Impact of HR Practices on Employee Turnover

This assignment investigates the influence of Human Resource (HR) practices on employee turnover. It delves into specific HR roles, such as line managers, and analyzes their impact on employee commitment. The document examines concepts like intellectual stimulation in supervisor-employee relationships and the role of boreout among frontline employees. Additionally, it considers EU legislation related to workplace safety and health alongside theoretical frameworks from renowned scholars like Jackson, Schuler, and Werner.

Employee Relation
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TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK1.............................................................................................................................................4
1.1 Explaining the unitary and pluralistic frames of reference....................................................4
1.2 Assessment of changes in trade union which affect employee relation................................5
1.3 Explaining the roles of main players in employee relation...................................................6
TASK 2............................................................................................................................................7
2.1 Explanation of the procedures of resolving conflicts............................................................7
2.2 Explanation of key features of employee relation in conflict situation.................................8
2.3Evaluation of the effectiveness of procedure used in the conflict situation...........................9
TASK3...........................................................................................................................................10
3.1 Explain the role of negotiation in collective bargaining......................................................10
3.2 Assessment of the impact of negotiation strategy for situation...........................................11
TASK4...........................................................................................................................................12
4.1 Assessment the influence of the EU on industrial democracy in the UK............................12
4.2Compare the method used to gain the worker involvement and participation in decision
making process..........................................................................................................................12
4.3 The impact of HR on the employee relation practices.........................................................13
CONCLUSION..............................................................................................................................14
References......................................................................................................................................16
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INTRODUCTION
Employees are the key of every organisation. They play a significant role for the growth
and success of the business and for making company’s environment healthy. Maintaining strong
employee relation is very important in the business context. It is necessary for employers to keep
sound relations with their employees at the workplace (Carter, Armenakis and Mossholder,
2013). If they have effective relationship, then it will be easy to resolve the conflicts related to
the business activities and functions. In this project report, the importance of employer and
employees relations at the workplace has been discussed. The importance of participation of
employees and its impact on decision making process has been discussed in this report. This
project defines the Hilton hotel’s internal relationship among employers and employees that how
they have interacted with each other and resolve their business related conflicts. Under this
report, the discussion has been done on the relationship of employee and employer in the Hilton
hotel. This hotel is one of the best hotel in UK and its HRM importance has also defined in this
report.
TASK1
1.1 Explaining the unitary and pluralistic frames of reference
Unitary frame of references means the way of thinking, a set of assumptions, attitudes,
values and practices relating to management and organisational membership.
A core assumption of unitary approach is that management and employees of company
share the same objectives, interests and purpose so that they will work together and share mutual
goals. Further, unitary perspective views define the common purpose of firm. Every employees
treated as a part of the organisation culture and structure .They have a common goal and values
in order to achieve the organisation success. From employees’ point of views, unitary approach
means that the entire workforce is process improvement oriented, multi-skilled and ready to
handle any task within company (Leonard and Cardy, 2011). Also it is very important to take the
participation of employees in the business related decision making. It will help in empowering
employees for their roles and emphasizes on team work, innovation, creativity, quality
improvement, etc.
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From employer’s point of view, unitary approach can be defined as a process where
company's mission and vision are discussed and communicated with the employees so that they
can do relatively well for achieving their individual goals and objectives. Also, reward system
will be designed for the employee’s encouragement and motivation. Furthermore, it has two
main sub-groups in the pluralist views such as management and trade unions (Eldor and Vigoda-
Gadot, 2016).
In the pluralistic frames, company divides its business unit into different sub-groups.
Each group has its own lawful loyalty and respect to their objectives and leaders. In this
approach, role of manager is of less commanding and enforcing. They are also responsible for
more coordination. (Luthans, Sweetman and Harms, 2013). Trade union plays a major role in
this approach. In the pluralism, Organization creates subgroups such as management and trade
union. According to this perspective, company should have personnel specialists who provides
advice and suggestions to the managers and offer specialist services with respect to staffing and
matters relating to union consultation.
1.2 Assessment of changes in trade union which affect employee relation
A trade union is association of employees, designed for the purpose of maintaining or
improving the working conditions in the business. Main intention of union is to provide
protection to the workers against exploitation of employers. It offers security system to them so
that they can feel safe and secured regarding their rights and interests (Sánchez, 2011). In other
words, it can be said that trade union is taken as a preventive body along with the purpose of
protecting employees. It also promote their interest. It may be formed on national and regional
basis. At last, it is clear that it is the association which is formed to promote, protect and improve
the employee relation through collective actions.
In Hilton hotel, trade union has been very effective for the employee and employer
relations. In 20thcentury, this phenomenon become very powerful. In 1920, old industries like
coal mining were declining. So, in the year 1921, employers cut wages of workers. In 1926, they
proposed to cut wages and increased the working hours of them. So, the miners went on strike in
which some workers died. After that, it came into form. The changes affects the employee’s
relations. Initially, trade union reform the relationship between the employer and employee
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which was not so good in earlier (Shipton, Sanders and Frenkel, 2016). But when the trade union
came into real forms, strong relationship were developed. There are various effects of union on
the organization. Primary goal of this aspect is to maintain and improve the worker’s terms and
conditions and to improve their working condition at the workplace. Company is also able to
increase their productivity and profitability with the help of these bodies. Apart from that,
employers become able to improve their costs of labor and their performance in the organization
(Shipton, Sanders and Frenkel, 2016). These kind of unions has been considered as the main
motive to increase the salary, working conditions and strength of the workers at the workplace.
It may be effective for the different types of union representation on pay levels and the size of
recent pay settlements.
1.3 Explaining the roles of main players in employee relation
In Hilton hotel, there are main three major players or bodies through which organization
can perform their business activities and functions. It can also be said that these three players can
affect the organization directly or indirectly. These three bodies are Managers, Employees and
Government. They have largely affected the organization’s process and structure (Smothers,
Doleh and Valadares, 2016).
Employees are the part of Hilton hotel, in the absence of whom business cannot survive.
In every department such as operations, HR, finance, administration, marketing, production and
manufacturing, they play a very significant role. By reflecting good work they maintain the
effective relationship with all the departments of management.
The second important player are managers such as HR manager, marketing manager,
finance manager and production manager. By design proper strategies and planning they can
manage and lead that particular department activities. Every manager has to maintain sound
relationship with employees at the workplace. For example, finance manager plays a crucial role
in controlling the cash inflow and outflow. They are responsible for recording of financial data
and maintaining the income outcomes report. Finance manager has to fulfill the needs to manage
the financial statements of business. On the other hand, HR manager is responsible for designing
the job prospectus, recruitment, training, development etc. They maintain effective employee’s
relations by framing suitable policies, doing proper planning as well as through job enrichment
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and job enlargement. All duties and responsibilities of employees are in the hands of HR
manager (Stock, 2016).Through all these activities, he/she will be able to build and maintain
employee’s relations at workplace.
Another important player for maintaining employee’s relations is government. In every
business organization, regulatory authorities play a vital role in establishing legal rules and
procedure. In this regard different kinds of employment relations Acts have been designed such
as Data Protection Act, Employee Discrimination Act etc. Government is also responsible to
build the regulations and rules related to the registration of company and tax that needs to be
paid by the firm. So, it can be said that government has effect on the employee’s relations at the
workplace in direct or indirect way.
TASK 2
2.1 Explanation of the procedures of resolving conflicts
In Hilton hotel,there has been raised the conflicts between employees because of reasons
like poor management, unfair treatment, unclear job roles, unhealthy working environment,
increasing workload. Conflict can be of two types, that is, formal or informal. In the formal
conflict, employee claims against the organization and in informal conflict, generally, a minor
clash or disagreement between two people occurs (Strohmeier, 2013). In Hilton hotel, there is the
need to resolve conflicts by using different skills like active listening, communication,
consultation, decision making and problem solving between employees. It is important to know
the nature of conflict for resolving it effectively and effeciently. There are various essential steps
which company needs to take for resolving conflicts at the workplace. These steps are as
follows- Understand the situation- It is the first stage of resolving conflict under which managers
need to understand the actual nature of conflict and situation from which it occurred at
the workplace. Acknowledge the problem- Under this, managers need to acknowledge the actual
problem behind conflict. Also, they should try to find out the reason through which this
kind of situation took place (Townley, 2014).
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 Be patient and take your time- Quick decision may be more harmful than slow decision
making. So it is very important to focus and evaluate all information related to the
decision and take the time for thinking about best solution of that particular conflicts. Focus on the actual issue, not on individual- It is important to focus on the actual
problem, not on that particular individual who is involved in the conflict. People should
avoid their own perceptional attitude about others. Establish Guidelines- Before conducting a formal meeting, both parties should be agree
to meet themselves. After that, they should understand each others perspective related to
the actual conflict in the business. Keep the communication open- Open communication is the best way to know clear
views of parties. So that they should communicate openly in the business for resolving
the conflict.
 Identify solutions- After open communication, both the parties should identify the best
solution for resolving conflict (Jackson and Malthis, 2010). They should make
discussion about the best possible ways through which conflict can be resolved in the
most effectual manner.
2.2 Explanation of key features of employee relation in conflict situation
Hilton hotel should be conscious about employee’s relations as it plays a significant role
in the success of business. In order to reduce conflicts, it is important to keep strong employee’s
relations at the workplace. Organization can be considered the special arrangement for workers
and employees at the workplace so that they can avoid the situation of conflict. The key feature
of the employee relation in the organization is that manager and higher authority should give the
rewards for the employee effective performance so that they can able to overcome conflict as
well as increase the productivity of the business. Another key feature is that they should provide
flexible working hours to their employees which includes lunch breaks, tea breaks and formal
holidays. Along with that, management should increase the employees participation in the
business practices by taking involvement of workers in the decision making process.
One more feature for keeping employee’s relation strong is to organize the events and
programs for employee’s entertainment and their welfare.
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Company should focus on the independence of employees so that they can openly
communicate with management. Firm must try to improve employee’s relations time to time
which mainly includes compensating them with attractive pays and taking care of health issues.
Further more company should imposing suitable policies for their safety and security concern.
Apart from that, to involve them in different processes of business including decision making
would also play a vital role. Also, employee relation can be maintained by organizing the events
and personality development workshops. For new employees, company should arrange training
and development programs for their growth and to enhance their skills and knowledge. Hence
they can perform their task effectively. Company should provide compensation, bonus,
incentives and extra benefits to employees for their effective performance in business (Jackson,
Schuler and Werner, 2011). It should take the involvement of employees in business related
decisions and include them at the time of making business strategy. Higher authority should
discus with employees regarding their conflicts and issues related to workplace.
2.3Evaluation of the effectiveness of procedure used in the conflict situation
According to the selected conflict solving procedure, Hilton hotel may able to reach the
solution of conflict by using various steps of resolving conflicts. It has helpful to identify the
necessary solution related to the problem of coflict. Through this procedure employees may able
to know the ways related to the solution and they can understand the reason and nature related to
conflicts. The main benefit of this procedure is to identify the best solution and critically evaluate
the overall solution of the conflict. Some of the employees are unable to understand the method
and process of conflict resolution (Cheli, Battaglia and Dell'Orto, 2014).
With the help of effective communication channel employees can able to understand the
thoughts, views and opinion of each others. Also they can meet personally for discus the
personal point of view regarding to the conflicts. Through this procedure employees can get the
chance to gather at a single place for open communication. Company can also beneficial for this
procedure because it have find the solution of recovery of losses in the operation and production
in the business. With the help of conflict resolution process, employees can be able to reduced
the tension related to the workplace in the organization (Tollington, Turbé and Shwartz, 2015).
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Conflict resolution procedure helps to business in understand the employees strength and
weakness related to the task. It should be clear and easy to understand for every employees so
that they can easily accept the changes and methods of solution.
TASK3
3.1 Explain the role of negotiation in collective bargaining
Negotiation and bargaining is the process of making agreements related to the employees
pay scales and working conditions. It happens between the employers and employees. This
process plays a very significant role for the employer and employees relation and also provide
the protection to the employees regarding to their rights (Niskanen, Naumanen and Hirvonen,
2012). This negotiation procedures has governed by the external law in the Hilton Hotel. Under
this procedures, employees have the rights to organize and the select exclusive bargaining agents
to negotiate collective agreements. They defines employees wages,hours, and working
conditions.
In the other words, Collective bargaining is a process of negotiation between employers
and employees aimed at agreements to regulate working salaries (Niskanen, Naumanen and
Hirvonen, 2012). The interests of the employees are commonly presented by representatives of a
trade unions to which employees belongs. They create the collective agreements related to the set
of wages, working hours, training, health and safety. Collective agreements may be in the form
of procedural agreement which deals with the relationship between workers and management
and procedures. Which can be adopted for resolving employees and group of employees
disputes and conflicts. Under this agreement, It have includes the employees grievances, disputes
and disciplines. The collective bargaining process have five core steps. These steps are as
follows-
 Prepare:- In this stage, It has involved composition of a negotiation team. This
negotiation team have includes representatives of both the parties with adequate skills
and knowledge for negotiation. In this stage both representative such as unions and
employer ,analysis their own situation in order to develop the issues and conflicts Which
they believes that will more important. It includes the understanding of main issues and
intimate knowledge of operations, working conditions ,production norms etc(Luthans,
Sweetman and Harms, 2013).
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 Discuss:- Under this stage, parties decide the rules that guides the negotiations. Both
parties creates the collective bargaining agreements and understanding their initial
opening statements (Leonard and Cardy, 2011).
 Propose:-Under this stage , It described as brainstorming, under which both parties
exchange of messages and opinions with each other related to the negotiation.
 Bargain:- In this stage, both parties sets the draft of agreements and also they comprise
the time of agreement also.
 Settlements:-Under this stage, final agreement take place between both parties. Wherein
both parties agree to take common decision regarding to the problems and issue related to
the wages, working conditions. This stage described the effective implementation of the
agreement by shared vision, planning and changes (Tollington, Turbé and Shwartz,
2015).
3.2 Assessment of the impact of negotiation strategy for situation
In the Hilton hotel, the negotiation strategy play a vital role for solving the conflict
related situation such as strike and collective dispute. Negotiation strategy has a varied positive
impact for resolving the complicated situation. In strike type of situation or working conditions
related conflicts, organization should adopt smoothing type of negotiation strategy. ( Stock,
2016).. Thus, with the help of this strategy, an effective conversation can be carried out between
the management and employees so that they can be able to resolve their issues related to working
conditions and wages. The result of such strategy helps in directly impacting the operation of the
company that is carrying production and operation related activities. Also, the collective disputes
type of situation which is related to the working condition, strategy helps to the organization for
adopt compromising situation. Thus it can build a negotiation executive plan (Jackson, and
Malthis, 2010. With the help of negotiation strategy, manager of the Hilton hotel can be able to
achieve the mission and goal of the company. Therefore manager carried out the changes in the
existing employment policies which is formulated by the government authorities. Through this
strategies, company helps to providing the employees satisfaction and able to develop the
effective relationship between the workers and business. So that they can set the target and
prepare the structure for attainment it. Negotiation strategy also provide the enhancement of the
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sales and profitability of the business and overcome the losses and employees turnover by
providing them effective motivation and support.
Negotiation strategy can be used to resolve the company's conflict related situation and
provide the smooth functioning it. Hilton hotel's manager have find the ways to overcome the
employees stress and issues related to the workplace by this strategy.
TASK4
4.1 Assessment the influence of the EU on industrial democracy in the UK
European Union policies is very beneficial for the employees as well as industry. The
industrial democracy can be evaluated as the best structure in which employees have right and
authority to take effective participation the decision making process. Furthermore it has been
effective influence the industrial democracy in UK. The main objective of European Union is to
provide the protection and effective structure to the industrial democracy thus it can easily attain
their goal and objectives. Industrial democracy is the arrangement which involves workers
making decision, sharing responsibility and authority in the workplace of company. European
legislation inspired the employees and workers for much more prominent role in the firm's
decision making process. Industrial democracy has been highly influenced by the European
Union, it provide the effective relationship to the management and the employees at workplace
so that they can solved their problem related to the working condition. UK industrial democracy
is being affected from the execution of varied activities carried out by the European Union.
4.2Compare the method used to gain the worker involvement and participation in decision
making process
Employees play a very significant role in the process of decision making in the
organisation. Employees can be more motivated and encourage for higher work and productivity,
if organisation treat them as a part of the company. Involvement in the decision making of
employees is a best way to feel employees that they are very important for company There are
various methods for employee involvement and participation in the decision making process in
the organisation. Attitude survey is one of the ways of involving the employees by views and
opinion related to the company concern. Attitude surveys can be conducted by the structured
questionnaires, interviews and focus group discussions. It can be used for obtain views about
process such as performance management, job evaluation and performance management in order
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to achieve their effectiveness and the criteria to which employees can be feel that they are fair.
The main objective of attitude survey is to identify the employee’s views, opinions and thoughts
related to the management. Questionnaire, interview is best ways to determine the employees
views. The important method is suggestion schemes, under this technique employees are
required to provide the suggestion regarding to the business activities and function. Thus Hilton
hotel has been used the suggestion schemes for taking participation of employees in the decision
making process by which organisation can be increase the profitability and sales in the market. In
the current scenario, employees has free to participate in the business related decision making
through adopting suggestion schemes in front of top management. Another important method is
quality circle and improvement group that can be used to reduce problem which related to the
work. It is a participatory management techniques that helps to employees in solving problem
related to their own jobs. Circle can be formed of employees working together in the operation
who meet at interval to discuss the quality and to devise solutions for improvement (Jackson and
Malthis,2010).. Hilton hotel has used these techniques for provide the solution for employees
working issues. Another method is consultation techqnique, under which manager can be consult
with its employees to take involvement in the main decision. So that manager can be able to
know the views and opinion related to that particular business aspects,thus success can be
attained in effective manner.
4.3 The impact of HR on the employee relation practices
HRM is concern with that management policies, planning and practices which help to the
human resource in the business related activities and function. The main objective of HRM is to
manage the individual of business effectively and efficiently. So that employees can attain their
duties and responsibility for achieving company goal and objectives. If in the company, HRM is
in the effective condition, there employees can be able to work in the effective manner. HRM
represent the company's culture and structure. Under which company can be set the policies and
planning for the business related activities and function (Souza and Zajas, 2006). Thus by
maintaining the proper HRM, organization can be able to maintain the effective relation between
employees so that business can achieve their target in effective manner. For this HR department
of Hilton hotel should create the policies and practices for the employees in the management so
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that it can be help to maintain and enhance the effective relationship between the all department
of employees and management. Proper HRM helps to the company to overcome the employee’s
turnover. Through the effective policies and incentives method, company can reduce the
employees turn over.
HRM helps the organization in reducing the wastage and cost of the production, because
if HR maintains the effective relation with the employees so that they can encourage and
motivated for higher productivity (Wright and McMahan, 2011). Through establish the attractive
salary package, compensation plan, bonus and incentive method used, organization can be retain
the employees in the company for long term. It may be beneficial for long term success of the
company. Organization is required to inspired and encourage employees in order to increase their
commitment level so that workers can feel encouraged and motivated and perform well. Here,
the HR department of Hilton hotel should follow proper policies and procedures. Through this it
assists in enhancing the performance of business and thus develop best relationship among
workers and management. HRM is concern with that management policies, planning and
practices which help to the human resource in the business related activities and function. The
main objective of HRM is to maintain the employee relation at workplace effectively and
efficiently.
CONCLUSION
From this project report, it has been concluded that human or employees relation are very
essential for business success and growth. Also, this project has defined various methods for
improving the employee relation effectiveness in the business. Pluralistic and unitary frames
have been defined in this project. Trade union plays a significant role in the employee relation.
By developing the best strategy of HRM, company can maintain the long-term effective
employee relation in the organization. Also, it can reduce the employee turnover in the business
units. This project report also has defined the impact of European Union on the industrial
democracy in UK. It has been also concluded in this project report that proper HRM plays a very
significant role in the long-term effective relation between the employer and employee. With the
help of effective communication channel, employees can understand the thoughts, views and
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opinion of each other. Also, they can meet personally with each other to share the personal point
of view regarding to the conflicts.
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Online
The Impact of Human Resource Management Practices on Employee Turnover.2016.[Online].
Available
Through:<http://www.sciencedirect.com/science/article/pii/S1877042814059989>.
[Accessed on 8th Aug 2016].
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