The Context of Employee Relations against a Changing Background - Essay Example

EMPLOYEE RELATIONS BY Requirement Overview of the context of employee relations againsta changing background focusing on: a) Explaining the unitary and pluralistic frames of reference. The approach managers take to establish relationships at work is critical because their success in this area relies upon their own values, their personal beliefs about the authenticity of managerial authority, and the allocation of power in organizations. Fox (1966) has suggested that the ‘frame of reference’ that managers assume, shapes their response to the problems they come across. The ‘frame of reference’ is a term put forward to explain the typifications and implicit understandings individuals use to make sense of their daily lives. The way industrial relations take place within a particular organization is determined by the frame of reference through which its top managers recognize the formal relationship with individuals and/or their representatives. The unitary frame of reference is widespread among managers. According to this unitary perspective, all individuals in the organization are working towards one goal, where there is one sense of power and where conflict is abhorred. Managers frequently view themselves and other managers in the organization as part of a ‘managerial team’, and they expect their employees to pledge to the same point of view. Managers who take this approach consider themselves as the only rightful source of power and authority which they value and protect. They view their role as one of controlling the activities of the workforce and presume that all employees share the common goals of the organization, are faithful to the `management team’ and entirely dedicated to the objective of the organization. On the other hand, a different way of looking at organizations is to view them as pluralities of interest groups, each with differing and occasionally opposing interests, which might come together in alliances, although these alliances shift and modify according to the situations. Whatever the long-term interrelatedness of interest groups, in their daily struggle for resources and in their work-related activities, they emphasize on sectional interests. Here, managers might tolerate and keenly promote freedom of expression and the development of groups, which create their own norms and choose their own informal leaders. In this way, authority and control takes place in a number of areas of the organization and loyalty is commanded by the leaders of the groups, which are frequently in competition with each other for resources. The managers accomplish results by combining the groups, promoting participation, motivating employees and managing their work efforts (Gennard & Judge 2005). b) Assessing how changes in trade unionism have affected employee relations. Decline in trade unionism has been a prominent characteristic of industrial relations around the globe. At the turn of the new century, unions come across numerous adverse challenges brought about by new developments like globalization, rapid technological advancements and alterations in employee demographics. Employee movement; be it in terms of complete number or membership is considered to continue to decrease as these new developments have demonstrated to have brought strong influence on the structure of labor markets and industrial relations. Individual organizations are now being required to innovate to offer the right product, at the right price and time. There is an increasingly strategic role for industrial relations within companies, as much of what has to be done entails considerable changes to conventional practices in this and the related area of human resource management. A new paradigm is up-and-coming, depending on a wider concept of employment relations. This new paradigm is based on a variety of industrial relations and human resource practices aimed to enhancing the flexibility and skills of the employees, within an environment which stresses on communication, collaboration and trust between managers, employees and their representatives. Thus, the role of trade unions in providing healthy working environment and flexible timings is being filled by the organizations themselves. Similarly, organizations are emphasizing on individualized relationships between the employer and the employee which is further diminishing the significance of trade unions within organizations. On the other hand, decline in trade unions has also resulted in deterioration of employee relations. The reason behind this is that collective bargaining is considered to be the spearhead by lawful and representative labor unions. Employees become members of unions whose leaders represent them. Unions operate as the employees’ voice as collective efforts persuade better management and greater productivity by decreasing employee turnover, improving employee confidence and collaboration, bargaining more efficient work environment, resolving disputes, and influencing management into increased productivity. With the huge tendency towards contractualized employment which is characterized by fewer benefits and fragile security and term there has been a negative impact on the employee relations in the organizations (Binghay No date). c) Explaining the role of the main players in employee relations. The three main players involved in employee relations are the employer (the management), the employee (the trade union) and the government. This is known as a tripartite employment relationship. An employment relationship between the employer and the individuals is established as soon as one individual hires another. This employment relationship is a financial relationship because one party, that is, the employee is ready to do work in exchange for compensation. Trade unions’ main purposes are to negotiate on behalf of their members for higher wages and working conditions and to protect and advance employees’ rights. On the other hand, the employer must make sure that his/her organization’s objectives are accomplished through effective managerial functions. The employer’s stress will be on the productivity and the delivery of quality service and products. Furthermore, the employer will make clear the roles and responsibilities of the workers, including job description for all the employees. He/she must make certain that all the applicable employee legislative requirements are met. The employment relationship between employees and employers is multifaceted due to the fact that they have common as well as contradictory interests. The state or the government thus comes in as a third party in order to offer a legal structure within which relations between the two primary parties can be handled. The framework will offer direction in respect of dimensions such as collective bargaining, the resolving of conflicts, the solving of disputes, how to make certain just firing and strikes. The state is therefore the regulator in employee relations, as it makes certain that employees and employers carry out their relationship according to the law (Gennard & Judge 2005). Requirement 2 Explain the nature of industrial conflict and its resolution with reference to the following aspects: a) Explaining the procedures an organization should follow when dealing with different conflict situations. Conflict is a state of unsettled differences inside an individual, between individuals, an individual or a group, or two or more groups. Among the worrying behaviors of the existing industrial age, relations between employees and employment occupy a major place. Owners and managers of industry and employees whom they employ and manage can be expected to establish diverse orientations toward industry and diverse opinions of their own interests. In spite of serious emphasis in recent years on shared goals and on the merits of industrial peace and accord, the pursuit of different objectives continues to cause conflict. Constant efforts are needed to alleviate conflict in regards to the issues that arise on these matters, to generate and safeguard smooth-working relationships, and to offer suitable means of compromise, adjustment, and arbitration to settle disagreements and to deal with organized group conflict which blows up, or threatens to explode, into open conflict (Farnham 2000). The very first stage in resolving any industrial relations problem begins in the organization. This is done through the grievance procedure which is a formal series of steps which are supposed to be followed when a dispute occurs. The procedure usually begins with the first point of contact, such as a manager and then to higher levels of management. The grievance procedure is characterized by negotiations which entail a formal or informal discussion between the employee and employer in which both parties agree to a joint agreement to resolve the dispute. During the process of negotiation, parties do not need any third party intervention such as that of unions or other associations. If the parties are unable to resolve the conflict after negotiations, mediation takes place in which a impartial third person is brought in who facilitates the parties to find a basis for an agreement that is acceptable to the disputing parties to come to a final agreement. When the dispute cannot be resolved even after mediation, conciliation takes place which is formal means of settling a dispute and might be referred to a third party, usually an industrial commissioner with the necessary qualification and skills who encourages the parties to negotiate their own agreement and brings the parties together. If conciliation fails, the matter might be put forward to arbitration which is very similar to the processes of conciliation, where the neutral third party comes from an authorized institution. The main difference is that the arbitrator hears out the arguments from both sides and makes the absolute judgment, which is legally binding on the parties involved. When the dispute goes beyond the boundaries of a speedy resolution the disputes needs to be settled in the court of law. This process is known as litigation where the national system is used if the party believes that the dispute or action has violated the law (Farnham 2000). b) Explaining the key features of employee relations in a selected conflict situation. Industrial conflict takes place when there is a diverse perception of interests among the employer and the employed. In spite of strong emphasis in recent years on shared goals and on the advantages of industrial peace and accord, the pursuit of contradictory aims continues to cause friction. Keeping good employee relations at workplace is a requirement for organizational success. Such employee relations are necessary for high yield and employee satisfaction. Employee relations usually deal with preventing and working out issues related to individuals which might occur or effect the work situation. Strong employee relation relies on healthy and safe works conditions, complete participation and commitment of the workforce, incentives for employee motivation, and efficient communication system in the workplace. Good employee relations results in more capable, motivated and industrious workforce which would further result in increased level of sales. Good employee relation indicates that employees experience positive feelings about who they are, their job as well as about being a part of such a great organization. A number of conflicts are resolved within a few days. Their material costs, in terms of production losses compel the organizations to quickly resolve the issues at hand. If the conflict between the parties is not resolved effectively, there can be a huge negative impact on the employee relations in the organizations which would not only negatively affect the productivity but will also influence the employee satisfaction (McCourt & Eldridge 2003). c) Evaluating the effectiveness of procedures used in a selected conflict situation. In a selected conflict situation, there are numerous procedures used to resolve the dispute. The procedures have been mentioned previously which start from the grievance procedure and end at litigation. In-between, the parties can be involved in mediation, negotiation, conciliation and arbitration. The parties move from one procedure to the other in case they fail to resolve the dispute. All these conflict-resolving procedures differ in their effectiveness under different situations. The first and the foremost is the grievance procedure which is a formal series of steps which are supposed to be followed when a dispute occurs. This can prove quite effective if the nature of the dispute or conflict is not severe. But, if the conflict is sever and cannot be easily resolved, then the grievance procedure will prove to be ineffective. The second step in conflict resolution, that is, negotiations can prove extremely effective, even during severe conflicts. The reason behind this is that negotiations not only help in the resolution of the conflict at hand, they can also help the parties discuss other minor issues. After negotiations, mediation takes place which is a neutral third person is brought in who facilitates the parties to find a basis for an agreement that is acceptable to the disputing parties to come to a final agreement. This procedure helps both the parties bring in an objective view that would help them reach an agreement that is beneficial for both the parties. In conciliation, a qualified individual is brought in who is aware of legal, social and economic issues involved and therefore, can encourage the parties to negotiate their own agreement and brings the parties together. After conciliation, arbitration takes place which also brings in a third party intervention but the decision taken by this third party is legally binding on the parties involved. Even though, both the parties might not agree with the decision but this is a quick way to resolve the dispute. Lastly, involving the court of law through arbitration is an expensive method for resolving disputes but it is also effective as it helps the parties involved to resolve the dispute (Farnham 2000). Requirement 3 Identify the collective bargaining and negotiation processes explaining the following points: a) The role of negotiation in collective bargaining. Collective bargaining is the process through which conditions of a job are settled between management and the employee represented by a labor organization. The purpose of collective bargaining is to reach an enforceable contract regarding wages, working times, and other relevant issues. Union contract clauses usually deal with membership requirements, contract management, compensation, working conditions, and employee safety and position, among others. Negotiations play a significant role in collective bargaining. Collective bargaining is particularly an industrial relations device or tool, and is an aspect of negotiation, related to the employment relationship. As a process, the two are in essence the same, and the philosophies related to negotiations are related to collective bargaining as well (De Silva 1996). Collective bargaining negotiation between labor unions and business employers make up a specialized area in the field of general negotiations, but the fundamental legal and relationship dimensions make them different. Unlike a general business negotiation and law suit negotiations that are not regulated by legal provisions, a collective bargaining negotiation is authorized and managed by external laws. Labor unions are selected by a majority of employees in a proper bargaining unit, which might consist of uniform skilled workers or diverse industrial employees, become the particular bargaining instrument for all of the individuals within that unit. There are a number of matters that necessitate lengthy negotiations that might go on for weeks or months, as the parties attempt to resolve the different issues. The multi-factor feature of collective bargaining communications generates the need for detailed pre-negotiation preparation (De Silva 1996). b) Assessment of the impact of negotiation strategy for a given situation. Negotiation strategies play a significant role in achieving the desired outcomes. For a given situation, the first and the foremost step in negotiations is that emphasis should be laid on ultimate objectives that both parties settle on. Furthermore, it is extremely important for both the parties to concentrate on the problems and issues at hand, rather than personalizing or emotionalizing the negotiations. If one of the parties, or both the parties, personalize or emotionalize the negotiations, there is great chance that both will not achieve the outcome they are looking for. The parties need to focus on interests, not demands by understanding why the other party wants a particular need fulfilled in the negotiations. Similarly, both the parties are required to produce new alternatives for shared gain by concentrating on new interests to allow new ideas to come forward. The most significant part in any negotiation process is the ability to listen effectively. Parties can also gain clarity on their counterparts positions by asking them questions. Their answers will offer helpful information that can help them adjust or modify their positions wording, demonstrating them how it will be of helpful to them, while not backing down on their ultimate goals. Furthermore, focusing on what is just opens up room for in the negotiations for both parties to come to a joint agreement about the best solution to a problem. Thus, using effective negotiation strategies can help all the parties involved achieve the desired outcomes (Gennard & Judge 2005). c) Providing a brief overview of various negotiation strategies and provide an assessment of the effectiveness of each strategy. There are a number of negotiation strategies that allow parties to resolve their issues and problems. The first and the foremost negotiation strategy is the distributive strategy which entail win-lose, fixed-amount situations in which one party’s gain is another party’s loss. In these negotiations each of the parties looks for maximum gains and therefore frequently looks to inflict maximum losses on the other side. This approach frequently results in agreements which are essentially unstable. Integrative negotiation strategies or win-win approach is another negotiation strategy which entails shared problem solving to accomplish results benefiting both parties. Win/win negotiations are characterized by open and compassionate communications and are usually referred to as partnership agreements. It should be clear that where a long term business relationship is involved that it is imperative to accept a more integrative (win/win) approach to negotiations. The failure to work in collaboration with the other side in order to come to a mutually acceptable outcome is a widespread reason for the collapse of many otherwise successful business relationships (Gennard & Judge 2005). d) Identifying a recent industrial conflict and evaluate the effectiveness of collective bargaining with respect to the outcomes achieved. A recent example of collective bargaining is the NLF collective bargaining agreement. This agreement is a result of the conflict between the players and the owners that took place in the 1980s. The players, becoming members of trade unions, initially went on a strike against their employers which proved unsuccessful. Afterwards, the players entered the court of law where they found more success as compared to labor movements. Due to the owners’ victory during the late 1980s strike, players deserted their unions and took their problems to the courts. By early 1990s, both labor and management had become more willing to compromise than they had been for many years. A number of appeals of the leagues labor-related lawsuits were still waiting in the courts; neither side could be certain of success, and both greatly dreaded the consequences of defeat. Therefore, the Players Association was again licensed as a union, compelling both parties to restart to the bargaining, and in 1993 the leagues players and owners decided on a huge compromise that resulted in authorization of the first NFL collective bargaining agreement. Both the parties compromised and came to an agreement which was to last till 2008 and was renewed till 2010. In the above-mentioned example, collective bargaining did not prove successful initially but later, the players through collective bargaining were able to accomplish what they wanted. Similarly, the management was also able to maintain its position as well but provided the players with improved playing conditions and better salaries (Picket lines and replacement players: the 1987 NFL strike 2010). Requirement 4 Elaborate on the concept of employee participation and involvement focusing on the following specific aspects: a) Assessing the influence of the EU on industrial democracy in the UK. The European Union is dedicated to setting up a market of minimum social and employment standards in which goods, capital, people and services move without restraint. In 1997, the UK government accepted that more social and employment measures could be coordinated between member states, through the use of the EU’s competent majority voting process. As a result, employee relations in the UK have under gone growing legal regulations from the European Union. The impact of EU on employee relations in the UK cannot be mentioned enough. It powers to establish the rules and regulations which manage the organizational relations between employers and employees have developed considerably since the mid-1990s. The EU, UK has influenced employee relations in the fields of equal employment opportunities, employment security and working conditions, information and consultation rights and health and safety. Furthermore, areas where UK has had to work with EU programs in the employment law field include collective bargaining, shifting of undertakings, obtained rights, ‘burden of proof’ in equality cases, part-time employment, fixed-term contracts, women-related issues, parental leave and working time. These are all the areas where EU legislations have influenced directly the daily work of the UK personnel professional (Ozaki 1992). b) Comparing methods used to gain employee participation and involvement in the decision making process in organizations. One of the greatest challenges in management has been implementing effective human development strategies to improve organizational performance and responsibility. Employee participation and employee involvement play an important role in the decision-making process in organizations. Employee participation is usually defined as a process in which power is jointly used by people who are otherwise in different positions within the organization. Participatory management practice allows the involvement of managers and their employees in different aspects of the organization. It stresses on the significance of trade unions’ participation in the decision-making process in the organizations. On the other hand, employee involvement is a softer form of participation that entails a unity of interest between employees and management and emphasizes that involvement should be permitted at the employees as a whole and not limited to trade unions as a channel. Thus, involvement is deemed to be more flexible and better geared to goal of acquiring commitment and common interest. The process of employee participation and involvement offers employees the chance to influence and, wherever possible, participate in decision making on issues which have an effect on their lives. The most widespread categorization is that which distinguishes direct from indirect participation. The term direct is used to refer to those types of participation where individual employees, although often in a very restricted way, are involved in decision making processes that influence their daily routines. Direct participation, such as consultation groups or self-regulated teams is seen as a tool to enhance worker output and to improve employee satisfaction. On the other hand, indirect participation is used to illustrate those types of participation where representatives or delegates of the main body of employees take part in a number of ways in the decision-making processes within the organization. Indirect forms, such as mutual consultation, broadening the content of collective bargaining and worker directors are connected with the wider concept of industrial democracy (McCourt & Eldridge 2003). c) Assessing the impact of human resource management on employee relations. The global developments in management suggest that human resource management is turning out to be the single largest field of management consultancy, which illustrates its importance in business success. It should be obvious that HRM strategy is not just a program for employee wellbeing and empowerment; it also has dimensions of cost control and employee regulation. The goals of managements, the methods in which companies are managed to accomplish these goals and the human resource management and industrial relations programs in this regard, are influenced by demands, many of which are put forth by globalization. Transformations in industrial relation practices such as growing collective bargaining at company level, flexibility in regards to types of jobs as well as in regards to working time and job descriptions have taken place due to as increased competition, fast changes in products and processes and the growing significance of skills, quality and productivity. These issues have also influenced human resource management strategies and practices. In directing change, the chief factors are employee involvement in carrying out change, improved customer understanding, and making sure that the skills of employees are in line with the production of goods and the provision of services according to the standards of the global market. Human resources management stress on creating cooperative employee relations persists to be the main concern. While employee wellbeing still continues to be a main concern for encouraging employee satisfaction and involvement, the emphasis on employee loyalty is becoming weak to give way to performance orientation (Nel 2006). d) Comparing and contrast two organizations with respect to the concept of employee involvement and participation practiced in the two organizations. Marks and Spencer is one of the biggest retail chains in the UK with over 60,000 employees under its employment. Even though, Marks and Spencer employees are not involved in trade unions but it considers employee involvement and participation likely to contribute a sense of responsibility and ownership that eventually results in organizational commitment and loyalty. The organization believes that its employees are extremely important and allowing them to participate in the decision-making process in the organization will not only benefit the employees but the organization as a whole (Storey 2005). On the other hand, Tesco Plc is another huge international retailer that employs more than 260,000 individuals around the world. Tesco allows all of its employees to become members of a trade union which has resulted in almost half of the UK employees to be members of unions. It achieves adequate growth by continuing the employee relations in the profitable way. Tesco constantly invest not only to the global market but also in their workforce. The concept of employee empowerment is extremely important to the organization. Participation of employee in the management is also common. The practice of involving employees in the decision making process has benefitted a number of employees as well as the whole company (European Commerce Sector: Tesco Plc No date). Requirement 5 ‘Industrial relations is today deemed to be in crisis. In academia, its traditional positions are threatened on one side by the dominance of main stream economics and organizational behavior, and on the other by postmodernism.’ The changing feelings towards industrial relations need to be understood in the background of main stream economics, organizational behavior and postmodernism. The phenomenon of industrial relation suggests that struggle of interest between employers and employees are the main characteristic of the industrial age. In contrast, the idea of postmodernism has questioned a lot of issues that are essential to the concept of industrial relations. The core of postmodernism is the idea that advanced industrial countries are going through changes in people’s attitudes and behaviors and institutions through which they operate. Postmodernist view puts forward a powerful sense that the world is experiencing a fundamental change and the existing change in industrial relations is inherent. This is resulting in a new age of experimentation at the organizational level with a number of employees involvement programs, new local collective bargaining agreements, and transformation in other employment practices that are intended to both develop industrial relations and organizational effectiveness (Kelly 1998). These demands are also resulting in a new emphasis within management on implementing strategic planning methods to the industrial relations function as organizations and unions begin to understand the interrelatedness among wide business policy decisions and industrial relations performance at the organizational level. As a result, industrial relations within both management and unions are being brought forward to critically observe their existing practices and to evaluate substitute strategies that satisfy organizational and employee goals (Macdonald 1997). Furthermore, individual employees, managers, shareholders, and union leaders are seen as human instruments rather than merely monetary instruments. Behavioral components of individual decision-making are therefore significant; cognitive restrictions, emotions, social or cultural norms and values, lifestyle, intrinsic as well as extrinsic motivators, and concern for others, equality, and justice. Thus, industrial relations are required to understand their existing practices to fulfill organizational and employee objectives through contemporary concepts of postmodernism, organizational behavior and mainstream economics (Budd, Gomez & Meltz 2004). Explain and evaluate the arguments for and against trade unionism. The arguments for trade unions indicate that firstly, organizations with trade unions tend to have higher wages than non-unionized organizations. The reason behind this is that organizations having trade unions negotiate for better wages for their workers, while organizations where trade unionism is not present, individual workers cannot bargain for higher wages. Similarly, in regards of monopsony employers, trades unions can raise pays and increase job opportunities. Trades unions can also safeguard employees from mistreatment, and help uphold health and safety legislation. Furthermore, trades unions can offer representation to workers facing legal action. They can also help negotiation of productivity deals which ultimately results in increase in productivity which would allow organizations to be able to have enough money for higher wages. Thus, trades unions can be important for implementing new working practices which enhance output. There has been a decline in trade union power due to decline in manufacturing and rise in service sector employment. Trade unions need to protect employees working in the service sector due to its part-time and temporary nature of jobs. On the other hand, trade unions can create unemployment because if labor markets are competitive, higher wages will result unemployment. Similarly, trades unions only look after the needs of its members; they frequently disregard the troubles of those not part of the labor markets. Trade unions can also result in loss of productivity and sales by going on strikes and work inefficiently. Therefore, the company might go out of business and be unable to pay employees at all. Thus, the benefits of trade unions rely on their situations (Farnham 2000). Explain the cultural differences towards employee relations between the UK and EU. Employee relations do not occur in vacuum. It takes place within an organization that works in product and labor markets, has product and/or service delivery tools, and has its own culture, values, past experiences and internal politics. Culture plays a significant role in developing employee relations in organizations. This culture varies from organization to organization as between organizations in UK and EU. Most European Union states have some legislative provision or agreed systems for facilitating employee relations at organizations. The exact means differ according to each country’s legal framework for employee relations, the relative strengths of employers and unions, the consistency and unity of the trade union movement and the dominant culture of employee relations. The Netherlands and Germany, for example, have high legislative systems, with widespread and comprehensive authority for employee representatives. It is these that offer largely defined requirements for employers and employees in determining their culture towards employee relations. On the other hand, culture towards employee relations in the UK emphasizes on the need of employee involvement and participation. The culture of UK allows it employees to be treated fairly and justly in face of any problem or issue that might arise. Thus, even though, UK is a member state of EU and follows labor legislatives laid down by EU, cultural differences towards employee relations still exist (Gennard & Judge 2005). 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