6.5a Employer-Employee relations Flashcards
Businesses communicate with employees to
- Ensure smooth change
- Motivate
- Agree objectives
Barriers to communication
- Attitudes and trust
- Layers of hierarchy
- Communication overload
Trade union definition
A pressure group that represents the interests of workers
Roles of trade unions
- To negotiate
- To represent
- To provide advice, information and member services
Reasons union membership has fallen
- Falling employment in the secondary sector
- Privatisation
- The rise of the more flexible workforce
Main methods of industrial action
- Work-to-rule
- Overtime ban
- Go-slow
- Strike
How does work-to-rule work?
Employees follow strict conditions of their employment contract (no voluntary overtime)
How does overtime ban work?
Employees refuse to work overtime, can have a significant effect on production capacity during period of peak demand
How does go-slow work?
Employees work at the slowest or least-productive pace that is allowable under their contracts
Ways employers can respond to industrial action
- Lock-outs
- Changing employment terms
- Dismissing workers
What can you do if collective bargaining with an employer fails
Call in The Advisory, Conciliation and Arbitration Service (ACAS)
Works councils definition
Committees of management and workforce representatives
Advantages of employee participation
- It can motivate
- It can ease change by ensuring targets are SMART
- More informed decision
Disadvantages of employee participation
- More consultation will slow things down
- Managers may feel de-motivated as they are not being allowed to manage
- It will involve cost
Ways to overcome barriers to communication:
- Democratic management
- Recognise each others needs and objectives
- Delayering
Why do many unions donate money to the Labour Party?
Their policies represent their interests
Advantages of trade unions:
- Strengthens bargaining power
- Allows employees and workers to communicate
- Trade unions give advice and assistance
Examples of trade union work:
- Pushed the Government to make redundancy payments compulsory
- Minimum wage
- Pension Protection Fund
What does the Pension Protection Fund do?
Protects the pensions of employees in private company pension schemes if their employer goes bust
Ways trade unions can influence decisions of a business:
- Help staff with resistance e.g. strikes
- Negotiate to make fewer redundancies
- Convince employers to take on more staff if employees are overworked
Advantages of employee representation:
- More effective as a group
- Help achieve long term aims - employers may sign contracts
- Senior management get a direct insight into concerns of workforce
Disadvantages of employee representation:
- Lead to industrial action which can get out of hand
- Lost profits
- Majority vote within trade union may overrule demands of individual
Advantages to employer of a good relationship:
- Good reputation so will attract more candidates in recruitment
- Increased productivity
- Objectives of employees more aligned with those of the business
Advantages to employee of a good relationship:
- Employees feel involved and valued
- Job satisfaction
- More productive so make more profit which can be fed back through bonuses