Employee Relations in Multinationals and Public Sector

This assignment explores various aspects of employee relations through an analysis of several academic papers. It examines case studies on a multinational automobile transplant in India ('Satyagraha and Employee Relations'), the changing realities for older workers ('Rethinking Retirement'), collective employee representation in Germany, and worker resistance to compliance in the UK. Additionally, it looks into individual conflicts across five European countries, British employment relations changes from 1980-98, and CSR as an organization-employee relationship management strategy in Indian IT companies.

EMPLOYEE RELATIONS
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. 1 Unitary and Pluralistic reference’s frames......................................................................3
1.2 Change in trade unionism can affect employee relations.................................................4
1.3 Role of major players in employee relations....................................................................4
TASK 2............................................................................................................................................5
2.1 Procedures to deal with conflict situations.......................................................................5
2.2 Key Features of employee relations in a selected conflict situations...............................6
2.3 Effectiveness of procedures used in conflict resolution...................................................7
TASK 3............................................................................................................................................9
3.1 Role of negotiations in collective bargaining...................................................................9
3.2 Impact of negotiation strategy........................................................................................10
TASK 4..........................................................................................................................................11
4.1 Influence of EU on industrial democracy.......................................................................11
4.2 Methods to encourage employee participation...............................................................11
4.3 Accessing impact of Human Resource Management on employee relations.................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
In the present business environment companies have to face many kinds of challenges. In
such a scenario it is essential for the firms to make good relations with its most valuable
resources i.e. its workforce (Gupta and Kumar, 2012). An employee relation is the term used for
the relationship that is maintained by the employers with its employees. There are several factors
that influence employee relations. It is essential that employers regularly communicate with their
workers so as to maintain healthy relations with them. Healthy relations with workers help in
increasing the productivity of theirs and hence the overall performance of the firm gets
enhanced. Role of HR managers and Employee unions are very essential. ER helps in
maintaining the motivation of the employees so that they can understand themselves as the part
of the firm. Marks and Spenser is one of the biggest retailers of the United Kingdom and has
employee strength of around 85000 employees. Maintaining relations with such a large
workforce is a difficult task and effective strategies need to be maintained. This report highlights
the role of trade unions as well as HR managers to maintain the employee relations. It also
describes importance of collective bargaining role in negotiations.
TASK 1
1. 1 Unitary and Pluralistic reference’s frames
Both these features have association with employee relations that can be detected in two
different methods namely unitary and pluralistic frame of references. Both the approaches
are having varied perception as well as view point which is linked with the methods using
which relations between employees and employer is maintained. It is in the welfare of the
firm. In the Unitary reference frame the relations lies around the fact or belief that power
of taking crucial decisions within the firm is with few individuals only or say with the
management, It also suggest the fact that leaders of Marks and Spenser is having various
kinds of roles and responsibility. One of the prime role in this regards is increasing
commitment and loyalty among workforce towards the company. Using team culture
within an organisation can help in achieving tasks efficiently (Devonish, 2013). This
perspective also believes that trade unions are inefficient in solving conflicts that arises due
to various reasons. It reduces the overall capacity of the firm and management cannot do
anything regarding this. On the other hand pluralistic approach has slightly different
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perspective which suggests including employees in the process of decision making. It
defines the role of firm as a mediator and considers the role of trade unions highly
important. It also showcase that ER can be maintained by performing series of negotiations
and consensus among employee and mangers using process of collective bargaining. By
taking use of both the approaches Marks and Spenser maintains its relations with
employees. It depends on the scenario in which company is facing.
1.2 Change in trade unionism can affect employee relations
ER is subsequently affected by the alterations in the Unionism. It is the society of the
workers that works together for safeguarding the interest of each other. Increasing pay scale as
well as making positive environment workers are some of the primary roles. Trade Unionism
came into existence in the year 1894 where many workers joined it in the same year. There are
several kinds of trade unions existing in UK like congress community and youth employee.
Various macro factors affect the variations in the Unionism such as:
 Political and Legal: Any kind of changes in the labour related policies or political
decisions can affect the ER inside the Marks and Spenser that too in a better way. Many
issues arise when the enterprise does not obeys the laws set by regulatory authorities of
the nation which ultimately affects relations among firms and trade unions (Bach and
Kessler, 2011). Trade union helps in pressurising government to take decisions in the
favour of employees.
 Technological: Introducing technology in the working process always leads to job cuts or
say many types of retrenchment is encouraged. Trade unions plays an essential role in
safeguarding employees from such retrenchments. They affect the relationship between
employees and employer hence lock-outs and strikes in this process is carried out.
It has been analysed that changes in trade unionism have a greater impact on a employee
relations because main objective of this institution is to prevent rights or interest of labours
performing at workplace. Thus, it is understood that higher authority of an association is
implementing number of changes which is described as follows:-
 Implement laws or acts for protecting employees rights at workplace.
 Conduct health or safety acts such as; occupational health and safety.
 Provide necessary remuneration laws.
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Hence, it is analysed that if marks and Spencer get succeeded in fulfilling demand or
interest of employees then they can easily create a positive relations with employees. As a result
an enterprise may attain their set objectives or goals in a defined time period.
1.3 Role of major players in employee relations
Managing healthy employee relations with the employees is not a one sided approach
rather it is a collective process. It is neither done by any one of individual but several
players have the role in this. Some of the major players of ER are as follows:
 Managers: They are one of the prime players in this regard. They interact with
staffs on daily basis and hence play a significant role in building relationship with
employees and employers. Managers also manage the issues between two
employees. They also have significant role in enhancing the motivational and
loyalty levels of workers which is crucial in managing ER. They also play the role
of negotiator in case any strike has been called by employees (Luo, Wieseke, and
Homburg, 2012).
 Government agencies: Government is one of the key player in the employee
relations. Their implementation of policies and laws has effect on the ER of Marks
and Spencer. There act as a mediator in the case when major conflict arises. They
make policies that safeguards the interest of both the parties which is necessary in
the case of any conflict arise in the firm. Some of the policies like minimum wages
and maintaining health standards at workplace is one of the major role of
government in ER.
 Staffs: They are the major player of the employee relations. It is not only the role of
employer to take care of the employee relations but participation of staff is
important. They hinder the relationship when they did not follow the procedures for
accomplishing the goals of firms (Morris, 2012).
 Trade unions: These play the role as a mediator in the cases of conflict. They are
another major player as they put the collective demand of the employees in front of
employers. Since the trade unions are the accumulation of workers and leaders
hence they solve collective issue and use the method of collective bargaining on the
issues of common interest like wages.
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TASK 2
2.1 Procedures to deal with conflict situations
There is a very dynamic kind of work procedures that is followed inside any firm and
when there is matter of many kinds of employees there is always a chance the conflicts
may arise between them and employers. These situations reduce the overall capacity of the
firm. These situations are generated since every employee has a different view point and
opinion towards specific topic. Due to this it is the responsibility of the managers of the
Marks and Spenser to deal with the conflicting situations by finding and using new
procedures. One of the primary role in this regard is played by lack of effective
communication between employees and management. Hence the primary role is to choose
the set of standards of communication that will help in solving these issues. Conflict
resolution may be underpinned as the procedures to understand difference among
employees and employer and discussing so as to resolve it (Rodriguez and Mearns, 2012).
There step wise procedures for solving the problem is as follows:
 Identify the issue: It is more crucial issue that managers must identify the major
cause due to which conflict has arisen. In the process of getting the reason, they can
use series of questions which will ensure that proper set of information is available
with managers about the reasons why conflict has arisen. In this regard company
can conduct face to face interviews with top officials of the company where they
can share their views. It helps in getting the root cause for the problem.
 Clarify individual’s perception: It is essential that managers give ample time in
listening to the view point of the employee. Employees must be given a chance
where they can freely express their opinions and views. An issue will never be
resolved if manager would not understand the overall problem (Bhattacharya,
2011). Along with this firms also need to influence their workers for working
under the vision of achieving collective goals.
 Determine solution on which both disputant can agree: It is crucial that there must
be the ways that needs found out by the management of Marks and Spencer. The
solution must be in a way that both the parties support it. They must find out
effective positive areas from each other perspective. The solution must be
productive for overall firm.
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 Agreement: At the end, mediator needs to impact both parties as they can agree
upon the solution that was discussed in fourth step. Beside this, some managers
write up a contract among two parties in which actions and time frames have been
specified. These agreements are done invoice as well as in written. Mutual
understanding is the base of such agreements.
2.2 Key Features of employee relations in a selected conflict situations
There are many kinds of conflicts that arise in a firm like Marks and Spencer. To manage
all these firm needs to have managers who have an excellent communication skill. The
individual must be liable to create and execute an open communication atmosphere. This
encourages workers as they discuss about various working issues. An efficient
communication always beneficial in listening to the concerns and issues of the workers. In
the present global scenario many firms are seen to be highly concerned about the employee
relations since it has major role in success and growth of the organisation. It assist firms in
running smoothly over the longer period of time in spite of the heavy competition. The
concept of employee relations has included several key features. For example business
owners have a great financial and nonfinancial rewards to a group and people so as to
extend their productivity. This firm is providing flexibility for working in shifts and has
included a plan where employees can leave one hour early if necessary. It helped Marks
and spencer in retaining people for the longer duration of time.
Along with this another feature that is evolving these days is employee engagement. For
example company is engaging employees at every level for making strategies. Marks and
Spencer is providing 10% discount on their workers for any of its purchase. These helps in
eliminating the reasons for conflict. Marks and Spencer distributes share among their
employees so as to make sure that they also feels themselves as a part of integral part of the
firm. This company does not believe in having trade unions which brings more positivity
to the working environment.
Features of employee relations are strongly connected and encompasses in the situations
of conflict. It is also strongly bounded and is interdependent on expansion of market and
vitality of business firms. It is proven that if the workers are treated in best possible
manner then higher productivity is achievable with their enhanced performance. Trying out
these features of employee relations helps in engaging workers with all operations and
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functions of the firm. It also helps to look into the health and safety issues as well as
making sure that staff members generate loyalty towards firm. Commercial set ups have
many rules and regulations for governing people as well as maintaining cultural diversity.
Effectiveness of conflict resolution plan:
Conflicts resolution plans and policies are very helpful in managing employee relations
and is the role of the management to make one for the company. These plans have best
solutions towards the problems that often occurs within the organisation and provide a
complete solution to various issues in employee relations.
2.3 Effectiveness of procedures used in conflict resolution
According to the situations of conflict that arise it is the basic responsibility of the
management of Marks and Spencer to follow different approaches to resolving disputes in
the best possible way. By providing a friendly and appropriate platform to all the workers
managers may be able to have healthy employee relations with employees (Akingbola,
2013). By making conflict resolution plan any company can easily achieve its targets and
goals efficiently. It must be capable of providing justice to all the workers. A firm and its
employees must have an interaction that is based on honesty; it is the most essential aspect
of in terms of building trust with each other. Marks and Spencer needs to find ways in
which they can involve junior level employees in the process of decision making. It is
necessary for boosting up their morale which has a direct effect on employee relations as
well as their personal performance. This system must have the procedures using which a
employees can give their feedbacks and opinions about the various operations. A firm must
also include the employees in the process of resolving any conflict. They can provide
effective suggestions towards these.
In Marks and Spencer it is essential that managers must arrange the system where there is
a culture of open discussion where employees can easily interact with their seniors in case
any issue arise.
Along with these conflicts also arises among different genders at the workplace.
Managers at the local levels must take the initiative to understand the major cause of
conflict and take effective solutions for the same. In such type of problems marks and
spencer can organise various interactive sessions with each employee to their perspective.
The above mentioned conflict resolving has a positive environment (Kunju Kunju Mathew
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and Jones, 2012). Since all these conflicts will reduce the productivity of the firm. The HR
managers have the primary role in resolving such conflicts. Other than this it is essential
that lower level managers should inform about any of such kinds of conflicts so that
management can implement healthy practices at the workplace.
Other than this collective bargaining is one such process where the trade unions
goes with the demands of large number of employees to the management and they discuss
and resolve problems. This in a very effective method as it becomes essential for the firm
to agree upon the demand of the masses and avoid a situation of conflict.
TASK 3
3.1 Role of negotiations in collective bargaining.
It is one of the oldest techniques in the employee relations process. It is not used for any
individual demands rather it is used for the interest of collective group. It is used by the
trade unions for fulfilling the demands of the masses such as wages. It brings positivity in
the working environment (Loretto, Lain and Vickerstaff, 2013). In this process of
collective bargaining labour unions makes a strategy where people having same interest
accumulate to put forward their issues and views in front of the management and forces
them to somehow agree upon it. Negotiation plays an vital role in the process of collective
bargaining. Negotiation leads to an agreement that is made between the two parties and is
effective thereafter in case any such dilemma occurs in future. This has a very tactical role
and is highly capable of fulfilling the demands off the people. Some of the major roles of
negotiations in this regard is as follows:
 Negotiations help in enhancing the quality of work: In the Marks and Spencer
employee uses negotiations to put their needs of the workplace in front of
management with the help of trade unions. If all these demands and necessities are
fulfilled then they can carry out various operations in a effective manner as
satisfied employees always produce quality works.
 Negotiations helps in improving the effectiveness: With the process of collective
workers put their demands related to their needs (Hamblett, 2013). When
employers fulfil all these needs it automatically boosts the moral of the employees
and hence the employees start concentrating on their jobs which is essential for
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higher effectiveness in the working process. With collective bargaining a proper
discussion among two parties carries on which helps in finding the solution which
is essential for effective works.
 Negotiations act as a support system in the process of reaching to productive
conclusion: With the adoption of the process of collective bargaining workers and
firm agree upon having discussion and negotiates on various aspects that is
hampering the growth process of the firm. Bringing effective solutions to this
solution ensures long term growth for the firm. With the process of collective
bargaining firm can easily communicate with each and bring productive solutions
to issues.
3.2 Impact of negotiation strategy
With the help of negotiations strategy managers can easily assess the situations of conflict or in
other words it is the way of managing the conflicts within the business firms like Marks and
Spencer. There are various negotiation strategy that are available but the selection of one is done
on the basis of its appropriateness in the situations (Mather, Worrall and Mather, 2012). Some of
the negotiations strategy in this regard is as follows:
 Competing strategy: It is a strategy that is reflecting in working environment. Marks and
Spencer is one of the largest retailing industry present in UK. And the competition in the
retail sector is also high. The firm is endorsing the strategy in which rivals are loser as
well as winners. In this strategy managers evaluate each and every aspects that can put
positive environment in the diversity that is present at the workplace in terms of
workforce and culture that is present within the organisation. It assisted a company in
becoming the leader of the market within the very short span of their functioning.
Competing strategy has a larger flaws on the performance of the workers and can receive
huge benefits from the target markets.
 Accommodative strategy: There are many issues that arises within the firm and has a
potential of effecting the market reputation as well as degrading the financial status of the
firm on the long run. For this purpose accommodative strategy is highly suitable. It is
helpful in gaining higher positions in the market in less time (Cooper and Baird, 2015).
This strategy aims to provide many kinds of attractive offers to the employees so that
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employers can retain them for the longer duration of time and hence carrying out
effective business operations.
 Avoiding strategy: It is sometimes beneficial that firm avoid certain kinds of issues and
queries for formulating effective operations and functions. This strategy is used by Marks
and Spencer in solving many kinds of problems that has arisen in day to day operations of
the firm. Company goes by taking one issue at a time. It is not possible for the
government authoritative bodies to initiate modification in the private firms related to
operations so that firm avoid issues for certain duration. Thereafter they can endorse
diversified tactics and tools so as to resolve them in best possible manner.
 Compromising strategy: It is a type of negotiation strategy which is used when the
workers of the firm negotiates for their position held by them (DeLellis and Sauer,
2015). Due to variations in time constraints, performance of workers gets reduced and
they cannot survive in such environment for working. In compromising strategy
individuals aims to compromise their objectives for attaining business goals.
 Smoothing strategy: This strategy forces managers to understand the importance of staffs
and take reviews and feedbacks from them. This strategy is helpful in raising the workers
encouragement and levels of motivation. It diminishes negativity and creates a working
environment that has positivity where worker are integral part of the process for decision
making.
TASK 4
4.1 Influence of EU on industrial democracy
EU has a larger influence on the democracy that is present within the industries. They give the
framework using which business enterprises are designed for achieving their vision and mission
(Darlington, 2015). Same is the case with the retail industry where the firms like Marks and
Spenser needs to follow every laws and legislations that is made by the EU so as to perform
effectively in the global market. Due to the cultural variations such laws and regulations aims to
bind the firm as unit and everyone has to follow it. Apart from this EU make the policies and acts
that is in the benefit of workers and ensure their personal development and growth. Such type of
laws is effective in process that will ensure that more number of staff can be included in the
process of decision making. This is itself enough for understanding the EU has a direct influence
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on the internal democracy of the firm. If Marks and Spencer do not comply with these laws then
it is possible that their firm will face negative complication. It is also to be understood that there
are many firm that are multinational in nature and do not have a culture where they involve
employees in the strategic affairs but when they are operating in UK they have to take care of all
the laws and regulation made by EU so as to avoid the situation like strikes and lockouts.
4.2 Methods to encourage employee participation
Employee participation has become an essential part of the employee relations. It is helpful in
creating positive working environment in firm which helps in increasing its productiveness.
Participating employees in various matters helps to increase their moral condition which is
beneficial for both firm as well as individual (Jefferys, 2011). It ensures smooth running of the
firm. Employee participation can be encouraged by giving proper responsibilities, training them
as well as taking timely feedbacks from them. Marks and Spencer takes use of various methods:
 Consultation: This is the method in which company takes consultation from the
employees on various issues. This is done through the use of feedbacks as well as
consultation forms. This helps in enhancing the motivational level as they also feel
themselves as a crucial member of the firm
 Suggestion scheme: This is another method that is used by the Marks and Spenser where
firm takes suggestions on various issues from the employees (Hauser-Ditz, Hertwig, and
Pries, 2013). This is done by conducting meetings as well as direct communication
between management and lower level of employees.
4.3 Accessing impact of Human Resource Management on employee relations
There are several units within the firm of the scale of Marks and Spencer. Everyone has the
role in managing employee relations but one of the most significant role that is played is in this
regard is of Human Resource Department. The better the human resource is managed within the
firm better are the chances of having positive employee relations. HRM applies various strategies
that are used by the firm for making better relations with the employees. HRM always believes
in communicating with the workers from time to time (Thompson, 2013). This helps in
understanding their requirements which is beneficial for making their satisfaction level on the
higher side. Since HRM acts as a bridge between the management and workers hence there role
becomes more significant. They develop many kinds of training sessions that helps in increasing
the efficiency of employees so that they gets satisfied with the work they are doing. They also
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produce the schemes like rewards and incentives for better performing worker which helps in
retaining employees for the longer duration. HRM also plays their role in the times when there is
any conflict that arises within the firm as they act as mediator between the two parties. HRM also
acts as a representative of the firm in front of trade unions at the time of negotiating with them.
CONCLUSION
From the above based report it can be concluded that in the modern business environment, it
has become essential for the firm that they maintain the employee relations in a best possible
manner. Since the competition has increased at alarming levels in retail sector hence it is not
possible that firm compromise with the satisfaction level of their workforce. There are two
frames of references for employee relations namely unitary and pluralistic. There are various
kinds of trade unions that exist in UK. These are important for producing the demands of the
employees in front of the management. They play the most essential role in the process of
collective bargaining. There are many strategies that are used for managing conflicts within
Marks and Spencer. Strategies of negotiations play an essential role in collective bargaining. EU
has a strong impact on the industrial democracy of UK. Other than this HRM act as a bridge
between employee and employers and hence plays an essential role in managing employee
relations.
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REFERENCES
Books and Journals
Gupta, V. and Kumar, S., 2012. Impact of performance appraisal justice on employee
engagement: a study of Indian professionals. Employee Relations, 35(1), pp.61-78.
Devonish, D., 2013. Workplace bullying, employee performance and behaviors: The mediating
role of psychological well-being. Employee Relations, 35(6), pp.630-647.
Bach, S. and Kessler, I., 2011. The Modernisation of the Public Services and Employee
Relations: Targeted Change. Palgrave Macmillan.
Luo, X., Wieseke, J. and Homburg, C., 2012. Incentivizing CEOs to build customer-and
employee-firm relations for higher customer satisfaction and firm value. Journal of the
Academy of Marketing Science, 40(6), pp.745-758.
Morris, T., 2012. Innovations in banking: business strategies and employee relations (Vol. 22).
Routledge.
Rodriguez, J.K. and Mearns, L., 2012. Problematising the interplay between employment
relations, migration and mobility. Employee Relations, 34(6), pp.580-593.
Bhattacharya, S., 2011. Sociological factors influencing the practice of incident reporting: the
case of the shipping industry. Employee Relations, 34(1), pp.4-21.
Akingbola, K., 2013. Contingency, fit and flexibility of HRM in nonprofit
organizations. Employee Relations, 35(5), pp.479-494.
Kunju Kunju Mathew, S. and Jones, R., 2012. Satyagraha and employee relations: Lessons from
a multinational automobile transplant in India. Employee Relations, 34(5), pp.501-517.
Loretto, W., Lain, D. and Vickerstaff, S., 2013. Rethinking retirement: changing realities for
older workers and employee relations?. Employee Relations, 35(3).
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Hamblett, J., 2013. Employee Relations in the Public Sector: Themes and Issues. Employee
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Mather, K., Worrall, L. and Mather, G., 2012. Employee Relations Emerald Article: Engineering
compliance and worker resistance in UK. Employee Relations, 34(5), pp.534-554.
Cooper, R. and Baird, M., 2015. Bringing the “right to request” flexible working arrangements to
life: From policies to practices. Employee Relations, 37(5), pp.568-581.
DeLellis, A.J. and Sauer, R.L., 2015. Respect as ethical foundation for communication in
employee relations. Laboratory Medicine, 35(5), pp.262-266.
Darlington, R., 2015. The changing face of employment relations over the last 50
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Jefferys, S., 2011. Collective and individual conflicts in five European countries. Employee
Relations, 33(6), pp.670-687.
Hauser-Ditz, A., Hertwig, M. and Pries, L., 2013. Collective employee representation in German
companies: Coverage and contextual conditions. Employee Relations, 35(5), pp.509-526.
Thompson, P., 2013. All Change at Work? British Employment Relations 1980‐98, Portrayed by
the Workplace Industrial Relations Survey Series. Employee Relations.
Schlosser, F. and Zolin, R., 2012. Hearing voice and silence during stressful economic
times. Employee Relations, 34(5), pp.555-573.
Dhanesh, G.S., 2014. CSR as organization–employee relationship management strategy: A case
study of socially responsible information technology companies in India. Management
Communication Quarterly, 28(1), pp.130-149.
Kloutsiniotis, P.V. and et. al., 2017. Linking innovative human resource practices, employee
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