Diversity Climate Perceptions and Employee Retention

The article explores the concept of racial differences in employee retention and whether diversity climate perceptions are key to addressing this issue. The authors examine various studies and research findings related to employee relations, diversity, and organizational performance. They argue that a diverse and inclusive workplace culture can lead to improved employee retention, engagement, and overall business outcomes.

EMPLOYEE RELATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Unitary and pluralistic frames of reference...........................................................................1
1.2 Trade unionism have affected employee relations................................................................2
1.3 Role of the main players in employee relations....................................................................2
TASK 2............................................................................................................................................3
2.1 Procedure of conflict resolution in the organisation.............................................................3
2.2 Key features of employee relation........................................................................................4
2.3 Effectiveness of conflict resolution procedure......................................................................5
TASK 3............................................................................................................................................6
3.1 The role of negotiation in collective Bargaining...................................................................6
3.2 The impact of negotiation strategy for a given situation.......................................................7
TASK 4............................................................................................................................................7
4.1 Influence of the EU on industrial democracy in the UK.......................................................7
4.2 Methods used to gain employee participation and involvement in the decision making
process.........................................................................................................................................8
4.3 Impact of human resource management on employee relations.........................................10
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................12

INTRODUCTION
A business unit cannot perform their task without human resources which are the integral
part of an organization. They need human resource to perform their task and attain organisational
goals and objectives. Therefore, employee relation plays a prominent role in the success of any
business unit. Here, employee relation refers in maintaining a sound relationship between trade
union and higher authorities regarding various issues such as labour wages, working condition,
profit sharing etc. (Amstad and et. al., 2011). This report is based on Toyota; UK which is one of
the leading vehicle producer in UK. They provide a wide range of products with high quality and
the best price. The purpose of this report is to identify and analyse various approaches of
managing employee relationship within the organisation. Further, it focuses on how the company
solves issues which can increase firm’s productivity and performance as well.
TASK 1
1.1 Unitary and pluralistic frames of reference
Employee relation plays a significant role in the success of each and every business unit.
It is important for the manager to maintain and build a sound relationship with their employees to
attain organizational goals and objective (Avey and et. al., 2010). It is also important to develop
goodwill and enhance the productivity of their employees. There are various approaches which
can be used by the firm which are given below:
Pluralistic framework: It is one of the common approach which is used in the
manufacturing business unit. They have their own legitimate powers, goals, and leaders which
can encounter with various issues and concerns over various topic such as profit sharing,
working hours, working conditions, bonus and other issues. In this approach, disputes can be
solved and managed by collective bargaining, where bargaining power of trade unions is more
with their management. In this approach the role of manager is focus on the coordination and
(Bhatnagar, 2007).
Unitary framework: This framework focuses on attaining goals and objectives within
the firm with their joint efforts. The philosophy of this concept is that organisation is a unit
which has a shared common goal and work together. Each and every firm contribute through
his/her skills, knowledge and capabilities to achieve established objectives. The role of the
manager is more responsible, because he should resolve all conflicts and issues and prevent

negative aspects of their staff. Here, bargaining power of management is quite more as compare
with their staff.
2

1.2 Trade unionism have affected employee relations
Change in labour union has great impact on the business and employer-employee
relation. Trade union is a group of employees which can be led by union leader to protect the
interest of their staff. It can provide a platform to raise voices of employees on their various
issues and problems (Biggs and Swailes, 2006). The main objectives of trade unions are to work
for the rights of staff of the firm. They can directly affect the business operations which can
reduce the performance and productivity of the firm. Toyota is having trade unions which can
work for the staff and support them to solve all issues that can enhance the working environment
at the workplace.
Change in the union President: It is an important change which can affects employer-
employee relationship over a period of time. Because in the organisation President is usually
elected once in a year. So that as new leader they can change their discussion procedure with the
management (Chand and Katou, 2007). On the other hand higher authorities can also required to
discussion on a specific issues trade unions, It can having a great influence on the employee
relation.
Change in objectives of unions: As a new President of trade unions which can decide
their goals and objectives regarding their work related issues and pay. It can requires to start
discussion again with management make new proposal policies related to incentives.
1.3 Role of the main players in employee relations
The main objective of employee relation is to maintain harmonious relationship between
administration and labour. There are various players in the employer-employee relationship
which can assist to increase the overall organisational performance and productivity of Toyota
UK (Cooke, 2009). There are following interested parties in this relation as given below:
Management: Management of the firm has various rights like to hire and downgrade of
an employees. Administration plays an important role in the employee relation because they are
responsible for solving the staff issues. There are various problems which include labour wages,
working hours, profit sharing and so on. These issues can be solved more effectively if the
management can communicate with their staff. But it depends on which approach is used by
Toyota. For example, if organisation can use pluralistic framework then it can reduce the
bargaining power of management. In this situation, management role is to coordinate with trade
unions (Dau-Schmidt, Finkin and Covington, 2016).
3

Trade unions: Trade unions play a significant role in the employer-employee relation
because they have more legitimate power as compare to higher authorities of the firm. UK as a
member of EU must follow all rules and regulation which are set by them. Therefore, according
to the rules trade unions have more bargaining power which can affect the relation. There are
leaders in the trade union which can communicate with the higher authorities of Toyota
regarding various issues and conflicts (Edwards, 2009). They can directly affect the business
operations of the company; therefore, management can try to resolve these issues more
effectively as soon as possible.
Government: Government is the third player which can protect the interest of
organisation and their staff. The role of state in this relation is to make guidelines regarding the
issues which can possible to develop within the firm. They make various laws and legislation
which can involve labour laws, instruction regarding safe and secure working condition at work
place, set the minimum wage act and other labour related rules and regulations (Gennard, 2009).
Therefore, it is important for Toyota to follow these guidelines strictly which can maintain a
harmonious relationship between their staff and firm.
TASK 2
2.1 Procedure of conflict resolution in the organisation
There are various conflict can affect employee relation, it is important for the company to
solve these conflicts that help to improve their output. It requires an effective procedure which
can assist to resolve these issues effectively (Goos and Manning, 2007). There are following
process which can be used by Toyota to solving any conflict:
Identify The Source of The Conflict: This is the first stage to resolve conflict which
arises within the organisation. In this stage, higher authorities of Toyota require to identify the
reason for the conflict. There can be different problems regarding their job, pay, working
conditions and so on. Manager can talk with the leader of trade union and try to understand the
actual reason for conflict.
4

Look Beyond: Once conflict and its reasons can be identified, management need to
check the historical aspects of of their conflict (Grunig, 2006). It can help to analyse the conflict
effectively and identify various options to solve these issues.
Request Solution: This is next stage which can aid the high authorities to check how
many people can be affected with this issue. It is also important for them to arrange a meeting
with the President of trade union for negotiation and collective bargaining.
Choose solution: In this stage, firm can select appropriate solutions among different
solutions. It is one of the competitive and complex process which requires an appropriate
solution for that (Harvey and et. al., 2007).
Implementation: Implementation of conflict resolution is also essential for the business
unit. If it is cannot be implemented effectively it can create serious issues for the firm which can
increase the financial losses for Toyota. For example, there is any issue regarding the working
condition, and then it is the responsibility of the manager to improve these conditions.
Cross Check: Once all stages can be implemented effectively, it is the duty of the higher
authorities of Toyota to review the whole process which can help to improve the overall process.
2.2 Key features of employee relation
Toyota is more careful and conscious about employer-employee relationship because
they know organisational success is dependent on how company can take care of their employees
(Hooper and Martin, 2008). Their are various features of employee relation which can help to
solve their conflict more effectively.
Compensation and payment process: This is one of the features in the employee
relation which can direct influence this relationship. It is the responsibility and duty of the firm
to provide sufficient payment according to their performance and government rules. If they
cannot follow these rules it can create a big issue for Toyota (Luthans and et. al., 2008). Apart
from that, they can also focus on the payment structure and process; there is no discrimination
with their staff on this particular issue.
Working conditions: A safe and secure working conditions is required to perform a job
effectively. It can lead to increase the confidence level of the staff and improving their output as
well. Working condition is important because there are various machinery which requires more
safe and secure environment for work. It can create probability of accidents which is not good
5

for the firm. Therefore, Toyota needs to make all arrangements for safe and secure environment
for working.
Working management: It is another factor which can affect the relation of trade union
and higher authorities. Here, working management refers to how a firm can distribute and
manage their work (Macky and Boxall, 2008). It is important for the organization. Work
management is essential because of an individual employee cannot take work pressure and it can
affects adverse impact on the performance and efficiency at the workplce.
Conflict resolution: A comprehensive conflict resolution process can provide an advantage to
the organisation. If the business unit have a system where conflict and issues between the
management and trade unions can resolve easily then it will increase productivity and
performance of the firm as well as their staff.
2.3 Effectiveness of conflict resolution procedure
Effectiveness of a conflict resolution process is significant for Toyota. It can directly
affect the business operations and profitability of the company. As per the given scenario, higher
authorities are required to communicate with their trade unions on a regular basis (McKay and et.
al., 2007). It can help the management to identify and analyse the issues which can be created
with their staff. They requires time for their family and friends which can help to enhance tehir
performance and productivity. It can create stress within the staff which can decrease their
performance level and productivity as well. To make conflict resolution process more effective,
higher authorities can ask the trade unions and their staff and take suggestion form them. It can
increase employee loyalty and build a strong relationship between the management and trade
unions. They can also take suggestion from their staff which can help to increase the confidence
level of the employee's. Bargaining power of trade union are more as compare to the higher
authorities and in this situation a manager can coordinate with the leader of the trade unions and
make a discussion on it (Newsom, Turk and Kruckeberg, 2012). An effective communication can
help to negotiate these issues which can aid to solve conflict more efficiently.
TASK 3
3.1 The role of negotiation in collective Bargaining
Collective bargaining and negotiation process It is a negotiation procedure between
employee and employer on a specific issue. In this process, there are two parties involved which
6

are management and trade union leader. The staff member of the firm relies on the representative
of trade unions and hope that they can raise their issues in front of the management (Ngo, Lau
and Foley, 2008). There are various problems which can create conflict between higher
authorities and staff members; it can involve working environment, pay and compensation, lay-
offs, specific training, working hour and so on. This process can help Toyota to make negotiation
with representative of trade unions and make decision which can protect the interest of both
parties. There are following process of collective bargaining as given below:
Preparation: This is the first stage of negotiation process where management of Toyota
and staff can choose their representative and leaders. Selection of right and appropriate
representative is essential for both side (Raghu Raman, Budhwar and Balasubramanian, 2007).
so that issue can be solved as soon as possible which cannot adverse impact on the operation of
the firm.
Discussion: This is the next process where selected representative can sit together and
discuss on their arising conflict. Here, it is important for them to focus on the positive and
negative aspects of the conflicts. In this stage, the bargaining power of trade unions is more as
compare to the management.
Proposal: After in depth and detailed discussion, both party representatives can make a
proposal for their situation. It is required for Toyota that before making such kind of proposal
they can ensure that it does not affect their performance and profitability. An appropriate
proposal is a statement which can protect both parties interest but here the benefit can be given to
trade unions because of their legitimate power.
Bargaining: According to the following proposal, both parties can comprise interest
through an effective negotiation. With the negotiation form both side a draft can be prepare
which is in written form. It a statement which consist the agenda of the conflict and their solution
of the conflict,
Final Agreement: This is the final stage of collective bargaining, higher authorities of Toyota is
required to make this agreement which can be signed by both representative. This statement is in
written form and which is acceptable between both parties (Ruel, Bondarouk and Van der Velde,
2007).
7

3.2 The impact of negotiation strategy for a given situation
An effective communication and negotiation process keeps away the issue and conflict
between the management and staff. It can provide a solution which can protect interest of both
parties and not influence employee relation. It is a way which can help the higher authorities to
resolve a problematic condition and try to make a sound environment within the organisation. In
the negotiation process, there are two prospective which can be:
Integrative negotiation: It is one of the common and mostly used strategies which can
be used by various organisations. Toyota can use this strategy which can help to solve their
conflict in more effective manner (Runar Edvardsson, 2008). this strategies is beneficial for both
parties which can protect interest of both parties. It can protect interest of trade unions as well as
management which is good for the company. For example, if employees having problem
regarding the rotational shift, and management can allow this shift for a period of time. This
situation can satisfy both parties and it can increase the efficiency of the work at the work place.
It can help to maintain consistency at the work place and create as well as develop a harmonious
environment within the organisation.
Distributive negotiation: This is another strategy which can be used by business unit as in this
strategy few disputes can not be solved form both side. If stakes are high form one side, disputes
can not be solved. For example trade union can demand for increase their wage rate and these
demand can be accepted by the firm because of trade union have more bargaining power. (Ruth
Eikhof, Warhurst and Haunschild, 2007). Integrative bargaining is a good way to make the pie
(joint value) as large as it can possibly be, but ultimately the parties must distribute the value that
was created. Therefore, management requires to use their negotiation strategies which can help
to solve a conflict in an effective manner.
TASK 4
4.1 Influence of the EU on industrial democracy in the UK
There are various policies of EU which should be followed by the Toyota because the
higher authorities of EU can set the laws and legislation which have to be implemented by the
UK based organisation without permission of the state government. These policies positively or
negatively influence business activities and profitability of the firm. The involve trade policy,
recruitment policy, human resource management and so on describe as given below:
8

Trade policy: Trade policy has great impact on the business activities of Toyota, because
these activities affect their operations. For example, if higher authorities can increasing tax rate
which can reducing the revenue and profitability of the firm (Sadikoglu and Zehir, 2010). By
protecting the employee rights at the work place it can lead in reducing their output in the peak
time which is not good for the firm.
Recruitment policy: There are various policies regarding the recruitment which can
increase the cost of operation of Toyota. For example, EU can decide that each company can
reserved domestic employees as compare to other nation employees. It can reduce the
operational capabilities of the firm because labour charge is higher in EU as compare to other
state and it can increase the cost of operations.
Environment policy: It is one of the policies which can affect the expansion plan of the
company. Today, the customer is more aware towards the environmental concern and EU also
have future plans to reduce the environmental impact which can leads to decrease in the
production and profitability of business unit (Suliman and Al-Shaikh, 2007). It can affect their
long term strategies and it can increase their cost due to more investment in research and
development.
Competition policy: This policy is used by EU in providing the fair and free market
competition which can affect the operation of Toyota. According to this policy, they can restrict
on merger and take over and increase the number of players which can increase the competition
and decrease the company market share (Sy, Tram and O’Hara, 2006).
Employee training policy: There are various laws and regulation regarding the employee
training over a period of time. These policies have to be followed by the company and if firms
does apply these polices in the organisation they have to pay penalties.
4.2 Methods used to gain employee participation and involvement in the decision making
process
Employee is the essential part of each and every business unit and they can help the firm
to achieve the organisational goals and objectives. Therefore, it is the responsibility of the
manager of Toyota to motivate them which can increase their performance and productivity.
There are various tools and techniques that can be used by the firm to motivate their employees
(Welch, 2011). There are following approaches which can aid to increase employee's
participation in the decision making process as given below:
9

Participation at the Board Level: This approach can provide a platform to the
employees of the firm to give their suggestion in the board meeting. There are various trade
representatives that have sufficient knowledge and can help the company to improve the
performance and efficiency. It can increase the confidence level of their employees and motivate
other staff as well.
Participation through Ownership: This is common concept which can be sued by
Toyota, to increase employee participation in the decision making process. Higher authorities
can involving to buy the share of the company, which can help to increase their participation
level within the organisation (Wilkinson and Fay, 2011). Shareholders are the owner of the
company through this tools they can owner of the company, in the annual meeting they can vote
for the decision of the firm.
Participation through Collective Bargaining: Another method of employee
participation in the decision is called collective bargaining. In the collective bargaining process
on a specific issue, the representative of trade union can raise their issues in front of
management. If Toyota can promote this system within the firm then it can leads to increase or
motivate their employees to participate in the decision making (Amstad and et. al., 2011). It can
also aid in enhancing the decision making skills and capabilities of their employees.
Participation through Suggestion Schemes: Another techniques of increasing the
employee's participation in the decision making process is suggestion schemes. This tool is to
provide a platform to their staff to give their suggestion and ideas to the firm. For example, for
example management make a system where each and every member can give their suggestion
and idea and best and appropriate idea can be selected and implement in the near future. It can
increase the motivation level and increase the different soft skills in their employees.
4.3 Impact of human resource management on employee relations
Human resource management is an essential part of an organisation. It plays a significant
role in the employee relation (Avey and et. al., 2010). Without effective administration of staff,
appropriate employee relation cannot be maintained. HR focuses on the employee and
organisational development. There are various functions which are performed by the HR
department which involves recruitment, selection, training and development, performance
management, and other important aspects. All these functions have great impact on employee-
employer relationship. These impact are given below:
10

Training and development and employee relation: Training and development is an
integral part of employee relation because an effective training can enhance the skills and
capabilities of the employees. It can lead increase the personal and professional development of
an individual. It can create and develop good relationship between management and staff
(Bhatnagar, 2007).
Compensation and employee relation: It is another important function of HR
department which is related with pay and benefits. It is the responsibility of the HR manager to
give sufficient wage without any discrimination in terms of religion, creed and caste. Therefore,
if Toyota has a sound wage structure then it can increase the employee relation within the
organisation.
Performance management and employee relation: Performance management system of
the firm is also important in the employee relation. A poor performance evaluation and
management process can increase the probability of issues and conflict between the
administration and staff. Toyota is required to make an appropriate performance evaluation
system which analyse each and every employee according to their performance and output
(Biggs and Swailes, 2006). It can incraese the employee loyalty within the organisation and it
can lead to create a sound and harmonious working environment at the workplace.
CONCLUSION
As per the above mentioned report it can be concluded that employee relationship is very
important for the success of Toyota. Therefore, the management of the firm is continuously
focusing towards maintaining healthy relationship with the workers and thereby drive success to
the business. Effective employee relation can enhance the output and efficiency of the staff for
the company, and as a result, competitive strength of the firm can be improved. Moreover, it also
has been inferred that firm can increase the employee participation in the decision making
process through inviting suggestions as well as following participative leadership. Employee
participation also help to increase decision making skills within their staff.
11

12

REFERENCE
Books and Journals
Amstad, F.T., and et. al., 2011. A meta-analysis of work–family conflict and various outcomes
with a special emphasis on cross-domain versus matching-domain relations. Journal of
occupational health psychology. 16(2). p.151.
Avey, J.B., and et. al., 2010. Impact of positive psychological capital on employee well-being
over time. Journal of occupational health psychology. 15(1). p.17.
Bhatnagar, J., 2007. Talent management strategy of employee engagement in Indian ITES
employees: key to retention. Employee relations. 29(6). pp.640-663.
Biggs, D. and Swailes, S., 2006. Relations, commitment and satisfaction in agency workers and
permanent workers. Employee Relations. 28(2). pp.130-143.
Chand, M. and Katou, A.A., 2007. The impact of HRM practices on organisational performance
in the Indian hotel industry. Employee Relations. 29(6). pp.576-594.
Cooke, F.L., 2009. A decade of transformation of HRM in China: A review of literature and
suggestions for future studies. Asia Pacific Journal of Human Resources. 47(1). pp.6-
40.
Dau-Schmidt, K.G., Finkin, M. and Covington, R., 2016. Legal protection for the individual
employee. West Academic.
Edwards, P. ed., 2009. Industrial relations: theory and practice. John Wiley & Sons.
Gennard, J., 2009. The financial crisis and employee relations. Employee Relations. 31(5).
pp.451-454.
Goos, M. and Manning, A., 2007. Lousy and lovely jobs: The rising polarization of work in
Britain. The review of economics and statistics. 89(1). pp.118-133.
Grunig, J.E., 2006. Furnishing the edifice: Ongoing research on public relations as a strategic
management function. Journal of Public Relations Research. 18(2). pp.151-176.
Harvey, P., and et. al., 2007. Coping with abusive supervision: The neutralizing effects of
ingratiation and positive affect on negative employee outcomes. The Leadership
Quarterly. 18(3). pp.264-280.
Hooper, D.T. and Martin, R., 2008. Beyond personal leader–member exchange (LMX) quality:
The effects of perceived LMX variability on employee reactions. The Leadership
Quarterly. 19(1). pp.20-30.
Luthans, F., and et. al., 2008. The mediating role of psychological capital in the supportive
organizational climate—employee performance relationship. Journal of organizational
behavior. 29(2). pp.219-238.
Macky, K. and Boxall, P., 2008. High-involvement work processes, work intensification and
employee well-being: A study of New Zealand worker experiences. Asia Pacific
Journal of Human Resources. 46(1). pp.38-55.
McKay, P.F., and et. al., 2007. Racial differences in employee retention: Are diversity climate
perceptions the key?. Personnel psychology. 60(1). pp.35-62.
Newsom, D., Turk, J. and Kruckeberg, D., 2012. Cengage Advantage Books: This is PR: The
Realities of Public Relations. Cengage Learning.
Newsom, D., Turk, J. and Kruckeberg, D., 2012. Cengage Advantage Books: This is PR: The
Realities of Public Relations. Cengage Learning.
13

Ngo, H.Y., Lau, C.M. and Foley, S., 2008. Strategic human resource management, firm
performance, and employee relations climate in China. Human Resource Management.
47(1). pp.73-90.
Raghu Raman, S., Budhwar, P. and Balasubramanian, G., 2007. People management issues in
Indian KPOs. Employee Relations. 29(6). pp.696-710.
Reichheld, F.F. and Covey, S.R., 2006. The ultimate question: Driving good profits and true
growth. Boston, MA: Harvard Business School Press.
Ruel, H.J., Bondarouk, T.V. and Van der Velde, M., 2007. The contribution of e-HRM to HRM
effectiveness: Results from a quantitative study in a Dutch Ministry. Employee
relations. 29(3). pp.280-291.
Runar Edvardsson, I., 2008. HRM and knowledge management. Employee Relations. 30(5).
pp.553-561.
Ruth Eikhof, D., Warhurst, C. and Haunschild, A., 2007. Introduction: What work? What life?
What balance? Critical reflections on the work-life balance debate. Employee Relations.
29(4). pp.325-333.
Sadikoglu, E. and Zehir, C., 2010. Investigating the effects of innovation and employee
performance on the relationship between total quality management practices and firm
performance: An empirical study of Turkish firms. International Journal of Production
Economics. 127(1). pp.13-26.
Suliman, A.M. and Al-Shaikh, F.N., 2007. Emotional intelligence at work: links to conflict and
innovation. Employee Relations. 29(2). pp.208-220.
Sy, T., Tram, S. and O’Hara, L.A., 2006. Relation of employee and manager emotional
intelligence to job satisfaction and performance. Journal of vocational behavior. 68(3).
pp.461-473.
Welch, M., 2011. The evolution of the employee engagement concept: communication
implications. Corporate Communications: An International Journal. 16(4). pp.328-346.
Wilkinson, A. and Fay, C., 2011. New times for employee voice?. Human Resource
Management. 50(1). pp.65-74.
Online
Employee relations. 2017. [online]. Available through: <http://www.hr.pitt.edu/employee-
relations>. [Accessed on 6th January 2017].
Importants of employee relations 2017. [Online]. Available through:
<http://www.managementstudyguide.com/what-is-employee-relations.htm>. [Accessed
on 6th January 2017].
Employee relation 2017. [Online]. Available through:
<http://www.businessdictionary.com/definition/employee-relations.html>. [Accessed
on 6th January 2017].
14