European Labor Relations during Economic Downturn

This assignment delves into labor relations, with a focus on collective bargaining in Europe during economic crises. Key studies include Glassner & Keune's 'Negotiating the crisis?' (2010), Gupta & Kumar's 'Impact of performance appraisal justice' (2012), and Marchington & Suter's 'Where Informality Really Matters' (2013). Additionally, it examines national diversity in industrial relations through Poole's 'Industrial relations: origins and patterns of national diversity' (2013), and explores employee voice via Pyman et al.'s Australian study. The assignment also touches upon conflict resolution (Ramsbotham et al., 2011) and ethical influences on policy (Smith et al., 2010). Lastly, it considers Islamic employment relations principles (Syed & Ali, 2010). Online resources such as 'Collective bargaining' from Whatishumanresource.com and Human Resource Management Review further enrich this comprehensive exploration of contemporary labor relations.

EMPLOYEE RELATIONS FOR
BUSINESS SUCCESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Explain the unitary and pluralistic frames of reference.........................................................3
1.2 How changes in trade unionism have affected employee relations.......................................4
1.3 Explain the role of the main players in employee relations...................................................5
Task 2...............................................................................................................................................6
2.1 Explain the procedures that must be followed by the organization during different conflict
situation........................................................................................................................................6
2.2 Explain the key features of employee relations in a selected conflict situation....................7
2.3 Evaluate the effectiveness of procedures used in a selected conflict situation......................7
Task 3...............................................................................................................................................8
3.1 Explain the role of negotiation in collective Bargaining.......................................................8
3.2 Assess the impact of negotiation strategy for a given situation.............................................9
4.1 Assess the influence of the EU on industrial democracy in the UK....................................10
4.2 discuss methods used to gain employee participation and involvement in the decision
making process in organizations................................................................................................11
4.3 Assess the impact of human resource management on employee relations........................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and journals.....................................................................................................................13

INTRODUCTION
The relationship between the employee and employer is the crucial point in the
functioning of the company (Gupta, 2012). The employee relations are cautioning in the
company. This report is the comparison and evaluation of the existence and importance of
employee relations in an organization. The report will cover the impact of various factors on
relationship between the management and staff of an enterprise and the role of trade unions in
the functioning of the company. The imapact of European Union on all the industries in UK .
The report also includes the impact of conflict situations and participation of employee relation
in the situations occurring.
Task 1
1.1 Explain the unitary and pluralistic frames of reference
The employee relation features are linked and can be sensed within two ways, Unitary
and pluralistic frame of reference. The two frames have different beliefs and perception towards
the approach to manage the employee relation in an organization. The unitary frame follows the
concept that the ability to take important decision in an organization dwell within a single body,
who can be called the management of the company. That is, the power of decision making is in
the hands of the top level individuals (Syed, 2010). This kind of perception also supports the idea
that it is the responsibility of the top management to motivate and promote loyalty among the
staff of the enterprise. This frame is of the perception that the conflicts among the staff and
management does not rise due to varied interests, as they work together to achieve a common
objective. There is no role of trade unions as the unions does not play off any help during a
conflict situation among the employees and manager. Any conflict in the enterprise depletes the
overall productive capacity of the company and as the managers work efficiency decreases.
These conflicts also lead to customer dissatisfaction.
The pluralistic approach is of the view that in organization two kinds of groups exist.
These groups share different views, values, belief, conduct and objectives. The two groups, of
pluralist frame are management and unions. This perception conveys that the management and
unions carry different roles and responsibilities. The approach also is of the idea that the unions
are of a significant importance in the company as the decision-making power dwells in the hands
of the employees of the enterprise. The unions work in the favor of the staff members and the
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approach may hinder the vision of the organization in some cases. The management and union
carry different views on certain issues which may give rise to potential conflicts within the
organization. The pluralistic frame is of the opinion that a good employee-employer relation
among the management and staff can be achieved with negotiations and meetings among them
and with the concept of bargaining process (Al-Waqfi, 2010). These two approaches help the
organization to develop effective employee relations between the management and staff
members.
1.2 How changes in trade unionism have affected employee relations
Trade unions are considered to be a group of workers who come together to form a union
under the banner of a trade union, choosing a leader to safe guard the common interests and
rights of the employees. The unions are also medium of employee relations between the
management and the staff members of the enterprise. The trade unions suggest the changes in the
pay scale and other benefits of the workers of the organization. (Bach, 2011). Any alterations in
the trade unionism affects the working of the unions and their relations with the company.
 Political and legal: Any alterations in the government policies or laws of the country
regarding the employee rights, unions working affect the functions of the group.
Implementation of any new law or policy directly affect the employee relations within the
organization. The introduction of new policy of by the UK government to offer same
opportunities to all the staff members or employees working in the enterprise affected the
working of many organizations in the region. This can raise conflict among the
employees and the management regarding the implementation and compliance with the
new practices to be conducted according to the policy of the government of the country.
In addition to the adverse effect on the employee relation of managers and staff members,
the conflicts also give rise to decrease in profitability and customer satisfaction due to
lack of management in the enterprise (Ramsbotham, 2011.).
 Technological: The management of the company makes advancement in the current
technology of the organization when it is needed by the company. This approach of up
gradation in the technology also has an adverse effect in the requirement of the human
resource in the firm. The company then has to go through to a retrenchment process to
get rid of the excess staff to lower its labor costs. This process leads to conflict among the
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management and the staff members. The unions play a role of protector to the staff. The
employee relations are explicitly effected in such a situation.
1.3 Explain the role of the main players in employee relations
The firm employee relation is maintained by the cooperation and understanding among
the management and the staff members. The key players in the achievement of a healthy
employee relation are managers, government and workers.
 Manager: A manager is the key personnel in creation of healthy employee relations in
the enterprise. A manager is the one who deals with the staff members of the company,
he is responsible for creating a favorable working environment within the work place.
The manager must listen to the needs of the workers and work to satisfy their
requirements. The manager is replaced by the human resource department in the modern
structure of the enterprises. The human resource department is responsible to work for the
betterment of the workers together with fulfillment of organizational objectives. They are
also given the duty of keeping track of the working of the workers and provide with
incentives and promotion to the employees as and when required. The human resource
department also encourages the workers and promote loyalty.
 Government: Various laws nd policies made by the government are to be followed by
the company.. The laws and regulations over child labor, minimum wages and standard
amendments improve relations among the management and staff members of the
organization (Armstrong, 2014). Through these policies and laws the government
facilitate the healthy environment in the work place of the organization, which in turn
helps in achieving strong employee realtions.
 Workers: The employees are the working force of the company. Worker’s main task is
to give their best performance in the activities assigned to them by the management of the
company. They also have to take part in the various programs organized by the
organization, which build healthy employee relations between the manager and the staff
members. The employees are in fact responsible to comply with the rules and regulations
asked by the government and maintain the standard of the performance in the given task.
The workers must be willing to talk about the issues faced by them to the management
and try to find a solution to the issue. Conflicts may further arise when workers are not
willing to follow the practices assigned to them.
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Task 2
2.1 Explain the procedures that must be followed by the organization during different conflict
situation
The conflict situation in the environment can be of many types, and the management of
the organization must take immediate action to resolve the conflicts in the company. They must
follow a procedure to find a suitable solution to the problem. Find the issue: The manager must address the situation as early as possible and must find
out the issue of the conflict between the two parties. The manager must approach both the
parties and talk to them about their disagreement and point in the conflict. Evaluating the situation: After meeting with conflicting parties the manager must
evaluate the problem. He must instate the rights and wrongs of both the parties. Agree on the procedure to follow: The manager must talk to both the parties about the
procedure to follow in the resolving of the conflict. The parties in conflict must be made
to sit in the same room and talk about the disagreement and the problem they have with
the other. They must agree over a common objective to settle the argument (D'Cruz,
2011). Finding a common goal: the manager must try to find a objective which both the parties
are interested to achieve. . After finding what the right and wrongs are and what both the
party desire, the manager must find common point of agreement by both the parties. Finding alternatives: The manager must critically evaluate the problem and try to find
alternative to the points of disagreement, this way he will be able to find the solution to
the problem.
 Resolving the problem: This is the final stage of procedure. Under this procedure the
manager must find a solution considering the alternatives. The solution must be the one
in which wants of both the parties are partially satisfied and both the parties must feel the
other one lost something to make them feel on the winning side. The manager must make
the parties acknowledge the solution and also make them realize their role in the
resolution (Poole, 2013.).
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2.2 Explain the key features of employee relations in a selected conflict situation
In the task, a conflict situation in the organization will be considered to find the features
of employee relations. The situation selected of a conflict between the workers and the
management regarding the wages given to them. This conflict creates an adverse effect on
employee relations of the organization. The situation spreads a negative environment in the
workplace. The conflict situation affects the overall production of the company which has
created a problem of supply and the profitability has decreased.
 Adverse effect on the relationship of the management and workers: The conflict has
effected the relationship of the manager and the workers in a disrupting way. Both the
parties do not agree on the point of making increment in the wages of the working staff.
The workers are not willing to work in the situation which is creating a further issue for
the company. The company is not following regulations of the government policy in
providing the workers with minimum wages. The situation has created a negative effect
on the production of the company (Rehm, 2013). The workers are reluctant to carry out
the task assigned to them by manager which is directly affecting the supply of the
company. The conflict is giving rise to low supply which is creating customer
dissatisfaction in the market.
 Worker's dissatisfaction: The conflict has enraged a dissatisfaction of the workers against
the management of the company. The management is not willing to provide hike in the
salary of the workers. The managers are not listening to needs of the working staff due to
which there is a negative environment in the company. The employee relations among the
workers and the managers are affected by the noncooperation of the workers.
2.3 Evaluate the effectiveness of procedures used in a selected conflict situation
The company has developed procedures to resolve a collective dispute like that. The
workers and management are unsatisfied with the each other. The working staff has an issue with
no hike given in the wages given to the workers. The management is dissatisfied because of the
non-cooperation of the workers. The process includes a discussion between the two parties. In
meeting, the workers can put up their opinion on the increment in their wages. During the
discussion, the staff can ask the management about the points they cover under the dispute. The
discussion can lead to solving the problem. The HR manager can make his point about the
problems they face with workers and the reason behind the company not giving a hike to the
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workers. The workers will be represented by the leader of the trade union (Smith, K.E. Et Al.
2010).
The process includes a meeting in which the management team and trade union will talk
about the conflict between the parties and share their views on the situation. Both the parties will
discuss the situation and tries to find a solution by the process . Then the top management of the
organization will evaluate the situation takign in account the disagreement and will find
alternatives of the solution. They will try to resolve the situation with the alternatives where both
the parties are satisfied with the solution. In this case the management will find solution in which
the worker's wages are hiked with lesser amount as they wanted and the workers will be ordered
to cooperate and work with the managers to enhance production so both the parties are satisfied
by the solution. (Armstrong, 2014). The parties will also be made to realize their roles in the
resolution and acknowledge the work done by the management.
Task 3
3.1 Explain the role of negotiation in collective Bargaining
Collective bargaining is the term which refers to the process of negotiation made between
staff of a company on the terms of the employment agreement with the management of the
company. The tool of collective bargaining empowers the workers to have a healthy discussion
with the management of the organization. The process allows the employees to present their
view in front of the management of the company in a meeting which can help them to resolve a
potential conflict with discussion among the manager and workers. It favors the workers in the
conflict with the managing authority of the company. There are many roles of negotiation in the
collective bargaining processes (Gupta, 2012.).
 Negotiation helps the company reaching an effective conclusion: With the help of
collective bargaining the staff can negotiate with the management of the company
regarding the issues faced by them in work place This tools helps the parties to organize a
healthy and elaborated discussion among the workers and managerial staff which may
lead to solution between them. The negotiation meeting between the two facilitate the top
management to reach up to a resolving conclusion and end the dispute among the parties.
 Negotiation improves the effectiveness and efficiency of the collective bargaining
process: The collective bargaining process is made to resolve any conflicts between the
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management and the staff of the company. With the help of negotiation, the employers
can give their point of view to the employees about the various activities or practices
followed in the organization. The managerial team can explain the workers about the
non-advancement in the increment of the wages given to them and the problems they are
facing due to the noncooperation from their side. The management can also ask the
workers to continue working so that the supply of product is not hindered. This will guide
the company to earn profit and satisfy its customers (Marchington, 2013.).
3.2 Assess the impact of negotiation strategy for a given situation
The effect of negotiation strategy on the conflict situation is really high. The strategy
opted to negotiate impacts the overall result of the process. The management chooses the
strategy according to the situation and the type of conflict that has risen up. The negotiation
strategies are analyzed to show the effectiveness and influence on the situation of conflict. There
are certain negotiation strategies namely compromise, forcing and resolving.
 Compromise: Under this strategy the parties to conflict are made on settle on a solution in
in which the both the parties get the desired entity. The negotiation leads to a compromise
on a satisfying deal in which none of the parties to the conflict get their original demand.
As a level, frustration exists among both the management and workers, but they are
tending to compromise. The solution given is in the favor of both the parties to the
dispute (Ramsbotham, 2011). Resolving: Under this negotiation strategy the management
organizes a meeting for negotiation. This is the most direct way of dealing with a
conflict, the parties to the conflict are made to discuss about the issues they are facing in
a meeting. Sometimes due to involvement of many people, a separate interview meeting
is organized to address the issues faced by the parties to the conflict. The management
later provides a solution after listening to all the parties. The decision made by this
strategy is the most precise solution. The parties to conflict are made to acknowledge the
decision made.Forcing: Under this strategy of negotiation the management of the of
company forces its decision on the parties to the conflict. The decision made by the
management is in favor of the organization's objectives and the management makes sure
of the solution being acknowledged by both the parties to the dispute. The decision is
forced by the management in the situation of any conflict threatening the organization's
goals.
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4.1 Assess the influence of the EU on industrial democracy in the UK
There is a certain effect of European union in the companies of the UK. Industrial
democracy provides the power to the workers to make decisions, share responsibility and also
have authority in the company. In some countries under European union the structure for the
working of the industrial democracy have been there for years but the company aggressive
managerial approach and style does not suit the democracy in the British companies. The rules of
European union encourages the role of workers in the decision making of the company. The
partnership agreement between the union and the management of the company to work over a
similar goal was adapted by the British industry because of the influence by the European
legislator. In addition to the that if the companies do not follow that, they have to go through an
adverse condition instead. The company have to face conditions such as lock downs and strikes
by the staff members.
There are cultural differences among the European nations in case of democracy which
impacts the industrial democracy of the country. Further more, the multinational companies
operating in different nations do not comply with the democratic approach of decision making by
the staff members of the organization. In the case of the company not complying with the rules
and regulation of the industrial democracy the companies may not able to operate in the
European markets in an effective and efficient way (Dunne, A. 2015.). The rules and regulations
given by the European Union have a direct impact on the industrial democracy of UK as the
company have to follow the different laws introduced by the European Union. If the companies
refuse to comply with the laws enacted upon them, then they have to face further adverse
conditions such as lock downs and strikes by the staff members of the company. Every practice
done by the company is regulated by the European Union and also they ensure that the company
is working in favor of the society. The union has also set standards as per the every job and also
environment of the work place, it works to protect the staff from any harm in the company and
leads to overall positive environment in the enterprise.
4.2 discuss methods used to gain employee participation and involvement in the decision making
process in organizations
Employee participation in the decision making process is debatable topic. This approach
can create successful outcomes for many organizations in the market. The involvement of the
employees can make the decision making process lengthy and slow, but the in the hands of
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skilled employees the process can result in value creation for the organization. The employees
can be involved in the decision making through a number of ways.
 Participation at the board level : under this method there is a representation of the
employees at the board meeting, it is known as industrial democracy. This method helps
the employees safe guard their interests in the organization and a protection is provided to
the employees of the company, as the representatives forward the problems and issues
faced by the employees (Pyman, 2010).
 Participation through ownership : another method to involve the employees in the
decision making is through making them the shareholders of the company. Persuading
them to buy the equity share and also providing them financial aid to purchase the share
of the company will make them interested in the decision making of the company.
 Participation through suggestion schemes : the company can encourage its employees to
provide ideas and innovative suggestions to the company. This method can help the
company is sharing the experiences of the employees.
 Collective bargaining : under this method the management and employees sit together
with a collective agreement between the two and they follow some rules and regulation.
This way of participation is the most suited way as the lines are confirmed by both the
parties. There needs to be a certain degree of control in the process or one party can take
advantage of the other one.
 Participation through quality group : a quality group is a team of certain individuals with
expertise in a specific field of operation. Meeting are held between these groups to
identify the problems in the operation of that field and they work to find a solution to the
problem. Any employee with an expertise in a field can become a member of the group,
this makes the working environment positive (Glassner, 2010.).
4.3 Assess the impact of human resource management on employee relations
The human resource department plays an important role in the establishment of a healthy
employee relationship between the employee and employer. The human resource management
can help the company retain its working staff various facilitation provided to them. Providing of
a healthy working environment is in the hands of the human resource management which will
strengthen the relationship between the employee and the management. By providing motivation
and encouragement to the employees, the HR management can improve the work forces
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willingness to work. This will result setting of solid background for the employee relations
between the staff and employer (Beardwell, 2014.).
To add further, the policies introduced of the HR department effect the relationship to a
high degree, as the policies if facilitate the employees they find satisfaction from the company's
facilities and they feel motivated to work. The human resources must listen to the problems and
issues faced by the employees in the work place and try to provide them with the facilities they
demand (Fossum, 2014). The company should follow pluralistic perspective of the employee
relations as the approach eyes on the problems faced by the employees and it also focuses on the
significance of existence of the trade unions for in the organization for the support of the
employees. This way the employees feel cared and protected and their interests are taken into
consideration which enhances the overall working of the organization.
CONCLUSION
The report concludes that the employee relations between the management and the staff
members effect the performance of the enterprise in a big way. The company should focus on
improving the employees’ relations in the company. Under a conflict situation the relations
between the employee and employer are affected adversely and the overall effectiveness of the
company's performance is degraded. The employee must be made to take part in the decision-
making process in some companies as this improves the employee relations by a hike. An
organization must appoint a strong and effective human resource department to facilitate the
working of the employees in the company.
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Online
Collective bargaining. 2017. [Online]. Available through:
<http://www.whatishumanresource.com/collective-bargaining>. [Accessed on 24 August
2017].
Human resource management review. 2017. [Online]. Available through:
<https://www.journals.elsevier.com/Human-Resource-Management-Review> [Accessed
on 24 August 2017].
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