Employee Relations Report: Conflict Resolution at Toyota, UK

This report examines employee relations within the context of Toyota, a UK-based company. It delves into the significance of employee relations for organizational success, exploring both unitary and pluralistic frameworks. The report analyzes the impact of trade unionism, including changes in union leadership and objectives, on employee-employer relationships. It identifies the roles of key players such as management, trade unions, and government in fostering positive relations. The report then details conflict resolution procedures, highlighting common conflict situations like differing values and poor communication. It evaluates the effectiveness of these procedures and explores negotiation strategies in collective bargaining, including preparation, discussion, proposal, bargaining, and agreement phases. The impact of negotiation strategies is assessed, and the influence of the EU on industrial democracy and methods for gaining employee participation are discussed, along with the impact of human resource management on employee relations. The report concludes with an evaluation of the effectiveness of the implemented strategies.

EMPLOYEE RELATIONS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Unitary and pluralistic frame................................................................................................1
1.2 Effect of trade unionism in employee relationship...............................................................2
1.3 Role of main players in employee relations..........................................................................3
TASK 2............................................................................................................................................4
2.1 procedures of an organisation in dealing with conflict situation.........................................4
2.2 Explain the key features of employee relations in a selected conflict situation....................5
2.3 Evaluate the effectiveness of procedures used in a selected conflict situation.....................6
TASK 3............................................................................................................................................7
3.1 Role of negotiation in collective bargaining.........................................................................7
3.2 Impact of negotiation strategy in given situations................................................................8
TASK 4............................................................................................................................................9
4.1 Influence of EU on industrial democracy.............................................................................9
4.2 Methods for gaining employee participation......................................................................10
4.3 Impact of human resource management on employee relations.........................................11
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
A business unit or organisation can not perform its functions without human resources
such as employer and employees and it is necessary then relations between them should be well
managed. Employee relations play a very important role in success of any organisation (Amstad,
and et. al., 2011). Employee relations refer to a sound relationship between trade union and other
higher authorities regarding different problems such as working condition as well as profit
sharing etc. this report is being prepared in context of Toyota company which is basically based
in UK. They provide a large variety of products on reasonable prices. This report has been
prepared to analyse many other approaches of maintaining good relations between employees.
TASK 1
1.1 Unitary and pluralistic frame
Employee relations have a significant role in success of any business or organisation. It is
important for any company to maintain sound relationship between their employees. It helps in
achieving organisational as well as personal goals of workers of any enterprise. Following are
various approaches used by Toyota company:
Pluralistic framework: This approach is used by manufacturing businesses and it is a
commonly used approach. In this approach disputes are solved through collective bargaining
method where bargaining power used by trade unions is with management (Edwards, 2009).
There are mainly 2 sub groups and those are trade unions and management.
Unitary framework: This framework is used by any company to achieve goals and
objectives of organisation with joint efforts. Explanation of this concept is every organisation is a
unit and this has a common objective that is achieved collectively. Every one contribute in such
goals according to their efficiency and skills. The most important role is of manager because he
is responsible for all issues and problems.
1

1.2 Effect of trade unionism in employee relationship
Changes in trade unionism have great impact on organisations and employees and
employer relations of such company. Trade union is referred to a group of various employees
which is supervised by leader of such trade union. They help in protecting interest of their
members. Main objective of any trade union is to protect the right of their staff members. These
can make direct effect on functions and operations of organisation which reduces the
performance and capacity of firm (Gennard, 2009). Toyota also has its own trade union which
operates for staff and workers of organisation. That helps in maintaining working environment.
Change in union president: It is one of the important changes that effects relationship
between employees and employer over a time period. President is elected every year for once
with approval of all members. As a new leader employees will have need to change their
discussions procedure with the management. On another side higher management will also have
requirement to discuss on specific issues with trade unions. So it can be said that this change will
have great impact on any business organisation.
Change in objectives of trade unions: If there is any change in president of any union
then there will be new goals and objectives set by new president. It can provoke employees and
relations between them can be spoiled. It will have requirement again to discuss policies with
management regarding pay and incentives.
2

1.3 Role of main players in employee relations
Main objective of different players of an organisation is to maintain good relations
between administrative department and labours. There are different associations and people
involved in players which assist employees and employer in enhancing performance of an
organisation and productivity as well (Goos and Manning, 2007). Following are the interested
parties:
Management: Management is consisting of all rights and powers of recruiting as well as
removing the employees. Management plays a very important role in managing different
relationships between employees. They are responsible to solve issues of their organisation's
members. There are various issues involved such as working hours, labour wages and profit
sharing. If management is able to communicate with staff members appropriately then it can help
in managing these issues. It is depended on what approach is used by Toyota. e.g. if company is
using pluralistic framework then it will be able to reduce bargaining power. Role of management
is to make co ordination between different employees.
Trade unions: These group of different employees also play a significant role in
employer and employee relationships. These unions have more rights and powers as compared to
higher authorities of an organisation (Grunig, 2006.). As a member of European Union it is
important for every organisation in UK to abide by all rules and regulations made by them. There
are leaders in any trade union selected by their members which communicate with higher
authorities of company on behalf of their members regarding various conflicts and problems.
They are able to effect directly the functions and organisations of Toyota so management is
responsible for solving these issues in a more appropriate manner as soon as possible.
Government: Government authorities are also responsible for protecting interest of
different workers in various organisations. They issue and make different rules and guidelines
which are useful in developing industrial relations between workers and developing organisation
in market.
3

TASK 2
2.1 procedures of an organisation in dealing with conflict situation
There are various conflict between employees and employers when they work for Toyota
company . When an employee daily arrive late and take sick live then an employer get very
frustrate by the employee's behaviour (Raghu Raman, Budhwar and Balasubramanian, 2007).
Many times employee's reason is valid for taking leave but many times employee take the
advantages of employer's leniency. A poor attendance , lack of timeliness affects Toyota
company's performance. A better understanding can solve issue between employer and
employees. Some of conflicts are describe following:-
 Different values:- Toyota consists an individuals who have their own perspective in the
world. Some beliefs like not to compromises with co-workers create many conflicts
which is not good for both, To see the situation of this conflict other employee also get
inspire which is not good for Toyota company's health(Reichheld and Covey, 2006). To
avoid conflict employer and employees must accept differing values to each other.
 Opposing interest:- When an employee's dream is different from company's dream
then conflict occurs between both. That time employee forget that he is a part of Toyota
company. so opposing interest conflict company and employee's relations.
 Poor communication:- A poor communication impact Toyota company's performance as
well as employee and employer's relation. Wrong information and bad communication
impact employee and employer's relation .
4

2.2 Explain the key features of employee relations in a selected conflict
situation
Employee's relations impact to Toyota company's performance. Employee's relations
are need of a successful business strategies (Ruel, Bondarouk and Van der Velde 2007).The key
feature include in employee relationships are to give rewards in some situations which boost up
to employees and encourage to work for a long term. This will increase overall productivity of
Toyota company and maintain a relation between employees and employer .
Main issues are related to pay, leave etc. Share scheme can also be helpful to maintain
employee's relations. Employee can feel that they are the part of business . Many unions are
fraud and provoke to employees which conflict to employee and employer relation. A sudden
strike is a risky factor which maintain a gap between employee and employers. Many agencies
like strike workers brainwash of Toyota company's employees and this impact Toyota company's
performance. The features of employees relation can make a successful business and give growth
to Toyota company. Company must try to key features to improve relation time to time (Runar
Edvardsson, 2008).Toyota should provide a better health checkup policy scheme for their
employees , A safety environment , security etc.
5

2.3 Evaluate the effectiveness of procedures used in a selected conflict situation
Every employee has different values and different skills. Through the managers, frames
can able to manage whose interest to work in Toyota company. Unresolved conflict create lost
of productivity, creation of barriers etc. employees or employers who can't deal with conflicts
they should walk out from company , through this a better and healthy environment can be made
in Toyota company. Competitive tensions, bad performance , someone having a bad day are
effects of conflicts situations in Toyota company (Newsom, Turk and Kruckeberg, 2012). The
following things can be more helpful in conflict situations. Following tips are helpful in conflict
situations:-
 Acceptable behavior:- Team building, leaderships development will helpful in
conflict situations. Toyota company should clarify all business details to their
employees.
 View conflict as opportunity:- If Toyota's CEO does not conflict for team business
management then it is a best opportunity for company's employer to show his
performance. A smart leader is always look for prove himself (Sadikoglu and Zehir,
2010).
Where is a conflict there is a desire too. Main keys are handle Toyota's business are
compromises, forgiveness, compassion etc.
6

TASK 3
3.1 Role of negotiation in collective bargaining
Collective bargaining as well as negotiation is a process between employee and
employers to negotiate between them on different specific issues. There are 2 parties involved in
negotiation process and these are trade union leader and management. There are different issues
that can make rise conflicts between staff members in high authorities. It involves working
environments, strikes, lay off and working hours as well (Grunig, 2006.). This will help
management of Toyota company to make negotiation between trade union leaders. Following are
processes of collective bargaining:
Preparation: This is first part of whole procedure of negotiation where leaders of trade
unions are being selected by management of Toyota company. It is important that right and
appropriate representative should be selected for any organisation so that t can help in resolving
problems and issues of an organisation. They are responsible for leaving positive impact on
organisation.
Discussion: This process come after the first part preparation where representatives those
are selected can sit together on focus and discuss on those issues which can arise conflict in
future. They focus on negative as well as positive aspects of any conflict. In this process of
negotiation power of trade union is more then management.
Proposal: After discussing regarding arising conflicts both representatives of different
parties can make proposal for this situation (Harvey and et. al., 2007). Before making such
proposal it is necessary to analyse its effects on productivity and profitability of Toyota.
Bargaining: While doing negotiation from both parties a draft is being prepared by them
which is in written format. It consist of agenda relating to conflicts and its solutions as well.
Final agreement: This is called final stage of negotiation and collective bargaining. A
agreement will be made by Toyota company and both the parties have to sign on this agreement.
It should be acceptable with both parties and they should be abide by it.
7

3.2 Impact of negotiation strategy in given situations
If a company select appropriate negotiation and communication process then it proves to
be very useful in every situation of any conflicts and problems. It provides a situation of
negotiation which help in protecting interest of both the parties of dispute. It helps higher
management of company to make and manage sound environment in organisation. Following are
2 prospectives which are discussed below:
Integrative negotiation: Various organisations use this strategy in their business as it is
a very common strategy. Toyota can also use these strategies in solving conflicts and problems
arose on workplace in an efficient manner. This strategy is proved to be beneficial for both the
parties. It helps in protecting interests of both. It can help in protecting interest of trade unions
and management in a more effective way (Hooper and Martin, 2008). If employees are having
problems regarding their day and night rotational shifts then management can allow any one shift
of period for those employees. This situation will satisfy both employees as well management of
company.
Distributive negotiation: This is a different strategy used by some companies because it
is not much useful in resolve conflicts on behalf and in favour of both parties. If stakes of one
side are high then dispute can not be solved. As an example group of different employees can
make demand for increasing their wages rate but organisational management has to approve their
demand because trade union have more bargaining power in comparison to high authorities.
8

TASK 4
4.1 Influence of EU on industrial democracy
UK is member of European union and it is duty of all organisations that are based in UK
to follow all rules, regulation and policies made by EU without taking any permission from state
authorities. These rules and guidelines of EU can leave their impact on businesses positive as
well as adverse also. They effects productivity and profitability of an organisation (Luthans and
et. al., 2008). These involve trade policies, human resource management as well as recruitment
policies and so on. These are discussed below:
Trade policy: Trade policy leaves a great impact on business of Toyota company. As an
example if if higher authorities and Govt. increases tax rates then it will minimise profitability
and efficiency or organisation.
Recruitment policy: There are different recruitment policies that increase cost of
operations of Toyota company. For an example EU can make policy that every company can
have reserved employees those are domestic then it can reduce operation costs of organisation.
Environment policy: These policies mostly effect expansion plans of a company. EU
can make different changes in business environment it can effect organisation in positive as well
as negative manner.
9