HR assignment on: Essay on management decision process in organization
Intend of this essay is to discuss the transformation in industrial relations framework from tradition to modern system. To support it, two counties Japan and Australia have chosen to justify the change in employment relationship. Further a discussion has been put forward subject to the actors involved in employment relationship. Moreover, an argument is drawn to seek one of the actors’ powerful role in industrial relationship rather than others. While describing the roles of actors, points related to job work hours, wage levels, job security and autonomy in job also have been highlighted as a part of the essay. Finally, essay has concentrated on the theoretical framework of pluralism in both the countries selected. At the end of the essay, a conclusion has been drawn including the summary of entire essay.
Industrial relations refer to the understanding of relations between employees and management which can have both legal and non-legal aspects. It is mainly concerned with the nature of relations that an employer and employee ahs within the settings of the organization. Industrial relations encompass the understanding the issues of employees, settling them off, managing the conflicts between employees and employers, collective bargaining and active participation of employees in decision-making process of management, etc (Mitchell, 2012).
Over the decades, transformation has taken place in area of industrial relations, which has been observed in some countries. Alternatively, a number of different researches fall out for the existence of such transformations in industrial relations. Based on research and analysis, it can be commented that these transformations have taken place during the last two decades throughout the world. Data based on different countries presents either changes have actually taken place in area of industrial relations or they have not occurred in fact. In this context, it will be supportive to explore the existing definitions related to transformation in employment relationship or industrial relations (Erickson & Kuruvilla, 1998).
Following this, some of the authors measured the extent where bargaining exists in employment relationship. They also made emphasis on the persons making major strategic decisions and on the other hand commented on delegation in negotiating, management’s developed sovereignty. Moreover, it was analyzed by them that the switch to a collection of workplace applications consisting of team, conditional pay, active participation of employees, training & development, and job security contributed to a great level of transformation in UK’s industrial relations. In another analysis of transformation, a cross- national collective bargaining’s examination was made and found out that a general element of industrial relation’s change in UK was the remarkable employer-initiated bargaining decentralization (McKersie, 2007).
In addition, some other authors highlighted other four general factors involved in the domain of industrial relation’s transformation from traditional to contemporary system in UK. First was emphasis on organization such as the locus of human resource, decision making in industrial relations and strategy. Second main element the found was development in flexibility in terms of the work arrangement and deployment of labor within or outside the organization’s premises. Third constituent was examined and perceived in area of the developed significance of skill improvement. Last factor concluded by them was decline in union membership which indirectly represented the minimization of trade unions and their authority level in the organization (Crouch, 1993).
Furthermore, case examined for another country Australia which revealed that focus has been made on the overall human resource policies, goals, industrial relations and the workforce stability and flexibility resulting in transformation in the country. It is generally considered that the fundamental changes in external restraints which make impact on the entire framework are the requirement of an appropriate transformation. In this context, changes in workplace and industrial relations have been witnessed since past two decades (Frenkel, 1988).
Some of the new approaches took place in the employment relationship framework of Australia such as high performance, high commitment and high involvement. These approaches made a great emphasis on team’s significance, multi-skilling and worker’s active involvement in achieving optimum quality and high level of productivity. Hence, innovation in combined forms of workforce advanced by administration & union and changes enforced upon the parties in Australia has been acknowledged in support to justify the given statement (Kochan, 1986).
Therefore, the key aspect which was noticed with respect to Australia’s industrial relations reform was the interrelationship between institutional and organizational level. Apart from this, labor party sought to identify and introduce the changes with the assistance of a formal/social contract along with the union interest group. According to the rule of contract, team of unions decided to restrain the demands of wage in order to diminish the inflation rate. On the other hand, government of Australia decided and pledged to assure that it will work on economic and social transformations. Besides, labor government made a confirmation that non-union accords would be accepted by the organizations at workforce in labor market. This is required to examine the interrelationship between transformation of employment relations at the national level and at the organizational level particularly in Australia. Reason being, Australia is considered as the country where employment relations are highly institutionalized and unions are involved in the labor market’s regulation since last twentieth century (Australian council of trade unions, 2000).
Furthermore, changes can be exemplified on the bases of transformation occurrence in some known companies in Australia. One of the best examples is from Colgate Palmolive Company which introduced a new framework of high performance by employees at their Greenfield site in Australia. Another was within the auto industry itself, various organizations carried on to work together with the union in order to acknowledge the team work and supple structure of organization’s work so that productivity could be improved and more revenue could be generated in return (Kitan & Lansbury, n.d).
In addition, it can also be added that during the transformation in employment relations since the last twentieth century, role of employer has blurred the existence of trade unions. On the basis of research made in Australia, it was identified that government decided to avoid the union-agreements and accepted non-union accords as a part of the transformation in employment relationship. Next, it was observed in many organizations that employers directly consulted with the employees to agree for the non-union agreements. This agreement basically articulated that higher payment would be provided to the employees working for long hours and additional flexible work practices. It also concerned the job hours, employment security, wage levels and independency in job. This lead to a theoretical approach of unitarism which suggest evaluating and analyzing individual based on their performance (Gardner, Margaret & Gill, 1997).
Mainly two types of transformations have been acknowledged in the context of industrial relations/employment relationship, which are incremental and discontinuous in nature. The basic logic behind it can be that organizational structures are more flexible to get along with the external environment and the changes that are no longer steady with the internal judgment of the conventional framework.
Afterward, a theoretical framework of unitarism can be presented in support of above mentioned description. Unitarism approach of industrial relation is mainly concern for individual reward system which seeks to avoid trade union assistance at workplace in the organizational premises. Moreover, this approach has a different perspective for employee relations that states the difference between members of a single group formed having a common organizational objective. In this context, it considers the work performance of individual and wages payment based on the same. Unitarism approach articulates that there would be single authority in the enterprise confronting the employment issues and non-existence of other leaders or the unions. It confirms that in unitarism approach work is done towards the common goal accomplishment with non-conflicts of interests and values of the employees and employers. Additionally, the said approach demonstrates that conflicts take place due to the diverse interests and goals of employees and as the job is autonomous in case of every individual, there would not be any issue regarding conflicts (Heraghty, 2011).
The main advantage of adopting unitarism approach in industrial relations is that it involves both the employees and employers’ interests in order to achieve results of high productivity and better quality. On the other hand, it also enhances the high involvement, job security, and employee’s loyalty. From stand point of employees, they should perceive that their individual or team efforts are being collaborated by the expertise and competencies of managers of the organization. Further, employees are involved to participate in managerial and workplace decisions so that their individual specific roles, innovations, creativity, and problem-solving qualities can be empowered (Gerring & Thacker, 2004).
Afterward from employer’s perspective, a unitarism approach means that HR/ER and other HRM & staffing policies, procedures should motivate the employees. Reward and incentive frameworks are built up to maintain the loyalty and commitment from employees’ end. Next, the personal goals & objectives of every individual should be discussed openly so that they could be incorporated in the organization requirements and common objective.
On the basis of overall discussion it can be concluded that transformation has taken place since last two decades. Examples of two countries UK and Australia have been taken as an example to present and justify the transformation in the said domain. Authors revealed the areas of changes specially decentralization in bargaining, increased employee high performance, active participation of the staff and moreover job security. Apart from this, reduction in unionism, labor market’s deregulation, wage settings, changes in HRM/ER policies are the factors amounted to the transformation in UK’s employment relationship. Next, Australia’ study articulated that it directly ignored union agreements and taken non-union accords into account. Besides, it worked in the area of high involvement, commitment, and performance from the employee’s end. Next, powerful role of employers rather than union leaders have been noticed since last twentieth century. They ensured the participation of employees and high payment to them according to their performance. At the end, unitarism approach has been defined from both employee and employer’s view points. It entails employees to make their best so that they could be rewarded on an individual basis. From employer’s point of view it considers the HRM & other policies and reward & incentive system to receive the high level of quality and productivity.
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