Employee Relations Strategies and Practices at General Motors Report

This report provides a comprehensive analysis of employee relations at General Motors, a leading automobile company. It begins by defining employee relations and its importance in fostering a positive work environment. The report then explores the unitary and pluralistic frame of references, highlighting their impact on policy formulation and conflict resolution. It examines the role and influence of trade unions, discussing their positive and negative impacts on employee relations and their involvement in collective bargaining. Furthermore, the report delves into the key factors in maintaining employee relations, including the roles of employers, employees, trade unions, and the government. It details the procedures used by General Motors to resolve conflicts, such as collective bargaining, mediation, and arbitration, and evaluates their effectiveness. The report also analyzes the role of negotiation in collective bargaining and the impact of negotiation strategies. Finally, it touches upon the influence of the EU on industrial democracy and the impact of human resource management on employee relations, offering a holistic view of the subject.

EMPLOYEE RELATIONS
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
1.1 Explanation of unitary and pluralistic frame of reference at General motors........................3
1.2 Analysis of impact of trade union on employee relation at General motors.........................4
1.3 Role of people in maintaining employee relation at General motors...................................5
2.1 Procedures followed by General motors to solve different conflict situations......................6
2.2 Key features of employee relation in selected conflict situation at General motors.............7
2.3 Evaluation of effectiveness of procedures used at General motors in selected conflict
situations......................................................................................................................................8
3.1 Explanation of role of negotiation in collective bargaining at General motors.....................9
3.2 Impact of negotiation strategy at General motors for a chosen situation .............................9
4.1 Influence of EU on industrial democracy in UK.................................................................10
4.2 Comparisons of methods used in gaining employee participation and involvement in
decision making process of the company..................................................................................11
4.3 Analysis of impact of human resource management on employee relation at General
motors........................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14
Books and Journals....................................................................................................................14
Online.........................................................................................................................................15
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INTRODUCTION
Employee relation is defined as relation between employee and the employer of an organization.
A positive relation between them creates a flourishing work environment. It helps in resolving
problems and disputes in the company by providing a healthy and cooperative work place.
Present report is based on employee relation of General motors. Major objective of this report is
to describe about importance of employee relation by explaining unitarist and pluralistic
approach. Practices and procedures used by the firm for resolving disputes in the company are
described in the report. In addition to this key features of employee relation are mentioned with
their evaluation and impact on organizational performance.
1.1 Explanation of unitary and pluralistic frame of reference at General motors
General motors is a leading automobile company of UK which offers wide range of
automobile products for its consumers. Employees are considered as major asset of the firm and
company plan various welfare programs for its employees to develop good relation with them to
achieve harmony at work place. There are two major frame of references for employee relation.
One is unitary perspective and other one is pluralist perspective. Both provides guidelines about
employee relation in the company and helps the firm for policy formulation. According to
unitary perspective top managment is single source of authority in the company to give work
related directions and itplays a important role in regulating operational activities of the firm
(Hasle and et.al., 2012). According to this approach major role of manager is to provide
motivation and commitment to work force to direct them for completing their assigned task. .
Trade unions are not given much importance in this method for resolving conflicts in industry.
The major strength of this approach lies in the fact that unitarist work for integrating interest of
labor and managemen to enhance their commitment for work (Xanthopoulou, Bakker and Ilies,
2012).
Pluralist perspective focus on diverse set of beliefs, value, behavior and attitude.
According to this conflict is necessary as there are inherent competing interest in the company.
They give importance to trade unions as legitimate representative of employees and allow them
to help employees in solving their problems and increase their participation in decision making
process. By using this method stability in the firm can be achieved by negotiations between
employees and managers by using collective bargaining process. Unlike the unitarist, the
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pluralist theory believe in effective industrial relation between management and workers to
resolve disputes and conflicts at the work place. They emphasize on using a consultative
approach for solving problem and wide range of policies are adopted in this method for
maintaining industrial relation (Li, Sanders and Frenkel, 2012). Pluralist approach focuses on
workers interest which can lead to inefficiencies in collective bargaining process. Both the
methods provides guidelines for managing industrial relation in the company in an effective
way.
1.2 Analysis of impact of trade union on employee relation at General motors
The major role played by trade unions is in collective bargaining process for representing
employees in management decision making process. Trade unions assist in maintaining
employee relation in General motors. Industrial relation in UK are in transformation phase due to
internationalization. It is important area for social regulation of employment in UK. Employee
relations in the country are mostly governed by rules and policies set by the government.
Government imposes obligations and rights on contracting parties in industry for negotiations.
The size and significance of these unions affect the employee relation at the work place. Trade
unions represent employees and workers in decision making process by solving problems related
to various employment issues including work schedule, condition of workers and wages, doing
bargaining from top management for rights of employees. Trade union has both positive and
negative impact on employee relation. A poor association between trade unions and employees
results in weak management-employee relation. In this case unions fail to represent their
employees and find it difficult to gain allegiance of workers and employers (Groen, Wouters and
Wilderom, 2012). Role of bargaining agent played by trade unions help the employees in getting
their wages according to norms and policies set by the government.
Trade unions play a positive role in maintaining industrial relation by dominating
employers over employees and representing worker's interest in employment relationship of the
company. These unions are formed to provide bargaining power to employees. Trade union stand
for workers in General motors to do negotiations with top management. Trade unions can adopt
different methods to ask for better employment conditions at the work place. Various methods
adopted by trade unions include boycotts, strikes, go-slow policy and work-to-rule method.
union works as a link between employer and employees and fight for better terms and conditions
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of the worker (Frege, and Kelly, 2013). They stand for issues related to wages and incentives,
working condition, employee welfare schemes of the company, job security to workers and
developing terms for working schedule. Their major objective of trade unions is to work for
protecting employees from any unlawful and arbitrary action of the employer and they save
workers from unfair labor practices adopted by top management to dominate workers. Trade
union members inspect and monitor working conditions in industry at frequent basis to ensure
smooth functioning of the organizations. Unions assist management of General motors in
developing policies related to labor welfare and working conditions. Trade union also monitor
the implementation of labor legislation's and employee welfare scheme at the work place.
1.3 Role of people in maintaining employee relation at General motors
General motors is a leading automobile company which provides effective and wide
range of automobile products to its consumers. Employee relation is defined as an area of
activity concerned with managing better relation with management and employees at the work
place (Frege, and Kelly, 2013). It is a strategic process and helps the company in maintaining a
effective work culture. There are four major factors that includes employee, employer, trade
unions and government which play a significant role in developing employee relation at General
motors. Employer of the company is responsible for approving different policies and rules
developed for welfare of the employees. Top management is responsible for dealing with trade
unions that work for welfare of the workers. The machinery of industrial relation rests on rules
and procedures formed for determining employment conditions at work place. Industrial relation
is a bureaucratic activity which works by balance of power between employees and employers.
Management people are accountable for doing bargaining with trade union members related to
various terms and conditions of employees.
General motors ensures that collective negotiation should be done according to legal
framework of the country and need to be fair and constructive. The major areas covered in
collective bargaining method includes wages, bonuses, , work schedule and hours of work
(Witzel, and Warner, 2013.). All the terms related to these areas are discussed between top
management and trade union members. Workers and employees are most important in dealing
with employee relations as they are the major factors for whom all the policies are designed and
implemented. Trade unions work for satisfying basic needs of the workers. Government is also
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major determiner for forming employee relations at industries. s. Legislation's control the
relation between workers, employers and trade unions by compelling them to work according to
norms decided by them. The prime concern of labor laws of UK is to ensure that every working
employee should have a minimum charter of rights at the work place. Government law's help the
company to decide its wage policy according to rules and procedures decided by the system. EU
IS
2.1 Procedures followed by General motors to solve different conflict situations
Conflict resolution is defined as a method which is used for peaceful completion of a
conflict. People responsible for conflict resolution try to facilitate peaceful ending of the
grievance. Some of the methods adopted by General motors to resolve conflicts at work place
includes Collective bargaining which is a method of negotiating for terms of employment and
work condition between employee representatives and management people. It is a contract which
deals about labor issues (Egilman, 2013). The labor contract is a collective agreement between
employer and employee representatives which deals with wage policy, work schedules and terms
of employment. The contract requires for joint enforcement of the agreement between both the
parties. Employee leaders and management resolve their issues around a conference table.
Sometimes outside assistance is also taken to solve troubles in a better and effective way by
following a legal procedures. Collective bargaining is a top management function where it is
responsibility of manager to ensure successful implementation of collective bargaining method.
Signing a labor contract makes personal manager accountable for handling the grievance
procedures in a effective way without using any unlawful labor practice (Twomey, 2012). The
spokesman of employees and management must have sufficient authority for doing negotiation.
The labor contract contains terms related to labor agreements which includes details about union
membership, duration of agreement, wages and working conditions and policies related to hire,
and promotion and dismissal. It is a effective method of solving grievance at work place.
Mediation method is also included for conflict solving methods of General motors. It is
a method of solving disputes by taking help from any outsider. Outsider work as a consultant to
listen, communicate and suggest methods to resolve the dispute but the recommendations given
by consultant are not binding on management. Advice and opinion given by the consultant assist
the management in solving the conflict in a better way. Arbitration method is used by the
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company when both the methods fail to solve the conflict. . The parties of conflict can appoint
an arbitrator and refer the conflict to him. Arbitration can be voluntary or compulsory according
to requirement of situation. The arbitration award is binding on the parties who refer the conflict
for arbitration.
It is a method of solving dispute at lower cost. Industrial disputes can be referred to arbitrator by
entering into a written agreement by employee and employer. General motors uses all these
methods for solving disputes at the work place.
2.2 Key features of employee relation in selected conflict situation at General motors
General motors is a global automobile company that work for manufacturing automobile
products. Every organization faces issues related to management of employees and that lead
towards problematic situations in the company. Conflict has a positive and negative side. it
brings change in the company by improving the existing power structure by altering interaction
pattern and attitudes at the work place. Conflict increases group cohesiveness as at the time of
disputes all the employees come together to ask for their rights (Slaikeu, and Hasson, 2012).
Generally three type of conflicts occur at General motors that include professional conflicts,
financial conflicts and personnel conflicts.
In 2012 employees at General motors plant were requesting for wage increments. Top
management listened to their problem and assured that they will resolve the problem in a better
and a systematic way by following rules and regulations decided by the government. It shows
effectiveness of employee-employer relation at General motors. . Situation of conflict improves
group effectiveness as all the workers unite to take a joint decisions related to dispute. Members
develop mutual understanding and trust for the other group members and effectiveness in group
working at the time of conflict can be observed . Company has used a technique known as
Conflict of interest questionnaire which allows employees to write about their grievance in that
questionnaire. Changes in existing conflicts and and new conflicts must be reported to top
management of the company according to rules decided by firm. Employee-employer relation
also gets affected by external and internal environment factors. External factors that affect the
relation includes government policies and intervention, legislation decided by the state and role
played by the trade unions (Brynjolfsson and McAfee, 2012). Due to conflicts, changes take
place in alliance between employer and workers. Employee relation is dynamic and
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transformation concept and it changes with reformation in organizational structure and external
environment. It is a static concept and it prospers, stagnates and deteriorates according to
situations that comes in the way of employee-employer relation.
2.3 Evaluation of effectiveness of procedures used at General motors in selected conflict
situations
General motors works in a effective way to develop a productive employee relation at
the work place. They encourage employees to speak for their rights and grievances. To
encourage employee participation the company is developing policies where platform is given to
employees for giving their opinion and suggestions. Firm has developed websites where
employee can share their problem and grievance box is also implanted by the company at all its
manufacturing plant for the purpose of lknowing problem of its workers and resolving workplace
issues. Company works to develop a harmonious relationship in industry between labor and
management. Rules, regulations and policies are developed at for governing the companye in an
effective manner. Trade unions are given due reorganization by the company for working as
employee representatives. Trade unions solve various issues of workers related to working
conditions, incentives and wages and other issues (Eby, 2012). Collective bargaining is a
effective method used by the company for solving workers problems and providing the
individual a productive way to raise their issues and grievances. In the case of 2012 wage related
problems of labor were solved by using collective bargaining method.
Company has provided clear guidelines for its workers to maintain peace and harmony at
in the firm. Conflict interest questionnaire is a effective method to inspect about any potential
conflict in the firm. Employees are encouraged to disclose any activity, employment condition or
personnel issue that can create possible conflict in the firm. This method helps General motors to
reduce disputes in their manufacturing plants. Company has adopted different mechanism for
solving conflicts. Financial conflicts are solved by using methods of collective bargaining and
doing agreements with trade union members. Human resource department of the company is
given responsibility to solve conflicts related to personal and professional issues of the
employees. Human resource department of the company is given directions to form policies that
work for maintaining a productive work environment at the firm. Mechanism developed by
General motors is very effective and it has increased productiveness and mutual cooperation
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among workers. Techniques adopted by firm has helped in decreasing employee turn-over and
grievances in the company and performance of the company has improved by applying a
effective grievance setting mechanism.
3.1 Explanation of role of negotiation in collective bargaining at General motors
Collective bargaining is a method of solving industrial problems and grievances by joint
agreement between employee and employer. It is a symbol of labor management relation in the
company and helps the company to solve conflicts and grievances of the workers. It is a
technique for negotiation of wages and working conditions by an organized body of employee
(Grant, 2012). General motors uses technique of collective bargaining to decide employment
conditions with their workers. In this method union has a joint interest as the negotiations are
done for benefits of employees. Collective interest of employee and employer are fulfilled by
using this method. In this method essential conditions of work that includes existence of freedom
of association and labor law system . The employee representatives put their conditions before
the employers and demand from management to solve their issues.
Negotiation plays a significant role in setting difference at General motors. In this method
compromise and agreement is done between labor and management to avoid disputes (Martin,
2012). Conflict and disputes arise at the work place on frequent basis due to personnel and
professional reasons. If the conflicts will not be solved in a proper way it leads to anarchy and
dissatisfaction among workers. Negotiation method follows a structures and systematic
procedure to resolve workplace issues. Consent of both the parties including employee and
employer is required before doing negotiation. Negotiation has plated a important role in solving
financial and professional disputes at General motors. Trade union is given authority in the firm
to work as labor representative and assist them in solving their grievance.
3.2 Impact of negotiation strategy at General motors for a chosen situation
Negotiation strategy proved beneficial for General motors in solving industrial issues. In
2012 when workers at manufacturing plant demanded for wage increment, firm used the
technique of negotiation under collective bargaining method. Integrative negotiation has been
used for solving this dispute. It is a method where set of techniques are used to improve quality
and outcome of negotiation agreement (Bonoli and Natali, 2012). The major objective of using
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this method was to create values in process of negotiation. This method focuses on building trust
and developing good relationship among members involved in agreement process.
The problem of wage increment was related to financial problems of workers and it is
necessary to provide sufficient wages to workers for satisfying their basic survival needs
(Boswell, Zimmerman and Swider, 2012). As the demand put by trade union members was
genuine and reasonable, it was responsibility of the management to listen to this problem and
find out a proper solution to resolve this issue. Negotiation played a important role in solving this
problem and provided a productive method to bring agreement between management and
employees of the company.
4.1 Influence of EU on industrial democracy in UK.
Industrial democracy is an arrangement which involves employee decision making and
sharing authority and responsibility at the work place. It increases productivity and service
delivery at work place by creating a satisfied and contented work force. EU is a politico union of
28 member states that are located in Europe. It is founded on the values of respect, freedom and
equality (Benson, Kerry and Malin, 2014). It has defined legal acts in three forms that includes
directives, regulations and decisions. EU regulation has helped in making industrial democracy
at General motors. It has ensured that employees are informed and consulted by their employers
on major changes going to happen at the work place. These measures have influenced
developments in the statutory regulations industries in UK. It has improved legal framework of
the company for employee representations. It has provided a wide approach for employee
consultation and information (Emmenegger, 2012).
Health and safety directives of EU provides guidelines foremployers to provide proper
working climate to employees to assure their safety and security. Consultation directives of EU
have provided guidelines for employee representation in decision making process of the
company. Transnational information and consultation of employees (TICE) regulation has given
provision for election of UK representatives on special negotiating bodies (SNB). Directives
provided by the EU has played a important role in increasing worker's participation in UK.
Adopting regulations and directives has helped industries in UK to increase productivity and
service delivery in a better and efficient way. Conflicts and disputes have decreased by adopting
various guidelines of EU in formulating management policies in the company. It helped in
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enhancing job satisfaction among workers and gaining reduction in employee turnover.
Traditional master servant model has been replaced with power sharing model where
participation of employees is given equal importance in management decision making process. It
is a method to increase team working and mutual cooperation among workers (Snodgrass,
2012). UK has adopted many directives and regulation from EU to bring industrial democracy
and it has shown a positive impact on industrial economies of UK.
4.2 Comparisons of methods used in gaining employee participation and involvement in decision
making process of the company
Employee participation is defined as a process where employees of the company are
involved in decision making process. This method provides way of bringing empowerment at the
work place. General motors works in automobile sector where new technologies and innovations
takes place at frequent basis and it is essential for the company to inspect and monitor market
conditions to retain its market share. Employee participation method increases creativity at the
work place as employees give suggestions for improving quality of the products.
Employee suggestion program is initiated by the company to take opinions from workers
regarding production and quality improvement and work place issues. All the suggestions are
followed properly and important and creative ideas from the suggestions are involved in decision
making process for formulating policies in the firm (Morel, Palier and Palme, 2012). This is a
effective method for encouraging employees to take part in the decision making process.
Management involvement technique also has been adopted by the firm to increase
involvement of workers. In this method feedback is taken from employees regarding operational
processes running in the company. Positive feedback implies that all the policies and methods
adopted by management are working in a productive way and negative feedback describes that
there is need to change working procedures in a effective and organised way. It is a functional
method which helps the company in monitoring and controlling its ongoing production process.
Sometimes employees show unwillingness to give feedback which hampers efficiency of this
technique.
Rewarding success method helps management of General motors to increase employee
participation in the company. Workers take part in decision making process in more enthusiastic
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way when they are given opportunity to get rewards for giving any innovative idea . Rewarding
success method improves motivation level of employees for doing their assigned task
General motors uses multi channel decision making process where decisions are not
taken in downward directions but horizontal method of decision making is adopted to improve
communication process in the company. . Quality circle program is one technique used in this
method where employees meet on frequent basis to decides about the working procedures and
need for any change in the existing process. This method improves mutual understanding among
workers and team working can be improves by using this idea. It is a productive method to
increase workers participation in management.
4.3 Analysis of impact of human resource management on employee relation at General motors
Human resource management plays a significant role in determining employee relations
at the work place. Human resource department of the company is responsible for resolution of
problems in the industry. This department interact with employees at all the three levels
including top level, middle level and bottom level. They deal with day to day issues and
grievances of the employees and work in a effective manner to resolve their issues (Kelly, 2012).
Employees from HR department deals with trade union representatives to set terms of
employment. This department plays a positive role in developing a effective employee relation in
General motors .
Managers in the HR department uses participative style of leadership which encourage
workers to involve in decision making process and helps the firm in developing a positive
employee relationship. Autocratic style of leadership is avoided by HR department as it creates
conflict in industry e as employees are given less power and authority in this leadership style
(Newsom, Turk and Kruckeberg, 2012). They focus on improving their delegation skills,
communication skills, team building skills and problem solving skills to provide a effective
leadership to their subordinates. They direct their workers to achieve objectives of the firm by
motivating them for utilizing their potential in best possible way.
Team work is encouraged by tHR department to engage employees in their task and to
support coordination among group members. Positive role played by worker of human resource
department results in superior organizational performance in the areas of sales, market share and
customer satisfaction. It reduced number of disputes and conflicts conductive work environment
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has been created where all the employees work in a joint effort to achieve goal of the firm.
Higher employee productivity has been achieved by the company which helped in increasing its
market share and monetary revenue. Employee turnover has been reduced as trade unions are
given importance for working as a representatives of the workers. This department has played a
significant role in fulfilling their responsibilities in a better way by settling disputes . Role of
trade union as a mediating link between employee and employer is also given value to create a
better employee relation in the firm (General motors.2015). The methodologies adopted by
human resource department for maintaining harmony at work place has proved significant for the
company in achieving its objective in a planned and successful way.
CONCLUSION
General motors gained success in developing peaceful atmosphere in industry. Conflicts
and disputes at work place creates problem for the management of General motors for running its
operational activities.To solve this problem various effective methods have been used by the
company for bringing harmonious relationship among labor and management in the organization.
Collective bargaining and negotiation methods adopted by firm solved conflicts in a effective
manner. Human resource department of the company played a significant role in developing
employee relation in a better way. Methods adopted by the firm proved beneficial and helped in
increasing productivity and revenue of the Company should keep and improve its grievance
handling mechanism to maintain peace in the industry.
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