Employment Relationship Management
Human resource management (HRM) is the strategic approach that influences employees’ performance, attitude and behavior. The management of human resource (HR) is imperative to streamline the operation of the business (Bailey, Mankin, Kelliher and Garavan, 2018). In this regard, the HR manager extracts important information related to labor market trends, government rules and organizational policies for employees’ skills improvement and retention. The present report identifies the various stakeholders who play an essential role in maintaining a healthy employee relationship. Further, this report also provides the different implication of the stakeholder in human resources practices.
Employment relationship management is efforts put by the company to manage the relationship between employers and employees (Stotz, 2009). In Human Resource Management employment relationship is an essential factor in the running of an organization. According to Wargborn (2008), the success of any organization is directly proportional to the relationships among employees and employers in an organization. However, employers tend to implement suitable strategies whereby a healthy relationship can be promoted with the workforce. In this regard Storey (2007) asserted that it is essential for the organization to maintain such type of employee relation program which provides fair and consistent treatment to employees which increases the commitment of personnel towards their job and success of the business. Various stakeholders play an essential role in the employment relations landscape which is as follows-
Rainnie (2016) has stated that state and government agencies are the primary stakeholders who play a vital role in developing rules, regulations and laws in an organization. Major parts of these stakeholders are establishing standards for reducing discrimination and maintaining equity at the workplace and these help in developing strong industrial relations between employee and employer. In this context, Hyman (2008) asserted that state works as the mediator between management and workers.
Further, to prevent the exploitation of workers each state set rules and regulation which management must follow. In this regard, Kelly (2012) asserted that the behaviour of the state affects the effective running of the business because it influences and shape the industrial relations with business parties. The behaviour of government based on the laws, traditions, execution of policies in the businesses. In this manner, if government frame the strict regulations regarding workers then there might be a possibility of adverse impact on the health and mental capabilities. This legal framework has a significant impact on the business since management ensures its compliance effectively. For example, minimal working hours are set for the workforce from week or day which should be followed by employers’ otherwise legal actions might be taken which tends to affect the reputation of the business. In addition to this, Edwards (2009) mentioned that the state mainly intervenes when both employees and management fail to resolve their difference. For instance, the regulations set the state influences the conflict resolution procedure because industry disputes are addressed in the boundary of set criteria. This provides the extensive assistance for employees and employers to form good relationships. Along with this, the government of nations generally develop the laws that can influence the behavior, and interaction of employees, employer, trade unions, etc. and that can lead the impact on employee relations as well.
Aim and Functions of the Stakeholders
Trade unions are an association of workers that protect the interests of its members. The main of the trade union is to look for workers welfare and ensuring that employees are not exploited (Lu, Taoand Wang, 2010). In this regards, Smelser and Swedberg (2010) asserted that trade union is formed to influence the condition of workers through bargaining and negotiation process. In this regard, the bargaining union facilitates to promote the well being of the workforce by focusing on their working hours, wages and another related aspect of working conditions. However, several times trade unions assist employees to go on strike for by concerning the issue related to operating condition and pay related grievances of the workforce. This support is provided when the employers unable to resolve the problems faced by employees then the support is provided from the trade union.
Furthermore, Poole (2013) argued that trade union plays a crucial role in the positive economic development of the organization. In trade unions helps management in the recruitment as well as different training and development program for employees. However, the employees coming from the various social and economic background also feel comfortable with the support of a trade union. On a contrary, Bryson (2005) asserted that trade unions always perform as per the wellbeing of the members; however, unions can be a little bit selfish for the self-development. It shows the exploitation of members development that affects the quality of work and communication gap can take place between firms and workers. Owing to this, businesses are profoundly affected by the actions and procedures of the trade union. This enables them to comply with the set standards of union and accordingly manage the employees as well as a productive relationship with them.
Management is also imperative stakeholder who has a direct impact on the employment relationship because they perform the task related to compliance of various policies and procedure set by the government, trade union and state. According to Ngo, Lau and Foley (2008) management is more concerned about finding the cost-effective ways of production. In this regard, Management principal aim is to create such type of organizational culture in which productive and harmonious relationship can be maintained through equal partnership of management and employees In this context, Rao (2010) asserted that in healthy employee relationship employee finds their work more exciting and perform their level best to achieve the company’s goal. For this purpose, managers apply several strategies which boost the motivation level of the workforce and increase their interest in the job. This leads to deal with several issues such as high employee turnover, ineffective wage system and useful working condition. Apart from this, Diehl, Richter and Sarnecki (2016) stated that uncertainty in management is supportive for the employees to deal with challenges and maintain a coordination with co-workers to cope up with uncertainty. In order to improve the competitiveness of the firm, the management provides training and development program through which employee and employer can interact and work cordially. Furthermore, the administration also tries to remove the conflicts between the employers and employee to reduce the wastage of time which affects the firm’s operational efficiency and productivity. Furthermore, Armstrong and Taylor (2014) stated that the management sets the company goal and objectives regulated by statutory laws from the state. This regulation reduces the defects which can be harmful to the company progress.
State or Government Agencies
Mowday, Porter and Steers (2013) asserted that employer association is a nonprofit organization that forms to advocate and support employees to get their issues resolved. It helps in setting the standards for corporation whereby employees are not exploited but provided comfortable working conditions. In this regard Foster, Punjaisri and Cheng (2010) stated that employer association ensures that the process of employment relationship benefits employer with the employee during negotiation with trade union and government intervention. It also saves the employers time by creating two-way communication platform during the conflict situations in employee and employers.
Furthermore, the interest of the employer association is to defend management prerogatives against state intervention.
Along with this, it also influences state government on employee relation and trade issues. Therefore, it is helpful in deriving the valid outcome by fulfilling the demand of employees and improving the healthy as well as the long-term relationship with the workforce,
An employee relation is the one discipline within human resources that connect with every aspect of employment. There are several human resources practices such as recruitment and selection, wages, performance appraisal, employee working condition, training and development which are influenced by the aim and functions of different stakeholders.
Trade union influences various human resources practices such as recruitment and selection, training and development, and wages. In this context, Briscoe, Tarique and Schuler (2012) stated that trade union plays a diverse role in the recruitment and selection of human resources practices. According to Bratton, Gold (2017) employers with trade union have the assurance of a stable and well-trained workforce which reduces the cost of human resource management. In organizational union design their program to train the workers in their trades. This reduces the training cost of the inexperienced workers for employers. Further, these well-trained employees create a better and safer working condition. However, due to improved working condition work-related injuries and illness would be lesser and employers get fewer days off from employee side which helps in faster growth of the company.
Another impact of the union is on wages and costing of human resources. In this context, Armstrong and Taylor (2014) asserted that the union labor contract provides the employer with the ability to predict future operational cost more accurately for the fixed time frame. That means union assurance on labors makes more comfortable for the employer to control the costs and facilitate to develop new product strategies. Besides, Paauwe (2009) stated that employee turnover could be reduced with the help of the union. As union gives assurance to employers that more workers will be available whenever needed. However, Bamberger, Meshoulam and Biron (2014) argued that when trade union goes on the strike, it causes the high employee turnover which decreases the productivity and profitable ratio of management.
Further, in negotiation on the wages and job description union plays a significant role because it is much easier to communicate with one party rather than each employee. It reduces the wastage of time and conflict between employers and employees. However, multiple times due to personal agendas of union leader the influences of the union can go in the opposite direction. The guidance received from their leader can influence the worker’s behavior and reaction human resources practices. Thus it can vividly impact the human resource practices (Boxall and Purcell, 2011).
Trade Unions
The state government implies various rules and saturators regulation which affects human resources management at both micro and macro levels. According to Noe, Hollenbeck, Gerhart and Wright (2006) new state legislation and amendments, as well as tribunal decisions, continue to enhance the impact of the law in the workplace which influences the human resources practices. In this regard, Kim (2012) stated that State or government rules and regulations could have a positive impact of setting the wages for employees. These rules will help in proving the appropriate wages to employees as per their performance. On the other hand, Holbeche (2009) concluded that it could affect the cost of the organization because sometimes due to government rules employers’ need to provide high salary to employees which can increase the total value of the company and that can affect the employer relations as well.
Furthermore Snell, Morris and Bohlander (2015) mentioned that under the health and safety regulation, employers are benefitted by various benefits and the absenteeism rate comparatively reduces which helps to increase the productivity of the company. However, due to rules, employers need to provide extra training and development programs which influence the working practices of human resources. Further, under the state law management need to compensate and offers fringe benefits for the employees because hr practices involve the use of statutory provisions as a platform through which it can offer the expansion. For example, providing paid parental leave will be more beneficial rather than unpaid leave because it pays considerable dividends in term of employee commitment and engagement with the company. Thus, good employment relations will be achieved by the positive actions that employers take to win the trust and confidence of their employees (Selden, Ingraham and Jacobson, 2001)
In any organization, management plays a crucial role regardinterms ofg the human resources practices which affected the organizational practices. In this context, Kooij et al. (2013) stated that the management’s major concern is to reduce the cost and to improve productivity. Under the various state government regulations, a company needs to provide various training and development programs due to which cost increases. To avoid such financial issue, company reforms the recruitment and selection practices. Under that, it retains the highly skilled and experienced people in the organization and redundant workers who are not effective for the company. In addition to this, several times employees may not be satisfied with the company culture and salary due to which they start leaving the company. These scenarios influence the employee turnover and company may face financial issues. At this juncture, motivation programs are applied along with the financial benefits for the personnel. This proves to be effective in generating a positive attitude of personnel. Trade union bargaining, employee morale and grievance have made the management to revise the HR practices to change the attitude of the workforce. In this regards management plays a vital role in the performance appraisal program of human resources whereby they can bring improvement to their performance (Wright, Gardner, and Moynihan, 2003).
Management
Employers’ association provides the assistance and resources to business due to which it plays an integrating role in influencing human resource practices. According to Barry and Wilkinson (2011) employer association helps in to achieve an organization’s productivity and profitability. In this context, Employer association obtains data on wages and working condition through various surveys and research reports of an organization. From collected data, employers association actively participate in setting the wages criteria through a bargain with a trade union.
Further, due to various employment act and safety regulation employers association pays extra attention to the training and development of the employer staff. Besides, employer association generates the requirement to change the procedure of recruitment and selection process which can effectively derive the outcome for both business and workforce. Further, it helps in reducing the recruitment cost by retaining the employees and attracting new employers (Foster, Punjaisri and Cheng, 2010).
Conclusion
The report above concludes that the employment relationship is the most integral part of any organization success. There are various stakeholders such as trade union, state, government and employer associations which act in a diverse way to influence the employment relationships. Further, the report concludes that employee relationships are based on the relatively more cooperation in which employee and employers both are motivated to add value in the organization. Also, the report provides these stakeholders’ functions and aim has a significant impact on the different HRM practices of the business.
References
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