Employment Relations in an Organization - Case Study Example

Employment Relations in an Organization Current business organizations appreciate and value employees to realize goals and objectives. Employees’ involvement to the organizational framework, increases chances for the organization to meet its integral obligations (Shore, et al 2012). A company should involve employees under its decision-making process for effective implementation of long-term goals. When co-existing harmoniously, employees will tend to perform duties in accordance to the company’s needs (Cummings & Worley, 2009). Workers can make sound contributions towards the decision-making process in the organization through the supervisor. Supervisors have no mandate to make decisions, thus, he should relay decisions to employees and observe their reactions. He should be convincing to the extent that workers will understand its purpose (Gennard, & Judge 2005). After further consultations amongst the employees, the supervisor should be able to come with joint views, present them to the management and await authorization to delegate the decision to workers. The importance of positive direct involvement helps organizations manage unethical conflicts and strategically plan. For effective relations, companies must choose among the various theories, for example, pluralists, unitarists, and the radical theories as follows. Pluralists’ approach believes in diverse sets of characters in the workforce. Therefore, it argues out that specific approaches to the conflicts may ruin or reshape the organization’s welfare. This will mainly arise from total ignorance that employees do not stand the position to influence the organization and will undertake their responsibilities as far as their obligations are met, mainly salaries. Pluralists analyze employees in terms of their different cultures that consequently stimulate the presence of a wide range of beliefs among them. Similarly, their perceptions are distinct which affects their specific values and behaviors. The theory cites that leadership sources are a key concern, as the laid down protocol will affect production and the company’s existence (Hayes, et al 2013). The theorists’ sooth companies to seek employees’ views in decision-making as this creates a good public image since the employees, whom have direct contact with the customers, understand them more and decisions will target to cater for the customers’ needs (Armstrong, 2008). To create a harmonious environment, a company must negotiate with its internal environment on any desired changes prior to implementation. Depending on the business locality, beliefs will tend to vary. It is, therefore, of advice for a company to research carefully on the type of employee they want to admit. After studying their beliefs, the company admits those who qualify under the admission criteria, minding that the beliefs and attitudes tend to contrast; chances are that employees will react in the same way to negative and positive aspects (Stoldt, et al 2006). Companies must employ proper measures that will enable operations conducive for mutual purposes. A company that draws on its employees’ values draws its values too (Heath, 2005). This is because workers will give best output under positive motivation as compared to negative. Workers are a sensitive lot and the heart of production and pluralist’s approach, therefore, urges companies to monitor employees’ behaviors and make early decisions (Armstrong & Armstrong, 2012). When specific behaviors go unsolved, the company may result to tarnished public and corporate images since workers relate directly with the outside environment. The factors mentioned above create a continuous conflicting situation in the company. The management should always be ready to understand and comprehend on the occurrences, view them as opportunities to set future objectives and not threats to halt the company’s performances. The management should carry out consultations within the company’s environment to determine the best solution. It should encourage views from various trade unions, set by employees, and stipulate its views. When the company resolves its crisis and reshapes its operations, it wins a competitive advantage against its competitors by offering the produce for the market (Shi, 2007). As far as the prevailing prices on products remain constant, the practice of integrating employees to the organization remains the key to success. The idea is, most of the employees’ feelings will concern the company’s practices that injure their wellbeing. For example, workers will push for technological change if that of the organization has faced out. If the company adheres to the grievances after perceiving them as positive and implements necessary measures, the result is that it will maximize output to its full capacity while workers feel ease in undertaking their tasks (Armstrong, 2003a). The theory encourage trainings to workers, this steers progress in business operations as the rendered skills cause mobility of labor. For example, a worker specializing in supervision may acquire managerial skills and the organization, therefore, finds an easy replacement whenever a given position is vacant (Joseph, 2004). Unitarists view effective relations within an organization can only be effective when relevant parties benefit mutually. They establish that, employees’ purpose within an organization is to perform duties motivated by social wellbeing. Further, employees will undertake tasks responsibly at a considerable remuneration in accordance to the work carried out. They will finally weigh their earnings and decide that the organization’s practices are worthwhile. At this point, little or no conflicts will arise, as all parties are content. That is, the organization meets its objectives as employees get their pay accordingly. Therefore, unitarists’ theory deviates from pluralists’ view of involving employees directly in the decision making process, citing that such responsibilities strictly belong to the managerial positions. Radicals’ emphasize on two sociological issues rather than demographic variables. They argue out that employee relations are directly relative to an analytical framework of all aspects of a society. When practiced, the theory tends to shape all production factors to a point of balance. It abides to a procedure that will see the management and workers relate effectively to enhance performance. Radical approach outlines the need to limit freedom among workers, this result from the fact that when in excess, freedom tends to be the source of all conflicts rather than a solution. It outlines that, whenever there is a problem among the employees management should approach at a mutual advantage, and that is, the solution should protect the company as well as the workers. However, radical approach addresses that the employer should exercise ethics and limit freedom as much as possible. Employee relations theories tend to argue on different perspectives. Similarly, there emphasis is on achieving managerial objectives through a framework that will see peace prevail employees and the environment (Armstrong, 2003b). The unitarists’ and radicals’ observe pluralists’ views as conflicting (Lewin, 2006). This is because pluralists’ seek unlimited freedom for employees, which will result to a politicized business environment. The former philosophers state that the importance of relations is to ensure that peace exists throughout the organization to meet employers’ target objectives vis-à-vis those of employees (Rees & Porter, 2008). Karachaganak Petroleum Operating (K.P.O) operates the oil and gas field, named Karachaganak, on behalf of ENI, BG Group, Chevron, Lukoil, and Kazmunaigas companies. Being a multinational company and with considerable influence to the global oil and gas production, it ensures that there is beautiful co-existence with the employees despite their job status. The overall tally of workers amounts to 3700 with 300 expatriate employees. K.P.O practices a hierarchical organization structure in a bureaucratic form. Since the companies aim to maximize profits, they do so by practicing favorable employee relations. The company comprehends with the set decrees of the Kazakhstan government on employee relations. It allows the formation of employee unions that will articulate their grievances precisely thus managing any perceived conflicts. Mainly, K.P.O employs the pluralists’ perspective as a strategic approach to create a harmonious environment with its employees. By doing so, the company has output increasing simultaneously to a point of optimum. Although it optimizes its potential, there is still more to exploit in the field, thus, it has to maintain etiquettes and solve conflicts at an aggressive stance. K.P.O group is among the major oil and gas producers in the world. It is located in steepe hence severing unworthy climatic conditions. The temperatures range from -40 to 40 degrees Celsius during the winter and summer seasons respectively. These conditions threaten the company’s life hence control measures are placed. To counter conflicts, it ensures technological transformation of possible toxic emissions into non-harmful gases, eventually releasing them to the environment. By doing so, the company poses as friendly to the workers and the country in general. From its practices, workers perform their duties comfortably, and it is to that effect that output increases significantly. Pluralists approach observes people according to their diverse beliefs, attitudes, values, and perceptions. It argues that a company must analyze its workforce to understand what to do in order to achieve the desired objectives. K.P.O enjoys beautiful co-relations with its employees by allowing them to come up with unions that articulate their grievances precisely instead of creating a state of conflicts. The trade unions are encouraged further to the extent that their decisions will influence the managements’ operations. It ensures regular training to the workforce, who improves on achieving the target objectives of the company as each employee strives to maximize his production capacity to the required standards (Rees & Porter, 2008). K.P.O employs the best formulae, of the pluralists’ approach, this show through the projects it sets to equip employees with knowledge through the provision of training. In contrast to the unitarists, it informs workers with relevant information and asserts new positions to those it trains. Unitarists and radicals oppose the idea of a company spending the company’s finance on workers trainings. They state that, division and specialization of labor, when exercised among workers, will result to profit maximization and adequate remuneration among workers. K.P.O imposes strict code of conduct that prevails between employees and also employees and the organization. Bearing in mind that the number of its employees is overwhelming, the company finds it hard to let them set their conducts, as this will result to painful situations. The code emphasizes on ensuring that all activities run safely to the set standards for mutual benefit. It stipulates that its employees must not practice unfair and competitive behaviors that may cause negative impacts in the welfare of the company and the company at large. It tames behaviors among its overall staff ensuring that they comply with its constitution as long as they serve under its bracket. K.P.O encourages that all the workers under management exhibit utmost good faith, integrity, and unsuspicious character. This helps to foster peace in the organization, as employees do fully understand that any shortfalls borne are solely borne on individual capacity. Since pluralists cite that employees are the heart of production, K.P.O integrates them stylishly with the organization in order to achieve the desired objectives. Revisions made to the code conduct ensure that stipulations are upto date. Employees now have the opportunity to present views about the code of conduct, which they feel unworthy and inapplicable. They have the privilege to make consultations as per the code’s stipulations. Company’s Compliance team stands the position to answer all queries and work it to a success for the organization’s benefit. They treat information with a high degree of confidentiality ensuring no breach whatsoever. This serves to encourage employees to report any misconduct with an understanding that no conflicts will arise; thus, general stakeholders, inclusive of employees, figure out that the company is ethical enough and its practices are gear to progress and not retrogress. K.P.O complies with human rights objectives that its operations do not cause harm to workers and the public. Therefore, K.P.O undertakes reviews to identify areas that call for improvement. Through this activity, the company is able to make the right changes to areas that call for attention. The result is that employees feel more of the organization and endeavor in achieving the company’s objective. To ascertain that the practice is not fraudulent, K.P.O complies with Danish Institute for Human Rights that undertakes much of the assessment exercises and presents key areas of attention. K.P.O ensures that employees are healthy by undertaking periodical medical examination and establishing any job related sicknesses. This helps to instill an understanding among the employees that the company values much about their welfare. To minimize the unnecessary risks, the company has set Health Risk Assessment plan. The assessment mentions on the key areas that the management, employees, and all relevant stakeholders should observe to curb any shortcomings and damages (RIGZONE, 2009). This tool is associated to the pluralists who assert that human beings should draw the utmost attention in a company. By doing so, the company secures a competitive edge as unnecessary costs reduce accordingly. Stakeholders find K.P.O more of a home rather than business, thus all playing relevant responsibilities to the attainment of the company’s objectives (Beaton, 2010). The company requests all its stakeholders including possible visitors to adhere and abide to the set of safety measures put in place. The measures and safety precautions relay in three distinct languages namely: English, Russian, and Kazakh. The essence is that the company comprises of different cultures, thus, it strategically values all accordingly. This helps to amass all the possible muscle from the employees as they work towards attaining the company’s objectives. The surrounding communities feel as part of the company since it monitors its emissions and maintains them at reducing levels. It further sponsors social activities such as games for the people and summer holidays. A safety team trains the company’s employee and the surrounding community on safety measures which they must undertake when accidents occur. This reduces the burden of employing excess workers to deal with the accidents, which are always uncertain and none can tell where they can occur at one given time. To ensure sustainability in ascertainment of a future in Kazakhstani nation, the company has shown much interest controlling water related activities. It states in its objectives that water is live, to the company’s objectives and the entire community. Therefore, it keeps records on the amount of water used in its operations and emphasizes on reuse of the recycled amount. Further, the company engages on a plan to treat its wastewaters before eventually releasing them to the streams. This is reduces pollution in the environment and ensures that resources are utilized to the best point. Specialists monitor spillages and resolve the problems in time, thus avoiding wastage. They keep all machines at an operational basis thus improving performance. This aspect draws positive views from all stakeholders and the community as perceptions is that its practices are ethical. The company has drilled more than 50 boreholes that help in limiting stream water use thus living peacefully with the community. The specialists conduct reviews to ascertain its water levels; the derivative information will exhibit significance in examining key measures to be placed in order to minimize wastage. It provides all its employees with clean water that is fit for human consumption. By such practices, the company finds itself in good terms with the workforce and the community. Thus, pluralists’ theory applies to the extent that whenever K.P.O considers others, conflicts reduce accordingly and all activities enhance its competence in the market. So far, Karachaganak is the biggest oil and gas-producing field in the economy of Kazakhstani and ranks at top three among all CIS. K.P.O states that the diverse culture among its employees helps much as an opportunity than a threat. It states that distinct cultures exhibit distinct characteristics and harmonizing them will result to sound developments. This a fact since different people make different decisions hence when considered, thus initiating, and merging the best to the organizational long-range plan. This makes life worthwhile for the company and its employees as they act as one party, democratically mitigating conflicts, maintaining and improving success. The company and the country do reward all employees that present positive ideas to the performance improvement. This aspect provokes employees to think wisely, as their ideas will play a key to success at an incentive. K.P.O ensures random training to its employees such that all employees continue to learn as they operate within the organizations framework. K.P.O pluralists’ strategy maintains much on ensuring societal welfare rather than profit maximization. Unitarists and radicals face-off this theory and state that, as far as the employees are content with their remunerations, efforts should deviate to ether factors. Therefore, the management should maintain all its efforts to profit maximization. The basic goal in every business is to ascertain the future and ensure a better platform against its competitors. The company will meet this goal when its efforts relate directly to production and the market over human resource. All workers in the company are able to handle sensitive positions in the organization, and this serves to reduce the expense of outsourcing for new employees for the tasks. This kind of motivation works out to the extent that the workers explicitly exhibit competence and the company is able to achieve the desired objectives. In fact, K.P.O stipulates that the training not beneficial to itself, but also to employees and the entire nation. Thus, it wins credibility from all the stakeholders that its livelihood seeks to enhance others grow too. Vocational trainings and seminars to the employees involve the parent company decision-making process. Parent companies thus agree on the basis on which to tailor-make the trainings, such that they suit the objectives and strategies. The point is that as far as workers feel privileged, the organization takes the chance to prosper. Karachaganak operations have extended to involve schools in providing technical trainings to the oncoming generations that anticipate working with the company. It ensures effectiveness by training teachers on issues relevant to its operations to relay forth to the students. The performing students, who explicitly show competences in the relevant fields, will get rewards and jobs. This refuels urge among youngsters who perceive unemployment as infinite to understand that K.P.O will halt that by providing a job. This aspect seeks to ensure that the company is in a position to offer jobs to the local people. On the other hand, the local people feel accepted as part of the company and ensure that all their practices favor the company’s existence. To promote global initiatives on ethical environmental practices, the company has implanted an ideal protocol that seeks to assess all sorts of possible pollutions and correct in advance. In situations where spillages occur, the company scoops the contaminated soils to a different environment where it deploys technological appliances to eventually treat and recycle them for agricultural purposes. For instance, the company has reclaimed over ten hectares of the fifty-hectare land polluted by the 1987 well blast. The land is under agricultural projects as it continues reclaiming the remaining portion. This serves to silence any form of criticisms that the company’s practices are harmful to the environment. After reclaiming and using the land for agricultural practices, the harvest will sell cheaply to employees and its neighboring communities. Therefore, the Company furnishes its name internally and externally. Statistics reveal that Karachaganak’s operation have steered economic growth in the republic of Kazakhstani at a favorable 4% gross domestic product, thus creating over a hundred thousand jobs, which enhances standards of living among its workers and the local population. The importance of the role is that, by abiding to the pluralists theory of management, company is able to attract the community to sense ownership and unity with the company. The company targets to nationalize 70% of the managerial positions to the locals and 100% of the supervisory positions. This reduces local oppressions, as none will try to influence its operations negatively bearing that the company is a breadwinner to most families. Thus, the company secures a position in Kazakhstan oil production industry by showing value to humans and the country’s welfare rather than overlooking its operations. K.P.O employees have the mandate to join any of the prevailing two trade unions set within the organization. This step seeks to draw and approach conflicts harmoniously thus preventing shortfalls in its business’ welfare. Employees articulate relevant issues through the unions and when precisely solved, the organization is able to acquire its objectives. To minimize chances of overworking its staff, the company has introduced shifts hence workers perform to their capacity and task performances coincide with the company’s objectives. If workers do not meet their targets, the company calls upon its workers to engage in overtime performance that result to achieving the set objectives. This is, however, a payable exercise thus employees perceive it as a form of motivation and work prominently towards the set goal. K.P.O signs employment contracts to achieve all its strategic objectives as contracted employees work towards completion of their tasks for mutual benefit. The company reviews the performance of contractors after the lapse of time. It readmits those who have met the desired obligations and enters into new contracts with employees. Contracting solves the problem of laxity among workers as they exhibit competence. The company and its trade union decided on the approach as it would impose equity between the two parties. This practice exposes the role of pluralists in deciding on worker related problems. Unitarists and radicals oppose this, arguing that, all decisions made by the management should be final. They state that, the management fully understands the company’s objectives hence make the right decisions. K.P.O practices a hierarchical structure of management that serves to reduce conflicts. From the fact, that pluralist theory encourages either hierarchical or bureaucratic approach to management, the company’s choice of approach is the key to the success it enjoys currently. Employees consult and articulate their views to their supervisory heads that have the mandate to approach the conflicts observatory specialists. If this is not effective, K.P.O allows its worker to bypass the chain and presents the pleas directly to the compliance coordination manager for a faster and confidential solution to the persisting problem. However, all these tools may fail the company, it beseeches its employees to consult the unions, and thereafter, the union will present their problems to the management who will assert a long lasting solution to eradicate the problem. The company encourages trade unions to mentor discipline among its associates and that no matter how pressing the issue will be; none of its members will exhibit a controversial character to the code of conduct. On the other hand, the trade unions have the mandate to take any legal actions against delays in addressing a pressing issue. The company abides to the laws of Kazakhstani and implements its legal framework to coincide with the stipulated requirements. This process brings about peace among the company and its employees. The external arbitration team that negotiates with the company does so through presenting facts to management on behalf of the community and employees thus resolving it legally and establishing a long procedure to solving similar cases. Through decentralization of activities, the company is able to flex its muscle to attaining a common goal. The Karachaganak petroleum perceives that all its employees are of equal and on undergoing the best training can perform different tasks at different positions. New ideas introduction into the production cycle of K.P.O will detect a prevailing unseen problem in the current field. The idea helps the company to forecast and implement strategies at lesser costs as compared to the damages that would have occurred. On the vice-versa, employees will ease the risk of boredom and specialization that presides performing the same task on a daily basis. Employees develop wise aspects due to the different they mingle with at K.P.O’s company operations. This cultivates behavior that favors the company rather than alliances depended on ages, culture, or races. Karachaganak emphasizes on good relations with its immediate neighbors who constitute to eight villages and a tally of 5000 people. The company welcomes all their claims positively and solves them whenever possible. This results to peace as the communities remain content that K.P.O’s operations are for the best of its relative environment. It also seeks the educated elite from the specific villages and offers them relevant job opportunities. This steers progression to the standards of living of the surrounding communities and their incomes may be termed as positive keys to economic developments previously, the communities stated that their educated people were relocating to the cities in an attempt to find better pastures rather than sitting back, possibly indulging in agriculture and languishing in poverty. Since the company values human resources more as a factor of production, it is enduring in offering jobs to them and erecting educational facilities in the villages. The company started an initiative in the recent past that focuses on attracting local vendors to contract and pursue some of its projects. The contracts involve distributors and suppliers of equipment and materials to the organization. This has seen over two thousand vendors contracting and stabilizing economically as the projected returns are past $4 million per vendor. K.P.O has thus reshaped the economy of Kazakhstan. The gross domestic product comprises 4% of the company’s returns annually. The practices lead to the existence of harmonious relationships between the company and the stakeholders. K.P.O’s education program has seen volunteers enroll courses to shape their lives. This will indirectly propel the country’s economy through skilled labor force. Though the approach has seen Karachaganak Petroleum Company prosper so far, it has exhibited some direct conflicts with the employees and the nation as it seeks to welcome and solve all problems that concern the welfare of human resource. Employees always perceive a little twist of changes in the organization as a threat to their beautiful co-existence and tend to approach the matter more aggressively than persuasively. Relying on the number of employees in K.P.O, statistics are that out of the four thousand employees, fifty are likely to break the code, exhibit differences amongst themselves, and report irrelevant issues to Compliance Coordination Manager. This follows the high number of employees with diverse demographical aspects working under conditions rather lose than tight (Cole, 2004). Thus, to ensure that pluralism works out for K.P.O, it integrates closely to human resource management practices for a harmonious framework to achieve the company’s objectives. The only way to ensure that pluralist’s theory works out is by implementing a long-range plan that will help solve problems prominently (Townsend, 2011). This arises from the fact that the theory concentrates much on solving conflicts than achieving objectives (Colling & Terry 2010). If management concerns shift to the conflicts, the company’s output will deteriorate accordingly due to reduced production as conflicts are recurring in an environment comprising of different characters. To ensure effectiveness of maintaining relations, conclusions are that a company should seek to harmonize these theories to meet organizational objectives (Dzimbiri, 2008). Pluralism can apply when solving employees problems only, and to that extend, employing unitarists theory will maximize chances of making profits. Lastly, the radical theory will prevail over all other theories for it will limit freedom effectively, but ensure that all practices will result to mutual benefits (Marquis & Huston 2009). References Armstrong, M. (2003a). A handbook of human resource management practice. London [u.a.: Kogan Page. Armstrong, M. (2003b).Theoretical perspectives on work and the employment relationship. Ithaca, NY: ILR. Armstrong, M. (2008). Strategic human resource management: A guide to action. London: Kogan Page. Armstrong, M. (2011). Armstrong's handbook of strategic human resource management. London [u.a.: Kogan Page. Armstrong, M., & Armstrong, M. (2012). Armstrong's handbook of human resource management practice. London: Kogan Page. Beaton, J. (2010). Karachaganak Petroleum Operating uses VMware Service Manager technology to support IT operations in expanding development area. Retrieved on 12 October, 2012, from http://infrademo.co.uk/pdf/success-stories/VSM_Q210_CS_KPO_A4_EN_NB.pdf Cole, G. A. (2004). Management theory and practice. London: Thomson Learning. Colling, T., & Terry, M. (2010). Industrial relations: Theory and practice. Hoboken, N.J: Wiley. Cummings, T. G., & Worley, C. G. (2009). Organization development & change. Australia: South-Western/Cengage Learning. Dzimbiri, L. B. (2008). Industrial relations in a developing society: The case of colonial, independent one-party and multiparty Malawi. Göttingen: Cuvillier. Gennard, J., & Judge, G. (2005). Employee relations. London: Chartered institute of personnel and development. Hayes, D. C., Hendrix, J. A., & Kumar, P. D. (2013). Public relations cases. Boston, MA: Wadsworth/Cengage Learning. Heath, R. L. (2005). Encyclopedia of public relations. Thousand Oaks, CA: Sage. Joseph, J. (2004). Industrial relations: Towards a theory of negotiated connectedness. New Delhi: Response Books, a division of Sage Publications. Lewin, D. (2006). Contemporary issues in employment relations. Champaign, Ill: Labor and Employment Relations Association. Marquis, B. L., & Huston, C. J. (2009). Leadership roles and management functions in nursing: Theory and application. Philadelphia: Wolters Kluwer Health/Lippincott Williams & Wilkins. Rees, W. D., & Porter, C. (2008). The skills of management. London: South-Western/Cengage Learning. RIGZONE, (2009). KPO Taps BJ services for support Operations in Kazakhstan. Retrieved on 12 October, 2012, from http://www.rigzone.com/news/oil_gas/a/81575/KPO_Taps_BJ_Services_for_Support_Operations_in_Kazakhstan Shi, L. (2007). Managing human resources in health care organizations. Sudbury, Mass: Jones and Bartlett Publishers. Shore, L. M., Coyle-Shapiro, J. A.-M., & Tetrick, L. E. (2012). The employee-organization relationship: Applications for the 21st century. New York: Routledge. Stoldt, G. C., Dittmore, S. W., & Branvold, S. E. (2006). Sport public relations: Managing organizational communication. Champaign, Ill: Human Kinetics. Townsend, K. (2011). Research handbook on the future of work and employment relations. Cheltenham [u.a.: Elgar. Read More