurance for just dealing. Say in Decisions affecting Employees Employees may effectively compel for higher salaries, they want to know what their progress is and what are the opportunities they can avail with continued connection with the organization. The involvement of trade union in such related decisions of the management is the only means by which the employees are able to attain any level of control over the dealings that unease them (Dundon & Wilkinson, 2004). Acknowledgment and Involvement One more purpose that unions seek out to accomplish is winning acknowledgment for employees that they are equivalent associates with the management in the mission of production. It is a rational value that is the intellectual faculties of employees are not low-grade to those of the administration. Gaining Legislative Enactments To offer lawful permits to its demands, the unions endeavor to get these cased in form of Acts so that they be converted into everlasting features of the agreement between the management and the employees (Kelly & Willman, 2004). Positives of a Trade Union Trade unions are aware of that associations ought to be aggressive in the international markets if they are to be flourishing and offer safe and sound employment for the workers. The outline for trade unions in the 1990s was functioning in collaboration with the employers to progress trade and services (Boeri & Calmfords, 2001). Right to be Heard If one employee makes a complaint regarding any matter, may it be the working circumstances or whatsoever, and if the management is not taking it into consideration, though several employees have drafted a complaint, through a trade union, they are to a great extent more likely to be put forward and instantly resolved (Reid & Adams, 2004). Concerns that Distress You Trade unions fight on behalf of their members, on an array of matters, which can be internal, zone wise, or countrywide. Maybe you are affected by a factory that is shutting down, or a firm you deliver to is transferring its operations overseas. Perhaps your area depends on a particular zone, such as agricultural, or manufacturing and all these sectors are affected by the existing economic environment. You could be distressed by new rules and regulations, or by firms that are varying their emphasis. There are numerous concerns that could affect you, and your family, but being an associate of a trade union can surely aid you in every particular way. Employees’ Rights Employees’ rights are imperative for every individual employee. Employees cannot be distinguished aligned with their, age, religion, sexuality, race, color, nationality, gender, or on any other grounds. Making certain that every employee is dealt with justly and equally is integral and is a trade union’s utmost goal. Campaigns Trade unions campaign against injustices in the workplace, or to promote a specific issue, such as for workers in a particular sector, or for a particular sector as a whole. Local issues could be brought about by the closure or opening of a factory, meaning more or less unemployment (De Dreu & Gelfand, 2008). Sector wide issues affect all workers in the same sector, such as agricultural workers, those in the car industry, or retail. National campaigns affect all workers, in all industries, and include issues such as minimum pay, working hours and pensions.  Enhanced Communiqué They help in enhancing communication amidst workers and managers so that the employees can easily comprehend, work hard and be dedicated to the organization’s goals and objectives as a team. Concerns are easily Negotiated Trade unions negotiate on issues like improvements in remunerations and working environment so that the employees experience more contentment at work and easily serve for longer hours (Forth & Bryson, 2004). A Constructive Power for Change Trade unions act as an affirmative, confirmatory power for transformation by endearing employees' support to the overture of innovative technologies and work organization (Turner, 1992). Productivity Deals Trades unions can assist in negotiating productivity deals. This means they aid the firm to augment output; this enables the company to be able to afford higher salaries. Trades unions can be integral for implementing new working practices which enhance efficiency and productivity. Negatives of Trade Unions Trade unions perform a number of functions to achieve their objectives of ensuring adequate remuneration, fair treatment and good working environment, etc for all its members. When the unions fail to achieve these objectives through their negotiations, they adopt an approach to battle with the management by means of go-slow tactics, strike, boycott, etc. This is because a great amount of power comes in hands of the employees because of which they start taking the organization for granted, they form barriers and stop working at their own free will, they can even blackmail by asking for better salaries otherwise resigning in protest (Glass & Lockwood, 1958). Some of the real disadvantages of recognizing a trade union from the management’s perspective are discussed as below: Create Unemployment If labor markets are aggressive and competent, higher remuneration may result in unemployment. Trades unions may cause salaries to reach heights and above the balancing scale through strikes and such other threats. When the salaries are above the balancing equilibrium it will result in a serious reduction in employment (Lafferty & Rosenstien, 1993). Non Members get Ignored Trades unions only take under notice the desires of its members, they usually ignore the wants and desires of those excluded from the employment markets, like the jobless or those employed people who are facing some other kind of hardships, on a personal level (Reynolds, 1974). Decreased Productivity If trade unions go on a strike and work inefficiently in order to rule, it can result in to a serious loss in sales and productivity. Therefore, a company may end up with no business at all and be unable to hire and afford employees completely. Remuneration Inflation If Trade unions become extremely strong they can negotiate for higher remuneration, too high above the rate of inflation (Lorwen, 1929). If such an event occurs it may result in to overall inflation. Management’s Opinion on Recognizing the Trade Union According to the management of United Enterprises, if the employees want to bring forward their issues and concerns instead of them opting for a genuine trade union from outside the organization what they can do is form one internally they can select their representatives amongst themselves with whom the management can meet once a month in a general town hall meeting where the issues and concerns of the employees can be brought forward by the representatives and the management can answer them there and then, any suggestions for improvement of working conditions or any such concern that the employees want the management to review can be brought forward, discussed and mutually agreed upon (Dundon & Wilkinson, 2001). According to the management recognizing a formal trade union would create a lot of trouble, hassle and legality, why not handle the issues together as a team and solve them internally. Recommendations for the Future Unionizing is really supportive for the employees as well as the management who can easily respond to the changing work environment efficiently. But if we see from the management’s perspective many decisions start emerging from the employees which leads to transferring of management’s power to the employees whom they can at anytime misuse if their union is legally supported. Therefore, the best possible solution is to have a union internally where the employees can choose their representatives and bring forward their issues to the management and get them resolved easily (Morley & Collings, 2006). This way they’ll also feel significant while the management would not also lose their decision making power and won’t be under pressure of the employees who could misuse or mislead the participation power given to them. Conclusion Having stated all the above case scenarios, and viewing the strengths and weaknesses of trade unions the best recommendation for the management of United Enterprises is this only that the employees can unionize but not legally, they can internally form a union which the management should also recognize and the representatives of the union can bring forward their issues, which can easily be resolved by the management with mutual consultation of the employees. Hence, settling what the employees want and not even totally imparting opportunity to them in order to influence the decision making power of the management completely. Bibliography BACON & Hoque. (2005). HRM in the SME Sector: Valuable Employees and Coercive Networks, International Journal of Human Resource Management BACON, Ackers & Coates. (1996). It’s a small world: managing human resources in small businesses, International Journal of Human Resource Management, Vol. 7, pp.82-100 BOERI, Tito & Calmfors, Lars. 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