6.5a - Employer/Employee Relations Flashcards
Why do businesses communicate with their employees?
- Ensure smooth change
- Motivate
- Agree objectives
What are the barriers to communication?
- Attitudes and trust
- Layers of hierarchy
- Wrong communication method
- Lack of a common language
How can a business overcome barriers to communication?
- Democratic management style
- Recognise each others needs and objectives
- Delayering
Trade union definition
A pressure group that represents the interests of workers
What are the roles of trade unions?
- Negotiate
- Represent
- Provide advice, information and member services
Why has trade union membership fallen?
- Falling employment in the manufacturing sector
- Rise of the more flexible workforce
- Rise of the number of small businesses
- Legislation giving workers more rights
Why do many unions donate money to the Labour Party?
Because 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:
- They pushed the Government to make redundancy payments compulsory
- Minimum wage
- Pension Protection Fund
Pension Protection Fund definition
A fund protecting the pensions of employees in private company pension schemes if the employer goes bust
How can trade unions influence decisions of a business?
- Help staff that want to resist changes
- Facilitate change by liaising between employers and union members
- If employer wants to make redundancies they can negotiate to make fewer redundancies
- Convincing employers to take on more staff if employees are overworked
Advantages of employee representation:
- More effective as a group
- Help to achieve long-term aims (employers may sign contracts)
- Senior management get a direct insight into the concerns of the workforce
Disadvantages of employee representation:
- Leads to industrial action which can get out of hand
- Majority vote within trade union may overrule demands of individual so individual is denied opportunity to represent themselves
- Can undermine trust between employer and employee
What are the main methods of industrial action?
- Work-to-rule
- Overtime ban
- Go-slow
- Strike
Work-to-rule definition
A method of industrial action in which employees follow strict conditions of their employment contrast (no overtime)
Overtime ban definition
A method of industrial action in which employees refuse to work overtime
Go-slow definition
A method of industrial action in which employees work at the slowest or least-productive pace that is allowable under their contracts
How can employers respond to industrial action?
- Lock-outs (closing factory to employees)
- Changing employment terms
- Closing business and dismissing workers
What can employees 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:
- Motivational
- Ease change
- More informed decision
Disadvantages of employee participation:
- More consultations slows things down
- Managers may feel demotivated as they are not allowed to manage
- It will involve cost
Advantages to an employer of a good employer-employee relationship:
- Good reputation with employees will attract more candidates in recruitment
- Increased productivity and efficiency
- Objectives of employees are more aligned with business objectives
Advantages to an employee of a good employer-employee relationship:
- Employee feels involved and valued
- Job satisfaction
- More productive so makes more profit for business which can come back as bonuses
