Comprehensive Report: Employee Relations and Vodafone's Practices

This report provides a comprehensive analysis of employee relations, focusing on the practices of Vodafone. It begins by exploring the unitary and pluralistic frames of reference, highlighting Vodafone's adoption of a pluralistic approach. The report then examines the effects of trade unions on employee relations, discussing their role in wage increases, employee representation, and promoting human rights. The role of key players, including managers, trade unions, and the state, in maintaining positive employee relations is also analyzed. The report further delves into procedures for conflict resolution, emphasizing the importance of understanding the situation, effective communication, and avoiding coercion. It highlights key features of employee relations in conflict situations, such as communication and engagement programs. The report also covers the role of negotiation in collective bargaining and the impact of negotiation strategies. Finally, it examines the influence of the EU on industrial democracy and methods for employee participation, concluding with an assessment of the impact of Human Resource Management on employee relations. The report underscores the importance of maintaining positive employee relations for organizational success.

Employee Relations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Unitary and Puristic frames of reference..............................................................................1
1.2 Effects of Trade union on Employee Relations....................................................................2
1.3 Role of Main Players in Employee Relations.......................................................................3
TASK 2............................................................................................................................................5
2.1 Procedures followed in case of Conflict...............................................................................5
2.2 Key Features of employee relations in a conflict situation...................................................6
2.3 Evaluate the effectiveness of procedures used in a selected conflict....................................7
TASK 3............................................................................................................................................8
3.1 Role of negotiation in Collective bargaining........................................................................8
3.2 Impact of negotiation strategy..............................................................................................9
TASK 4............................................................................................................................................9
4.1 Influence of EU on Industrial democracy.............................................................................9
4.2 Methods used to gain employee participation and involvement in the decision making
process.......................................................................................................................................10
4.3 Impact of Human Resource Management on Employee Relations....................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Employee Relations terms takes into account the relationship between the employees in
an organisation. This is a very crucial aspects in business as content employees are the
productive employees (Armstrong,Brown and Reilly,2011). An organisation consist of people
with different values,belief,culture and attitudes therefore a company have to make special
efforts in order to maintain a positive environment in the organisation. Employee relation
program are conducted to develop commitment and loyalty among the work force of the
company. This can result in improved productivity and higher motivation among the members of
an organisation. Vodafone is one of the leading British telecommunication provider. Vodafone
established its network in 26 countries and growing. The company employs over 111,556
employees as of 2017. This report focuses on understanding the importance of employee
relations for an organisation. The role of trade union will be analysed as well.
TASK 1
1.1 Unitary and Puristic frames of reference
Unitary Perspective
Unitary frame of reference considered to be the way of thinking, assumption set and
attitudes and practices which relates to the management (Atkinson and Hall, 2011). It is based on
the perspectives that people working for the organisation must have similar goals, objectives and
values despite assigned different roles and tasks. In unitary perspectives there is only one
authoritative party which is management. No existence of trade union in context to unitary
references. The supreme task assigned to management is to promote loyalty and sincerity with
respect to each other. The organisation is categorised into a team with its own goals and
objectives and there is harmonious environment with in the company. This frame of references
believes that the employees and management together can achieve the organisational goals.
The benefits of unitary perspective is that it helps in integration of interest of employer as
well as employee. The employees are treated as major stakeholders in the business. There
individual goals can be aligned properly with goals of organisation. The main drawback of this
frame is the unequal distribution of power.
Pluralistic Perspective
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In contrast to the unitary perspective, pluralist frame believes that a organisation
comprises of a differentiated set of belief, values and attitudes. In this reference the organisation
is perceived to be made up of several powerful and contrasting sub- groups. Each sub groups
carries its own leaders and objectives (Au and Marks, 2012). The two powerful sub groups can
also be mentioned as the management and trade union. The management focuses on influencing
and coordinating with the employees for the goal attainment. Whereas trade union formed to
protect the interest of the employees. They act as a legal representatives of employment which
enhances the buying power of the employees and enhance their decision making. The situation of
conflict in an organisation is unavoidable and they can be beneficial if solved at the
organisational level. A state of stability can be achieved in the organisation through a series of
negotiations between the management and union. The focus on protecting the interest is much
that it might lead to inefficiency in the collective bargaining power of union.
Vodafone recognises the right of the employee therefore goes with the pluralist approach.
There are various employee engagement and employee consultation programs organised by the
company. The company is also an active member of “European Employee Consultative council”
which provides the opportunity to employee to raise their concerns in front of the management.
1.2 Effects of Trade union on Employee Relations
Trade union can be defined as the association of employees of an organisation. This
organisation can be a part of trade or a group of trades. The purpose of forming an union is to
protect the rights and interest of the employees (Bach and Kessler, 2011).
Trade unions were initially formed in 18th century in Britain during the rapid expansion of the
Industrial phase. The sole purpose of trade union during that phase is to enhance collective
bargaining. The trade union were banned in 1799 and repressed until 1824. This is done because
they became a danger for the industries. The National Association For the Protection of labour
was established in 1830 to protect the labour from exploitation. They were legalised in 1872 and
believed that these union is for the benefit of both employee and employer. At present there are
6,135,126 members of registered unions. There have been substantial increase in the role that
trade unions play in employee relations. Earlier the role was only confined to collective
bargaining where as the scope of trade union at present is different.
Increase in Wages
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The sole purpose of existence of trade union is to ensure that minimum wages set by the
government should be adhered. Union members have a high bargaining power than the non-
union members. Employees afford to ask for more as they have the potential to disrupt the
working of an organisation (Biswas and Varma, 2011).
Representing Employees
The contemporary trade unions represent their workers in terms of rights and interest and
ensures that there is no exploitation of employees by the employers. Trade union seek the help of
the law in case of unfair treatment.
Social cohesion
This is the ideal situation in an organisation. Where people work for the well being of the
members of the organisation. This creates a sense of well being in the mind of members and
thinks and works for the welfare of the company.
Better Productivity
A content employee will work for efficiently therefore a firm is able to increase the
production of the organisation and able to afford the higher remuneration as well. Modern day
Trade union responsible for implementing practices that enhance the productivity of an
employee.
Motivation
When every aspect of the interest is looked upon such as social, political and economic
workers remain motivated and perform up to their potential. This will affect the speed and
quality of the production therefore satisfying the employers (Clarke, 2011).
Promoting Human Rights
Trade union acts as a accelerator when it comes to promoting human rights in an
organisation.
1.3 Role of Main Players in Employee Relations
Employee relations refers to the relationship between various members of an
organisation. The relation between the members can be good, indifferent or bad. The nature of
relation have a direct relation on the productivity of the organisation. There should be a
minimum level of comfort between the workers to ensure a healthy environment. There are
various parties involved who are given the task of maintaining healthy employee relations.
Manager's Role
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Manager plays a vital role when it comes to maintaining positive employee relation in an
organisation. The manager is the one have to understand the needs of employees and tries to
fulfil them to maintain a healthy environment.
 Understanding the needs of employee-management and tries to achieve that.
 Ensuring the optimum level of productivity (D'Cruz and Noronha, 2011).
 Boosting the morale of the employees.
 Manager can act as a link between management and employees. Incorporating necessary
changes that ensures harmony.
 Negotiations with the Union. His relation with the employees help in reaching
conclusion.
 Application of Policies and Procedures in the organisation.
Trade Union's Role
Trade union play a essential role in maintaining positive employee relations in the
organisation.
 Provision of Mandatory minimum wage.
 Facilitating communication between employer and employee.
 Conducts Training and development of employee ensuring higher productivity.
 Ensuring Collective Bargaining.
 Solving of conflict in an intelligent manner. Nurturing Co-operation in the industry.
State's Role
The state play an important role in maintaining the employee relations in an organisation. The
State constitutes the legal and institutional framework to form a cordial relationship between the
employee and employer (Dasgupta, Suar and Singh, 2012).
 Providing Institutional Framework: State focuses on providing the framework that
encourages bilateral relationship between the union and management. Regulation of
conflictual relationship is to be done as well.
 Collective Bargaining system: The state have introduced the alternative for settling terms
of employment in a non political manner.
 Avoiding Industrial Conflicts: The state tries to avoid the conflicts in the industry.
However actions can be taken to protect the general public from the consequences.
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 Participation in Public Sector Labour: Agencies are formed to take care of the relations in
the public sector enterprises as they carry a direct impact on the development of
Industrial Relations as a whole (Doherty and Norton, 2013).
TASK 2
2.1 Procedures followed in case of Conflict
The situation of a conflict arises when there is a strong disagreement or argument with
two or more parties. The conflict in an organisation is unavoidable as these are bound to happen.
The situation of conflict does not have to result in fall in the productivity or the motivation of
individuals. Along with effective measures these can be dealt with and peace can be restored
within no time. These procedures help to resolve conflict are:
Understanding Situation
Before reaching to a conclusion it is very important to thoroughly understand the
situation so that it can be dealt with properly. The reason is that some situations may not be same
as they are presented. So it is necessary to investigate it on both sides.
Acknowledging Problem
It is very necessary to understand the depth or the causes of the problem because that will
really help when reaching to a conclusion (Gupta and Kumar, 2012).
Patience
Patience in these circumstances is very essential. Hurry in such manner does more
damage than good. So it is very necessary to take time to evaluate all the aspect of the situation
before reaching to a conclusion.
Effective Communication
Communication is vital part in an organisation. It sometimes turns out to be a saviour in
such matters. Communication allows both the parties to openly express their views about the
conflict. Facilitating a meeting between both the parties can help understand the real issue and
can help in resolution.
Establishing Guidelines
Guidelines are the rule or advise. While facilitating a meeting between the two there must
be some set of rules that the parties have to follow such as calmness and honesty while
expressing themselves. Violation of such guidelines will terminate the meeting at that point.
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Focus on Problem
The complete attention is on the problem not on the individuals involved in the conflict.
An individual with attitude issues may be going through some legitimate issues. It requires due
consideration on the matter, discarding it on the perception of an individual may spread a sense
of dissatisfaction amongst employees (Kazlauskaite, Buciuniene and Turauskas, 2011).
Avoiding use of Coercion
Coercion refers to the use of persuasion or threat in accomplishing a task. While solving a
task one should not use force or persuasion because they can only solve the problem on a
temporary basis. At this phase the problem is at the initial level and it is easy to resolve it. But if
suppressed it might grow and disrupt the activities of an organisation.
2.2 Key Features of employee relations in a conflict situation
Vodafone gives special emphasis to employee relationship as they play a key role in an
organisation. The key features of employee relations are rewards and recognition for purpose of
increasing their performance. The various employee engagement program are developed to
increase the commitment of employees towards the organisation.
Communication
In order to mange a conflict human resource manager needs to be excellent
communicator. Because with the help of communication a manger is able to identify the
problems that exists. Fostering a positive environment in an organisation will manifest major
issues that lies in the work place (Larson, 2017).
Acknowledgement
Acknowledgement of an existence of a difficult situation is beneficial. Honest and open
communication in an organisation will be critical in resolution process.
Definition of Problem
Definition of problem and its impact on the working environment are crucial question
which a manager should ask to its employees. The answers to be analysed properly to find the
root cause of the problem.
Understanding need
Determination of Underlying need is essential. The purpose of conflict resolution is to
reach to a conclusion with which both parties feel justified. Understanding the needs of the
employee should serve as a priority not looking for a solution (Mathew and Jones, 2012)
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Finding common grounds.
Negotiation is a method in which parties reach to an agreement. To facilitate an
agreement both the parties will have to find the common grounds on which they agree. For
instance the problem, procedure to be followed, their needs and their actions.
Follow up
This step focuses on assessing how both parties are doing after their conflict resolution.
Monitoring of actions determines whether they show some sign of improvement or not.
Mediation
The mediation is one of the most important and easy method of resolving a conflict. As a
manager one should prefer this method as it finds mutually agreed solutions for both the parties
(Mathew and Jones,2012). It focuses on effective communication and problem solving skills by
trained mediators.
2.3 Evaluate the effectiveness of procedures used in a selected conflict
The environment of business organisation is very competitive and future oriented. The
pressure to defeat competitors becomes the primary goal of the organisation. The rivals of
Vodafone are Giffuni and O2. All the policies are determined keeping in mind the competitors.
Human resources are the key factor which help a company defeat its rivals and achieve
competitive advantage. Therefore efficient management of people turns out to be the core
functions of business. There needs an alignment between the goal of employees and
organisational objectives. The diversity in an organisation brings people of different attitudes,
culture and belief together to perform operations which arises the situation of conflict. Conflict is
a situation of disagreement between two parties can be because of different goals, expectations
or status (Morris, 2012). The organisation needs to resolve that conflict constructively. The
manager should act on it in earliest possible manner before things get out of the hand. The more
the conflict grows the difficult it is for a manager to resolve it.
The procedure of conflict can only be assigned after clear understanding of the problem. The
emphasis will be on the behaviour and people who can change not on personalities which are
unlikely to change. The better understanding of the conflict facilitates better solution and this can
only be possible through open and effective communication between the both parties. The
manager should take his time and carefully evaluate the information collected and should not
jump on the conclusions. When the manager possess with adequate information he must look for
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common grounds that will make both the parties reach to a conclusion. When the conflicts have
been resolved the manger should monitor the changes in their performance .
TASK 3
3.1 Role of negotiation in Collective bargaining
Collective bargaining is a tool used in respect to employment relationship. Collective
bargaining is a tool for negotiation with the management by employees. The various aspects
taken into consideration are salary, rewards and benefits etc. Therefore a HR manger have to
form such rewards and benefit program to keep employees content in the organisation and avoid
the situation of dissatisfaction among employees (Osman-Gani, Hashim and Ismail, 2013).
The essence of collective bargaining and negotiation are same. The principles of
negotiation are applicable to collective bargaining as well. Negotiations are meant for some
employees where as collective bargaining is meant for the collective interest of employees. It is a
process of negotiation between employer and employees as a whole. This process involves
approaching the employer in a dignified and unified manner. Members can put up their demands
for discussions and outcomes while negations happen alongside. Negotiations plays a vital role
in the bargaining process as negotiation avoids the situation of conflict in the organisation and
helps to put forward their demand in an appropriate manner. Negotiation in the collective
bargaining facilitates effective communication between the employees and the management.
Reaching at an agreement is mutually beneficial as it helps the employee get his fair share in the
work done whereas for employer it can be seen in the level of motivation and the productivity of
the employees which further maintains harmony and rise in the production (Ruth Eikhof, D. and
Warhurst, 2013).
The another reason of negotiations being critical in the bargaining process is that it does
not cause industrial disruptions which means there are minimum chances of strikes and lockout
in an industry which is again beneficial for everyone concerned with the organisation. Coming to
a mutual agreement will facilitate a harmonious relations among the employer and employee. It
ensures justified use of the power and there should be no exploitation of the workers and lastly it
helps in promoting industrial democracy.
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3.2 Impact of negotiation strategy
A situation of negotiation is achieved when two parties come to an agreement. Vodafone
believes in the policy of freedom of association and collective bargaining. The company focuses
on treating its employees in a fair, impartial and without any unlawful discrimination. Vodafone
supports training and development of 101,000 people working with the company (Tansel, A. and
Gazîoğlu, 2014). The workplace provided id motivating and inclusive of employee development
programs. The company understands and encourages the need to form or join trade unions.
In addition to collective bargaining company's policy also encourages that the parties
must bargain in good faith on the working conditions, relations and other matters of concern. The
negotiation strategy ensured a smooth manner in which the employees approached the
management regarding their concerns. The company aims to listen to the suggestions provided
by the employees on how the working environment can be enhanced. The negotiations in an
collective bargaining facilitate effective communication between both the parties which helps in
making mutually beneficial decisions (Employee Relations, 2017). The policy of the company is
to attract and retain best employee and their motto says,“We're at our best when you're at yours”.
Negotiation strategy reduces the chances of disruptions in an organisation caused by the
dissatisfied employee unions.
TASK 4
4.1 Influence of EU on Industrial democracy
Industrial Democracy as the name suggest is application of democracy in industrial
ground. This situation refers to agreement where workers are responsible for making decisions
and associated authority and responsibility in the workplace.
The industrial democracy in the European countries have existed for decades. But their
ideal implementation was not possible due to the existence of aggressive relationship between
the company and the trade unions. The European Labour law promote a bigger role of workers
when it comes to decision making of the firm. The influence of EU in British industry is such
that they have discovered “partner based relationships” where the management and union tries to
achieve the same objectives. Unions are now responsible for educating employees as well as
employers on the benefits on involving workers in the decision making. The results are such that
involving the employees in the decision making process have turned out to be great. Post this
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there has been substantial increase in the performance as well as their contribution in achieving
the organisational objectives (Definition Of Employee Relation, 2017).
The council have been formed comprised of the members from different department of
the organisation. The council carries an active task in formulating the plans for the long term and
the strategies as well for achieving the same. The stakeholders in this category were categorised
into worker shareholder and worker partners. This process of shareholding is promoted as a
saving scheme for the workers in an organisation. Such scheme have garnered lot of attention
from the people and many of the workers have become potential stakeholders in the company.
Although there have been some concerns of “wage dumping” which means paying wages less
than the pre-decided ones. The trials are conducted on the alleged company.
4.2 Methods used to gain employee participation and involvement in the decision making
process
Attitude Survey
Attitude survey is one of the most common tool utilised to understand the views of the
employee on matters which affects them. It assess the feeling or behaviour towards a particular
region. This tool is used to gather views on various matters such as Job evaluation, performance
management and pay related concerns for the purpose of measure the degree to which they feel is
justified. These survey are conducted with the help of structured questionnaires, observations,
group discussions and most importantly interviews. These tools help a company to draw out their
reactions and formulation of the policies accordingly. Their views in respect to provision of
equal opportunity, health, safety measures and employee development.
Quality Circle
It is also referred to as Improvement group. This tool is used to counter problem of “Top
to bottom” approach in an organisation. In this tool the knowledge of the workers is given due
importance which is ignored otherwise (Turek and Perek-Bialas, 2013). Quality circles consists
of a small group of volunteer who are involved in that field. It helps in assessing the knowledge
of employees and focuses on understanding the problems that they face which the manger may
not be familiar with. This tool increases the satisfaction level of the employees as they have a
direct role in decision making process. Suggestions provided by the employees are taken into
consideration while making decision and the manager becomes familiar their perception in
respect to the organisation (Winkelmann-Gleed, 2011).
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