Employee Relations and Business Success: A Case Study of IHG Hotel

This report delves into the critical role of employee relations in fostering business success, using IHG Hotel as a case study. It begins by explaining the unitary and pluralistic frames of reference, highlighting how IHG employs the pluralistic perspective to enhance overall performance. The report then assesses the impact of changes in trade unionism on employee relations and identifies key players involved. It outlines procedures for handling conflict situations, evaluating their effectiveness, and examines the key features of employee relations, such as negotiation, collective bargaining, and grievance procedures. Furthermore, the report explores the role of negotiation in collective bargaining and its impact on specific situations. It also assesses the influence of the EU on industrial democracy and compares methods for employee participation, concluding with an evaluation of human resource management's effect on employee relations. The report underscores the importance of maintaining a healthy employee-employer relationship for achieving organizational objectives and emphasizes the significance of conflict resolution strategies and negotiation tactics for business success.

Employee Relations
For Business Success

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Explaining the unitary and pluralistic frames of reference..............................................1
1.2 Assessing the way in which changes in trade unionism have affected employee relations..2
1.3 Explaining the role of main players in employee relations..............................................2
TASK 2............................................................................................................................................3
2.1 Explain the procedures an organisation should follow when dealing with different conflict
situations.................................................................................................................................3
2.2 The key features of employee relations in a selected conflict situation...........................4
2.3 Evaluate the effectiveness of procedures used in a selected conflict situation...............4
TASK 3 ...........................................................................................................................................5
3.1 Explain the role of negotiation in collective bargaining..................................................5
3.2 Assess the impact of negotiation strategy for a situation................................................6
TASK 4 ...........................................................................................................................................6
4.1 Assess the influence of the EU on industrial democracy in the UK................................6
4.2 Compare methods to be used to gain employee participation and involvement in the
decision making process in organisations..............................................................................7
4.3 Assess the impact of human resource management on employee relations.....................7
CONCLUSION ...........................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business organizations have to focus on the relationship between employee and employer
because this will lead the firm towards success. It is the responsibility of manager to create a
healthy environment in company so that all objectives can be achieved. If employee’s
relationship would get improved then trust can be built and conflicts can be reduced. Through
this, positive environment can be spread all around the firm. The present report is based on IHG
hotel which performs its operations in the hospitality sector. They are focusing on their employee
relations so that quality services can be ensured. Below mentioned report is based on employee
relations that is controlled by the legislations (Kaufman, 2010). Along with this, it also explains
the negotiation strategies that help the firm in order to reduce the conflicts among all the
employees. Further, collective bargaining and negotiation process are also explained in detail in
the report.
TASK 1
1.1 Explaining the unitary and pluralistic frames of reference
IHG Hotel focuses on the employee relations so that they will be able to provide quality
services to their customers (Ng and Feldman, 2012). This kind of relationship can be measured
by using the frame of references. There are two types of frames of references in which one is
unitary and another one is pluralistic.
Unitary Perspective: This kind of frame of reference is related to the values, beliefs and
way of thinking of management. In order to achieve success in the market, all members would
share same goals and objectives. When conflicts occur in between employees then it will affect
the performance of IHG Hotel. So, these issues should be resolved by the employer so that firm
can get success in the market (Parzefall and Salin, 2010). Management should also focus on their
loyal workers.
Pluralistic perspective: In this kind of approach, organizations get divided into sub
groups and they all are focused on their set objectives and goals. The power and control is also
divided among all the groups. The role of every manager is to motivate their workers and
encourage participation among them so that overall performance can be improved. However,
employer should also involve their employees in the decision making process so that quality
decisions can be made.
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IHG Hotel uses the pluralistic frame of reference in their business organization. Through
this, overall performance can be improved by motivating all the employees in business
(Sadikoglu and Zehir, 2010).
1.2 Assessing the way in which changes in trade unionism have affected employee relations
Trade union was very popular in 20th century and this can directly affect the performance
of business organization. Through this, conflicts can be increased between all workers and that
will indirectly affect the employee relations. They have a union leader who represent their
workers and their main aim is to increase wages and other benefits of them. In the year 1824, TU
has become a legal entity in the country and many workers who were working in the firm joined
this union in order to get fair wages according to their work. There were many unions who
perform their operations in UK as well as different changes are taking place that will affect the
relations among all staff members (Turkyilmaz and et. al., 2011).
There are some macro factors that also affect the overall performance of firm. At the time
when government makes any policy and legislative laws, it affects the performance of trade
union and through this, employee relations get affected in IHG Hotel. Along with this, when a
business organisation adopts any technological change in the firm then due to modern
technological advancements, the enterprise have to reduce their workforce. Trade union get
established with an objective to improve the welfare of employees who are working in IHG
Hotel. Further, it also works in order to reduce the communication gap between management and
their workforce. They also made some business strategies so that they can protect the rights of
their staff members (Underhill and Quinlan, 2011). Therefore, when any change take place in
trade unionism then it will affect the relationship among all members.
1.3 Explaining the role of main players in employee relations
This is the responsibility of all staff members and employers to maintain a healthy
relationship in business organization. It is not the duty of an individual person. This kind of
environment can be achieved by collective efforts. So, there are some individuals that play a
significant role in order to improve the employee relations. These are:
Manager: It is the responsibility of manager of IHG Hotel to build healthy relations
among all staff members (Van De Voorde, Paauwe and Van Veldhoven, 2012). He has to solve
the issues that may arise between employees as conflicts can lead to negatively affect the
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performance of business organisation. Along with this, he has to ensure healthy competition
among all employees so that overall performance of the firm can be improved.
Government agencies: It is the duty of state government to make some rules and
regulations. These legislative laws have to be followed by IHG Hotel so that they can improve
their growth in the country as compared to other market players. Some of the laws are minimum
wages act, health and safety act and so on (Negotiating and bargaining. 2017).
Workers: These are the people who are performing their tasks in the business
organisation so that firm will be able to achieve its objectives that will lead towards the success.
Further, all people have to follow the laws that are adopted by IHG Hotel. Staff members need to
take active participate in the activities that are conducted by industry (Walby, 2013). Through
this, relationship among all the workers can be improved.
TASK 2
2.1 Explain the procedures an organisation should follow when dealing with different conflict
situations
The success of the business organization is totally depends upon the good employee
relationship. Sometimes, due to some factors conflicts may arise between employees so its is the
responsibility of the HR to resolve those issues. IHG hotel has to adopt a procedure in order to
deal with different kind of issues (Wilkinson and Fay, 2011). This procedure have some steps
and these are:
Identify the problem: It is the responsibility of manager to identify the actual problem
that is faced by employees. In this, he has to gather all the facts and figure of that issue so that
the conflict can be resolved in an effective manner.
Look beyond the incident: Manager has to identify all the facts that why this issue has
arise, how it can be reduced and so on. Sometime, problems can be occurred because of the
personal reason so they have to identify these reasons.
List the possible solutions: After getting all the facts now manager has to identify many
solutions so that satisfaction among all the members can be increased.
Evaluate the solutions: In this step, now he has to select one solution out of many so that
conflicts can be reduced (Kaufman, 2010). Here, he can follow many strategies such as
compromising, avoiding, resolving and forcing. In compromising strategy both the parties have
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to compromise because both will not get that they want. Sometimes, in order to manage the
issues people avoid conflicts.
Document the agreement: In the last stage, the HR manager of IHG Hotel has to make
the document of the solutions that both the parties get arrived at a solution.
2.2 The key features of employee relations in a selected conflict situation
Employee relations is important in order to improve the relationship between employee
and employer. Through this, quality services can be ensured by motivating the employees. It is
the duty of the HR manager of IHG Hotel to reduce the conflicts that are arise among workers.
He can follow the pluralistic frame of references in order to improve the relationship. There are
some key features of employees relations that play a important role in any conflict situation and
these are:
Negotiation: It is a key feature that resolve the conflicts between all the employees and
between employees and employer (Batt and Colvin, 2011). Through this technique, employee
relations can be improved in IHG Hotel. However, overall performance can be improved.
Collective bargaining: This is a technique that is used to reduce the conflicts among all
the members. In this all members collectively reduce their issues so that overall performance of
the firm can be improved (What is Employee Relations ?. 2017).
Grievances: If any employee has any issue regarding the work then that person can fill
the form of grievance. Manager identify the issue of that workers an then solve their issues so
that employee satisfaction can be improved (Daymon and Holloway, 2010).
Unfair treatment: When the manger treat their employees unfairly then conflicts can be
arise among workers and due to this the industry will not be able to provide luxury services to
their customers.
Poor communication: When any communication gap is their between employee and
employer then issues can be raised in IHG Hotel.
2.3 Evaluate the effectiveness of procedures used in a selected conflict situation
When employee relationship is not good in the business organization then conflicts may
arise among employees (Kersley et. al., 2013). So, in order to reduce these conflicts IHG Hotel
uses the dispute handling procedure in order to reduce these issues. Through this approach
effectiveness can be achieved so the firm will be able to achieve its overall objectives as well as
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its performance can also get improved. In this type of approach, disputing parties can talk to each
other in order to resolve their issues regarding to each other.
If all staff members who get satisfied with the solutions that is given by the manger then
conflicts can be resolved. Along with this, the manager of IHG Hotel will be able to increase the
satisfaction among all workers. But if all the staff members are not happy with the solution that
is given by the manager then they can go to the executive director for the same. If labour get
satisfied with the solution that is given by the director than issues can be resolved other the staff
member can approach dispute handling team (Larson, 2015). Through this approach, satisfaction
level can be enhanced. This is an effective method that is used by the firm in order to improve
their overall performance.
TASK 3
3.1 Explain the role of negotiation in collective bargaining
Collective bargaining is an activity that is used by the business organization in order to
to reduce the conflicts between employees and employers. Through this process a healthy
environment can be ensured in IHG Hotel that will lead towards the success. In this kind of
approach, managers and staff members can talk to each other so that issues can be resolved in an
effective manner (Bach and Bordogna, 2011). Along with this, labours choose their
representative who will support all members and place their issues in front of manager of the
industry. Through this a positive environment can be created within the firm so that performance
can be improved. Negotiation play the different roles in collective bargaining process and these
are:
Effective solution: Through negotiation all employees and employers will be able to get
an effective solution. On the other side, level of satisfaction can be increased between all parties.
In order to reduced their conflicts workers talk to their seniors in a formal manner. So, people get
the solution of their problem.
Collective bargaining process: Negotiation helps the firm in improving their collective
bargaining process. In this kind of process there are some steps involved so that conflicts can be
resolved in an timely and effective manner. Four stages are their in this process such as
preparation, discussion, bargaining and documentation. In the first stage issues are identified by
the manager of IHG Hotel (Baccaro and Howell, 2011). In the next stage, both the parties are
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discuss with each about their issues. Some conflicts are resolved by the mutual understanding
with each other and then carry forward the issues that are not settles down. In the third step, both
parties negotiate with each other and arrive at a solution and at last prepare a documentation of
the discussion.
3.2 Assess the impact of negotiation strategy for a situation
Business organization can use the negotiation strategy so that all the
disputes can be settled down between the employees and employers. The
negotiation strategy can be assessed by IHG Hotel in order to improve their
performance in the market as compare to other competitors. There are
many negotiation strategy that can be used by the business organisation
such as compromising, resolving, forcing and avoiding. In the compromise
strategy both the parties have to compromise with their objectives then only
conflicts can be resolved. Through this, motivation level of the employees is
get decreased and they will not perform well in the firm. If workers will not
perform well then they will not be able to achieve their goals. Another
strategy is forcing, in that manager directly provide the solution to the
employees. But this can create a negative environment in the enterprise so
IHG Hotel will not be able to retain its existing members and attract new
workers in the industry (Employee Relations. 2017). Another strategy is resolving
that resolved the issues among all the disputing parties. Through this,
smooth functioning can be ensured in the firm and negativity can reduced
among all the members.
TASK 4
4.1 Assess the influence of the EU on industrial democracy in the UK
Industrial democracy is related to the involvement of workers in the decision making
process within the business organization (Amstad and et. al., 2011). European union can directly
influence the industrial democracy in the United Kingdom. When EU passes any law in the
country then every organization have to follow that law and if it is related to the staff members
then then it will affect the decision making of the employees. It is necessary for IHG Hotel to
adopt these laws. if they will not follow these legislative laws then the firm have to face some
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adverse affects such as strikes, lockouts and so on. Sometimes cultural differences can also affect
the industrial democracy like when any industry offer its services at global level then they will
not involve their workers in decision making process. EU influence the industry democracy so
on the basis of that IHG develop a partnership based relationship concept. Through this concept
employees decision making process can be ensured along with their authority. Business
organizations have to follow all the guidelines so that they can improve their performance and
achieve all the objectives (Ayyagari, Grover and Purvis, 2011).
4.2 Compare methods to be used to gain employee participation and involvement in the decision
making process in organisations
There are many methods that are used by IHG Hotel in order to gain employee
participation and involvement in the decision making process (Edwards, 2011). Some of the
techniques that are used by the business organization are consultation, attitude survey, suggestion
scheme etc. In the consultation method manager encourage the employees to take participate in
the decision making process. He also provide opportunities to the workers so that they can put
their ideas in front of the higher authority. Through this overall performance can be improved
and the firm will be able to achieve its objectives like to provide the quality services to their
customers, to make the customers happy and so on. HR Manager can follow this strategy in order
to increase the motivation level of the people. In the next method that is attitude survey, manager
provide an opportunity to its staff members to provide their view on affairs of the firm. Through
suggestion scheme motivation can be increased among all the people who are working in IHG
Hotel (Edmans, 2011). These all strategies help the industry in order to improve their
performance in an efficient manner.
4.3 Assess the impact of human resource management on employee relations
Human resource management play a important role in motivating and maintaining the
relations among all the employees (Guest, 2011). The HR manager of IHG has the responsibility
to develop the policies and laws within the firm so that healthy environment can be created
within the business organization. The manager can help the staff members in order to improve
their relations with their superior. If this relations get improved then the firm will be able to
achieve its overall objectives.
Further, the firm can use pluralistic frame of references in order to build a relationship
between all the members of organization (Ferner, Edwards and Tempel, 2012). If its overall
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performance can be improved then growth can be achieved in an effective and efficient manner.
The HR manager also provide some compensation and extra benefits in order to motivate the
staff members.
CONCLUSION
From the above mentioned report it has been concluded that employee relations is
important within the business organization. It is necessary to improve the relationship among all
the employees and employer so that overall performance can be improved of the firm. In order to
reduce all conflicts the enterprise can use collective bargaining. IHG Hotel can use some
strategies in order to increase the motivation level of the staff members. Through this the firm
will be able to achieve its objectives and increase its profitability as compare to other
competitors.
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REFERENCES
Books and Journal
Amstad, F.T and et. al., 2011. A meta-analysis of work–family conflict and various outcomes
with a special emphasis on cross-domain versus matching-domain relations. Journal of
occupational health psychology. 16(2). p.151.
Ayyagari, R., Grover, V and Purvis, R., 2011. Technostress: technological antecedents and
implications. MIS quarterly. 35(4). pp.831-858.
Baccaro, L and Howell, C., 2011. A common neoliberal trajectory the transformation of
industrial relations in advanced capitalism. Politics & Society. 39(4). pp.521-563.
Bach, S and Bordogna, L., 2011. Varieties of new public management or alternative models?
The reform of public service employment relations in industrialized democracies. The
International Journal of Human Resource Management. 22(11). pp.2281-2294.
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