B) Relations to business Objectives and Strategy Flashcards
- Relationship to Business Objectives and Strategy INTRO??
The aim of employee relations is successful and productive relationships between employer and employee. In the modern organisation, good employee relations should fit within a total business and organisational strategy: it is an important part of what will get the organisation to where it wants to go. The employee relations policies it develops, like the rest of HR, should reflect and support overall strategy and the achievement of objectives in the long term.
- From the management point of view, the aim is to have employees accept its plans and, more generally, to be willing to accept continual change and development within the organisation.
- Management wants staff to be willing to move with the corporate times. Needless to say, the skills of the HR manager are useful in this often difficult and emotive area of corporate life.
- In the day-to-day activity of the organisation, staff will have complaints about a wide range of issues.
- Management at the Corporate level?
Management at the corporation level is of critical importance in the new decentralised system.
The new era of employee relations requires the perspective and skills of HR more than ever.
The relationship at the firm level between management, on the one hand, and shop stewards (elected union representatives), employee representatives or negotiating agents on the other, has become more important.
In addition to dealing with the day-to-day employee grievances, the shop steward is usually involved in negotiating collective agreements and provides advice to employees about other types of employment contracts.
- Relationship to Business Objectives and Business Strategies??
A large scale organisation that manages its employee relations well is likely to find that success follows in a number of other areas.
- Relationship to Business Objectives and Business Strategies
i) Profit??
Most enterprise agreements contain productivity trade-offs for increased wages. ‘
This means that in order for wage increases to be given at greater than the rate of inflation, workers must agree to increase their productivity levels in some way.
This benefits the organisation as increased productivity leads to a more competitive position from which more profit can be gained.
It also benefits Australia as a whole as wage increases are kept at sustainable levels, lowering the chance of cost-inflation occurring.
- Relationship to Business Objectives and Business Strategies
ii) Employee Satisfaction?
If workers are happy with their agreements, it is likely to be reflected in increased morale and lower staff turnover rates.
If some flexible work arrangements have been included to allow workers to better balance their work and family commitments, it should also result in lower levels of staff absenteeism.
If, however, the process has been poorly handled, the organisation may find it difficult to achieve their objectives.
- The basis of Good Employee Relations???
FIRST 2, joint committment and culture
Taking a broader view of the organisation, good employee relations has its foundations in the following:
■The joint commitment of management and employees to the objectives of the organisation: this is strengthened by the use of the more ‘employee centred’ management styles in which staff participate in decision making.
• A team approach to the planning of work tends to develop greater employee trust in management. Ultimately, the particular elements of the workplace situation should suggest the most appropriate management style.
■ An organisational culture that values ethical behaviour. This includes ethical and socially responsible management (ESM) and ethical behaviour by employees.
• A belief among the organisation’s people that everyone is ‘playing fair’ facilitates harmonious and productive employee relations.
- The basis of Good Employee Relations???
3-6?
■ The promotion of an acceptance among staff of the inevitability of change, especially change driven by new technology.
■ The use of effective methods of communication and emotional intelligence (EQ).
■ The provision of good pay, working conditions and other rewards for effort (e.g. recognition for what has been achieved).
■ The maintenance of good working relationships between management and union officials.
• Personal contact between management and union officials can extend beyond the local (or organisation) level to the branch and state levels.
• While friendly relationships are not always possible, unproductive personal hostility should be avoided.
- Industrial Relations Audits:
Large organisations sometimes conduct industrial relations audits (IR audits) to assess the state of their employee relations. What is emphasised in an IR audit (review) will vary from organisation to organisation, but modern management will typically use a checklist such as our six-point ‘Basis of Good Employee Relations’.
- Indicators of the state of industrial relations would normally include the degree of participation or consultation and the quality of communication.
- A thorough IR audit would also attempt to assess the level of employee morale and the values that are prevalent in the organisation, that is, what is considered important.
