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A Case Study Of Confederation Industry

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Describe about the Human Resource Management and Changes in Work Patter of Confederation Industry?




This assignment deals with the human resource management process of The Confederation of British Industry of United Kingdom. This is an organization of business that lobbies and advises governments about interest of business. British Confederation Industry also analyses the policies and of government regarding business and related matters. This organization generally works with government of United Kingdom, several types of policy makers in order to guide the business activities (Cbi.org.uk, 2015).

On the other hand Brown and Vickerstaff (2011) argued that, Confederation of British Industries can also be stated as the important as well as powerful pressure group that has immense impact upon the economical and political system of United Kingdom. Therefore, this assignment seeks to describe the changing phase of U.K labor market and the relation of employees and employers with the example of this particular non government organization of United Kingdom.


Changing labor market of United Kingdom:

The labor market of United Kingdom has seen great changes in the perspective and structure of the market due to the financial recession of few years back. In the year of 2014, potential size of the labor force can be estimated as 32.7mworkers among 63.7 m population. Labor market of United Kingdom consists of the supply of labor and the demand of labor through various firms.

On the other hand, BéduweÌ and Planas (2003) discussed some factors those affect upon the demand for labor within the workforce of United Kingdom. Main factors are rates of wages, demand of various types of products, profitability of firms as well as productivity of firms, substitutes to the labors. On the other side, supply of labors can be determined by the rate of wages, size of the workforce, migration, choice of work among the workforces etc.

However, Heijke (1994) discussed that, economic recession of 2008 has resulted poor structure of labor market and economy as well as business activities of United Kingdom. United Kingdom has suffered from recession for three or more years. However, recession of 2008 has impacted upon serious backdrop of this country. Opportunities of employment have been decreased by this recession. Unemployment rate of U.K has been increased at 8.4 percent by the end of 2011. On the other hand, rate of unemployment in European Union has stayed 10.7 percent within 2013 (Acas.org.uk, 2015).

This recession has been resulted for the disaster within the banking sector of United Kingdom. Collapse in various activities of business, confidence and trust of consumers has also decreased by the nature of this particular recession. Various Businesses have cut back their stocking investment and the capital of working at very fast growth. Confederation of British Industry has forecasted that unemployment has to be picked by above three million.  

By the start of recession, output has fallen by 6.2 percent. However, rate of employment is down by fewer than 2 per cent in comparison to the past experiences. In the early 1990s, a fall of 2.5 per cent in gross domestic product led to a fall of 3.4 percent in employment. In the early 1980s, rate of Gross Domestic Product (GDP) has been declined by 4.7 per cent. On the other hand, employment has been left by 2.4 percent lower (News.cbi.org.uk, 2015).  


According to Ramaswamy and Prasad (1994), young generations are mostly influenced by the recession of United Kingdom. These youths are generally low skilled. Therefore, changing labor market of United Kingdom has resulted lower productivity among the labor markets. Several youth workers of U.K have been affected by this serious recession. Training and development among the young employees have been lacked due to this period. Therefore, there is lacking of skilled young labors within the labor market of United Kingdom.

Therefore, Ali (2012) stated that, self employment has played a great role in order to enhance the scenario of labor market. United States have seen and insignificant growth of self employment while United Kingdom has made a significant growth in the perspective of self employment. This practice of employment has been resulted among two groups; those are UK born and Non-UK born.  These recessions among labor market has also been resulted from the significant growth of various types of different employment among the people. Temporary contract agreement has been made for the workforces.

On the other hand Altarawmneh et al. (2010) argued about the quantity of migration among United Kingdom. From 2004 to 2012, over a half million people has been migrated to UK. Approximately, United Kingdom has added 949,000 citizens, 647,000 citizens from non states of European Union and 141,000 citizens from previous states of European Union. People who have migrated to U.K are low skilled. Rate of unemployment among them are high level.

However Andersen et al. (2013) stated that, economy of United Kingdom is availing the high growth of recovery within the economy. As the economy of this country goes the rate of unemployment are decreasing. Therefore, at the time of recession, U.K has seen substantial gap within the sector of labor productivity in compare to other advanced economies of world.


Impact of changing labor market on work condition and employer-employee relation:

As stated by Adeniji et al. (2013) changes of labor market has resulted different elements within the structure of employment. There are a new trend within the relationship of employees and employers. New trend of relationship has been developed day by day. There are certain changes within the profiles of business, nature and process of employee engagement etc.

On the other hand, Brown and Vickerstaff (2011) stated that, at present there are several types of business profiles those are the result of changing scenario of employment. Some years ago, there were several manual jobs. However, with the advancement of technology manual jobs have been decreased by acquiring the technological ingredients. Therefore, labor market of United Kingdom has seen the less productive workers and work. However, changing relationship has focused upon the skilled workers. Therefore, extensive levels of training and development process should be present there in order to train the new people among the job sector of UK (Cipd.co.uk, 2015).

Quantity of managers and professionals has been increased by 1.6 million within every group of employment. However, U.K has seen lack of productive workers during this period. Migrants and young unemployment are seriously low skilled. Especially, migrants are taken for various low skilled job as because their different cultural identity. After the recession of 1990, labor market of U.K has seen a massive structural change. This change has evolved a new type of relationship within the employer and employees.

For the recession, various types of business organization have tried to minimize the loss of skilled permanent staffs through implementing various policies within the process of recruitment. Therefore, with the changes of labor market within United Kingdom, short span of working, unpaid leave, have been increased. On the other hand, Government and other related organization has also implemented some changes that various business firms should preserve similar as well as available work for the employees. Therefore, the labor market has become so flexible. Workable regulatory system has impacted upon the flexible labor market of United Kingdom.

On the other hand, Dorn (1981) also argued that structural changes of labor market have contributed to the relative stability of the today’s competitive sector of market. As the economy grows, various business organizations have changed their rules and policies of hour and wages of work condition of the employees. Therefore, with the impact of globalization, global labor market has been changed and the technology of communication and internet has also impacted upon the activities of business among several organizations. With the advancement of ICT (Information, communication, technology) various business organizations have acquired changes as per the requirements of the business organization.

In this respect, CBI has stated that, flexibility within the labor market is a wider concept that describes the overall responds of the flexible labor market within the changing environment of the economy.

However, Marin and Psacharopoulos (1982) stated that, engagement of employees is also the important factor of business. Every business organization needs to implement several policies those help to maintain effective relation within the employees and employer of a particular organization. Employees should be retained by the employer organization.


Forecast of the Confederation of British Industry:

In order to maintain effective relation with the employees of the organization, body of the employer as well as employer organization has to adopt practice of flexible working structure in order to improve the performance of the employees. Flexible working condition helps to improve working condition of the employees. This will also help to benefit the employees. On the other hand CBI also has forecasted to do effective performance in order to make effective remote working possible for the organization.

As stated by Jena and Reilly (2013), Confederation of British Industry has surveyed within the market in order to know the business opportunities of the market. Flexible work condition helps to maintain the balance among recruitment and retention. Maintaining the balance between Work and life is the important issue within the activities of business. For this issue, often various types of business organization fail to imply the benefits of the business. Confederation of British Industry has taken the agenda to encourage the employees in order to improve the productivity among the employees as motivating factors.

 Confederation of British Industry has conducted survey in order to understand the job prospects and related factors of potential market of United Kingdom. According to the CBI, job opportunities among the market have been increased. The situation of economy has also changed after the recession of this region. U.K now has the flexible labor market that has been underpinned by regulatory frame work within the competitive sector of market. CBI has forecasted about the flexible working condition of the market. During the period of recession, various types of contract as helped in order to save the jobs of unemployment especially the young employees.  Therefore, as per the policy of CBI, flexible contract has been helped in order to save many jobs at the time of recession. As per the guidelines of CBI, every business organization has started to understand the impact as well as importance of flexible working condition. Within the competitive sector of market, 97% business organizations have the belief in working with flexible situation. Within the prospects of business investment and creation of job, maintaining a flexible workforce is very important as well as effective and necessary element (Cbi.org.uk, 2015).

Therefore, as per the findings and statements of CBI, it can be stated that, relationship among various types of employment are now characterized by choice of works of different forms and flexibility. Flexible conditions of work have been impacted also upon the relationship of employees and employers within various competitive sector of market with different activities of market. Flexible working condition helps to attract more investment and talent from international level. In this regard, statement of CBI is to design the framework of regulation to help the employees or employers. Therefore, retaining the work time is the important as well as vital element of flexibility.

As per the survey of CBI, important organizations have made 48 hours as maximum working weak. This can also result for the high competition among several types of business organizations. Thus, flexible labor market can add high skilled labor force from various countries. Therefore, several business organizations can acquire skilled as well as productive labors or workforces for the international projects. However, flexible workforce refers to the situation where an international organization of United Kingdom can be able to deliver workers between different locations as per the requirements and demands of the business. Therefore, CBI also have recommended for the fast improvement of visa and immigrant elements as the number of immigrants have been increased a lot during a time of United Kingdom (Acas.org.uk, 2015).

On the other hand Ali (2012) stated that, CBI has also put serious attention upon the involvement of young generation as important workforce. UK needs to focus on the training and development process of individual workers especially young generations. This will help U.K in order to make a significant activity within the competitive sector of market. U.K has to provide equal chances for all individuals for developing potential and employability skills in order to compete with competitive sector of market. CBI will take enough action to ensure the skills, behaviors, attitudes and potential of young people. CBI gets the information that¸ several types of job opportunities will be come for attracting the young people of the society.  Therefore, changes have to be made within the education and skill development system.

CBI therefore states that, new approach to the schools will be the important factor in order to develop the skills. Leaders and teachers of school should be empowered logically.

Therefore, from the conducted survey, CBI also has concluded that, employer of an organization also have to play an important role for improving the prospects of work within the area of young people. Attitudes towards the employees should be changed by the employers of a particular organization.


This assignment has dealt with the issues of labor market in the changing scenario of United Kingdom after the recession. This assignment has discussed detail description of recessions of United Kingdom. Scenario of changing labor market has also been described. This assignment has discussed the effectiveness of Confederation of British Industry of United Kingdom. The changing patter of employment has also been described. Changing relation within the employees and employer has also been described in detail background information and examples.


Reference lists


Béduwé, C. and Planas, J. (2003). EDEX: educational expansion and labour market. Luxembourg: Office for Official Publicatons of the European Communities.

Heijke, J. (1994). Forecasting the labour market by occupation and education. Boston: Kluwer Academic Publishers.

Ramaswamy, R. and Prasad, E. (1994). Shocks and structural breaks. [Washington, D.C.]: International Monetary Fund, European I and Western Hemisphere Departments.


Ali, A. (2012) “The Role of Leadership in Human Resource Management – Proposing Conceptual Framework of Advanced Leadership Model”, Interdisciplinary journal of contemporary research in business, 4(6), 979-989

Altarawmneh, I., and Al-Kilani, M. H. (2010) “Human Resource Management and Turnover Intentions in the Jordanian Hotel Sector”, Research and Practice in Human Resource Management, 18(1), 46-59

Andersen, T. J. and Minbaeva, D. (2013) “The Role of Human Resource Management in Strategy Making”, Human Resource Management, 52(5), 809-827

Adeniji, A. A., Osibanjo, A. O., and Abiodun, A. J. (2013) “Organizational Change and Human Resource Management Interventions: An Investigation of the Nigerian Banking Industry”, Serbian Journal of Management, 8(2), 139-154.

Brown, P. and Vickerstaff, S. (2011). Health Subjectivities and Labor Market Participation: Pessimism and Older Workers' Attitudes and Narratives Around Retirement in the United Kingdom. Research on Aging, 33(5), pp.529-550.

Dorn, N. (1981). The Politics of Dependency Problems: Labor Market Failure, Youth and “Dependency Problemsâ€Â in the United Kingdom. Journal of Psychoactive Drugs, 13(1), pp.61-69.

Marin, A. and Psacharopoulos, G. (1982). The Reward for Risk in the Labor Market: Evidence from the United Kingdom and a Reconciliation with Other Studies. Journal of Political Economy, 90(4), p.827.

Jena, F. and Reilly, B. (2013). The determinants of United Kingdom student visa demand from developing countries. IZA Journal of Labor & Development, 2(1), p.6.


Acas.org.uk, (2015). Home | Acas. [online] Available at: https://www.acas.org.uk/ [Accessed 19 Mar. 2015].

Cbi.org.uk, (2015). Home - CBI. [online] Available at: https://www.cbi.org.uk/ [Accessed 19 Mar. 2015].

Cipd.co.uk, (2015). Championing better work and working lives CIPD. [online] Available at: https://www.cipd.co.uk/ [Accessed 19 Mar. 2015].

News.cbi.org.uk, (2015). Home - CBI. [online] Available at: https://news.cbi.org.uk/ [Accessed 19 Mar. 2015].


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