Introduction To enable employees to deliver productive outcomes at work and within society, one must first consider the concept of industrial relations; later known as employee relations due to the shift in trading trends of the UK from predominantly manufacturing industries. Employee relations concentrate on the management and maintenance of the employment relationship between employer and employee. This means dealing with employees either through trade unions or individually to bargain for employment practices, terms and conditions of employment and grievances or disciplinary action. It also seeks to providing employees with a voice (Armstrong, 2012). An employee seeks good and honest pay, decent working conditions, security of …show more content…
During the post war consensus 1945-1979, the state chose to adopt a Keynesian economics approach where it continued to take an overseeing role rather than a leading role to employee relations. Very little legislation was passed that had a direct impact on ER, essentially the government allowed companies to pave the way forward on and allowed the economy to find its own natural equilibrium. The boom of industrialisation and extensive economic growth for this time period gave rise to a radical increase in trade union memberships which peaked at 12 million in 1979 (Armstrong, 2012). This allowed the development of a system in which some of the core bargaining powers of economic development could facilitate collectively bargained wage increases (Eironline, 2013). The era shortly after 1973 was plagued by trade union militancy and record levels of industrial action, with any attempts of government intervention to control the system ensuring failure. This led to the infamous period of 1978–1979, the ‘winter of discontent’, where public sector trade unions engaged in regular and extensive industrial action over the serving Labour government’s policy of pay restraint (Eironline, 2013). The state had come to recognise that the powers of trade unions had become too excessive and obtrusive whilst employers were complaining that labour was becoming unreasonably expensive which was driving up expenditure and reducing profitable productivity.
The government used monetary policy over demand management, and concentrated on the control of the rate of interest in an attempt to stop low levels of unemployment causing inflation. The government decided to use collective bargaining as a means of setting rates of pay for the first time, the government no longer required Trade Unionists as negotiators of pay, because private negotiating bodies were now used. It was now assumed that in the present economic climate, in accordance with interest rates and government objectives that the price which was set would be reasonable, and if not then the government assumed that the employers knew better, this being one indication of Mrs Thatchers non-tolerance towards Trade Unions, also shown by Mrs Thatcher passing control of pay structures to private bodies and employers. This attitude is very different to the present day ‘New’ Labour government, who sees government interaction in the wage structure as being very important. For example, the introduction of the National Minimum Wage.
The aim/objectives of this assignment are to explore employee relations in detail, including the psychological contract, differences between fair and unfair dismissals, redundancy, and the direct link to my organisation. Pershing is a medium sized financial services company, who has seen strong growth over the last two years during the economic downturn.
Industrial relations → management of employees: pay rates, encouraging union representation, individual contracts or wage agreements with whole workforce
The professional working in this area of HR ensures that the relationship between an organisation and its staff is
Consequently, unions suffered a collapse in union morale and limited resources prevented them from recruiting new members or breaking into unrecognised sectors; member turnover has also skyrocketed e.g. in USDAW about one-third left every year (Kessler and Bayliss 1998, p.178). Jointly, the above factors have contributed to the reduction of: union membership and density, influence on Government and in society, and bargaining power vis-à-vis employers (Kessler and Bayliss 1998). Since 1990s union membership level fell below 10m, and since fell continuously, never reaching those figures again (Brownlie 2012, p.22). By the time Labour returned after the 1997 election, membership had fallen to just 7.8m (Bryson and Forth 2010, p. 2) and “the landscape of industrial relations had been transformed” (Gospel and Wood 2003, p. 3). Trade union membership in the private sector fell by 450 thousand between 1999 and 2007; in the public sector it increased and peaked at 4.11m in 2009 (Brownlie 2012). After the 2008-09 recession, private sector membership increased by 43 thousand to 2.51m, while public sector membership fell by 186 thousand to 3.88m. Similarly, union membership density had declined between 1989 and 1998 from 38.8% to 29.9% (Bryson and Forth 2010, p.2), and fell to 26% in 2011 confirming the downward trend (Brownlie
Employee relations is one of the remaining eight professional areas, an Employee relations professional is required to display knowledge of a strong understanding of employment law, or can access relevant,current and planned changes to laws relevant to the organisation. There is also a requirement to identify and act to mitigate risk to the organisation, have the knowledge of employee relations risks, and is able to coach managers to resolve issues, they will also know how to analyse, collate and feedback on communications and messages heard.
Maintaining a strong employer and employee relationship can be the key to the ultimate success of an organisation. It is known that if a strong relationship is in place employees will be more productive, more efficient, create less conflict and will be more
Employment relationship is the legal link between employers and employees (Organization, 2016). There is an economic exchange between the employer and employee as they perform the work and services, with certain conditions (Corporation, 2012). A power relationship on the other hand is when the employee agrees to submit to the authority and direction of the employer. The employment relationship is a continuous and open-ended contract, it allows the employees to modify and restrict the work effort and can combine collectively to challenge managerial authority. Therefore, the relationship is interdependent in nature, as employers seek a cooperative relationship with employees to gain their consent to instructions. The purpose of employment relationships is to deal with the employees and the issues that arise from their employment.
Page 2 - Describe 4 factors, 2 internal and 2 external, which impact on the employment relationship
An employment relationship describes the dynamic, interlocking economic, legal, social and psychological relations that exist between individuals and their work organizations. Palgrave Macmillan (2013), Glossary [online] Available at: < http://www.palgrave.com/business/brattonandgold/glossary/glossary.htm> [Accessed 17th September 2013]. Factors that impact on this relationship both have a detrimental effect to the running of a business. I will focus on two internal and two external. These being:
According to the International Labour Organization (2015), the employment relationship is defined as the legal link between employers and employees. This exists when a person performs work or services under certain terms and conditions in return for remuneration.
To summarise the above table, the skills, knowledge and behaviours for Employee Relations is important to be an effective HR Professional by:
References:Paul Blyton and Peter Turnbull (2004) "The theory of employee relations" The Dynamics of Employee Relations (3rd edition) PALGRAVE MACMILLAN Printed in ChinaJohn Gennard and Graham Judge (2002) "Employee Relations Strategies and Policies: Management style" Employee Relations (3rd edition) London: Cromwell Press, Trowbridge, WilrshireEd Rose (2004) "Theoretical Approaches to employment and industrial relations" Employment Relations2nd edition Prentice HallRasmussen & Lamm, (2002) "R&L,
Employees are most important assets of an organization. They contribute to achieve the goals of the organization So the organizations must to focus the employer employee relationship in the organization. ABC is a car manufacturing organization which has been booming in the past decade. Recently there has been an unfair termination of an employee which has made all other employees unhappy and as a result it has influenced the decision making of the organization. This assignment based how employer, employee relations have been in the organization and how employee legislation can help to maintain good HRM practices in the organization to make productive decision and solutions to the issue.
Assess the advantages and problems facing an employer seeking to manage employee relations in a non-union environment.