3.6.5 Improving employee-employer relations Flashcards
12 What influences employers to choose financial or non-financial methods of motivation?
Most businesses employ a mix of financial& non-financial rewards
The “market” largely determines the basefinancial rewards paid for most jobs & skills
Offering employees some flexibility inchoosing which rewards they get oftenworks well
Ultimately, financial rewards are closelyinfluenced by what a business can afford
12 what is a trade union?
group of employees who join together to maintain and improve their conditions of employment
pressure group that represents the interests of the worker
negotiate or bargain to resolve differences between managers and employees
represent an individual who feels mistreated
info on employee rights
12 what influences the extent of employee decision making?
Organizational size
Style of leadership
Quality of Communcation
Organizational Culture
12 what is the importance of effective communication?
Helps implement change
Motivation
Achieving objectives
Improving competitiveness
12 what limits communication?
Noise
Attitude
Lack of understanding
Large organisations
communication overload
intermediaries
hierarchy layers
12 what is employee representation?
AKA employee participation and industrial democracy
Motivation – employee involvement will reduce labour turnover and increase productivity
Representation – slow decision making, managers lose power But a greater range of perspectives informs decisions
12 advantages of employee representation
Increased empowerment and motivation of the workforce
Employees become more committed to the objectives and strategy of the business
Better decision-making because employee experience and insights taken into account
Lower risk of industrial disputes
12 disadvantages of employee representation
Time-consuming – potentially slows decision-making
Conflicts between employer and employee interests may be a block to essential change
Managers may feel their authority is being undermined
12 what is a work council?
Committees of management and workforce representatives that meet to discuss company issues (training, investment, working practices) Not wages, terms of employment & productivity
Under the European works council directive companies operating in 2+ EU countries must have works councils
12 do trade unions benefit employees?
Communication link between senior managers and workers
Saves time negotiating pay and conditions collectively rather than individually
Responding to union requests/worker needs improves morale and productivity.
Consultation facilitates change management. (relocation, downsizing, redundancy) reassures workers that managers are acting properly
12 how do trade union disadvantage employees?
Managers just want to be left to manage!
Employees set the agenda- focus on employee interests rather than interests of business.
Decision making process becomes longer, firm unable to respond quickly to opportunities
Risk of breaches of confidentiality when strategies discussed with unions.
12 how have trade unions changed in recent years?
1979 – 13.3 million members
2012 – 6.5 million members
Fall in manufacturing jobs (shipbuilding, steel, coal)
Privatisation of public sector industries
Flexible working
More workers employed by small business Better employment rights and employee participation
Legislation restricting union power
13 what are industrial disputes?
A disagreement between management and the Union which may lead to industrial action.
13 what is industrial action?
Measures taken by employees to halt or slow production to put pressure on management during an industrial dispute (eg strike, overtime ban, work-to-rule, go-slow)
13 what is a strike?
a form of industrial action involving the withdrawal of labour by employees.
13 what is work-to-rule?
workers refuse to do any work that is outside the terms of their employment contract.
13 what is go-slow?
work at minimum pace possible without being subject to legitimate disciplinary action
13 what is overtime ban?
refuse to do overtime
14 what are problem for employers when industrial action happens?
Lost production, reduced revenue and lower profits
Poor relationships with employees leads to low morale
Harms the firm’s reputation with customers
Managers lose control over strategic development
14 what are problem for employees when industrial action happens?
Reduced or lost earnings
Possible closure of business and redundancy
Friction in hierarchy
Public support may decline if they are affected
Must conform to legislation or be liable for damages
14 what is a Single Union Agreement?
An agreement between an employer and a union such that the union will represent all the workers at a particular workplace.
‘new style’ and ‘strike-free’ agreements
Involve the granting of recognition to a single trade union in return for guarantees on the avoidance of conflict and the promotion of cooperation between management and employees within the workplace.
Notable examples exist at Nissan, Toshiba, Sony, Panasonic, and Pirelli General in south Wales.
There is evidence in some of these companies of low union membership, which suggests a problem of perceived union ineffectiveness where this form of recognition is adopted.
14 what is a No-Strike Agreement
An agreement between an employer and a trade union in which the latter undertakes not to initiate or support STRIKE action by employees of the company.
Japanese companies which have recently established production facilities in the UK have reached agreements of this type.
PROCEDURAL AGREEMENTS in INDUSTRIAL RELATIONS in the UK contain provisions which preclude strikes while issues are still under consideration within the COLLECTIVEBARGAINING procedures.
14 what is ACAS
the Advisory, Conciliation and Arbitration Service.
work with millions of employers and employees every year to improve workplace relationships. We’re an independent public body that receives funding from the government.
Independent public body that receives funding from the government.
Provide free and impartial advice to employers, employees and their representatives on: employment rights, best practice and policies, resolving workplace conflict
When things go wrong, we help to resolve workplace disputes between employers and employees
