Human resources assignment essay help: Employment Relations Theory in Contemporary Organization
Employment Relations/Industrial Relations is defined as a process to deal with the formal and informal rules at workplace. It is a relationship held between two parties known as the employer and the employees. It deals with the areas related to conflict and cooperation. Changes have been observed from time to time in maintaining the employment relations (Managementstudyguide.com 2008). Employment Relationships should not be accepted as a fashion in the organizations. Since many years unions have been formed for representing their interests in front of management for their Labors. It depends upon management whether they want to have union registration and functioning within their organization. Fast food companies like MC Donald’s have been operating without unions by offering lower wages to their employees. Unions were recognized for collective bargaining process. Different traditional and modern approaches have been used worldwide to maintain healthy employment relations. Balanced amount of control, power and authority helps to maintain sound employment relationships (Alera 2012). The traditional Employment relations have to be replaced by certain factors like flexibility, urgency to change, and more number of skilled labors.
In this paragraph we will analyze Employment Relations(ER) theories in contemporary organization. Three cases of have been explained to show the employment relations. Australian organizations were dealing with pluralist and unitary approach. First case is related to a telecom company called Telstra who enjoyed deregulation which affected the labor in Australia and also enjoyed the unhealthy employment relationships. Labor market supported the union activity. Telestra ER strategy was to downsize and outsource the labor. Unions were not considered afterwards by Telestra and it moved towards the individual employment on contract basis (Cornell University 2009). Telecom had been playing an important role in the Australian Economy. In early 1990, Telestra tried to deal with Pluralist Approach which represents participative approach which explains firms are made up of different parties. Unitary approach explains that there is only one party known as management and unions are unnecessary. It was noticed that the ER practice developed by the firms were not relating with the country’s practice. This case explains that Telestra wanted to enjoy privatization but labor party was not in favor of it. Unions knew that it would have been difficulty for hiring, and retaining them in such conditions. Competition started in Telecom sector when Australian Government permitted the license to other two telecom companies. Telestra was still leading because it was able to give the services more than other companies. Changes were also made in Australian labor market related to wage determination, and collective bargaining. When labor party was formed there was an increment in the union influence. The labor market at that time was more decentralized by Workplace Relations Act. Australian Council of Trade Unions helped to reduce the number of unions from fifteen to three. Telestra tried to change itself by concentrating in market, customers by increasing the revenues and decreasing the cost. Telestra dominated the labor policy by involving into subcontracts, subsidiaries and other joint partnerships. As per the industrial and Labor relations is concerned. Due to the outsourcing process of the telecom sector like Telestra Labor started to involve themselves into unions, strikes and other illegal activities. New technologies were being implemented by Telestra to cut the jobs of their employees. To develop better employment relationship Telestra started participative approach like employee participation in decision making process, and union friendly approach. Employees later on followed Individual contract and left the union. Telestra changed its policy from time to time for ensuring healthy employment relations with their labor in Australia.
In this paragraph we will discuss the second case related to employment relations at Australia. Unions were doing well against the work choice because of their conservative values. It was related to the working week, public holiday and family. This approach explains that society depends more upon employment security. Work choice will help to shape the cultural values. It explains whether the employees should be paid for the holidays or not. The unions negotiated in a collective manner to develop better industrial relations. Labor believed that with the help of right tools within the legal framework they can negotiate with the employment contracts. The main objective of labor was to meet their child needs and lifestyle. Work choice was influenced with secure job because employees knew well that if they are not having any good job they might not get a bank loan to pay for their house. Permanent Job is required for continuing the income. Every day lifestyle is changing due to changes made in the society. Howard Government has not originated a new working environment but rather has forced labor laws to align with the changes made in the society. Unions need an umbrella to protect them for permanent employment. Basically the work choice means more jobs for the employees (Ken Phillips 2007).
In this paragraph we will analyze the third case that explains about how employment relations have been maintained in seven countries for the automobile industries. It explains that impact of globalization has an influence on various economies. The different diversities of Labor had also influenced the individual auto mobile companies to respond for the labor in different ways. The International Labor Organization plays an important role in maintaining the effects of Globalization in different industries (Roger Blanpain 2008). It has been argued that globalization has been meeting the standards by understanding different diversities. International Labor Organization (ILO) has been helping the countries by seeking recommendations from its member countries. It explains that member should follow a national policy which will guarantee the protection for their workers. The policy should be in relation to the national law and formed in consultation of the workers. The role is to promote the collective bargaining process. In this case we will discuss the varieties of Capitalism (VoC) to discuss the employment relations. Varieties of Economies (VoC) explain that organization faces problems related to coordination. Organizational coordination will relate to five aspects such as Industrial Relations, Vocational training process, Corporate Governance, inter organizational relations and relations with its own employees. Liberal Market Economies (LME) is also there to resolve the coordination problems. LME will help in developing the markets, create long term commitments, and use mechanism to coordinate with their vendors. In different countries there are changes related to employment arrangements and its security which is related with the three issues. First factor explains how to structure the employees and their security. It explains to plan the labor force for full-time, part-time, casual and temporary employment. It will explain about how to recruit, select, and retain them. We will analyze the seven countries with respect to this point. In Japan the number of full time labor has decreased as compared to the contact labor. The contract labor does not enjoy the benefits like permanent employees do and are laid off during recession. The number of contacted and temporary employees also increased in Korea but later on the contracted labor became the permanent employees when the industry started to grow. In China auto mobile industry noticed decrease in the number of the employments. During 1990’s there was a huge layoff due to recession which affected the china’s economy and large number of workers were laid off. For permanent employees it was replaced with contract based employment. In Germany and Sweden due to the changes in the demand it resulted in outsourcing of labor Unions had strong power to negotiate for their payments that were being laid off. In Germany there is agency based hiring system involving the working councils. In US to reduce cost they had outsourced labors and reduce the union activities. Retirement plans have been used for the Labors. In Australia due to decreased sales local manufacture had reduced the employment level. Changes have been made in the recruitment process of the organization. Second factor was related to an enterprise governance process. It explains a better industrial relation by the process of collective bargaining, and involvement in decision making process of the organization. There were various conflicts that existed between the unions and auto companies in Japan during second world war. Later on mutual activities like decision making, collective bargaining had reduced the influence of unions. As there is increase in the number of labor unions and had increase their demand too. In Korea Labor management Councils are being planned at the plant level and unions are formed to represent the requirements of Temporary workers. In China Unions have very less involvement in enterprise Governance (Wilton 2010). As the number of illegal activities have increased in the organization by the labor it has been resolved by forming Workers representatives. Germany and Sweden has got a strong influence of Labor at different levels of auto mobile company. In Sweden Unions are being consulted before amending any changes related to working systems and technology. Germany has been using work councils to maintain a good Employment Relations. Unions in US have lost their power because employees have been participating at the work place. Companies like Toyota have received benefits from this process. In Australia friendly approach has been used by involving Labor into their management systems. The third factor is related to the work Organization .This explains how different jobs are being allocated to the different skilled and unskilled employees. It shows that technological changes, hours of work, changes in the structures affects the labor. We will also discuss how changes have been analyzed in these seven countries with respect to automobile industry. There is fluctuation in the Jobs due to increasing number of the workforce. It is basically because employees in this sector are hired on contact or temporary basis. They have been paid very less amount as compared to the permanent employees of the company. The Japanese auto mobile companies followed a narrow production system by focusing more on certain aspects like quality and continuous improvements. It was different for different companies. The narrow concept was being changed to improve the efficiency by coordinating with different departments of an organization. Standard methods were used to make organization a better place to work. Chinese and Koreans focused on mass productions by using hierarchical structure in their organization. Germany and Sweden had changed their production methods by using highly skilled labor, better technology and team work concept to maintain healthy employment relations. Different concepts have been used in plants to create a better working place. In America mass production system is done by using the repetitive assembly line. In Australia autonomy was provided by being flexible and working mutually in a team. It can be observed that globalization does not appear on a systematic basis at automobile organization across different economies. Increased competition has forced companies to avoid unions because organizations have a mindset that involvement of Labor in unions hampers their functioning smoothly. There are various institutional arrangements to reduce the impact of globalization for the Labor. Healthy Employment relations can be maintained by collective bargaining process, negotiation, and conflict resolutions between the labor employees and employer.
Organizations have been focusing more on developing the employment relations to increase the morale among the labor, reduce the conflicts, increase the productivity, and minimize the wastage reduction (Compare Infobase Limited 2007). We have also observed in the above cases that management has been actively involved in finding new ways to develop the industrial relations. Employees have been holding a very important place in an organization. The labor theories also deal with the labor grievances, trade disputes, and Labor wages. The process of collective bargaining can be used for providing the quality life for the employees. It supports unions to interact with the management for handling the disputes. Conflicts have been always perceived by management as an abnormal and dysfunctional process at workplace. It is a process of struggle for the different values, power, status and resources to be associated between two parties known as the employer and the employees. It has been viewed as a clash of interest caused by behavior and attitudes between different divergent groups (University of Pennsylvania Law School 2005). Labor theories states that the unsatisfied employees will involve themselves into strikes and destruction of organizational resources. Labor have been exploited previously by employing them in harmful conditions and today due to globalization they are being paid less because of the contract and part-time based hiring process. Even Labor should follow the ethical code of conduct. Fair Remuneration should be paid for the labor to earn and meet their basic requirements of their family. As per the Australian Labor Party, they have played a key role in building their nation. It was grown by collective social process. The factors like living wages, old age pension, and compensation for the injured Labor was being given by the employer to maintain a good employment relations. Government has also played an important role in maintaining the balanced economy by having hold on its financial market and encouraging jobs for the economic growth of Australia. Government also supported the labor by providing health services, education services and security measures (About.com 2012). Thus different theories of Industrial Relations have been helping to resolve the conflict between the employees and the employers.
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