Strength and Weaknesses of Union Diversification

The assignment discusses the concept of union diversification, which increases the reach or coverage of the union across various industries or services. This diversification is believed to strengthen the union as it leads to increased financial capacity, more supporters, and greater bargaining power. On the other hand, the high rate of employee turnover can be costly for a company due to the expenses associated with hiring new employees, training programs, and decreased productivity. However, turnover also has some benefits, including talent infusion, increased efficiency, and ensuring disciplinary processes in the organization.

Running head- Human Resource Management
Human Resource Management

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Human Resource Management
Union Diversification
Diversification of union means increasing the reach or coverage of the union over more industry
or services such as initially the union is formed for the auto industry but later on it covered other
industry. As far as the strength of union due to diversification is concerned, I think the
diversification of union makes the union more powerful. It means diversification of union make
the union stronger than weaker (Ferguson, 2016). The following reasons support this statement;
 Financial capacity: As the union diversifies its operation in more industry the members of the
union would increase, and the increased number of members of the union would contribute
more financially to the union. When the union will be more financially sound the strength of
the union would increase.
 More supporters: as it has already mentioned above that the diversification of union would
increase the number of the members of the union and the union would have the more human
power that will support the union in any problem or difficulties. All the members of the
union would be working together to get fruitful result.
 More bargaining power: As the strength of the union would increase the bargaining power of
the union would increase, and the union can ensure the rights of its member.
 Less exploitation of the workers: As the union would be stronger it will fight for the right of
the workers, and the exploitation of the workers would decrease significantly by the
industrialist.
As an auto worker, I feel good up to certain limit if the union is diversified, but I would be worry
because I feel that if the union will diversify the focus of the union on auto worker will reduce.

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Human Resource Management
Initially, the union focuses on the welfare of the auto workers only, but after diversification, it
will focus on the welfare of the other workers outside the auto industry.
Turnover
Turnover means the percentage of employees who leave a company and replaced by the new
employees. The high rate of turnover is not beneficial for the company because it is associated
with high cost (Duffield et al., 2014). The following are the cost associated with the turnover;
 Cost of hiring new employees: Hiring new employees is not an easy task and involves high
cost. The company needs to spend on the advertisement of the vacancies, on the recruitment
process, and selection process.
 The cost of training and development program: The new employees are in need of training
and developmental program which is also very costly. The company spends huge amount to
make its employees skillful and competent.
The cost of training and developmental program of previous employees who left the
company also bear by the company.
 The efficiency and the effectiveness of the new employees are less and due to this the
productivity of the employees, as well as the productivity of the whole organization,
decreases. The company also bears this loss only due to turnover of the employees.
 The turnover of the employees also decreases the level of motivation and morale of the
employees, and due to this, the performance of the existing employees reduces.

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Benefits of turnover
Turnover is always considered as a negative point from the organization point of view, but there
are some advantages of the turnover as well (Stanley et al., 2013). The advantages of the
turnover are;
 Turnover leads to the talent infusion in the organization
 Due to the talent infusion the efficiency of the organization increases
 Involuntary turnover ensures the disciplinary process in the organization
 Sometimes organization fires those employees who are not engaged in the work
enthusiastically. This will lead to increase the engagement of employees in work.

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References
Ferguson, J. P. (2016). Relational Categorization: Evidence from the Diversification of
American Labor Unions.
Duffield, C. M., Roche, M. A., Homer, C., Buchan, J., & Dimitrelis, S. (2014). A comparative
review of nurse turnover rates and costs across countries. Journal of advanced nursing, 70(12),
2703-2712.
Stanley, L., Vandenberghe, C., Vandenberg, R., & Bentein, K. (2013). Commitment profiles and
employee turnover. Journal of Vocational Behavior, 82(3), 176-187.