HR assignment help on: Transformation of Industrial Relation System to Contemporary Employment Relation
As the employee’s perception and the way of working are changing, the employee relation is also varying considering these aspects to maintain an effective relationship between the employees and the organization. The management is required to take a refined way of looking after the various aspects to judge and manage their employees. If it is not done effectively then the organizational performance may hamper with the efficiency of management.
There is a huge difference between the theoretical and practical context. Theories are always written based on the various incidents which have already occurred in past. But there are possibilities of occurrence of the same event/situation or it may not occur at all in coming days. So, situational effect is always there on each and every theory. The same thing is happening with the industrial relations system. Industrial relation system was there basically for the industrial relationship and their management. But due to increase in the non-industrial employee’s consideration within the organization, the transformation of industrial relation system to employment relation is occurring.
The main concern of this transformation is to increase the employee’s involvement to the organizational goal. The management effectively builds the relationship with the employees and manages for the betterment of the organization.
There are various theories which can also describe the employment relations such as unitary approach and Pluralistic approach.
Unitary approach says the employees and organization both are considered as one combined family. They both move towards the same objective. If there is any existence of union then they will be just for the resolving of any issue between the management and the employees. But unitary approach does not support the trade union within the organization. There is no need of trade union if the management is looking after all the needs and requirement of the employees.
Pluralistic approach says the organization is formed with various sub groups like top management, middle management, lower management. The trade union also exists in pluralistic approach but that leads to the various conflicts within the organization. The conflict is seen as a resource of competitiveness and performance enhancement tool within the organization.
Pluralistic perspective is a modern approach that is being followed by most of the organizations. There is a division of authority between the various subgroups that lead in the conflict within the organization.
For the collective bargaining, other requirements and other issues the trade union works as a mediator between the management and the employees.
Most of the countries are moving towards change from industrial relation system to the contemporary relation system. There are various things which are refined and modified in this approach/system that allows the management to make a better relationship and understanding between the management and the employees.
Transformation of Industrial relation system to employment relation in Japan
As Japan is one of the biggest economies in the world and is known for its technological innovation and capacity dimensions. It is obvious for them to go for the transformation as the whole world is moving towards the same dimension of the transformation from industrial relation to the contemporary employment relation. Due to increase in the various employee conflict and other aspects in last two decades Japan has also moved to the transformation of industrial relation system. As there are some noticeable changes in the economy already can be seen which include the wage levels, the working hours, job security and job anatomy. These changes are influencing the organizations to move towards the transformation and the adaptation of new contemporary employment relation to maintain a better relationship between the employees and the management (Abernathy, James & Utterback 1982).
The wage level system in Japan which was followed earlier was according to the age and seniority. The more senior the employee was, the more wage he would be paid. This was increasing the cost/expense for the organization and as it is obvious that the higher aged people would be less productive and their productivity declined as per the increase in age. So the companies were suffering the loss. They could have replaced those senior aged people from the younger people. That would have been more effective from the organization point of view. That is why the transformation is initiated from industrial system to the new contemporary employment system. This way the younger people could get into the system and this was also favourable for the organization.
Japan’s current law has the minimum wage system under which it is predefined that how much a person in a particular job should be paid (Davis & Stephen 1992). There are two certain sets of minimum wage system to define the payment of the women employees in Japan: fist one is, the regional wages that is based on the collective agreement and the other one is the minimum wages based on studies and deliberations of minimum wage council of Japan (Kawaguchi & Yamada, 2007).
The entry of women into the employment system has also changed the whole scenario, now not only the male works but also the women are allowed to work outside home. It is really a great change in the whole phenomenon in Japan. This was also a kind of initiative for the transformation of industrial relations system to the new employment relation. Research on the National Economy of Japan also shows that if more women were given work opportunities and freedom to work, the economy would be benefitted more in the next ten years from now. The Japanese government is now looking for ways to get more and more women in business and employment. Now there is no difference between a male employee and female employee at work place in Japan. Both get the equal opportunity to work together. But the main issue which is starting to arise is the management between the family life and the work for women. It was not easy for them to manage both at a time. In order to resolve these issues, Japan introduced the Childcare Leave Law (CCLL) and later on this was changed to Childcare and Family Care leave Law (CCFCLL). These purpose of these laws was to make the women more sustainable at odd situations, if they required any maternity or any childcare leave then they could easily apply for that and that would be approved by the management and it would also be paid leaves, the laws were reviewed to ensure that there would be normal payment during the time period of leave and also a returning allowance for the employees (Gottfried & O’Reilly, 2002).
Japan was previously following the permanent job culture, but that was really not very much fruitful for the organization. Then they started the contractual job system with the adaptation of the new employment relation system. Earlier the employees were working for long time period and as they got older, their efficiency declined. This was not profitable for the organizations. So they thought to remove this permanent job system and introduced the contractual job system. Most of the jobs are contract based jobs in Japan. This way they can take the youngsters and experienced persons rather than keeping the old aged people to the company.
While recession period was going on, Japan had to invest in ways that were less costly for the firms but those that would yield more benefits for the organization. Contractual employment system brought a change in the whole work culture phenomenon. The employees got more motivated towards their work to get other contracts as soon as the previous contract expired. This was like a competition scenario among the employees to get the new contract approval by showing their performance enhancement time and again. These are the main concerns behind the transformation and change in the industrial employment system to contemporary employment relations. That was allowing the organizations to make them more competitive and sustainable by creating new dimensions at work place.
Conclusion
As per the various aspects of management and the increasing need of changes in the employee relation with the management, the transformation of industrial relation system occurred and changed to contemporary employment relation system. The non-industrial employees are being more preferred by the management and the management is looking after non-industrial employees which are giving helping the organization to make business from the market. This is one of the biggest reasons for the transformation. Although industrial employees are also a part of organization and being given all the considerations and trade union is also there to mediate the relationship between them and the management.
As per the changes in the situation and preferences of organization the transformation was required and that is why most of the countries have adopted this change in the employment relation system. New work culture and most effective aspect of new employment relation system was the women work culture. With the evolution of employment relation system women were given weightage at work place and various new rules and laws were formed to keep the women motivated in employment and business.
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