Employee Relations at The Chipton National Health Service Hospital Trust Estates Department - Case Study Example

Employee Relations Table of Contents Employee Relations The Organization being Evaluated, its Background and Context The organization being evaluated is the Chipton NHS Hospital Trust Estates Department. It is a health service provider and its trust status was acquired 15 years ago. The Trust is located in a medium sized town that has a thriving business community; the town was capable of coping with the recession. It is the largest local hospital and it offers them hospital services. It has the largest group of doctors in the area; the area of the locality is 80 square miles. The organization employs around one thousand support staff within the Operational Support Department. It offers all technical, professional and operational support employees for the hospital. Services being offered include; cleaning, security, estate maintenance, porterage, catering and car park management. Workers in the unions available are approximately 60 percent; they have memberships in GMB, TGWU and Unison. Past and Current External Influences Due to the recession, the government fiscal policy and budget deficit is likely to cut the Trusts funds by 10 percent. The government policy has also provided for the emergence of other healthcare providers in the area. The expectations of the government is to see the Trust increase the number of patients that are seen, improve the service quality, effectiveness and efficiency. In order to meet the required target with a constraint budget, the Trust has been forced to offer competitive tender which has led to outsourcing of its services. The internal departments have been offered service contracts and in turn it has translated into providence of better value for money and the retaining of in house service. The relationship between the workers of the Trust and the unions is quite fair and there are 2 regular monthly meetings between the management and the union. The government in the past has brought changes that have elicited negative response from the staff. The aim of the organization is to offer good information to its staff regarding the government policy changes. Internal Influences There has been gradual development of communication policies by the hospital management and this has led to the improvements of staff feedback through the staff attitude survey. The survey evaluates the medical staff confidence in the top management. The support staffs presently works in groups of between 4 and 6 and this is dependent on their roles; there is a supervisor assigned for each of the groups. These groups are permanently assigned to the various departments within the hospital. The groups operate on a rotating 8 hours shift pattern; the number of shifts in a day is three. A degree of inconsistency and role ambiguity has been witnessed in the operations department. This is so in regard to the management of people by the supervisory grades within the organization. There are key issues that need to be addressed and they include; communication, delegation, employee empowerment and team building. Empowerment particularly lacks in the middle and lower levels (grades) of the employees. The changes have been forced through without even negotiating with the employees and trade union representatives. There have been signs of middle management grades and some supervisory absconding some of the management responsibilities on the grounds that they are not well paid to undertake the currently assigned duties or that they are not properly trained. The resultant effect has been partial implementation of the operational procedures and emergence of a group-centred culture that looks like it has taken prevalence over the customer’s needs. The central human resource department controls the human resource management and some of the management practices such as employee discipline, selection, communication and grievance have been delegated to the line management in the group structure. The Operations department particularly in the direct operations level is faced with poor management control, role ambiguity poor motivation and low morale. Role ambiguity has been enforced by limp reporting structures, poorly-defined limits of accountability and authority, and weak lines of communication. The present situation of working among the groups is characterized by independent working from each other and at times from the organizational level that is immediately above them. The groups have initiated traditions and demarcated themselves and the union representatives are very reluctant on the issue. They do not want to agree that the situation needs changes. This is a sign of ineffective management control. There has been establishment of over rigid job boundaries and this has been enhanced by the multistructured differentiated bonus system that has been in existence for the last 30 years. The system tends to give strength to inflexibility in the working practices. Impact of the Influences in the Next Two Years The External Influences The government policies will likely change the way the Trust operates. The government is already cutting the budget of the Trust and this is likely to have an impact on the performance of the Trust of both the employees and delivery of services. The policy has given way for other healthcare facilities to emerge; this will likely to bring intense competition in terms of the performance and providence of quality healthcare services. The Internal Influences The internal influences are many and some of them are detrimental. The relationship between the employees and the management has been going down. There are concerns over the management practices and as a result, some of the junior supervisors and employees have not been doing their management responsibilities. If not checked, the situation may lead to lose of employees and poor performance of the company. The trade union representatives have been performing their duties in a biased manner and such a phenomenon may lead to the trade union representatives and employees compromising their duties. The groups created have in a way brought some changes and in the future there is a probability that the groups may bring in more divisions than the ones being currently felt by the Trust. Employee Relations An Overview of the Employee Relations In the market economies, employee relations occur when there is exchange of payment between the employee and the employer. In simple terms, employee relations are the pay-bargain between the employees and the employer or the paid employment (Farnham 2000, p3). An employee is usually referred to as someone who is working under a contract of service or a contract of employment for an employer. Employee relations are affected by a number of factors such as; (a) the organizational arrangements in which the employment decisions are made, (b) the ownership and the structure of the organization in which the employment take place, (c) the external factors that affect the exchange of relationship such as social, economic, legal and political and, (d) the values and ideas that underpin the employment activity (Farnham 2000, p3). Employee relations are concerned with the interactions between the parties in the employment relationship. There are three groups in employee relations; (a) the primary party, (b) the secondary party, and (c) the tertiary party. The primary party offer the work and pays for the work in the labour market; the primary party consists of the employees and employers. The secondary party acts on the behalf of the primary party in the regulation and negotiation of the employment contracts; it consists of the management organization and the trade unions. The third party roles are defined by the state agencies and the European Union (EU) institutions and they attempt to mediate between the employees and the employers, the union and the employers, for the interest of stable employee relations. The interaction of the primary and secondary parties result in the creation of employee relations practices. The main employee relations practices are created by a number of factors; (a) human resources skills, (b) agreement and rules made by all the parties involved, (c) conflict-resolving processes used and, (d) the external influences that affect the parties making the employment decisions (Farnham 2000, p4). The government plays a great role in employee relations in the United Kingdom. Apart from helping in maintaining order and stability in the workplace, the government also plays a role in protecting workers in the event that no alternatives exist. The government also helps in maintaining parity of the main parties’ bargaining power. By enacting income policies, the government controls inflation and employee earnings. In essence, the government acts as peacekeeper, legislator, economic manager and employer when it comes to employee relations in the UK. UK laws have impact on several areas in the employee –employer relationship. The laws maintain a good balance in ensuring that workers have equal opportunities at the workplace, the working conditions are safe, health and safety standards are maintained and that the employees are not unduly exploited. Theories of Employment Relationship There are four theories on employment relationship and they are egoist, unitarist, pluralist and critical model (political economy, feminist and race) of employment relationship. Egoist Employment Relationship In this relationship, the employees are seen as to pursue income and the firm profit maximization. Individual self-interests are the key thing in this relationship. The government promotes economic transactions through enforcing contracts and protecting property rights. Conflict does not exist between the employees and employers; the two engage in mutually beneficial and voluntary transactions. The value of wage is not too high or too low; the value predicts the contributions made by the worker’s productivity (Bhave and Budd 2006, p20). The government-mandated labour standards and the labour unions are seen as interfering with the free market, distorting employment and the output levels in the economic system. The lazy workers are protected by the free market and the unions are viewed as interfering with their discipline (Bhave and Budd 2006, p21). Unitarist Employment Relationship The right employment practices and policies align the interests of the employees and the employers. The management and labour both have interests and any conflict arises from the poor employment practices. The human resource management focus is on the creation of policies that both benefit the employer and the employee. There are several human resource management models approach that can be applied; paternalistic, hierarchical, high-commitment and strategic approaches. In this type of relationship, the individual is far much important than the collective identities, practices and behaviours. The government-mandated labour standards and labour unions become unnecessary (Bhave and Budd 2006, p22). Pluralist Employment Relationship The employment relationship is characterized by multiple and conflicting interests between the employees and employers. For example, the employers may demand flexibility, lower labour costs and a comprehensive pace of work while the employees may demand higher wages, a safe working environment and employment security (Bhave and Budd 2006, p23). The role of the government is to offer equitable outcome. The inequitable outcomes are seen as emanating from the unequal bargaining power and the imperfect labour market. Mandated labour markets and unions promote the optimal operation of the market and they level the playing field between the employees and the employers. The labour unions protect the relationship from the business cycle whims and the corporate power (Bhave and Budd 2006, p24). Critical Employment Relationship The employment relationship is seen as the struggle for control and power. They are grouped under the critical industrial relations and they contain feminist, Marxist and other sociological theories that are based on the division and control of labour. The labour market is seen as a social instrument of control and power. The employment relationship is a contested exchange rather than a voluntary exchange (Bhave and Budd 2006, p25). Analysis of the Current Situation The current situation in the organization is affected by both internal and external influences. The external influences are brought about by the government policies. From the egoist theory, the government is interfering with the free market that the organization is enjoying; the interference is through cutting down the budget and introduction of other healthcare providing facilities in the area. The internal influences are brought about by poor management, interference by the trade unions representatives, and delegation of crucial responsibilities by the central human resource management to the departmental human resource management, lack of empowerment particularly among the junior and low grade workers and independent working as some workers have formed their own groups. The Proposed Changes There will be need to change the structure and management of the department to solve some of the problems that are related to poor management and delegation of crucial responsibilities to the departmental human resource management by the central human resource management. Some of these changes are necessary because they have a big impact on the performance of the employees in their respective departments. Flexibility is of great importance since the government will be cutting down the budget of the organization. The changes made to the department should be communicated well to the employees. Recommendations There are a wide range of employee relations policies, processes and practices that the organization can adopt in order to facilitate the change and improvement of the relationship in the workforce and thus improve its performance. The choice of applicable and best policies, processes and practices is vital for the success of the organization. It is important to note that not all the policies, processes and practices can be applied in the organization; a choice that is suitable within the organization structure and context should be made. Employee Relations Policies When drafting and implementing the employee relations policies, there are two vital things that must be taken into consideration; the internal and external factors and their influences. It is imperative that the organization understands the type of policies other employers are utilizing in their organizations; for example, a particular organisation may use employee involvement as a means of retaining the main employees and this may have an impact on the ability of the organization in question to retain its staff (Gennard and Judge 2005, p58). The human resource management should make sure that the policies being adopted are suitable to the company’s strategy and that they are internally articulate. The key policy domain of the human resource management function is human resource planning, job design, selection, appraisal, work planning, development, remuneration and employee relations (Gardner and Palmer 1997, p258). An organization can achieve competitive advantage if it is capable of obtaining the employee’s commitment. Commitment from the employee can be unearthed if the employee feels properly motivated, valued and secure. This depends on the type of employment policies adopted by the organization. The policies must be capable of adding value to the employee and the business (Gennard and Judge 2005, p58). Employee Relations Processes There are a number of employee relations processes; collective bargaining, partnership agreements, industrial action, and conflict resolving mechanisms. The organization can adopt collective bargaining and conflict resolving mechanisms. In collective bargaining, the employees (their representatives may be included) and the employers (their representatives may be included) negotiate with each other in attempt to sole a number of issues. Several things are encompassed in the negotiations; anything concerning employment relationship and the work, the employment terms and conditions, and the working conditions. Collective bargaining is unique from other employee relation processes in that its intention is to reach an agreement. When the parties involved engage themselves in collective bargaining, they are implying that they are ready to share in the decision making process of a particular issue (Leat 2007, p358). When collective bargaining fails, the employees and the employers are left with a number of choices. The matter can be handled in the disputes procedure in which the parties involved attempt to resolve the dispute. If disputes procedure fails, a third party is involved in the form of mediation, conciliation and arbitration (Gennard and Judge 2005, p230). Employee Relations Practices Although it is not required by the law, some organizations go to the extent that they create written policies; the policies are triggered by the actions taken in response to the employee concerns. The following are some of the employee relations practices; (a) fairness, equal employment opportunity and consistency, (b) employee appraisal is one way to raise the motivation of the employee and reinforce the company’s goals and expectations, (c) counselling the employees as this will sustain and enhance the job performance and serve other functions, (d) conflict resolution and, (e) workplace training (Bryant 2008, p1). Management practices both new and developing ones (such as single-union-no-strike and performance-related pay) have been successfully used in many organizations since 1980. However, not all of these practices can be successfully adopted by the organization. There is need to evaluate these practices and see whether they can be successfully utilized in the organization (Gennard and Judge 2005, p4). Conclusion The organization (Chipton NHS Hospital Trust Estates Department) being evaluated is faced by a number of influences that are both external and internal. The external influences are mainly from the government. The cutting of the budget allocation and introduction of policies by the government is predicted to have an impact on the management and performance of the organization. The internal influences include a souring relationship between the employees and the management. There are issues related to the management practices mainly due to delegation of important duties to the junior supervisors. The situation if not checked, may lead to lose of employees and poor performance of the company. There are three parties that are involved in the employee relations which are the primary, secondary and tertiary parties. These parties have an important role in the employee relations. Four theories (unitarist, pluralist, critical and egoist) explain the relationship between the employee and the employer. The role and influence of each party is well explained by these theories. The most important theories in this case are the egoist and critical theories. Human resource management theoretical models are also applied and this is so in the critical theory. There are various recommendations stated and they are based on the employee relations policies, processes and practices. The organization can adopt policies that are suitable in the smooth running of the organization; the human resource management should assist in the identification of those policies. The most important employee relations processes are collective bargaining and conflict resolving mechanisms. The two are vital in the determination and solving of conflicts present in the organization. There are a number of practices that the management of the organization can adopt and such include employee appraisal, motivation, and counselling and conflict resolution. References Bhave, D. & Budd, J. W. (2006) Sage handbook of industrial and employment relations. Minneapolis, MN: Industrial Relations Center. Bryant, M. R. (2008) Introduction to the human resources discipline of employee relations [online], SHRM. Available from [Accessed 21 Feb. 2011]. Farnham, D. (2000) Employee relations in context. London: CIPD Publishing. Gardner & Palmer, G. (1997) Employment relations. South Melbourne: Palgrave Macmillan Australia. Gennard, J. & Judge, G. (2005) Employee Relations. London: CIPD Publishing. Leat, M. (2007) Exploring employee relations. Oxford, UK: Butterworth-Heinemann. xxx Dear Writer, Can you include a table of contents and headings in the assignment. The conclusion seems to be lacking some depth this may need some improvment, also did you forget to put a bibliography and you can also increase the referencing as well.   Note that I can give an extension date, and note the clear instruction given in terms of the format, what is required, word count, what does not make up the word count, proper referencing etc.........................   Read More