33109 Employment Relations and Law Assignment Sample
Executive Summary
Employee retention is an aspect based on which organizational development has witnessed and observed. However, there are firms that do not provide its employees with effective assistance and support leading towards an ineffective workforce environment. However, trade union by implementation of its supportive policies and communicational aspects resolute these problems. Hence, development in an organization has witnessed due to which organizational revenue is increased. However, it has witnessed that organizations like Morrison are unable to retain its employees due to which development and growth of this organization has become stagnant. Owing to this aspect, this study is going to underpin all the aspects present by evaluating each aspect present within.
Introduction
Employment relationship is a facet, which depicts positivity between employer and employee within a firm. Maintaining employee relationship management in an organization develops contracts and agreements based on which both, the employers and employee’s interest collides in a positive aspect. Outstanding on these grounds a firm obtains growth and development while operating in market and obtains goodwill. Chaubey et al. (2017) after conducting an assessment has stated that organizational HR managers who are responsible for this bearing of employee relationship while operating. Human Resource management is the one who encourages and assists employees and provides them recognition and growth. However, owing to certain scenarios like ineffective management and improper employee treatment an organization is unable to treat its employees leading towards disruption of employee management. Foregrounding these kinds of unfair and unethical treatment, trade unions step in to provide assistance towards employees. This sector by providing jobs and security along with equality towards employees assists them in their career development. Conducting study Keune (2018) has stated that trade unions play an influential role and provide employees with morality and integrity. Van guarding this scenario this study is going to highlight on the most common conflicts that occur in an organization while maintaining employee relationships. In addition, it is also going to highlight on role of trade unions in conflict management. Furthermore, it is going to state organizational problems in a critical aspect.
Outline of Conflicts and Disputes affecting Employment Relationship
Unfair Pay
Unfair pay or wage discrimination is a common yet impactful aspect owing to which relationship between employees and employers has disrupted. These problem employees often lose their faith over organization developing clashes. As per the observation of Wenzel et al. (2019), while working in organization employees sign contracts. However as organizations are unable to pay them fairly, it develops a contract breach affecting the psychology of employees. Hence, it is observed that there are challenges that organizations have to face reducing its face value in the market while operating. Problems like those thatreduced employee moralecan be witnessed because of this aspect. In addition, it has also observed that increased staff turnover rate and difficulty in hiring new talents also lays a negative impact on organizations. As there are going to be a scarcity of employees with positivity, organizational product and production quality can deteriorate. Hence, customers within those organizations might not provide value leading towards organizational downfall in market. It hasobserved that unfair pay works in a specified way covering some areas. Based on gender, race, age,and religion often these kinds of unethical practices has witnessed. In 2020, almost 1.79% of global organizations have accused with unfair pay policies based on gender gap. However, it has observed that out of the total 0.98% were controlled and the rest 0.81% are not (Statista, 2021). Thus, it can be stated that because of lack of effective knowledge organizations are amending these kinds of unethical practices.
Unfair Treatment
Unfair treatment is an unethical behaviour that forefronts unethical practices like harassment, discrimination, gender, nationality,and disability. This kind of unethical behaviour leads employees in an organization towards severe problems that include psychological problems and at the same time sabotage of organizational pursuit. Wahid and Hyams-Ssekasi (2018) after conducting a study has stated that because of unfair treatment employee performance and behaviour can get heavily affected. It has observed from a survey that major countries in which employees has got affected because of unfair treatment are Germany, USA, UK, and France. Among all of these countries, the UK and USA have this aspect at a very high rate. In UK, almost 55% of employees face unfair treatment in their respective organizations. Treatments based on gender, age, racism and sexuality is the most common aspect within this country. However, with a growth of 37% in gender and 39% of employees in the organization face unfair treatment (Statista, 2019). Hence, it has witnessed that owing to this aspect, employees are unable to provide their best while working in an environment.
Poor Management
Though there were discrimination and unfairtreatment in business organization, it has observed that poor organizational management provided influence towards these kinds of attitudes. Poor management depicts a stand based in which an organization without consulting with its employees often takes steps and measures. Hence, workforce quality and organizational growth got affected in a negative manner. According to the observation of Abolade (2018), poor management leads a firm towards inability to compete in market. In addition, an organization becomes unable to acquire resources in an effective manner. Unemployment rate has directly related with organizational management and its operational practices. It has witnessed that until 2019 global unemployment rate was at 5.37% and going low. However, in 2020 this rate increased up to 6.47%, whichcan be signified as drastic (Statista, 2021). Due to the certainty of COVID-19 pandemic, organizations without consulting with its employees terminated them affecting their morale and financial state with a negative impact. However, in case of UK this pandemic situation laid a drastic impact on organizational management structure leading to an unemployment rate up to 5.2% in 2020 (Tradingeconomics, 2021). Fore fronting this aspect, it can be stated that it is because of ill structured management practices in organizations of UK this significant problem occurred.
Poor Communication
In a business, communication plays a vital role and provides an organization with developmental guidance. Cantering this condition, it has observed that firms while conducting business face a significant amount of difficulties while maintaining communication. According to the opinion of Chetty (2021), poor communication develops a toxic atmosphere in a firm. Lack of effective communication develops a gap between employers and employees. Consequently, problems like resource management, workforce engagement and decreased rate of organizational productivity has witnessed. In 2020, as employees of various firms have to work remotely almost 20% of them were unable to communicate while working (Statista, 2021). Based on an aspect it can be stated that as organizational management played an ineffective role and took decisions without consulting with employees, these significant problems occurred affecting growth and development of employees.
Unclear Job Roles
Job roles are the most important aspect in the career of an employee owing to which development and growth has witnessed. An organization by providing employees with adequate information about jobs provides them with an increased rate of satisfaction. However, in a contradiction to this scenario often HR managers of an organization while acquiring employees do not provide them with clear description of their job roles. It leads employees towards increased levels of stress, tension, decreased job satisfaction, and turnover. Brooks et al. (2018) stated that because of unclear job roles, employees in an organization increase mistakes and blame them. Hence, problems like maintaining workforce quality often becomes difficult for an organization.
Critical Evaluation of Theories for Evaluating Conflicts in Employment Relationship
Marxist Perspective Theory
Figure 1: Marxist Perspective Theory
(Source: Zajak et al. 2018)
Marxist Perspective Theory is a framework that depicts common interest between an organization and employees associated. This theoretical framework rehashes that weakness and inconsistency reflects the capitalist system in workforce. Hence, owing to this aspect, an organization might witness revolution while operating in market. In addition, this theoretical aspect depicts operations like productivity, organizational leaders mostly govern manufacturing and distribution, and they focus on the profit out of them. Hence, clash between common interests is inevitable. According to the observation of Zajak et al. (2018), it has witnessed that foregrounding Marxist perspective trade unions as well as employees are going to lose their common interest in organizational progress.
However, as there is a discrimination in industry owing to which employees in an organization are unable to acquire growth and development. Marxist perspective assists them. This theoretical perspective by fixing all the borders that discriminate against employees and their rights encourages a positive relationship between employer and employees. Foregrounding this aspect, it has stated that this theoretical anticipation can bring in revolution eliminating all the odds between the relationship of employers and employees.
Pluralist Theory
Figure 2: Pluralist Theory
(Source: Influenced by Budd 2020)
Pluralist theoretical approach is a framework that depicts that there are more than one ways for retaining relationships between employers and employees. Implementation of this theoretical aspect develops a balance of power between employers and employees. Hence, owing to a common interest between employers and employees an organization can acquire development and growth. According to the observation of Budd (2020), pluralist theory leads HR managers in an organization that assists them in understanding necessities and importance of employees. Hence, by providing them with effective assistance HR managers are able to provide growth and development towards an organization by keeping this balance with effectiveness.
As it has observed that organizations often lack in providing assistance towards employees while operating. Implementation of this theoretical prospect can assist an organization towards development. Developing a positive bargaining power with employees HR managers can understand the pains of employees by providing them with effective support and training. In addition, by developing organizational law, HR managers can bind employers as well as employees in significant terms and conditions leading towards progress. Hence, employers can acquire profitability while operating in market and at the same time employees can improve their job satisfaction. Moreover, breach of contracts can be eliminated foregrounding this theoretical approach of pluralists.
Outlined Role of Trade Union
Trade Union plays a vital role in providing assistance towards employees across the globe. Obtaining assistance from this association, employees acquire and increase their level of confidence. This union by providing jobs and security using peaceful measures boosts employee’s growth and development. In addition, this organization by establishing certain roles also establishes a positive and progressive role with business organization. These roles are as follows:
Unitary Role of Trade Union
Unitary role describes a state that collaborates two or more interests together without raising any kinds of conflicts. Outstanding in this concept, all of the interests come together to accomplish a common interest. Similarly, trade unions by developing unitary roles establish a common interest between employers and employees. Thus, it has observed that unnecessary quarrels and conflicts are redeemed with effectiveness. As per the observation of Benassi et al.(2019), the unitary role of trade union develops strict rules and regulations. Owing to these equal opportunities has developed among employers and employees. In addition, trade unions by establishing effective communication between two parties resolves conflicts so that both parties can work for a common interest. Foreground this concept organizations operating in market acquire sustainable growth and development while operating.
Pluralist Role of Trade Union
Pluralist role is an approach that brings in two or more interests in a collaborative manner. Just like unitary role, this approach also works for maintaining collaboration, perspectives, value creation, and humanistic approaches. In case of trade unions and its pluralistic approach, it emphasizes areas of greater value and interest. As employees or labourers are the main interest of trade unions, hence in order to provide them with justified assistance this union makes use of communist approach. Hence, the concept of equal rights comes forth owing to which organizational management improves their framework to provide assistance towards them. As per the observation of Ackers (2017), the pluralist approach justifies the strong willingness of trade unions and its sustained claims. Furthermore, for promoting and enhancing liberal democracy, trade union implies this role for bringing in stability and sustainability.
Radical Perspective of Trade Union
Radical Perspective is a version of conflict theory depicting an organization during the occurrence of primary conflict it always foregrounds economic aspects. Foregrounding the macro elements, this perspective depicts the impact of this scenario on individuals. In case of trade union and its relationship with radical perspectives, it is depicted that there is always a negative relation in the history of workplace. As the interests of employers and employees do not collide, this significant problem occurs. Trade union implementation of this perspective segregates the inequalities in workplace and provides assistance towards employees while equalising it. Sintomer (2018) conducting a detailed study has stated that the radical perspective of trade unions encourages democracy between employers and employees. Hence, progress and growth is witnessed in an organization bringing in sustainable development.
Insight of Organization
Organizational Overview
Established in 1899 in Bradford, United Kingdom Morrisonis a retail organization operating in market. It is witnessed that because of its qualitative products and services this organization has developed an enhanced reputation in market. Morrison in order to provide its customers with quality products and services has acquired almost 497 outlets across UK (Morrisons-corporate, 2021). Working with almost 118,047 employees this organization is able to maintain all of its outlets by providing service towards its customers. In its financial year 2020-21 because of effective operation in the market, this retail organization generated a revenue of £ 17.6 billion out of which it made a profit of £431 million (Morrisons-corporate, 2021). Hence, based on an aspect it can be stated that this organization is obtaining a huge growth and development because of its ethical assistance from employees.
Though in July of 2020 Morrison acquired a growth of 17.4% until November of the same year, this ratio decreased down to 11.4% affecting organizational sustainability (Statista, 2021). Owing to the scenario of COVID-19 and massive employee turnover, this UK retail organization has faced this drastic downfall in its domestic market. This significant problem arose when employees of this organization have to know that Morrisonwere trying to sell modified products rather than fresh and organic ones. Hence, employees in Liverpool, Manchester, Bristol, Glasgow, and London have shown significant protest going against the unethical trading policies in market (Cips, 2021). Hence, employee turnover rate was increased in this organization affecting growth and development of Morrison. Furthermore, undergoing the event of COVID-19 pandemic situation Morrisonhas also cut wages from its employees. The reason behind this act was to save organizational cost with effectiveness. The reason, which Morrison showed behind cutting wages, is that their employees are not vaccinated properly. Owing to this aspect, profit of Morrison held down to £ 41 million (Theguardian, 2021). Hence, employees of this retail organization got affected, affecting organizational growth in market.
Critical Assessment of Organizational Approach for Employee Relationship and Trade Union Management
Employees play a vital role in Morrison workforce development based on which this organization has emphasised on approaches. Implementation of these approaches, Morrison’s is developing a positive relationship with both of employees as well as trade union management. As Morrison, because of COVID-19 pandemic situation and unethical business practices faced problems in market, hence implying approaches this organization is acquiring development and sustainability in market. These organizational approaches are as follows:
Pay Raise to Entire Workforce
Employee morale is very important for an organization while operating in retail sector and as Morrison has faced pains of allegation due to which employees got devastated. Hence, in order to improve their stability and boost their morale, Morrisonhas raised the pay of its employees. According to the observation of Ali and Anwar (2021), pay raise provides motivation towards employees owing to which they are able to contribute towards organizational progress. In case of Morrison standard wage of an employee was £ 6.83 per hour, however, because of the raise it went up to £ 7.20 (Peoplemanagement, 2018). Thus, it has observed it led this organization towards massive growth and development, which led Morrison towards increasing its rate of profitability in market. Owing to the odds in market, because of this strategic approach Morrison was able to regain its position in market and at the same time retained its employees. However, there are certain disadvantages of this scenario, which includes the market volatility and increased price of products thatMorrison,have to keep their focus on while operating.
Effective Human Resource Management
As Morrison holds a positive position in market hence employee retention and management is a very important aspect of this organization. Due to COVID-19 pandemic situation, this retail organization has to cut off its workforce in order to maintain organizational sustainability. However, because of its drastic step it is witnessed that market growth rate has declined in a drastic manner affecting organizational goodwill. According to a survey conducted by Morrison, it has observed that there is a 57% turnover rate among employees (Morrisonliving, 2021). Based on this scenario, it can be stated that because of ineffective HR management, this significant difficulty is faced by this organization. However, in recent times Morison’s utilising their effective HR managers has employed about 97,000 individuals with 45,000 extras to handle the crisis due to COVID-19 pandemic (Theguardian, 2020). Thus, it can be stated that because of effective development of HR management by Morison’s, this organization was able to pull itself out of the harsh situation.
Organizational Examples for demonstrating different Approaches to Trade Union
Apart from Morison, other organizations in retail industryhas totally focused towards collaborative business. Fore fronting employees and their rights,Sainsbury is a leading retail organization that has focused towards collaborative business. Developing ethical trading policies, this retail organization has developed its market value. In addition, Sainsbury, while operating in market, closely works with suppliers and farmers (About, 2021). Thus, this organization is able to provide them with appropriate value by maintaining their integrity. Furthermore, ASDA operating in the supermarket sector has also developed strategic approaches and are working collaboratively with trade unions and its beliefs. This supermarket supergiant by promising its employees with ASDA Pensions has provided them with assistance and reliability towards this organizational belief (Gmbnorthwest, 2021). Thus, employee retention in this organization has increased organizational reputation in market. The main motto of this scheme developed by ASDA is to provide opportunity towards employees in overcoming their hurdle of life.
Conclusion
Employee retention is an important aspect based on which organizational development and growth has observed. It can be stated that owing to this aspect an organization can acquire goodwill in market. Without having effective employees, an organization might not be able to conduct its operation for a long time. However, it has witnessed that while operating for an organization there are challenges that employees often face. Hence, to provide them with support and assistance, trade unions play a vital role. Organizations like Morison’s because of its ineffective management practices were unable to provide assistance towards its employees. However, through collaboration with the trade union and its policies, it became handy for them in retaining employees. It can be concluded that not only Morison’sbut also organizations like Sainsbury and ASDA are also present in markets that operate jointly with trade unions and provide assistance towards employee retention.
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