The Employee Relations in the Market of China

Added on - 21 Apr 2020

  • 16

    pages

  • 4404

    words

  • 10

    views

  • 0

    downloads

Showing pages 1 to 4 of 16 pages
Running head: EMPLOYMENT RELATIONSEmployment relationsName of StudentName of UniversityAuthor Note
1EMPLOYMENT RELATIONSTable of contentsIntroduction................................................................................................................................2Background relevant to the problem..........................................................................................2Relevant values applied with the problem.................................................................................3Application of unitarist value.................................................................................................3Benefits of the issue................................................................................................................5Risk of the issue......................................................................................................................6Application of pluralistic value..............................................................................................6Benefit of the issue.................................................................................................................8Risk of the issue......................................................................................................................9Possible benefits for the application of the value.....................................................................10Conclusion................................................................................................................................10Reference..................................................................................................................................12
2EMPLOYMENT RELATIONSIntroductionThe report analyses an event that took place in China concerning labour dispute inHonda. The situation related to the case study depicts the issues that arise in managing humanresources and employee relations. Employee relations are important in order to understandthe relations that exist between employees and employers (Tansel & Gazîoğlu, 2014).Thecase study provides an analysis of lessons from the strike that took place in China and theunderstanding of the issues that caused these issues. The report sheds light on two values thatare related to the application of strategic management and the impact it has on the employeerelations in the market of China.Background relevant to the problemOn 17thMay 2010, a strike at the Honda automobile factory suspended operations infour of the bases of Honda production in China. The managers raised the pay if theemployees by 24% that resulted in halting the action of a strike as early as June. Due to thestrike, it was reported that Honda had suffered a great loss in the business. About 3 billionyuan worth of sales was lost due to the results of the strike. The main reason behind the strikewas the fact that workers in China demanded a greater pay due to the rise in the economy ofthe country. Hence, the Japanese company was forced to increase the payment of the staffs.However, in certain areas in China, the factories remained closed due to the lack of presenceof important components required for manufacturing the vehicle. Reports suggest that Hondaproduces about 650,000 vehicles per year in China. Due to the loss of these factories thecompany suffered huge loss (Routerlogin.com, 2017). Nearly a quarter of the Chineseemployees did not receive any pay raise for the last five years. The strike was also the resultof the fact that Japanese people working in Honda received 50 times more salary than theChinese workers. For about three days, the labour problem existed that saw two factories and
3EMPLOYMENT RELATIONStwo assembly plants being shut down. The strike resulted in the loss of supply of labour asmost of the employees refused to work in an environment conditions that required moremanual labour at a less pay (Washingtonpost.com, 2017).The strike which lasted for a couple of weeks ultimately ended after the managers ofHonda agreed to raise the wages of the Chinese people. About 1900 Chinese workers wereoffered a raise from 24% to 32%. However, the lockdown that took place in Honda resultedin the rise of other strikes around the country due to low salary and minimum wages. Hence,the Government of China passed a law demanding the rise of minimum wage standards andto treat the employees with dignity (Nytimes.com, 2017). It has been seen that the strikes thatoccurred due to low pay and mistreatment of employees working in Honda, had a badinfluence in the other sectors of the country. This was particularly seen among the foreigncountries that have set up base in China. The labour unrest that the country witnessed due tothe coverage of the Honda incident became national news in the country. Zhao (2012) statedthat the most of the labour issues remain unreported due to the poor reputation of thecompany or due to political interference. The introduction of labour law that helps inaddressing the grievances of the employees saw the grievance rate being doubled. The rate, atwhich the low-wage and migrant workers revolted against the policies adopted in Honda, isindicative of the level of unrest of labours that was prevalent in the country (World.time.com,2017).Relevant values applied with the problemApplication of unitarist valueThe unitarist theory states organisations to be considered as one member. Theemployees working in an organisation are related to each other and at towards the objectiveof the organisation by forming a team. Bray, Waring & Cooper (2014) stated that the
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document