Industrial Relations & Work Place Change Question Answer 2022

Industrial Relations & Work Place Change 0
Title: Industrial Relations & Work Place Change
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Industrial Relations & Work Place Change 1
Contents
Question 2...................................................................................................................................................2
Question 3...................................................................................................................................................4
References...................................................................................................................................................7

Industrial Relations & Work Place Change 2
Question 2
With the increase in the competition between the organization, along with the various
internal and external issues and complexities, it has become paramount for the current
organizations, to utilize the approach of “Varieties of Capitalism”. The aspect of “Varieties of
Capitalism” is concerned with the attribute of competitiveness, which is affected due to the
interactions that take place on the way an organization functions and should functions (Gould,
Barry, and Wilkinson, 2015). It is due to these changes that impact the economic stability of the
organization. In addition to this, it is due to these changes that also gives birth to various
dissimilarities between the labor and the management, hence, making the situation worse.
The term capitalism can be defined as the economic system under which a private entity
or individual is responsible for managing and providing capital goods. Furthermore, in a
maximum of the organizations, capitalism is utilized for implementing the market economy,
which is considered more beneficial than the planned economy. For instance, in the organization
Boeing, the firm resorted to capitalism by getting outsource help, both internationally and
locally. The organization utilized this plan to reduce the operating and production cost. In
addition to this, it was also implemented for increasing growth and development in the
organization. Now, the basic similarities between the management decision-making and
industrial relations outcome in the framework varieties of capitalism are that they have similar
objectives (Benney, 2019). Both of them, share the same vision and all their efforts are utilized
for fulfilling the common objectives.
On the other hand, there are various dissimilarities too, which impact the performance
and project of the organization adversely. Both of them, have a different approach to fulfilling
the target. For instance, the management of the organization that is responsible for making

Industrial Relations & Work Place Change 3
decisions has to alter its decisions from time to time, according to the activities of the industrial
relations outcomes. In case of these outcomes being negative, the outsourcing organization does
not have to suffer and all the loss has to bear by the management that is responsible for making
decisions. For instance, in the organization Boeing, the firm resorted to the approach of
outsourcing to lower the cost of operation and production, along with offering the organization
with rapid success. But after the implementation of the approach, due to the difference in the
working approaches of the main organization and the outsourcing organization, the project was
behind schedule, which is by more than three years. In addition to this, the host organization was
under a huge financial loss, which was in billions (Hay, 2019). This humongous loss has to be
handled and managed by the host organization, where the outsourcing organization was not at all
responsible for any loss.
In addition to this, as the host organization is bond with the outsourcing organization,
therefore, they are stuck with them, till the project completes. In stating that this aspect increases
the problems for the host organization, as they do not have any control over the working
approaches of the outsourcing organization, therefore, they fail to reduce the different financial
losses that the organization is experiencing (Rodriguez, Johnstone and Procter, 2017).
The organization Boeing kept incurring more financial resources to complete the project
on time. It is due to this aspect that increased the problems for the organization, as the
organization spent billions in the hope of recovery.
The framework of Varieties of Capitalism is effective enough to understand
contemporary workplace changes. It is due to this framework that highlight various changes
leads to problems, between the management and the labor. For instance, due to the organization
Boeing’s decision of outsourcing 70% of the work, problems erupted between the management

Industrial Relations & Work Place Change 4
and the labor. This is also due to the approach of the organization of not taking the consent of the
labor while making some of the major outsourcing decisions (Wilkins et al., 2010). This built the
issue of job insecurity in the labors of the organization, which went on strike for two months,
hence impacting the project further.
From all these different aspects, this can be stated that varieties of capitalism are an
important in highlighting the different issues that can emerge due to the different changes that an
organization will undergo due to adapting to the approach of outsourcing (Witt and Jackson,
2016). In addition to this, this can also be stated that all the problems that are associated with a
reduction in the performance of the organization, the loss of financial resources, and any others,
all these different risks emerge due to the approach of capitalism.
Question 3
Flexicurity can be defined as an effective welfare state model, which utilizes or promotes
a pro-active labor market policy. The emergence of the term flexicurity happened after it was
realized that understanding and attaining labor market flexibility is paramount. The approach of
flexicurity can be explained as an aspect that offers job security to the labor, along with
managing the different changes and alterations that place in a dynamic economy (Muffels,
Crouch and Wilthagen, 2014). In addition to this, the approach of flexicurity is also identified as
a three-side mix approach in many of the nations, in which the three sides are labor market,
social security, and the current active labor market policy. Furthermore, it is due to the approach
of flexicurity that helps in simultaneously increasing the security and flexibility in the labor
market. It is an integrated strategy that also helps in building the required and necessary balance
between the labor market and the dynamic economy.

Industrial Relations & Work Place Change 5
In the organization FoxMeyer, the firm experienced a humongous loss, due to failing to
bring a balance between the labor of the organization and the economic conditions of the
organization. It is due to this ignorance of the organization that the fourth largest organization of
pharmaceuticals in the USA, the organization struggled to survive in the market. The
organization's approach of utilizing the latest technology for conducting the operations in the
organization was not in sync with the needs and demands of the workforce of the organization.
In addition to this, the organization tried to implement too much at the same time (Muffels,
Crouch and Wilthagen, 2013). From the utilization of Delta III to building an automation
warehouse for better performance. Furthermore, the organization also brought ore changes by
hiring a consultation organization for bringing the required changes in the organization that will
be needed for the implementation of Delta III. All these different organizational changes, were
difficult for the labor to adjust too. Moreover, the problems further aggravated as the labor was
not consulted in any of these crucial changes that the organization made. In addition to this, the
labor of the organization was not considered at all, nor their needs nor demands. This lead to the
emergence of problems between the workers and the management, as the labor had job security
issues, which the organization ignored completely (Shahidi et al., 2016).
The aspect of flexicurity is built around various aspects, amongst which the first one is
contractual arrangements which should be reliable and flexible. If the organization FoxMeyer
would have built a new contract with the labor of the organization that would have offered them
the promise of job security, along with better growth opportunities, then the organization would
have been able to address the issues of the labor (Noja, 2018). In addition to this, it is due to this
approach that the organization would have also encouraged the labor to adjust to the different
organizational changes with a correct attitude, which would have benefitted both the

Industrial Relations & Work Place Change 6
organization and the labor. The organization was too quick to make changes, which the labor
cannot adjust too. For this, the organization should have utilized the other aspect of flexicurity,
which is a lifelong learning environment and strategies. The biggest mistake which the
organization did was not offering the labor with appropriate learning and development
opportunities that the labor needed. This would have offered labor with job satisfaction, hence,
enhancing the level of job security. Finally, the organization needed to facilitate labor with a
social security system, which is another crucial aspect of the flexicurity (Bekker, 2017). It is due
to this approach that the organization would have addressed the income issues of the labor.
Along with this, it would have also helped the organization in addressing the issues of the
dynamic economy. Therefore, all these different aspects would have created a balance between
the economy and the labor. Due to this balance, the organization would have been able to build a
win-win situation that would have helped the organization immensely.
The flexicurity model helps in addressing the issues associated with labor, the issues
associated with finance, along with building an environment in an organization that accepts
changes with a correct attitude (Auer, 2010). All these different attributed make this model
extremely beneficial as it facilitates a win-win situation.

Industrial Relations & Work Place Change 7
References
Auer, P., 2010. What’s in a Name? The Rise (and Fall?) of Flexicurity. Journal of Industrial
Relations, 52(3), pp.371-386.
Bekker, S., 2017. Flexicurity in the European Semester: still a relevant policy concept?. Journal
of European Public Policy, 25(2), pp.175-192.
Benney, T., 2019. Varieties of capitalism and renewable energy in emerging and developing
economies. Journal of Economic Policy Reform, pp.1-26.
Gould, A., Barry, M. and Wilkinson, A., 2015. Varieties of Capitalism Revisited: Current
Debates and Possible Directions. Relations industrielles, 70(4), p.587.
Hay, C., 2019. Does capitalism (still) come in varieties?. Review of International Political
Economy, 27(2), pp.302-319.
Muffels, R. and Wilthagen, T., 2013. Flexicurity: A New Paradigm for the Analysis of Labor
Markets and Policies Challenging the Trade-Off Between Flexibility and Security. Sociology
Compass, 7(2), pp.111-122.
Muffels, R., Crouch, C. and Wilthagen, T., 2014. Flexibility and security: national social models
in transitional labour markets. Transfer: European Review of Labour and Research, 20(1),
pp.99-114.
Noja, G., 2018. Flexicurity models and productivity interference in C.E.E. countries: a new
approach based on cluster and spatial analysis. Economic Research-Ekonomska Istraživanja,
31(1), pp.1111-1136.

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Rodriguez, J., Johnstone, S. and Procter, S., 2017. Regulation of work and employment:
advances, tensions and future directions in research in international and comparative HRM. The
International Journal of Human Resource Management, 28(21), pp.2957-2982.
Shahidi, F., De Moortel, D., Muntaner, C., Davis, O. and Siddiqi, A., 2016. Do flexicurity
policies protect workers from the adverse health consequences of temporary employment? A
cross-national comparative analysis. SSM - Population Health, 2(1), pp.674-682.
Wilkins, M., Thelen, K., Whitley, R., Miller, R., Martin, C., Berghahn, V., Iversen, M., Herrigel,
G. and Zeitlin, J., 2010. “Varieties of Capitalism” Roundtable. Business History Review, 84(4),
pp.637-674.
Witt, M. and Jackson, G., 2016. Varieties of Capitalism and institutional comparative advantage:
A test and reinterpretation. Journal of International Business Studies, 47(7), pp.778-806.