Employment Relations Environment - Essay Example

Employment Relations xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Employment Environment and Parties involved Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Institution xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecturer 1. Employment Environment 1.1 Introduction The employment environment in any organization has a great impact on the products and services delivered as well as the employees’ productivity. To maximize on productivity and ensure that goods produced are of high quality, both formal and informal employee conditions are maintained including adequate and good communication between the employees and the management, training to maintain competitiveness in the market and continue evaluation of employee performance. Since the employees are very important stakeholders in the employment environment, they must be well taken care of. In the past, employees were assured of permanent employment, pensions and other job related benefit (Edwards & Fisher 2004). However, this has changes as the wave of globalization sweeps through organizations’ and companied. This report focuses on the employment environment in US and its comparison with the working environment worldwide. 1.1.1 Report Objectives To determine the prominent party in an employment environment To identify the challenge faced in the working environment in US To determine the relevance of Dunlop theory in analyzing the US employment environment 1.2 Current Employment Trends In the current employment relations compact, much has been emphasized on effective communication between the two parties. Motivation of both parties is also an important factor that should be considered in employment relationship environment. The wave of change in the employment environment has not spared US. As large firms in this country loose their market share to upcoming small companies and Global competitors, she reacts to this by downsizing and restructuring their firms to enhance efficiency. This is in consideration that 30 to 80% of the administrative cost rests on people costs i.e. accounting, benefits and insurance (MacLean 2006). Though these strategies of enhancing efficiency and reducing production cost may be very important in the current industries, organizations must understand the negative impacts they have in the working environment. 1.3 Dunlop theory Dunlop theory was developed in 1958 by John Dunlop. This theory tries to provide means of analysis interpret and also understand the wide range of industrial relations facts as well as activities. The theory goes ahead to explain why some rules are formulated in a specified employment systems (Brown 2007). These systems are divided into three components namely, management organization, workers as well as how formal or informal they are organized and finally the government agencies. However, actor and their organizations should be found within the employment environment. Environment is defined when essential factors are being taken into consideration. These include technology, labour as well as product markets. Also the power of distribution in larger society as it affects individuals and workplace is taken into consideration. Actors mingle with one another when located within this environment. Dunlop proposed three employment parties that include the employers, labour and finally the government. He suggested that these parties could not function independently and so they had to integrate for performance to achieve. Three major keys factor were identified in Dunlop theory that should be considered while carrying out analysis of management- labour relationship (Brown 2007). These factors are the environmental, technological, social forces as well as political that influence relationships in employment. Characteristics and the interaction of the major parties in the employment tie include labour management and finally government. Third factor is formulations of rules that are used to govern employment ties. 2.0 Employee the Prominent Party According to studies carried out in US it shows that employee is the prominent party in the employment relation environment. Happy and contented employees are part and parcel of a successful business. These are the greatest asset an organization can ever acquire. Loyal employees provide essential and potential basis of excellent customer service and also effective performance (EFLDE, 2003). Therefore employers are urged to respect and also encourage the uniqueness exhibited by each individual in the course of their duties. Qualified employees ensure customer retention in a company. This call for companies to engage their employees in training programs workshops and seminars. Successful employees portray good image and reputation of the company to the community. Employees are the key drivers of success of a company if only they can be fully satisfied. 2.1 Other Actors in Employment Environment 2.1.1 The union In US the word industrial relations is viewed more as the relationship between employer and the employee as represented in the organization. This identifies the effects the unions have on employment conditions and the society as whole (EFLDE, 2003). In US the significance of industrial relations has gone down due to reduction of unions over the last four years. As it was noted earlier in mid- 1950s, unions represented at least one seventh of the employees that is, 13.9% in 1998 (Rick and Kim 2004). The rate of unions in private sector employment is about 10% while in public sector is close to 38% as indicated by the U.S. department of labour of statistics (MacLean 2006). In US, parties like military or even religious sectors may perform very influential roles. it is also noted for instance in US that in mid 1950s when unions fully represented one third of US employees, the sector that was unionized stood the leader in bringing innovation in the workplace. 2.1.2 The Government Government as an actor in the employment environment is very important because they are direct and also decisive partners for most companies. For instance Offenbach am Main a principle that was applied in late 1990s where the government gave investors safe measures approval in their building activities (Rick and Kim 2004). To maintain rapid growth in the labour market government has to ensure its stability is felt in the environment. 2.1.3 The employer The employer is responsible for ordering the advertisement of vacant position, recruitment and training of new employees. She/he is entitled to ensuring proper management of the company or the organization. The employees require support from those that offer employment opportunities to them. For employees to perform they must be motivated by various incentives which they get from their employers. Employers should ensure that their employees have access to health care insurance plans and also disability insurance plans. Employees should become aware of these plans soon enough mostly within 90 days after they start working. Moreover, employers should make sure they provide access to a retirement scheme, for instance a 401k plan. 2.2 Factors affecting employees The factors to be considered in dealing with employment relations include globalization, competition, communication, employee benefits, recruitment, promotion, demotion and retrenchment. Employees have been affected, in that they are not assured of retaining their job for long. This has resulted to erosion of employee loyalty and the benefits that come with this (Brown 2007). Workers are the only asset in the working environment that can learn to add value on a daily basis and if ignored can also become obsolete. Technological changes that have been taking place in the working environment are very important but should not be there to totally replace human power. Downsizing has been found to affect the employee’s productivity, morale and trust. In a research conducted among 1005 firms in US, it was found that of all the companies that reacted to the changes in the working environment by downsizing, only 17% had a reduction in bureaucracy, 22% realized increased productivity, 32% realized increased profits and 46% reduced on the total expenses (Seymour and Meltz 2004). African region has been the worst hit by downsizing with more than 60% of the citizens being unemployed (Green 2006). This means that adopted organizational strategies greatly affect employee’s commitment in the future. Employees who survive the downsizing process need to go through a process of healing. Company demographics whereby companies still hold biased concoctions towards women working also affects the working environment. Therefore companies should be educated about gender equality to avoid discrimination. Most companies are rigid and reluctant to change their past way of doing business. 2.2.1 Communication Another challenge experienced by the employees is communication barriers. This mainly exists where employees do not respect decisions made by employees. Effective communication has been found to a great contributor to attainment of set goal and objectives. For instance 52% of the employees based in private sectors under a collective bargaining agreement. This was agreement was far much lower in small firms of at least 25 employees where may be only 1/3 were covered by a collective bargaining (Green 2006). This problem is experienced in other countries such as Egypt, Franc and the third world countries. It has been identified as a global area of concern in the employment environment (Marcoullier and Robertson 2007). This is not experienced in US but has been found to be a world wide problem. 3.0 Addressing Factors Affecting Employees Other factors affecting employees include benefits, intellectual property, workplace atmosphere, change in employment status, safety, health and the environment, performance reviews, advancement and compensation, personal development and involuntary separation (Russell 2007). An organization should outline and provide clear benefits plans that should be a portion of overall compensation. These should include various things such as health, cases of disability and life insurance, whether personal, sick or even family leave and many other benefits. This is a factor that applies to all operating organization globally. Employees who are part time and permanent should also be provided with benefits that at least match those of the full time employees. However it is a requirement of employer to provide employee – assistance plans that gives alternatives or options for special considerations. In circumstances when a company is purchased or merges with another an employee should be compensated from the date he was employed by the initial company. Also in the event where an employer decides to relocate am employee, he should definitely cover the relocation cost. As for intellectual property, employees are urged to maintain and respect the employer’s confidentiality. This includes trades secrets and any proprietary data or information. The only time an employee is supposed to disclose such information in case of an invention of either a new product or process of the employer. Employers should give credit and acknowledge employee if they designed a new product or even a new process. They are also to encourage their employees to publish their inventions in public journals and also to present the finding at scientific conferences. Employee should seek approval from their employer before submitting their findings at scientific conferences. To enhance performance of an organization employer should provide safe working conditions and also employing all sufficient safety procedures when carrying out professional duties. This entails providing necessary information about handling of chemicals plus machines, physical requirement and equipments that will enhance safe and efficient performance. Employers should also protect employee’s document and files from unauthorized access from other people. In addition employers should compensate or reward an employee for his competence regardless of his gender culture or even tribe. These factors do not only apply to companies in the US but to entire companies operating globally. To enhance effective performance employers should encourage their employees to interact and socialize with other professionals in different fields. This will enhance individual confidence and capabilities 4.0 Conclusion An organization should ensure that it provides suitable working atmosphere for their employees to perform effectively and efficiently. If employers provide suitable working conditions it’s the duty of an employee to work diligently and ethically to the best interest of the employer. Therefore outstanding employees should be recognized and also rewarded. Organizations are urged to formulate policy that ensures employees are protected from any form of harassment (Russell 2007). Employers should make a point of providing of providing stable employment practices. This will avoid abrupt termination of employees whenever necessary except for a sufficient cause. The problems identified above are not unique to US but are experienced through out the world. In fact, some countries’ working environment is in a worse condition and requires urgent attention especially in policy making. This will help minimize risks and accident that arise arrogance. 5.0 Bibliography Edwards, E, & Fisher M 2004, Evaluating, employee survey programs, In J. E. Edwards, J, Scott, C, & Raju, S, Eds, The human resources program-evaluation handbook pp.365–386,Thousand Oaks, CA, Sage. Immanuel, N, 2005, Immigrants, Unions, and the New U.S. Labor Market, Philadelphia, Temple University Press. Rick, F, and Kim, V, 2004, Hard Work, Remaking the American Labor Movement, Berkeley, University of California Press. Green, F, 2006, Demanding Work, the Paradox of Job Quality in the Affluent Economy, Princeton, Princeton University Press. Seymour, L, and Meltz, N, 2004, The Paradox of American Unionism, Why Americans Like Unions More Than Canadians Do But Join Much Less ,Ithaca, ILR Press. MacLean, N, 2006, Freedom Is Not Enough, The Opening of the American Workplace, Cambridge, Harvard University Press. Russell, J, 2007,The ongoing challenge, American workers and unions, http,//www,historycooperative,org/journals/llt/62/russell,html, Marcoullier, D, and Robertson, R, 2007, Globalization on Working Conditions, Case Study of Honduras, World Bank, Washington D,C. Brown, K, 2007, Globalization, Implications for Employment,Wages and Labor Standards, Review of Literature,World Bank, Washington D,C. Read More