Critical analysis and Comparison of Employment Relation Actors of Australia and India
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This research essay analyzes the employment relations of companies in Australia and India. The factors influencing employment relations due to state, trade unions, employers and jurisdiction of respective countries are analyzed in following paragraphs.
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RUNNING HEAD: EMPLOYEE RELATION MANAGEMENT Employee Relation Management A comparison between Australia and India Student Details 9/16/2019
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EMPLOYEE RELATION MANAGEMENT Critical analysis and Comparison of Employment Relation Actors of Australia and India The relationship of management of the company and its employees is known as the employment relations. It is the process in which, the companies try to manage their relationships with its employers and employees as well as try to maintain healthy professional relations between employees as well as employers. There are some parties or actors involved in the process of employment relations, which are employees, employers, trade unions and Jurisdiction. In this research essay, an attempt is made to analyze the employment relations of companies in Australia and India. Australia is a developed country and India is developing on a faster pace with which the employment relations of the companies of these countries are considered very crucial. In this assignment, the mentioned actors of employment relations have critically compared, contrasted and analyzed in order to bring efficiency in the operations of the companies operating in these countries (Heinelt 2018, p. 93). The factors influencing employment relations due to state, trade unions, employers and jurisdiction of respective countries are analyzed in following paragraphs. This in turn can help both the countries in developing their economy in more productive and efficient way (Narayanan 2016, p. 448). One of the major actors or a component of employment relations is the state or the government of the country in which the company is operating or conducting its operations (Dries 2013, p. 279). The involvement of state or government is very crucial in maintain relations in any company. Mainly this helps in providing safe working environment to employees in the company as well as helps in maintaining the employment rate high with the retention rate as well. It also acts as one of the major component of industrial relations where the employment relation is just only a part of it (Gold, Oire, & Fabian 2012, p. 2012). The involvement of state in employment relations establishes the involvement of respective government and its policies in the functioning of the organizations. The government facilitates the creation and follows through of restrictions, regulations, rules, auxiliary, etc by the companies operating in that country (Maier, Tavanti, Bombard, & Gentile 2015, p. 386). The government of Australia and India has made many rules and regulations that direct the professional relationship behavior of employees and management of the companies (Australia: Emploement and Labour Law 2019). According to major bodies of Australian government, which take care of human resources of the country and major labor laws, the safety and security of human resources of the country, is among their top 1
EMPLOYEE RELATION MANAGEMENT most priorities. Some legal bodies of state that govern employment relations in Australia are Legal Service Commission of South Australia, Attorney- General’s Department of Australian Government, etc (Indian Governemnt 2019). In India, the respective government department maintains the employment relations. The name of the department is Ministry of Human Resource Development (MHRD). It is one of the ministries of Indian Government and act as the sole authority for managing the human resources of the country. In the both countries, the management of human resources as well as employment relations is done with respective governing bodies of the central government. They implement various rules, regulations, laws, acts, etc, which enforce the behavior of all parties involved in the employment relations. The state governing principles of each country differs as the laws, economic conditions, GDP, growth rate, etc of both the countries differ. Based on that the influential regulations to protect the rights of all involved parties in employment relations are framed by respective governments of Australia and India (Mello 2015, p. 43). Trade unions are considered another important component of employment relations. They act as the managing bodies of employees, which fight and negotiate for the rights and dignity of employees of the particular organization (Carberry & Cross 2015, p. 55). A trade or labor union is the union or group of people that come in together to provide assistance to employees of various organization related to grievance and rights of employees in their workplace. Trade unions can be formal or informal in nature. In formal trade unions, the authorized governing bodies such as government or employment relation organizations make the unions. In informal trade unions, the unions are formed informally by a bund of people, which are seeking justice for themselves or others. In basic functions of trade unions, some of them are corrective bargaining, negotiation, strikes, protests, etc. In Australia, there are many formal as well as informal trade unions, which together take care of the rights of the human resources of the country (Narayanan, Rajithakumar, & Menon 2018, p. 232). The most famous trade unions of Australia are Australian Council of Trade Unions, Australian Workers’ Union, Australian Manufacturing Workers Union, Maritime, Mining and Energy Union, etc. There are some trade unions of Australia, which are specifically made for particular trade or industry such as Maritime Union of Australia, Electrical Trade Union of Australia, Transport Workers Union of Australia, builders’ laborers federation, etc. In India there are less trade unions as compared to Australia, however they tend to facilitate the rights of the human resources of India in an effective manner. As India is a developing 2
EMPLOYEE RELATION MANAGEMENT country, hence the government of India does not allow the unions with much budget, finance or subsidiary (Krishnan & Scullion 2017, p. 436). This in turn restricts these unions to some extent in providing help to wide range of employees of India. The major trade unions of India are All India Trade Union Congress (AITUC), Indian National Trade Union Congress (INTUC), Bharatiya Mazdoor Sangh (BMS), etc. The representative parties of the country like congress, BJP or many more govern these trade unions of India. Apart from them, there are other unions also which facilitate the management of rights of people of specific industry like banking sector of India, Indian railways, etc. In order to maintain employment relations effectively it is the responsibility of the countries to mange formal and informal trade unions operating in their countries in an effective and efficient manner (Manzoor 2012, p. 6). The employers or the management, which facilitate all basic and complex operations of a business, also acts as the key actor of employment relations. They are considered important for maintaining employment relations in the organization, as they facilitate various functioning of the organization by making effective utilization of available resources of the company. Among those resources, the most important are human resources of the company. The employer of any organization facilitates the smooth flow of information from its place of origin to its place of use. The employer also formulates rules and regulations for the employees, which are working in their organization (Narayanan 2016, p. 449). This is done in order to provide safe working environment to the employees. Employers are the major party as they are in direct contact with the employees and affect their views on the great levels. Their productive link and facilitate efficient employment relations in the organization. In Australia the companies are operation on very large levels, they have opened themselves or liberalization as well as globalization. The employers are providing appropriate salaries to their employees and taking various majors to project the rights of their employees. On the other hand, the companies of India are developing on a rapid pace however; India is not that open for globalization or FDIs. In this way the salary of employees are comparatively low. The development in world economy leads to hike in princess of necessary commodities in India, which gets costlier for Indian employees (Banfield & Kay 2012, p. 73). This creates differences in the views of management and employees and leads to ineffective employment relations. In this way, the countries needed to maintain a positive balance between its economy and world economy so that the companies can serve the 3
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EMPLOYEE RELATION MANAGEMENT employees needs in an effective very on the other hand the individual needs of the employees can be fulfilled in effective and efficient manner (Williams 2017, p. 118). Among various players of employment relations, one of the most important players is the Jurisdiction, tribunals, or the laws. Employment relations are the core of any industry as they deal with making and maintain the healthy professional relationship among management, employees and trade unions. Jurisdiction is not an entity however; it enforces the safety of employee rights in most effective and efficient way. It binds the right of the all involved parties of employment relations. In Australia, there are many laws, regulations and acts, which have passed and enforced by the respective government. The laws of directing the behavior of several parties involved in the employment relations in Australia(Australian Government, 2019).The acts that are passed in context of directing the behavior of human resources in Australia are Faire Work Act 2009, The Conciliation and Arbitration Act of 1904, Industrial Relations Act 1988, work Health and Safety Act 2011, etc. Among the mentioned acts, the most famous act that direct the human resources behavior and protect their rights in Australia in Fair Work Act 2009, which are amended in 2015. This act comprises all basic safety and security related measures of Australian Human resources. On the other hand, some labor laws that are formulated and implemented by respective governing bodies of India guide the rights and security of Indian human resources. India is a much-diversified country and growing rapidly with a view of becoming one of the developed economies of the world. The acts such as Trade Unions Act 1926, Minimum Wages Act 1948, Payment of Gratuity Act 1972, Factories Act 1948, In Industrial Employment (Standing Orders) Act, 1946, etc. These all acts of Indian government can help the human resources of the country irrespective of their occupation can facilitate safety and security in work place as well as protect their rights in efficient manner. When it is looked with the perspective of various involved parties, it is benefiting each of them. It is not just merely made for employees, the motive behind formulation and implementation of these laws are to protect the right of management as well as trade unions also (Baharin & Hanafi 2018, p. 79). Employment relations is the recently developed term that every individual, organization and country needed to consider in making smooth way of operational activities. The term is a part of Industrial relations and includes main parties or actors, which are employees, employers, trade unions, government and Jurisdiction. In above paragraphs the involvement of various factors is discussed with reference to two countries that are Australia and India. The comparison 4
EMPLOYEE RELATION MANAGEMENT and contrasts are made among those actors of employment relations. It can be concluded that the performance of employment actors of Australia are most efficient and in organized way as compared to India. It is so because the India is a developing country whereas Australia is a developed country. The availability of resources and their exploitation is better in Australia then India. This leads to smoothness in operations of Australian employment relationship parties. Irrespective of this, the growth and success rate of parties involved in Indian employment relations are more. The country is growing in an effective and efficient manner, which is affecting the parties of employment relations as well. It is advised to both the countries to maintain the relations among various parties of employment relations in an effective manner by bringing time-to-time changes in the acts involved. 5
EMPLOYEE RELATION MANAGEMENT Bibliography Australia: Emploement and Labour Law. (2019). Retrieved 2019, from https://iclg.com/practice- areas/employment-and-labour-laws-and-regulations/australia Australian Government. (2019).Australia's national workplace relations system.Retrieved September 17, 2019, from Attorney-General's Department: https://www.ag.gov.au/industrial-relations/australias-national-workplace-relations- system/Pages/default.aspx Baharin, N. L., & Hanafi, W. N. (2018). Effects of Talent Management on Employee Retention: A Case Study of Hospitality Industry.Global Business and Management Research: An International Journal, 10(3), 76-82. Banfield, P., & Kay, R. (2012).Introduction to Human Resource Management(2nd Edition ed.). Oxford University Press. Carberry, C., & Cross, C. (2015).Human Resource Development: A Concise Introduction. Palgrave. Dries, N. (2013). The psychology of talent management: A review and research agenda.Human Resource Management Review, 23(4), 272-285. Gold, P. B., Oire, S. N., & Fabian, E. S. (2012). Negotiating reasonable workplace accommodations: Perspectives of employers, employees with disabilities, and rehabilitation service providers.Disability and rehabilitation, 34(23), 2007-2017. Heinelt, H. (2018). Participatory governance in employment relations. In H. Heinelt,Handbook on Participatory Governance(pp. 85-98). Edward Elgar Publishing. Indian Governemnt. (2019).Law & Justice.Retrieved September 17, 2019, from Indian Governemnt National Portal: https://www.india.gov.in/topics/law-justice Krishnan, T., & Scullion, H. (2017). Talent management and dynamic view of talent in small and medium enterprises.Human Resource Management Review, 27(3), 431-441. 6
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EMPLOYEE RELATION MANAGEMENT Maier, T., Tavanti, M., Bombard, P., & Gentile, M. (2015). Millennial generation perceptions of value-centered leadership principles.Journal of Human Resources in Hospitality & Tourism, 14(4), 382-397. Manzoor, Q.-A. (2012). Impact of employees motivation on organizational effectiveness. Business management and strategy, 3(1), 1-12. Mello, J. A. (2015).Strategic Human Resource Management(4th Edition ed.). Cengage. Narayanan, A. (2016). Talent Management and Employee Retention: Implications of Job Embeddedness - A Research Agenda.Journal of Strategic Human Resource Management , 5(2), 443-457. Narayanan, A., Rajithakumar, S., & Menon, M. (2018). Talent Management and Employee Retention: An Integrative Research Framework.Human Resource Development Review, 18(2), 228-247. Williams, S. (2017).Introducing Employment Relations.Oxford University Press. 7