Human Resource Management and Organizational Performance

This assignment delves into the crucial relationship between human resource management (HRM) practices and organizational success. Students are tasked with examining various HRM strategies, such as talent acquisition, employee development, compensation and benefits, and performance management, and evaluating their impact on key organizational outcomes like productivity, profitability, and employee satisfaction. The assignment encourages critical analysis of relevant case studies and research findings to support arguments and provide practical insights into effective HRM practices for enhancing organizational performance.

EMPLOYEE RELATIONS

Table of Contents
INTRODUCTION......................................................................................................................1
Task 1.........................................................................................................................................1
1.1 Explain the unitary and pluralistic frames of reference by reviewing the perspectives by
the stakeholders in employee relations...................................................................................1
1.2 Assess how changes in trade unionism have affected employee relations in the UK......2
1.3 Explain the role of the main players (workers, managers, organizations, government
agencies) in an employee relations situation..........................................................................3
TASK 2......................................................................................................................................4
2.1 Procedures an organization should follow when dealing with different conflict
situations.................................................................................................................................4
2.2 Key features of employee relations in a selected conflict situation.................................5
2.3 Effectiveness of procedures used in a selected conflict situation.....................................5
TASK 3......................................................................................................................................6
3.1 Role of negotiation in collective bargaining situation......................................................6
3.2 Impact of negotiation strategy for a given situation of Unison........................................7
Task 4.........................................................................................................................................8
4.1 Assess the influence of the EU on industrial democracy in the UK................................8
4.2 Compare methods used to gain employee participation and involvement in the decision
making process in organization..............................................................................................9
4.3 Assess the impact of human resource management on employee relations.....................9
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................11

INTRODUCTION
In the present business environment, the complex nature and number of business
organisations are increasing and hence, employee relations is considered as a significant
problem. To attain corporate goals, it is important for managers to sustain an adequate and
healthy relations with subordinates and employees. Such effective relations between
employees and employer supports the organisation in sustain its goodwill and image in the
market. It can also be said that the main crux of employee relation is grounds on the
interaction level in between employee and employer. This interaction is a measure of
resolving conflicts that greatly influences the organisation. Here, the paper is elaborating
unitary and pluralist frame of references in employee relations and how it is affected by
changed trade unions. This section is followed by an effective process to be followed in
organisations while dealing with workplace conflicts. Then the reader will find content about
negotiation and collective bargaining to reach on mutual agreements for the benefit of both
the parties. At last, European Union influence on UK industrial democracy, methods of
achieving employees’ active participation in business decisions and human resource
management impact on employee relations is being given. This report is prepared by taking
practical example of Samsung to get deep insights into the subject area.
Task 1
1.1 Explain the unitary and pluralistic frames of reference by reviewing the perspectives by
the stakeholders in employee relations
Employee relations talks about the contracts and regulations by which organizational
management manages employees both as individuals and as group. It also concerned with
ensuring staff commitment to the achievement of the organization`s objectives. The term
‘frame of reference’ refers to the understanding of the nature of a perspective or in current
case, stakeholder relationship practices. There are two main types of frame of references,
unitary and pluralistic (Armingeon and Beyeler, 2004).
Unitary frame of reference refers to a management opinion, values, practices and
attitudes on the basis of assumption that all stakeholders of any organization should share
common beliefs, values and objectives in order to achieve success. With the unitary
perspective, a mission statement is established and the success is measured through the
realization of pre-set goals (Ugboro and Obeng, 2000). Workers are found to be loyal, and the
management choice is considered as final and generally accepted by all which is viewed as
the best interests for every stakeholder. Trade unions are seen as trouble makers, and they are
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formed for the only purpose to communicate management’s view among the employees as
well as to enable employees to take part in decision making process (Atkins, 2012).
In pluralistic frames, the organization is made up of several powerful and different sub-
group which competes with each other. Members of the group are loyal to its own group and
subsequent leader. The two prime sub-groups are the management and trade unions. The role
of management in pluralistic frames of reference is more coordinating in comparison with
controlling in unitary frames. Trade unions play an important role in this approach as they
represent employees of the organization. Disputes between them and management are often
resolved by collective bargaining process where decisions are taken considering mutual
benefits of all stakeholders (Barry and Wilkinson, 2011).
1.2 Assess how changes in trade unionism have affected employee relations in the UK
Until 1824, Trade Unions were not so authoritative, since then as numbers of member
workers increased these associations were legalized. Political activity overshadowed trade
unions between 1830 and 1840. However, afterwards 1850`s more permanent trade unions
were established. The London Trades Council was formed in 1860 and the Trades Unions
Congress was formed in 1868. Initially, main aims of setting up such unions were sensible
wages and better working conditions (Bolman and Deal, 2003).
The legal status of trade unions in the United Kingdom was established by a Royal
Commission on Trade Unions in 1867, which agreed that the establishment of the
organizations was to the advantage of both employers and employees. In 1871, unions were
legalized. Since then up till 1914 there was massive increase in trade union membership,
which affected all industries. The 1926 United Kingdom general strike was declared by the
Trades Union Congress for the factors of pay and working conditions of coal miners
(Rohrschneider, 2005). Similarly, a major strike took place for Winter of Discontent (1978-
1979) which contributed to the downfall of Labor government of James Callaghan, who
appealed for unions to exercise pay restraint in order to try to curb the rampant inflation. In
1984, unions were formed to provide help to employees working for banking services under
the Unity Trust Bank (Bryson, 2005).
Thus, it can be inferred that the industrial revolution in the UK along with the advent of
the factory system of production were greatly responsible for the emergence of trade unions.
Unorganized workers were subject to exploitation by employer, therefore were helpless to
bargain working condition and pay. Labour relations were mainly developed to protect the
interest of both management and workers with the help of developing mutual understanding
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and relationship for overall improvement in the quality of work. It also helps to boost healthy
working environment through reduction and resolution of industrial disputes. Organization
are able to maintain a better employee relationship with the help of trade union which also
ensure the production sustainability through better coordination between the management and
employees (Chand, 2016).
1.3 Explain the role of the main players (workers, managers, organizations, government
agencies) in an employee relations situation
Employee relations deals with interactions amongst various stakeholders in the
employment relationship. Main players can be divided into three groups: employee and
employer, trade unions and organization and government agencies (Ramsay, Scholarios and
Harley, 2000).
There exists a psychological contract between employer and employee where the
employee must show commitment and contributes for productivity while complying with the
policies and procedures of the organization. For ensuring best productivity, a healthy
employer-employee relationship is important so that they feel comfortable with each other
and work in unison for common objectives. The key role of employer is to provide jobs while
complying with the legal procedures and offer good working environments where employees
can feel secure (Craver, 2015).
Trade unions exist to represent employees’ interests in the employment relationship. A
better pay and working conditions are the main focus area of union`s efforts. Though,
employers have the authority to set the terms and conditions of work and pay, unions
represent workers and with their intervention, employees can bargain for better work and pay.
Moreover, labor unions inspect unfair labor practices of employers and safeguard employees’
interests. In this way, unions make sure that employers offer work in a way that should
comply with the law (Daniels, 2006).
Apart from employers, employees and trade unions, the government is the most
influential force for employee relations. Different government and EU institutions influence
employee relations in various ways. For instance, one of the key job of government is to
manage the economy. Government ensures price stability and try to maintain high levels of
employment. Management and unions often depend on the government to resolve disputes or
to change legislation to resolve a conflict. Therefore, the role of government has become
increasingly important for employee relations (Goddess, 2010).
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TASK 2
2.1 Procedures an organization should follow when dealing with different conflict situations
There are distinct situations of conflicts that may arise at work in between colleagues or
in between subordinates and superiors. The workplace conflicts may lead to less productivity
in the organisation. The conflicts can be both informal and formal, such as:
Formal conflicts – In the occurrence of such types of conflicts the involved parties may claim
in employment tribunal. For instance, conflicts in relation to company’s policies and
procedures and about inappropriate working condition, etc.
Informal conflicts – It can happen when minor clashes arise among employees or may take
place in case of disagreements between two members on pay scale (Hunter and Saunders,
2007).
All conflict situation is different but it falls under two categories like either in between
entities including managers, employees, and colleagues or in between distinct groups
comprise of several departments and groups (Poitras and Tareau, 2008). There are varied
causes of workplace conflicts that includes the following:
 Poor management;
 Inadequate training;
 Personality clashes within people;
 Harassment or bullying;
 Bad working condition;
 Less equal opportunities to employees;
 Providing different values to employees;
 Continuing unsolved situation;
 Employees biased treatment;
 Unclear roles of job (Katz and Kochan, 2004).
In addition to above, there are several methods of solving workplace conflicts. Most of
the times it can be resolved by having some informal discussion with people involved in
conflicts. But, sometimes management is required to use internal procedure for resolving
conflicts. In case, a person is found threatening other person and guilty then disciplinary
actions will be followed (KJERULF, 2006). Besides above, several skills are required to be
used while solving conflicts, like:
Decision making;
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Active listening power;
Consultation;
Problem solving;
Negotiation with people;
Knowledge about several laws.
2.2 Key features of employee relations in a selected conflict situation
Employee relations are strengthened for synchronising employee’s responsibilities,
rights and values in the organisation. A neutral role should be adopted by Samsung to resolve
conflicts and due consideration should be given to basic objectives. In the preliminary stage
of conflict resolution, first of all an employee relations expert must adopt an informal process
of resolving conflict (Lillie, 2004). For instance, conflicts may arise because of differences in
employee’s feelings, thoughts and ideas and also due to their cultural differences. This may
lead to decrease in cooperation among staff members that ultimately lessens the business
productivity. Also, the management should adopt a standard process to solve workplace
conflicts. In critical conditions, honesty and clear communication plays a great role that
effectively supports management in solving issues (Managing conflict at work, 2009).
Moreover, the methods used by Samsung management for dealing with conflicts must
be regularly monitored and constant follow-up should be taken to measure the results
effectiveness. Furthermore, if a proper follow-up is used than it supports the organisation in
analysing areas where further actions are needed by the management. Also, a backup plan
should be developed by management for conflicts that cannot be resolved at time and that can
be utilised to keep the level of production high (MEDIATION: AN APPROACH TO
RESOLVING WORKPLACE ISSUES, 2013).
2.3 Effectiveness of procedures used in a selected conflict situation
The management of Samsung should use meditation as a legal process to resolve its
workplace conflicts. Meditation can be used in several areas of life to resolve disputes. It is
one of the valuable processes in the ADR (alternative dispute resolution) spectrum and
includes a third party who bring two sides together to reach at a mutual agreement. By
following the Gibbons review of resolving dispute related to employment in 2007, the
updated practice code of Acas on Grievance and Discipline introduced a process of
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meditation (MEDIATION: AN APPROACH TO RESOLVING WORKPLACE ISSUES,
2013).
Meditation for the company is particularly effective when it utilised at the primary
phase of any disagreement, before escalates of conflict at the place of work. The third party
intervention at early stage can safeguard both sides from becoming embedded and the
difference turn-off into a complete dispute. If the company is able to resolve any
disagreement early on than there is less chance of break down in working relations. It
improves the possibilities of maintaining productive and good relations of employment in the
long-run (Managing conflict at work, 2009).
Also, employment tribunal do not solve the workplace problems systematically, which
may highlight an individual dispute. Therefore, mediation may enable the management to go
deep into the problem and make necessary changes in working practices with which both the
organisation and employees get maximum benefits. Specifically, the mediation can support
the company in focusing on problems around stress and prevent long-term absence of
employees from the work (Saundry, 2014).
TASK 3
3.1 Role of negotiation in collective bargaining situation
Bargaining and negotiation happens among members, employers and UNISON
representatives to create quality and fairness at work. The negotiation takes place with an aim
to reach a common agreement. The representative of UNISON group may create a team of
collective bargaining to reach agreement related to pension changes, over planned
redundancies and better pay. It may either happen at national or local level (Kelly, 2001).
Also, they may negotiate on issues not related to pay, like right to flexible job for parent and
carers and for working hours, etc. The collective bargaining is a useful method of
encouraging employer to provide more flexible arrangements at work. Sometime UNISON
reps have to make negotiation with the management as well (Roberts, 2000). To begin the
process, the official or UNISON reps may write to employer to put their claim. Then in order
to present their case, they meet the management. Negotiation is not normally done by
Stewards alone, instead a group reflecting a huge range of UNISON membership including
people with complementary skills put together (Guest and et.al., 2003). Then to discuss the
given problem in depth, a range of meetings may follow. The process of negotiation has four
main stages:
 Preparation – research and preparation of the case
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 The opening – a proposal on one side of table and responds on other side
 Trading – for instance, we will provide Y if you agree to X.
 Agreement – clear expectations for all is decided
In the above process, both sides to reach an agreement should be open to novel ideas
and ready to accept all necessary modifications as well. In case no agreement is made than
negotiations may break and unions can take industrial actions. If there is need of industrial
actions, the regional office of UNISON involve and offer advice on correct process to follow.
Once employers and workers reach an agreement, it is kept in place and signed either for a
fixed period or until it is replaced (Chand, 2016).
3.2 Impact of negotiation strategy for a given situation of Unison
Situation:
Mr. Roe has completed MBA in HRM and given with a post of manager to look over
production unit industrial relations. Throughout his probationary period, he well performed
and given an offer of permanent job in the company. Later on, Roe expect for promotion and
started asking for an increase in salary. Earlier he was promised by the organization to get all
necessary benefits, if perform according to business requirements. He put his best effort and
hence, demand for better salary and promotion (Rubin and Brown, 2013). On the other hand,
the company is not ready to provide him expected benefits that call for an adequate
negotiation between the two:
UNISON required to follow given strategies for negotiating adequately in the existing
situation:
Having a position, prior initiating a discussion – All requirements must be put in discussion
to have good negotiation.
Compromises should be around common advantages – The negotiation should last until all
members beat options that meet their mutual interests and support the business in making
quality production (Saundry, 2014).
Getting information – UNISON reps should get all necessary data about Mr. Roe work
performance and benefits they should receive based on it. Moreover, all financial updates of
the company should be collected by reps to investigate why the management is fail to meet
Mr. Roe expectations (Guest, 2002).
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The big picture should be keep in mind – The Company should keep its own interest and
maintain reputation in the market together with effective relations with employees.
A deal should not be approved until it is agreed by group – The organization is need to decide
and agree with negotiation by having discussion in group. Hence, management should be
very careful (Sekaran, 2006).
Not rushing to agree – An adequate time should be taken by the management and UNISON
and think deeply before making final decision (Follesdal and Hix, 2006).
Keep dialogue honest, humane and respectful – All members should be honest and respectful
while making negotiation. Words that may create dissatisfaction among members should be
avoided in a meeting (Storey, 2007).
By using above strategies, UNISON reps would agree common benefits in collective
bargaining negotiation and fulfill Mr. Roe expectations but after the completion of six
months, as in such duration Mr. Roe will require to be more excellent in his job.
Task 4
4.1 Assess the influence of the EU on industrial democracy in the UK
The EU provides a single market by removing barriers between European countries to
trade and compete without bias and standardize technical regulations. The European social
policy is social charter which secures fundamental social rights of workers. According to
social charter, there are four areas of employee relations management in which EU laws have
a direct impact on the work of the UK personnel; equal opportunities, employment
protection, employee relations, health and safety at work (Allen, Shore and Griffeth, 2003).
This helps to improve living and working conditions and ensuring effective use of
human resources across EU markets. Thus, there is considerable influence of the European
Union (EU) on industrial democracy in the UK (Floyd and Lane, 2000). It has the power to
determine the rules and regulations which govern workplace relations between employers and
employees. There are various examples, where the influence of EU initiatives can be
witnessed on the UK such as collective redundancies, transfer of undertakings, acquired
rights, "burden of proof" in equality cases, information and consultation, part time work,
fixed term contract, pregnancy, and maternity leave rights, parental leave, working time and
equal opportunities (Alper, Tjosvold and Law, 2000). These are all the areas where EU
legislation has affected directly the everyday work of the UK personnel professional.
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4.2 Compare methods used to gain employee participation and involvement in the decision
making process in organization
Employee participation and involvement in decision-making process results in successful
value creation for Samsung. There are a number of methods through which employees can
participate in decision-making process in Samsung.
At the Board Level: Industrial democracy provide means by which employee representation
at the board level plays an important role in protecting the interests of employees. The
representative can put issues of the employees in front of board members and persuade them
to invest in employee benefit schemes (Barki and Hartwick, 2001).
Collective Bargaining: Participation of workers through collective agreements is an ideal
way of employee participation in managerial decision making process.
Job Enrichment: Workers can involve themselves in decision making by expanding their
job content and additional responsibilities (Daley, 2006).
Quality Circles: Experts in a particular area form a group of five to ten who meet regularly
to identify, analyse and find solutions to issues pertaining to improving working conditions of
the organization (Bergeron, Raymond and Rivard, 2004).
4.3 Assess the impact of human resource management on employee relations
Human resource management department of the organization is responsible to motivate
and guide employees so that organizational objectives can be realized. HRM with the help
and consent of trade unions as well as management develops policies regarding wages,
salary, working hours, working environment and working safety and health issues.
Samsung’s human resource department’s major work area includes manpower planning, job
design, recruitment, selection, training and development, performance appraisal etc. Human
resource management specialists may be the members of trade unions and organization need
to take care of the degree of impact of such members on employee relations (Chadwick and
May, 2003).
CONCLUSION
The above report concludes that business firms should give utmost care to employee’s
privileges and attempt to achieve their satisfaction level. It is because companies are
becoming more unitary after the changes in trade union. The government also plays an
important part in solving any dispute and dissatisfaction. To solve conflicts that takes place in
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the organization, UNISON reps, officials and management should decide upon methods,
main factors of employee relations and the procedure to resolve conflicts of workplace.
Moreover, negotiation plays an important role in collective bargaining and some strategies
are required to be used by UNISON to agree on some point that benefits both the parties
equally. The industrial democracy of many UK firms are influenced by EU. The business
firms by using different methods can achieve employee’s effective participation and
involvement in the process of business decision making. Moreover, the human resource
management of companies can supports in developing valuable employer-employee
relationships by initiating better empowerment, participation and communication.
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