Employee Relations at Puma: A Comprehensive Analysis and Report

This report, focusing on Puma, delves into the intricacies of employee relations, examining the unitary and pluralistic frames of reference, the effects of trade unions, and conflict resolution strategies. It explores the roles of employers, employees, trade unions, and government agencies in shaping the workplace environment. The analysis includes an examination of negotiation in collective bargaining and its impact, highlighting the challenges and opportunities in maintaining positive employee relations. The report underscores the importance of adapting to changes in trade union dynamics, addressing issues like employee turnover, and fostering a sustainable and ethical approach to corporate governance. Overall, the report emphasizes the need for Puma to prioritize employee well-being, address grievances effectively, and implement strategies that promote a harmonious and productive work environment.

EMPLOYEE RELATIONS
MIRELA TIPARU
12211-CW9
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Task-1..........................................................................................................................................................3
Employee relation....................................................................................................................................3
1.1 Unitary frame of references ..........................................................................................................3
1.2 Effects on employees’ relation with changes in trade union.........................................................5
1.3 Role played by the main player .....................................................................................................8
Task-2........................................................................................................................................................10
Introduction ..........................................................................................................................................10
Case study .............................................................................................................................................10
Nature of industrial conflicts and its resolution ................................................................................10
2.1 Procedures to resolve the different conflicts...............................................................................10
2.2 Key Future of employee’s relations.............................................................................................12
2.3 Effectiveness of the procedure....................................................................................................14
Task-3........................................................................................................................................................16
3.1 Negotiation in collective bargaining ................................................................................................16
3.2 Impact of Negotiation Strategy........................................................................................................16
Conclusion ................................................................................................................................................23
References.................................................................................................................................................24
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Task-1
Employee relation
The organization which has been elected for the purpose of this essay is Puma, leading company
having head office in German that design and manufactures athletic and casual footwear apparel
and other required sport stuff at large. With the deep history of this organization it is found that
in 1924, Rudolf and his brother Adolf Dazzler formed the company Genbruder Dassler on joint
basis and then later on with the increasing complexity in their business they decided to form two
separate entities Adidas and Puma. Rudolf Dassler was the key founder of the Puma which is
operated with the assistance of its CEO Bjorn Gulden. With the adamantine study of Puma
organization it is seen that company has been on its growth stage and having a turnover of more
than 400 Billion in given span of time. Large number of employee is engaged in manufacturing
of shoes and making their vigorous efforts for the betterment of the company. Therefore
employees are the key pillars of the organization and establishment of nexus between
employees’ growth and organization’s welfare is the key concern of the top management
(Ntaliani, et. Al., . 2015).
Employee’s relation is very much required factors to maintain in the process system of the
organization in order to make effective use of resources in context with accomplishment of set
goals and objectives. It is the adamantine study on the bylaws of relation between employers and
employees at large for the determination of influence factors issues and other concern at
workplace.
1.1 Unitary frame of references
It is the frameworks which are based on the assumption and values to determine that all the
problems and issues that come arise between employer and employees are not emerged due to
the employer and employees relations. Problems and issues arise due to the collective working
system or human behavior. Therefore conflicts start from two’s behaved or occurrence. In
context with Puma which has been maintain effective relation with the employees with the
concern of values, belief, attitudes, and other required intents of the employees. This values and
personal views have been set in organization with the competed understanding of employees
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behavior and their reciprocate behavior in order to achieve set goals and objectives. The unitary
frame in Puma has been engaged in observing several facts and employees behaviors within the
several circumstances and that has results into very much help in achieving set of goals and
objectives.
Pluralistic Frame of references
This is concerned with the separate effects and issues which covers all the individual concerns
and objective of the employees working in different process system. With the ramification of
work load and increasing demand of efficiency from the employees it is observed that industrial
organization is comprised of plural society in which various set of employees with different
values and belief works. These possible factors of the employees must be maintained by the
organization in order to establish a positive set of work environment (Demirbas & Yukhanaev,
2011).
Implementation of Pluralistic frame
In Pluralistic Frame of references Puma has developed different set of work environment in
different process system. Pluralistic Frame is comprised of several set of groups of employees
and resulted into powerful and subgroups. Each group has their own intent and lawful loyalty
and respect to their assigned works and leaders decisions at large. Adoption of Pluralistic Frame
by Puma in maintains employees are very effective and divide the working system in teams and
set of people as per the caliber of the employees.
Implementation of Unitary frame
In this set of frame management of Puma will share all the values, Mission, statement of working
system with employees. In addition to this management will make sure that all the employees are
properly communicated with the available information. Unitary frame will provide set format
and determined set of working process for all the value chain activities.
For example-Puma will share all the values, belief, Mission, statement of working system with
employees so that employees oriented value chain activities could be developed.
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1.2 Effects on employees’ relation with changes in trade union
Trade union is a group of employees which is created for the betterment of the employees and
their working system. In several organizations Trade union is developed with a view to
understand employees’ concern and their choice of actions. In the working of Puma there are
number of acts performed by the trade union so that smooth level of functioning could be
maintained in manufacturing process.
Role of trade union
 Communicating employees concern with top management.
 Establishment of positive working environment.
 Maintain all the works legally and ethically with a view to achieve organizations goals
and objectives.
 Resolution of conflicts and organization’s concerned.
 Contributing to motive employees.
 Separate body to encounter employee’s problems and hurdles at large (Tansel &
Gazîoğlu, 2014).
Right from the beginning of industrialisation, existence of trade unions was predominant. The
only thing that change was perspectives of employees and employers towards shared goals and
work pressures. During the 18th century, it was witnessed that ratio of workers to employers was
imbalanced. Factors like expansion of businesses and societies to other countries and
involvement of children, rural workers, immigrants lead to formation of trade unions. Industrial
revolution added fuel to the evolution and development of trade unions across the globe.
Workers started gaining conscious about their rights and basic rules which need to implied by
employers for organisational development.
The year 1872 addressed legalisation of trade unions. These organisations were set with a motive
to be beneficial for both human resource and the employers. Purpose of legalising these unions
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was to settle conflicts and clashes that often arise amongst the two entities. Over time, the needs
and requirements of employees changed. The development of effective management styles led to
changing orientations of the company. Earlier goals were profit and money oriented but currently
business organisations work with a motive of attaining overall development. This kind of
progress involves employee betterment with earning profits and the concept is referred to as
sustainability. Modern day trade unions are perceived as more powerful as compared to historical
ones.
A drastic change that has been noticed in the working of the Trade union is that trade union of
the Puma has started to work only in the interest of organizations and employees concern are left
behind without any consideration. This has resulted into employees concern and in the near
future that will surely affect Puma’s productivity and employee’s relation in negative way. In
addition to this workers are forced to work beyond their working hours without any payment so
that company could meet the production requirement often economy. It is also observed that
trade union not only creating this harsh working environment but as well making strict rules for
the employees at large. Hence considering these issues it could be said that Puma employee’s
relation is going to be damaged in near future if this working procedure is being adopted on
consistent basis. Furthermore Puma has faced high level of turnover in which has also resulted
into high cost in the production of shoes. This level of changes in Trade union will surely
damage the employee’s relation and demoralize the employee, damage the brand image and
would result into high production cost to the organization (Bose & Mudgal,. 2013).
Changes affect the Trade Union
The key example which could be taken into account is Tribunal judgment where management
department took trade union in the court. But due to the emergence of trade dispute act 1996 it
was observed that employees were saved from the exploitation. Changes in trade union has
resulted into following factors which provides that trade union needs to be changed according to
the demand of management system and employees’ perspective.
With the increment of such problems and consistent work load in Puma Process system has
resulted into high employee’s turnover and put negative impacts on other employees at large. In
addition to this if this negative culture will be providing very big loss in its social policies and
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will be detrimental in establishment of proper corporate governance. By making proper
consideration of these issues PUMA needs to make imperative changes in trade union policies
and frameworks (Mathew & Jones, 2012).
As per the outcome of working of Trade union now Puma needs to develop effective working
mechanism such as setting up benchmark, arrangement of extra wages, setting up of separate
body to resolve employee’s grievances.
Puma's vision at the time of establishment was to deliver their product with at most
effectiveness. To match customer expectations, the most important thing is quality. Employees
were trained with specific skills to manufacture products in such a way that competitors could
not withstand these. Trade unions were strengthening their roots at this time. Company was also
affected by the settlement of these organisations in the working atmosphere. It derived a code of
conduct for employees that reviewed and enhanced working conditions and environment.
Current aim of Puma is to explore talented athletes and help them in developing their skills
through products and services. Apart from trade unions, human resource department functions
for the company.
Employees that have been supporting the company right from its beginning are managed by this
department. The influence of trade unions is felt only when any sort of serious situation is being
faced by workers. For instance, illegitimate wages, unhygienic workspace, etc. From all these
aspects, it is easy to understand that future strategy of maintaining employee relations is
completely dependent on human resource management practises. In 2005, Puma had taken the
first step towards sustainability. A Code of ethics and environmental monitoring was introduced.
On the other hand, organisation has taken initiative of investing in social causes and benefit of
employees by providing better facilities and incentives.
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1.3 Role played by the main player
Employee’s relation is very critical to maintain in positive manner. As several employees and
employers are accompanied with separate human behaviors and due to this there is obvious of
emergence of conflicts in working of the organization (Demirbas & Yukhanaev, 2011).
Employees and employers
An effective and healthy relationship is required for understanding a better working environment
as per the employee’s cultures. Puma has been developing its all the policies and frameworks as
per employees concern. There are number of roles that is being played by the employers in puma
e.g. making policies and framework, developing effective work environment, showcasing path to
employees, handing all the strategically decisions and further more. Employees are the key
pillars of the organization that makes consistent efforts for the development of the company.
They are indulged in making their 100 % efforts so that best outcome could be drawn in
determined approach. They are deemed to be playing important part in the success of
organization (Griffin & Koerber, 2015).
Employees and trade union
Trade union is an association of employees who play significant role in the sustainable future of
the organization. Puma has been making consistent changes in its policies in order to establish
effective trade union. It maintains all required relation with employees and their concern in
according manner. It is the monitoring body over the employees who play significant role to
pursue organization’s goal and objectives. Therefore trade union helps employees to bifurcate
their works and accomplishes their set objectives in disciplined approach.
Government agencies
Government is the key body who makes all the laws and regulation for the better industrial
environment. There are various employment laws have been passed throughout the time such as
equal pay act, workmen compensation act, employment act and further more. Governments are
the bias body which plays its role without having any interest. In addition to this Puma has been
making high level of corporate governance. It helps in establishment of proper governance
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program and provides a complete legal structure within which set objective would be
accomplished. In order to avoid penalties and defaults government agencies provides a legal
structure for the success of Puma.
Tribunals
These are the separate bodies which are established in order to take all the legal matters of
employees and employers. It is accompanied with lawful judiciary authority and will pass their
judgment only in their area of jurisdiction. Tribunal assists Puma in solving several conflicts and
problems with employees and plays a mediators part for resolving conflicts.
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Task-2
Introduction
Organization is comprised of several parties such as employees, employers, trade union and
government agencies at large. In order to make effective use of resources organization has to
establish a positive level of equilibrium between all the factors. In this case study of conflicts
between employer’s Trade union and government decision has provided much of help in
understanding different parties with different choice of actions.
Case study
In this case study negotiation between British Medical association, NHS employers and
government has been running over the appointment of new junior doctors. Employers and
government bodies have agreed to the fact this contract should be passed but the part of conflicts
arise due to the different view point of the Trade union BMA about the appointment of doctors
and also using strike off power against such decision (Bonoli, 2010).
Nature of industrial conflicts and its resolution
2.1 Procedures to resolve the different conflicts
Conflicts are the problems which are normal to emerge in the different process system of the
organization. The main reason of emergence of conflicts is different human nature of employee
in given circumstances. The conflict that could be seen in the case study is that BMD was not
ready to give his consent for the contract. But gradually with the guidance of government BDM
agreed to the Contract to appoint new junior doctors. This is the case of emergence of conflicts
of employees who are member of BDM association and that problem has been come into notice
as employees were given less pay rate and asked to perform more. This problems have force
employees to not to give their consent for passing the resolution. Gradually in this case
employees end up with having strike, lockout and creating nuisance in the working system of the
organization if they are having conflict with decision of the employers. In addition to this all the
interest parties has been agreed to the contract except members of BDM. Therefore in order to
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overcome this type of problems NHS employers needs to follow an effective procedure in
determined manner.
Finding ways to resolve conflicts- This step is covered with preparing strategic decisions by the
employers. It is better to recognize the possible conflicts which have been aroused between
employees and this could be resolved by following these process system .e.g.
 Communicating with employees
 Leading them with the positive outcomes that could be better for their own future
 Making them familiar with the future prospective of the organization in context with the
sustainable future
In the given case study it is clearly found that members of BMA have been observing low with
the NHS organization activities. Therefore in order to make changes or undermine the conflicts
NHS employers needs to establish an effective working system and liberal the employee’s
policies and framework in orderly manner.
Implementation of decision- In these step NHS employers has to implement their plans in order
to manage conflicts between members of BMA. Avoidance, manage, force are the following
intents which are used by employers to make the equilibrium between employees and NHS
employers decisions. Other steps that could be used in order to maintain conflicts in organization
are working such as follow up program and consistent overview on the employees concern and
further more.
Procedure for dealing with conflicts
Step-1- NHS employees will accompanied tighter and discussed the problems with each other
and then collective information would be forwarded to trade union to represent their conflict with
the management as represented
Step-2 trade union will reveal the facts and finding before the management department that
employees are facing conflict with the determined problems.
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Step-3 All the management department will be creating a Board and decide with the given
problem of employees.
Step-4 a board meeting will be conducted in the presence of Trade union decision will be passed
Step-5 Trade union will communicate the results with the employees and further discussion will
be taken between employees and trade union.
Step-6 NHS employees do not agree with the management decision then a strike will be
organized by the employees under the presence of trade union.
Step-7 throughout the negation on the with the employees management department of NHS and
other Key managerial person make assure that all the demand and needs of employee will be
satisfied gradually as company is not in good position right now.
Step-8 In the end with the assurance of CEO of the NHS employees will end up with Negotiation
and will continue with the assigned work (Fischer, et. Al., 2010).
2.2 Key Future of employee’s relations
Employee’s relation means body of concern with several factors which determine the relation
between employees and employers. The key intent that would be required to maintain an
effective employee’s relation would be as given (Claveria & Verge, 2015).
Proper level of communication- This defines changes in information between employees. In the
given case study it is observed that members of BMA has problem with the proposed resolution.
Therefore NHS needs to establish a proper level of communication between its employees and
employer department for managing conflicts and possible problems. NHS has to establish a
proper data transfer process system in order to mitigate the problems and developing an effective
mechanism in the working environment (Claveria. & Verge, 2015).
Establishment of portal- There should be proper portal for the employees to raise possible
grievance in orderly manner. NHS has been facing conflict of employees for the newly passed
contract for appointment of new doctors. NHS needs to consult with members under the
guidance of an effective leader so that they could be pursued for the betterment of the company.
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