Assignment On Importance Of Employee's Relation | Adidas & Puma

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EMPLOYEE RELATIONSMIRELA TIPARU12211-CW91
Task-1..........................................................................................................................................................3Employee relation....................................................................................................................................31.1 Unitary frame of references ..........................................................................................................31.2 Effects on employees’ relation with changes in trade union.........................................................51.3 Role played by the main player .....................................................................................................8Task-2........................................................................................................................................................10Introduction ..........................................................................................................................................10Case study .............................................................................................................................................10Nature of industrial conflicts and its resolution ................................................................................102.1 Procedures to resolve the different conflicts...............................................................................102.2 Key Future of employee’s relations.............................................................................................122.3 Effectiveness of the procedure....................................................................................................14Task-3........................................................................................................................................................163.1 Negotiation in collective bargaining ................................................................................................163.2 Impact of Negotiation Strategy........................................................................................................16Conclusion ................................................................................................................................................23References.................................................................................................................................................242
Task-1Employee relationThe organization which has been elected for the purpose of this essay is Puma, leading companyhaving head office in German that design and manufactures athletic and casual footwear appareland other required sport stuff at large. With the deep history of this organization it is found thatin 1924, Rudolf and his brother Adolf Dazzler formed the company Genbruder Dassler on jointbasis and then later on with the increasing complexity in their business they decided to form twoseparate entities Adidas and Puma. Rudolf Dassler was the key founder of the Puma which isoperated with the assistance of its CEO Bjorn Gulden. With the adamantine study of Pumaorganization it is seen that company has been on its growth stage and having a turnover of morethan 400 Billion in given span of time. Large number of employee is engaged in manufacturingof shoes and making their vigorous efforts for the betterment of the company. Thereforeemployees are the key pillars of the organization and establishment of nexus betweenemployees’ growth and organization’s welfare is the key concern of the top management(Ntaliani, et. Al., . 2015).Employee’s relation is very much required factors to maintain in the process system of theorganization in order to make effective use of resources in context with accomplishment of setgoals and objectives. It is the adamantine study on the bylaws of relation between employers andemployees at large for the determination of influence factors issues and other concern atworkplace.1.1 Unitary frame of references It is the frameworks which are based on the assumption and values to determine that all theproblems and issues that come arise between employer and employees are not emerged due tothe employer and employees relations. Problems and issues arise due to the collective workingsystem or human behavior. Therefore conflicts start from two’s behaved or occurrence. Incontext with Puma which has been maintain effective relation with the employees with theconcern of values, belief, attitudes, and other required intents of the employees. This values andpersonal views have been set in organization with the competed understanding of employees3
behavior and their reciprocate behavior in order to achieve set goals and objectives. The unitaryframe in Puma has been engaged in observing several facts and employees behaviors within theseveral circumstances and that has results into very much help in achieving set of goals andobjectives.Pluralistic Frame of references This is concerned with the separate effects and issues which covers all the individual concernsand objective of the employees working in different process system. With the ramification ofwork load and increasing demand of efficiency from the employees it is observed that industrialorganization is comprised of plural society in which various set of employees with differentvalues and belief works. These possible factors of the employees must be maintained by theorganization in order to establish a positive set of work environment (Demirbas & Yukhanaev,2011).Implementation of Pluralistic frameIn Pluralistic Frame of references Puma has developed different set of work environment indifferent process system. Pluralistic Frame is comprised of several set of groups of employeesand resulted into powerful and subgroups. Each group has their own intent and lawful loyaltyand respect to their assigned works and leaders decisions at large. Adoption of Pluralistic Frameby Puma in maintains employees are very effective and divide the working system in teams andset of people as per the caliber of the employees.Implementation of Unitary frameIn this set of frame management of Puma will share all the values, Mission, statement of workingsystem with employees. In addition to this management will make sure that all the employees areproperly communicated with the available information. Unitary frame will provide set formatand determined set of working process for all the value chain activities.For example-Puma will share all the values, belief, Mission, statement of working system withemployees so that employees oriented value chain activities could be developed.4
1.2 Effects on employees’ relation with changes in trade unionTrade union is a group of employees which is created for the betterment of the employees andtheir working system. In several organizations Trade union is developed with a view tounderstand employees’ concern and their choice of actions. In the working of Puma there arenumber of acts performed by the trade union so that smooth level of functioning could bemaintained in manufacturing process.Role of trade unionCommunicating employees concern with top management.Establishment of positive working environment.Maintain all the works legally and ethically with a view to achieve organizations goalsand objectives.Resolution of conflicts and organization’s concerned.Contributing to motive employees.Separate body to encounter employee’s problems and hurdles at large (Tansel &Gazîoğlu, 2014).Right from the beginning of industrialisation, existence of trade unions was predominant. Theonly thing that change was perspectives of employees and employers towards shared goals andwork pressures. During the 18th century, it was witnessed that ratio of workers to employers wasimbalanced. Factors like expansion of businesses and societies to other countries andinvolvement of children, rural workers, immigrants lead to formation of trade unions. Industrialrevolution added fuel to the evolution and development of trade unions across the globe.Workers started gaining conscious about their rights and basic rules which need to implied byemployers for organisational development.The year 1872 addressed legalisation of trade unions. These organisations were set with a motiveto be beneficial for both human resource and the employers. Purpose of legalising these unions5
was to settle conflicts and clashes that often arise amongst the two entities. Over time, the needsand requirements of employees changed. The development of effective management styles led tochanging orientations of the company. Earlier goals were profit and money oriented but currentlybusiness organisations work with a motive of attaining overall development. This kind ofprogress involves employee betterment with earning profits and the concept is referred to assustainability. Modern day trade unions are perceived as more powerful as compared to historicalones. A drastic change that has been noticed in the working of the Trade union is that trade union ofthe Puma has started to work only in the interest of organizations and employees concern are leftbehind without any consideration. This has resulted into employees concern and in the nearfuture that will surely affect Puma’s productivity and employee’s relation in negative way. Inaddition to this workers are forced to work beyond their working hours without any payment sothat company could meet the production requirement often economy. It is also observed thattrade union not only creating this harsh working environment but as well making strict rules forthe employees at large. Hence considering these issues it could be said that Puma employee’srelation is going to be damaged in near future if this working procedure is being adopted onconsistent basis. Furthermore Puma has faced high level of turnover in which has also resultedinto high cost in the production of shoes. This level of changes in Trade union will surelydamage the employee’s relation and demoralize the employee, damage the brand image andwould result into high production cost to the organization (Bose & Mudgal,. 2013).Changes affect the Trade UnionThe key example which could be taken into account is Tribunal judgment where managementdepartment took trade union in the court. But due to the emergence of trade dispute act 1996 itwas observed that employees were saved from the exploitation. Changes in trade union hasresulted into following factors which provides that trade union needs to be changed according tothe demand of management system and employees’ perspective.With the increment of such problems and consistent work load in Puma Process system hasresulted into high employee’s turnover and put negative impacts on other employees at large. Inaddition to this if this negative culture will be providing very big loss in its social policies and6
will be detrimental in establishment of proper corporate governance. By making properconsideration of these issues PUMA needs to make imperative changes in trade union policiesand frameworks (Mathew & Jones, 2012).As per the outcome of working of Trade union now Puma needs to develop effective workingmechanism such as setting up benchmark, arrangement of extra wages, setting up of separatebody to resolve employee’s grievances.Puma's vision at the time of establishment was to deliver their product with at mosteffectiveness. To match customer expectations, the most important thing is quality. Employeeswere trained with specific skills to manufacture products in such a way that competitors couldnot withstand these. Trade unions were strengthening their roots at this time. Company was alsoaffected by the settlement of these organisations in the working atmosphere. It derived a code ofconduct for employees that reviewed and enhanced working conditions and environment.Current aim of Puma is to explore talented athletes and help them in developing their skillsthrough products and services. Apart from trade unions, human resource department functionsfor the company.Employees that have been supporting the company right from its beginning are managed by thisdepartment. The influence of trade unions is felt only when any sort of serious situation is beingfaced by workers. For instance, illegitimate wages, unhygienic workspace, etc. From all theseaspects, it is easy to understand that future strategy of maintaining employee relations iscompletely dependent on human resource management practises. In 2005, Puma had taken thefirst step towards sustainability. A Code of ethics and environmental monitoring was introduced.On the other hand, organisation has taken initiative of investing in social causes and benefit ofemployees by providing better facilities and incentives. 7
1.3 Role played by the main player Employee’s relation is very critical to maintain in positive manner. As several employees andemployers are accompanied with separate human behaviors and due to this there is obvious ofemergence of conflicts in working of the organization (Demirbas & Yukhanaev, 2011).Employees and employers An effective and healthy relationship is required for understanding a better working environmentas per the employee’s cultures. Puma has been developing its all the policies and frameworks asper employees concern. There are number of roles that is being played by the employers in pumae.g. making policies and framework, developing effective work environment, showcasing path toemployees, handing all the strategically decisions and further more. Employees are the keypillars of the organization that makes consistent efforts for the development of the company.They are indulged in making their 100 % efforts so that best outcome could be drawn indetermined approach. They are deemed to be playing important part in the success oforganization (Griffin & Koerber, 2015). Employees and trade unionTrade union is an association of employees who play significant role in the sustainable future ofthe organization. Puma has been making consistent changes in its policies in order to establisheffective trade union. It maintains all required relation with employees and their concern inaccording manner. It is the monitoring body over the employees who play significant role topursue organization’s goal and objectives. Therefore trade union helps employees to bifurcatetheir works and accomplishes their set objectives in disciplined approach. Government agencies Government is the key body who makes all the laws and regulation for the better industrialenvironment. There are various employment laws have been passed throughout the time such asequal pay act, workmen compensation act, employment act and further more. Governments arethe bias body which plays its role without having any interest. In addition to this Puma has beenmaking high level of corporate governance. It helps in establishment of proper governance8

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