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Labor relations will be good in high performing organizations whereas it might be poor in underperforming organizations. An organization can function smoothly only if the relationship between the…
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Download file to see previous pages On the other hand labor relations is the dealings between management and the workers with respect to the employment conditions. “Most commonly, however, labor relations refer to dealings between management and a workforce that is already unionized, or has the potential to become unionized. Labor relations is thus crucial to industries like autos and airlines with heavily unionized workforces” (Labor Relations, 2009)
In most of the times the interests of the organizations and that of the labors would be opposite in direction. The management always keen in maximizing their profit and for that purpose they will compromise the interests of the workers. On the other hand labor unions are always working for the wellbeing of the workers and they are not much concerned about the profit of the organization. For workers what they are getting is more important than what the organization is achieving. Both these interests contradict at times which will end up in strained labor relationships and trade union strikes.
In a changing world, especially under globalization and liberalization, a well maintained labor relationship is important for an organization in order to compete in the market. Customers will trust an organization if their product or service supply doesn’t interrupt. Poor labor relationship always results in labor union strikes which will interrupt the production of goods or service. A temporary suspension of service or supply of goods in the market will force the customers to search for other options. Once the customers move away from the organization, it is difficult for the organization to bring them back.
Labor problems destroy the image of the organization in the society in which it operates. The public will often take the side of the labors even if the justice is on the other side because of the false assumption that the management always trying to exploit the workers. This public ...Download file to see next pagesRead More
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