Employee Relations: Practices and Challenges

This assignment delves into the complexities of employee relations within organizations. It examines various best practices for fostering positive employee-employer relationships, analyzes common challenges faced in this domain, and discusses the ethical dimensions of human resource management (HRM). The assignment also explores the impact of trade unions and industrial democracy on employee relations, providing a comprehensive overview of this crucial aspect of business operations.

EMPLOYEE
RELATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Unitary and pluralistic references.....................................................................................1
1.2 Way in which changes in trade unions impact upon employee relations.........................2
1.3 Main players in employee relations..................................................................................4
TASK 2............................................................................................................................................5
2.1 Procedure to deal with different conflict situations..........................................................5
2.2 Key features of employee relationship.............................................................................6
2.3 Effectiveness of procedures which used in a selected conflict situation..........................7
TASK 3............................................................................................................................................8
3.1 Role of negotiation in collective bargaining....................................................................8
3.2 Assessing the impact of negotiation strategy ..................................................................9
TASK 4 .........................................................................................................................................10
4.1 Way in which EU influence UK's industrial democracy................................................10
4.2 Comparing methods to gain employee participation......................................................11
4.3 Impact of human resource management on employee relations....................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In general context, employee relation is defined as the mutual understanding among
managers and employees. Strong employee relations are the main source of growth and success
of a company; it has a significant role in order to enhance employees' performance and their
productivity. It is an ethical responsibility of manager to provide healthy and safe working
environment to their workers for making better employee relations. It would also help in
attaining and retaining people for a long term period within organisation (Ackers, 2014).
WALMART is the selected firm in this report which is a multinational retailing corporation that
deals in grocery products and services. It is the largest revenue company in terms of sales i.e.
$490 billion. WALMART is spread over 205 countries across the globe. Present report will be
discussing about the impact of trade unions upon employee relations. There are various
procedures explained which are helpful in dealing with the conflicts and disputes of company. A
justification is given towards all problems of employee relation and their resolutions are also
briefed in this assignment. This document refers to the way in which European Union influences
United Kingdom’s democracy.
TASK 1
1.1 Unitary and pluralistic references
There are two methods which are liable in order to understand the nature of employee
relations such are unitary and pluralistic approaches. Both rely upon different viewpoints but
their main objective is to improve employee’s relationship in a business entity. These approaches
are focused on maintaining the workforce in a sufficient manner that is able to lead all working
activities of company. Below mentioned is the brief explanation of these two approaches: Unitary References – In this approach, all authorities and responsibilities are in hand of
an individual. Such person is liable in order to manage all working activities and
operations of WALMART. In this firm, senior manager takes all necessary decisions and
other staff members are not encompassed in their strategic affairs. In addition, uniformity
of direction is managed by only one person who is capable to make essential conclusion
for the better growth and development of company. Therefore, employee’s relations are
maintained in a proper manner (Armstrong, Brown and Reilly, 2011). Unitary approach
is also helpful in managing the workforce effectually which promotes loyalty among all
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employees. Main objective of this theory is to avoid conflicts among all employees and
forces them to work hard towards achieving goals and targets of the firm. It implicitly
wants to integrate managers as well as worker’s interests so as to extend their
commitment. It emphasises on fact that employees are the main stakeholders of company
as they should be considered carefully to ensure the welfare of company. Employers are
obliged to manage employee relations and focuses on upgrading their leadership abilities.
At last, the unitary approach works for an individual in industrial relationship system.
 Pluralistic approach – The theory believes that working environment is a combination of
set of values, attitudes, beliefs and behaviours. Pluralistic approach consists that an
organisation cannot survive alone. It needs various managers and employees who are
liable for the decision making process of company. In addition, the concept sees that
management and workers often suffers with issues or conflicts regarding distribution of
profits which put a huge impact on their personal relationships. Therefore, it is the moral
responsibility of management to keep a control over all activities and establish co-
ordination between them (Biswas and Varma, 2011). Some trade unions are known as
authorized representatives of workers who protect their rights. The implications of
pluralistic approach encompasses that WALMART has to focus on improving industrial
relations for which it must hire some specialists who give suitable advise in respect of
resolving staffing issues.
1.2 Way in which changes in trade unions impact upon employee relations
Trade unions play a vital role in industrial relations. They are liable to protect employees
against exploitation. Now, government of UK has also changed legislations and laws of trade
unions. In general words, it can be described as those leaders whose main aim is to render secure
and safe working environment to their employees. Apart from this, 1979 British trade unions
were formed vastly in order to cooperate with firms and also, to manage healthy competition. In
the year 1997, all these legislations were reformed by new labour governments, 2010.
There are given board shifts within economic policy of the country: -
 1945 to 1979, the main focus of trade unions was to distribute government income and
generate more jobs for people.
 1979 to 1997, it moved towards controlling inflation and making more flexible labour
markets.
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 1997 to present – British government still makes plans in order to ease up inflation,
diminishing deficits and to recover from global crisis.
During these years, privatisation has also increased in public sectors. Managers make
their owns plans and policies. UK's government had not completely changed their employment
laws and legislations but also announced minimum wages act. It refers that workers are paid with
right amount as they were promised by managers previously. Owners will not make any
dedication without permission of employees. In 1960s, the area of trade unions were enhanced
and many people joined these unions in order to make amendments for effective working
environment (What is Employee Relations, 2017).
(Source: Politics and Legality: The UK’s Trade Union Bill 2015)
During 1997 to present, government still does not make any changes in labour laws and it
focuses on the way to involve private sector into public. There were 1345 trade unions in 1979
but only 113 are remaining now. Due to economic recession, trade union membership was
declined by 8% as the number of employees were also reduced from business organisations. In
addition, trade unions have power as they can preserve employees' rights and their health by
giving them safe working environment which is able to maximise their performance in an
effective manner.
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Illustration 1: Trade unions

1.3 Main players in employee relations
In WALMART, there are several people who are responsible in managing industrial
relationship so that working activities can be done in a systematic manner. However, it is
essential for people who work at managerial level for carefully listening the needs and wants of
all staff members. They also have to make efforts so that problems and issues at workplace can
be reduced. There are given some major players who are involved in maintaining employees'
relations which are stated as under: - Managers – In WALMART, front line managers have a significant role in improving
relationship of employers as well as employees. The core role of managers is to create
and execute various strategies that are related with a legal working environment
(Burchill, 2014). Managers are also liable in order to ensure that all operations are done
in an ethical manner. They resolves criticism among different employees, sometimes it
may be affect upon entire functions of the company. Additionally, it is the prime duty of
managers to deliver healthy as well as competitive environment to people so that they can
work efficiently. It could enhance employee’s performance and encourage them to work
hard for achieving goals and objectives of the firm. Employees – Workers are capable enough for executing various tasks and operations so
that it can attain the desired targets. As similar to managers, employees also have to be
loyal towards their company. They need to follow all directions and guidelines of
managers while carrying out their work. With the efforts of both parties i.e. managers and
employees; WALMART can manages its strong industrial relationships. Hence, company
is also able to perform in the competitive market (Kazlauskaite, Buciuniene and
Turauskas, 2011). Apart from this, if workers would not feel safe and secured, it might
affect their performance. For that the same, sometimes, they move to trade unions that
forces employers for making policies and strategies. . In addition, the prime aim of such
unions is to ensure worker’s choices and their interests who are employed in the business
enterprise. Thus, it is essential for managers to protect the interest and demands of these
people effectively.
 Government agencies – Government of any nation plays a crucial role in improving
employee relations. It is liable in managing price fluctuation as well as profits over the
balance of defrayal. Government agencies evaluate business activities and their
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effectiveness. It creates various laws and legislations which help in protecting employees'
rights. Apart from this, legal authorities established a balance among diverse economic
activities so as to create employment opportunities of the citizens of nation. Apart from
this, WALMART has considered various acts i.e. minimum wages acts, sex
discrimination act, health and safety act, etc. so as to provide better working environment
to people in company.
TASK 2
2.1 Procedure to deal with different conflict situations
Things are done in effective ways are also chances to get failure. Likewise, in an business
entity dispute may arises in any manner. In this competitive working atmosphere different
conditions are occurred which are generates conflicts among employees i.e. lockouts and strikes
etc. however, managers also implement various approaches to dealing with these conflicts in an
effective manner. In general words, sometimes disputes can take place of serious situations that
can also impact upon working situations as well as allocation of resources. There are many
conflicts and disputes which impact upon employee relations i.e. gender discrimination, race
religion, cultural differences etc. It can also decrease workers' motivation and their enthusiasm
towards work. Furthermore, due to these conflicts such people also raises their voices without
carrying any guidance and rules (Watson, 2010). Below mentioned the process that helps
managers in dealing various conflicts situations: - Define the situation – In order to deal with problem in an effective manner, it is be
necessary for managers to define the overall problem (Doherty and Norton, 2013). This
can include the reasons why problems are being occurred and how they can influence
overall business. In WALMART, due to low wages, employees are moving towards
strikes. In order to resolve the same, managers needs to know their needs and demands
and thus they can make effective strategies. Be specific – These strategies and policies should be made in specially. It means that
these should really be able to reduce conflicts and disputes and can force such employees
to work efficiently towards attaining goals and aim of company. Discuss impacts of conflicts – In this stage, managers have to recognise the impact of
these disputes upon business organisations. Sometimes, due to strikes and lockouts
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market reputation of the firm can be decreased and it might be losses many loyal
customers (Poole, 2013). For example- in Wal-Mart, management has to involve workers'
in their decision making process and in taking views from them. It helps them in
identifying the problems and issues of all staff members. Identification of specific cause of conflict – By these meetings and group discussion,
managers can identify the main reason behind these conflicts which can be related with
wages, healthy and safe working environment, etc.
 Make a specific solution – At last, after knowing all causes, managers can easily make
appropriate solutions by which relationship among employees and employers can be
improved.
2.2 Key features of employee relationship
There are several types and nature of people working in a business organisation. Thus, it
is common to raise conflicts and disputes among these people on the basis of race, religion, age,
gender, values, culture, etc. In this modern era, male and female, both are equal. Government of
United Kingdom has also made some rules and regulations to reduce discrimination (Dasgupta,
Suar and Singh, 2012). These legislations are essential to be followed by every organisation in
order to improve employee’s relations. Some major key features of industrial relations are stated
as under: -
(Source: Importance of employee relationships, 2017)
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Illustration 2: Employee relationship

 Helps in resolving conflicts – Effective employee relations are able to reduce the
conflicts and disputes of workers by providing them healthy and safe working
environment. Apart from this, in this context, if workers are sharing strong relations as
they can easily share their ideas and views that how to make better production attract
more customers towards a company.
 Expression of problems – It is also assistive in giving chance to employees as they
efficiently express their problems which can distract them from work. These key factors
could also help in attaining and retaining employees for a long term period which is a
prime source of growth and success of company. If WALMART's managers can
understand employee’s queries so as it deal with them effectively.
2.3 Effectiveness of procedures which used in a selected conflict situation
If managers are able to evaluate their conflicts as they can easily find appropriate
solutions for the same. Apart from this, the above situation is related with discrimination in
genders, race, religion etc. There are given various methods and tools which helps in measuring
effectiveness of conflict situations: - Monitoring – Business owners can measure their own procedures that are regulated by
them in order to resolve issues and further problems among employees. If they regularly
evaluate or monitor all conflict situations and reasons behind them so as strategies can be
made effectively and efficiently. In addition, they can also do rectification in errors so as
to make effective procedures. 360 Degree – This method helps managers to analyse the overall problem i.e. checking
all sides of problems in order to ascertain each section. 360 degree also involves all
sources which are used in effective evaluation off all resources so that employers can
take appropriate decisions towards growth and development of their business
organisation (Delbridge, Hauptmeier and Sengupta, 2011).
 Feedback – It is essential for the managers to take timely feedbacks and reviews from
their employees. This will make them closer towards their workers. Apart from this,
feedbacks also help employers as they know the needs and wants of their staff members.
Healthy and safe working environment is the basic requirement of all employment so as
top management needs to focus upon them firstly.
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TASK 3
3.1 Role of negotiation in collective bargaining
Collective bargaining is an important part of worker’s contract negotiations. It involves
drafting a legal agreement among a business owner and employees. This agreement lays out all
terms and conditions which need to be followed by a business organisation in employment.
Apart from this, HR manager of WALMART also plays a vital role in various processes of
collective bargaining. In top management, if people want to be a part of negotiable process then
they have to be knowledgeable and well versed in labour law (Kazlauskaite, Buciuniene and
Turauskas, 2011). In addition, HR manager will be also decided which kind of terms and
conditions are suitable for the company. People who may not have any knowledge cannot
participate in negotiation process. There are given roles of negotiation process in collective
bargaining which are stated as below:
Helps in accessing best conclusions
The group of collective bargaining discusses its all queries and issues to the
administration of firm so that management can better take decisions for them. Along with this,
the representatives of these group are liable in order to manage all working activities of company
(Feagin and Feagin, 2011). Thus, managers need to create a base for effective decisions and
conclusion by negotiating all of them. Negotiating also helps employers as they can realise the
problems and issues being faced by their employees and the way of making conclusion to reduce
them.
The procedure of collective bargaining can be improved by negotiation
In the process of collective bargaining, workers can easily explicit their difficulties that
are being faced by them during work. Therefore, managers convey the message to top
management and it makes appropriate solutions for same. During this, higher authorities are
focused on the way to establish transparency among employees and employees. If a business
organisation is sharing strong industrial relations then it can easily achieve the goals and
objectives in a certain time period (Strategy for Effective Employee Relations. 2010).
It assists in accomplishing the best possible practices
Prime aim of collective bargaining process is to adopt the best practices so that
employees can get higher level of job satisfaction. Some practices are developed from employers'
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point of view where some are given by employees, if both parties contributes equally so that
WALMART is able to achieve good employee relationship (Demirbas and Yukhanaev, 2011).
3.2 Assessing the impact of negotiation strategy
Negotiation strategy put a huge impact upon collective conflicts that are related with the
situations of WALMART. Generally, negotiation is the process which helps in managing
conflicts situations by the company. With respect to this, managers of WALMART are created
and executed diverse negotiation strategies which can be influenced cited situation of the firm.
Apart from this, managers do not participated in compromising strategy in respect of analysing
specific issues that is tolerated by employees within the workplace. In collective disputes
managers needs to motivate and encourage staff members so that they would attain and retain for
a long term period within the firm. If WALMART adopt this strategy it can leads in declining
overall level of efficiency of workers'. In this given situation if the company observe regularly
that how to raise up motivation level of employees in order to gain more productivity (Godard,
2014). Sometimes managers only focuses on well skilled people, this could also generate
unnecessary dispute among workers.
On the other hand, another strategy of negotiation is forcing; its main goal is to attain
individual's targets. Furthermore, in this strategy managers only tend towards personal goals
rather than overall organisation. In addition, if all individual are capable to accomplish their
goals as companies such as WALMART can also achieve its mission and vision.
Along with this, if any business adopt these strategies as this can generate negative
working environment at workplace. Through which, conflicts and misunderstanding are
increases in a business organisation; therefore it is too difficult for a company as to keep valuable
employees for long term period. In addition, such workers are no longer to take participate in
various affairs of the company which are related with its growth and success.
TASK 4
4.1 Way in which EU influence UK's industrial democracy
In the United Kingdom, government is continuously transferred its powers to the
members of European Unions. Additionally, the structure of industrial democracy is still
presented in business organisations, in that workers have right as they can also take important
decision for the betterment of the firm. EU put a direct impact on industrial democracy over the
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nation by affecting it’s all laws and legislations. For example – European Unions passes an act
i.e. staff members also be a part of decision making process of the company. Then, in the UK,
industrial democracy must comply such rules as per the guidelines issued. Apart from this, if
WALMART does not follow all of them then it may put an adverse impact upon its growth and
success in the form of strikes and lockouts by their employees.
(Source: How industrial democracy impact upon EU, 2017)
Furthermore, there are many cultural differences that also affect industrial democracy at
national level over the country. A company which trades at international level does not consider
its employees in decision making process then such aspects can influences overall market
position of the firm in global market (Greenwood and Freeman, 2011). Therefore, WALMART
needs to follow all rules and laws if it is working in European region. But the entity is not
complied all of these, in this case this could be so difficult for the company as to run
continuously its operations in that region. Apart from this, the main objective of these European
Unions is to develop relationships between employees and employers. It is because; this helps in
managing all working activities so that company can achieve its common goals and targets in the
target market. Therefore, it can be well said that EU has influenced industrial democracy by
regulating divergent laws and acts for the betterment of staff members. In addition, each and
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Illustration 3: Industrial democracy

every action of business activities that would affect highly by EU and managers are also liable
in order to ensure that entities are fulfilling their social responsibilities in effective and efficient
manner.
4.2 Comparing methods to gain employee participation
Employee participation means to get each and every employee in decision making
process of company. It helps in creating an effective working environment so that people can
attain and retain for a long term within an entity. Managers can adopt various methods to include
their staff members like flexible communication, group meetings as well as training and
development sessions. These aspects frequently share their gains and profits of company with
workers. Apart from this, it is the procedure of empowering workers so that they can participate
in group meetings which are conducted for improving business activities at all levels of
organisations. In WALMART, employee participation helps in combining all management styles
to gain motivated workforce. With this, staff members also enjoy their job roles. Its main aim is
to make employees feel that they are also an essential part of enterprise.
Below mentioned are some major methods or ways that can increase employee
participation:
Methods Variances
Ownership Employee participation through ownership is an effective
technique. It helps in ensuring so that workers can involves
with other stakeholders of the company this will help in giving
them better suggestion towards how to increase share capital of
the company. The method also gives an opportunity to
employees. They can also buy equity shares, provide financial
help and advance loans to company.
Collective bargaining Managers can also gain employees' involvement by generating
some rules and regulations i.e. collective agreements. In this
managerial process, there is control over all activities otherwise,
other teams can easily take benefits of other ones (Greenwood,
2013).
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Suggestion schemes Motivating staff members by determining them unique ideas
and concepts i.e. safety measures, waste management, reward
system, cost cutting. It cannot increases employees participation
but also enhance their current skills and abilities. In addition, the
suggestion schemes also add values in organisational affairs and
establishes a healthy and positive working environment at
workplace.
Group discussions and
referrals
In group discussion, all employees are given with their ideas and
new thoughts as how to improve production. Integration of these
activities conducts for a specific purpose or aim. Apart from
this, employees who are very much talented in their work so as
if some issues are transferred to these referrals. It also helps a
company to find out experts who will be a manager of their
companies.
4.3 Impact of human resource management on employee relations
Human resource department plays a vital role in the growth and success of every business
organisation. The main role of HR manager is to focus on employee’s retention so that workers
can be easily retained. In WALMART, such people make plans and strategies that how to bind
up employees together. If workers are undertake in certain processes then it assists in
strengthening employees' relations and make them as valuable assets for the company. Below
described is the role of HR managers in employee relationship that are stated as under: Workplace quality – The main role of human resource department is to create a healthy
and safe working environment so that they can work effectively and efficiently within
business entity. With reference to this, workplace quality highly affects employees' mind-
set. So, it is the moral responsibility of managers to generate friendly and positive
atmosphere for staff members in order to retain their interest (Gupta and Kumar, 2012).
 Complaints – If a company regularly handles all queries and issues of its staff members
then it can effectively reduce them by producing some strategies and policies. Such
complains come from employees and managers whereas HR unit has the major role in
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order to diminish differences between all of them. Its main motive is to make employees
feel more comfortably as much as possible.
CONCLUSION
It can be concluded from the above report that employee’s relations play a significant role
in the growth and success of business. HR manager of the business entity is liable to manage
employee relationship effectively and efficiently. The present assignment has been included
various approaches of employee relationship and how it impact on the same. There has been
discussion on changes in trade unions since 1949. It is also enlighten key features of employees
and effectiveness of conflicts situations. The report describe that collective bargaining is liable in
order to forces employees to comply all laws and legislations so as company can operates in
effective manner in the country. This also has been discussed that EU impact on the affairs of
UK's industrial democracy. Managers can adopt various methods in order to gain employees'
participation. The project report has been subscribe the impact of HRM on industrial
relationships.
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