6.5a - Employer/Employee Relations

Question 1

Why do businesses communicate with their employees?

Answer 1

• Ensure smooth change
• Motivate
• Agree objectives

Question 2

What are the barriers to communication?

Answer 2

• Attitudes and trust
• Layers of hierarchy
• Wrong communication method
• Lack of a common language

Question 3

How can a business overcome barriers to communication?

Answer 3

• Democratic management style
• Recognise each others needs and objectives
• Delayering

Question 4

Trade union definition

Answer 4

A pressure group that represents the interests of workers

Question 5

What are the roles of trade unions?

Answer 5

• Negotiate
• Represent
• Provide advice, information and member services

Question 6

Why has trade union membership fallen?

Answer 6

• Falling employment in the manufacturing sector
• Rise of the more flexible workforce
• Rise of the number of small businesses
• Legislation giving workers more rights

Question 7

Why do many unions donate money to the Labour Party?

Answer 7

Because their policies represent their interests

Question 8

Advantages of trade unions:

Answer 8

• Strengthens bargaining power
• Allows employees and workers to communicate
• Trade unions give advice and assistance

Question 9

Examples of trade union work:

Answer 9

• They pushed the Government to make redundancy payments compulsory
• Minimum wage
• Pension Protection Fund

Question 10

Pension Protection Fund definition

Answer 10

A fund protecting the pensions of employees in private company pension schemes if the employer goes bust

Question 11

How can trade unions influence decisions of a business?

Answer 11

• 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

Question 12

Advantages of employee representation:

Answer 12

• 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

Question 13

Disadvantages of employee representation:

Answer 13

• 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

Question 14

What are the main methods of industrial action?

Answer 14

• Work-to-rule
• Overtime ban
• Go-slow
• Strike

Question 15

Work-to-rule definition

Answer 15

A method of industrial action in which employees follow strict conditions of their employment contrast (no overtime)

Question 16

Overtime ban definition

Answer 16

A method of industrial action in which employees refuse to work overtime

Question 17

Go-slow definition

Answer 17

A method of industrial action in which employees work at the slowest or least-productive pace that is allowable under their contracts

Question 18

How can employers respond to industrial action?

Answer 18

• Lock-outs (closing factory to employees)
• Changing employment terms
• Closing business and dismissing workers

Question 19

What can employees do if collective bargaining with an employer fails?

Answer 19

Call in The Advisory, Conciliation and Arbitration Service (ACAS)

Question 20

Works councils definition

Answer 20

Committees of management and workforce representatives

Question 21

Advantages of employee participation:

Answer 21

• Motivational
• Ease change
• More informed decision

Question 22

Disadvantages of employee participation:

Answer 22

• More consultations slows things down
• Managers may feel demotivated as they are not allowed to manage
• It will involve cost

Question 23

Advantages to an employer of a good employer-employee relationship:

Answer 23

• Good reputation with employees will attract more candidates in recruitment
• Increased productivity and efficiency
• Objectives of employees are more aligned with business objectives

Question 24

Advantages to an employee of a good employer-employee relationship:

Answer 24

• Employee feels involved and valued
• Job satisfaction
• More productive so makes more profit for business which can come back as bonuses