The Rail Industry in the country Germany has a strong demand characterization. This industry has sophisticated financing and organization activities. The German Rail industry also abides by complex budgetary and economic requirements. The fundamental structure of the long distance passenger rail transport in the country is foreseeing several changes in the next few years. The Deutsch Bahn Fernverkehr AG is the market leader in the Industry which was allocated around 70 percent of the country’s rail budget (SCI Multi client studies, 2013). The competitors to the Deutsch Bahn Fernverkehr AG are non-electrified routes and networks that are having around 6 percent of market share in the industry. The player Veolia Verkehr is the main competitor
The Business Strategy of the market leader Deutsch Bahn Fernverkehr would be to unify its market presence in terms of achieving better efficiency, technology adaptation and commerciality in its operations. The Company strategizes to come up with new multiple units. The Locomotive- hauled trains would be accordingly removed from the market, replaced by efficient and technology savvy electric trains. (DW, 2014).
Main Reasons for development described in the Article
The Main reasons for development of the urban rail market according to the Article are as follows (DW, 2014):
The HR has to carefully deal with the tense situation of series of strike being conducted by GDL, which is affecting the economy and business of the country. The dependency of the commuter transportation and freight transportation of the Deutsch Bahn, is very high (BBC News Europe, 2014). Hence HR of the Deutsch Bahn, the state owned company should quickly try to come up with a win-win situation to resolve the issue. Introduction of ‘Performance linked wage’ system instead of merely increasing the wage rate in a fixed pattern, can be an in-between solution to this issue. The Wage rate of the workers may be directly linked to the number of hours of operations, so the worker that works for more than the minimal work hours, would automatically be paid increased wage amounts.
The concepts and theories of the Human resource management studies would be quite a useful in analyzing the issues involved in the Deutsch Bahn’s case and formulate solutions to overcome the tensed situation. The issue of the Article is mainly surrounded with conflict resolution in the work place, and wage and salary administration. Thus, this issue can be addressed with reference to the following chapters of the book-
The following are the likely steps that the HR organizations may take to deal with the discussed situation in the Article:
The following are the Key methods and ways with which the HR can effectively deal with the dispute situation between the DB and GDL:
1.Integration of the Interest of the Employees and Management
The management could have worked together with the union representatives to set a balance between accepted hours of work and adequate payment of wages as per the market rates. The union representatives could have agreed to ensure maximum productivity by their workers in return for their demand of increased compensation
2.Filing Legal Disputes in context of public litigation for the inconvenience caused to the local commuters and Goods transporters. The Suit filed in the court of law, in form of the public litigation, can also include the amount of opportunity losses that the German economy is constantly suffering due to continuous periodic strikes by the GDL (Word Socialist website, 2014).
3.Going for a partial Disinvestment (Privatization) in the Deutsch Bahn on an immediate basis. Co-ordinate efforts by the management of the state owned company Deutsch Bahn, with the regulators of the country, can help the company disinvest its share to the Private Sector. This would in turn help curb this issue, as the decision of the wage increment, would not remain in the sole hands of this state owned company.
The following are the list of the key stakeholders that would be involved in the situation:
a.The company Deutsch Bahn could have offered wage revision to its workers based on their performance shown by each of them on their respective jobs. Thus, a performance based wage structure instead of offering a fixed wage revision could have been a way out of these disputes. The company Deutsch Bahn would have to take few steps back wards in terms of formulating measurable models to regularly measure the performance and the job hours completed by each of the workers with the company. The highly efficient workers (cream of the group) could have been given wage increments.
b.‘Performance Recognition’ is a very important tool in the Hands of an HR manager that can be used, whenever and wherever, money is a non-determinant factor (Ulrich Dave, 1996). The well performing workers could have been kept happy by the company, by recognizing their contributions and efforts towards their services to the company. The workers could have been motivated and kept happy in this manner.
c.Persuasion, with the Help of utmost patience, tolerance, consideration and affection displayed by the management of the company towards the worker, while negotiating terms with the workers, in a tiff situation, may even have done wonders in the negotiation process (Johnason, 2009).
Word Socialist website, 2014, German GDL union shuts down train driver’s strike, retrieved from
For years now, MyAssignmenthelp.com is providing affordable essay help to millions of students worldwide. Our essay assistance services have helped us in assisting students with even the toughest essay assignments. We take pride in the fact that we cater the best assistance to search terms like help me with my essay. We offer affordable services in the fastest way possible. For our fast delivering services, students trust us with their urgent essay assignment needs. Two of our most popular essay writing services are maths essay help and English essay help.
You are required to write a researched argument essay that convinces persuades the reader of your position / stance. This is an academic, researched and referenced do...Read More
Executive Summary The purpose of this report is to elaborate the factors which are considered by individuals before selecting an occupation. Choosing an occupati...Read More
Introduction With the increase enhancement in the field of technology, it has been considered essential by the businesses to implement such technology in their b...Read More
Executive Summary In a merger & acquisition, role of an HR has emerged as a very critical function. At each stage of merger and acquisition process, HR plays a s...Read More
Introduction In this competitive business environment where every business organization is trying to attract the customers of each other, it becomes essential for ...Read More