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Rakon is a global high technology company which was founded in 1967 by Warren Robinson. Rakon designs and manufactures advanced frequency control and timing solutions. The company has four manufacturing plants, including two joint ventures plants, located in New Zealand, France, India and China and five research and development (R&D) centres. Customer support centres are located in ten offices worldwide. The company's focus is on enabling next generation technologies in the telecommunications, global positioning and space & defence markets.

Rakon designs and manufactures advanced frequency control and timing solutions for telecommunications, global positioning and space and defence applications. Rakon products are found at the forefront of communications where speed and/or reliability are paramount. The company's products provide extremely accurate clocking signals, which are then used to generate precise electrical, radio or optical signals in networks and systems around the globe. Additionally Rakon offers a broad product portfolio to meet its customers timing and frequency control requirements. Whether it be within wired, wireless and fibre telecommunications networks, navigation devices, or satellites in space.

Since listing, Rakon has achieved a number of key merger and acquisition milestones:

  • In 2007 Rakon acquired the frequency control products division of Britain's C-MAC MicroTechnology.
  • In 2008 Rakon entered into a joint venture relationship with Indian owned and based Centum Electronics, together establishing Centum Rakon India.
  • In 2008 Rakon entered into a joint venture agreement with China based Timemaker Crystal Technology.
  • In 2010 Rakon acquired the assets of French based competitor Temex.
  • In 2013 Rakon sold its majority stake in Rakon Crystal Chengdu (RCC) to ECEC, as a result of a strategic exit from smart wireless device (SWD) business.
  • In December 2015 Rakon announced its investment in Thinxtra, an Internet of Things (IoT) company. Thinxtra became the exclusive Sigfox network operator for Australia and New Zealand and began deploying the network in Australasia in the second quarter of 2016 and announced its expansion into Hong Kong in December 2016.
  • In December 2016, Rakon announced that Taiwanese company Siward Crystal Technology Company Limited would invest in Rakon, taking a 16.6 percent share in the company. The investment completed on 15 February 2017.

Assume that you are an expert Human Resource Management consultant brought in by the Rakon board of directors to advise on their Labour relations policy. Carefully investigate the information above and conduct a thorough research from the company website to identify the labour relations policy for this organisation. And prepare a formal report for the board of directors outlining their take for manging relationship with various stakeholders involved. 

Human Resource Strategies at Rakon Limited

Human resource management is a functional activity that all managers require to execute. At Rakon Limited the human resource department is concerned with the recruitment, selection, employee development process. The human resource department makes sure that every employee contributes in a well defined way in order to achieve the organizational goals. The human resource management process is a consequence of a number of important inter-related developments because of industrial growth. The recent emergence of trade union movements has created a need for an individual to look into the matter. He acts as an important link between management and workers. Human relations move toward accepting people as the vital source in any organization (Armstrong & Taylor, 2014).

The purpose of this report is to make suggestion regarding making improvement between workers and Management through trade union philosophy. It primarily focuses over the Philosophy of Trade Union in the context of 21st Century organisation and provides with a Rationale of labour union in terms of Specific behaviour of stakeholder. The traditional conception of Labor welfare and Personnel Management was replaced with Human Resource Management. Currently, all the aspects like recruitment, selection, placement and labor welfare etc are look after by the human resource personnel. Human Resource Department looks after the preceding view & has significantly replaced the traditional concept of Labor Welfare and Personnel Management.

Rakon is a speedy pace, multifaceted and active technology company. The human resource process is meant to deliver customers with an innovative solution.  The company understands industry requirements and hires the best quality people. Rakon is famous for providing technology based solution to its customers worldwide through its diversified product portfolio including technology superior products - telecommunications, positioning and space & defense markets (About Rakon, 2017).

Rakon is currently operating a matrix structure by working together across its manufacturing facilities, design centers and global sales offices. It gains vast synergies that an international extremely accomplished team offers.  They are bound together by the similar technology language. The skill and knowledge in the staff has helped in gaining recognition in the industry. The company uses Information and Technology as an important tool to facilitate growth. In this way the company can stay connected 24/7 through video conferencing provides with an effective business solution.  The company is culturally diverse & facilitates growth option to 30 different nationalities at their Auckland headquarter. Rakon commence to utilize a number of graduates each year by developing young engineers in the electronics industry.  They have close tie-ups with universities and awards scholarships and run graduate programmes to top talent in order to strengthen the industry’s expertise support.

It is therefore important for Rakon to improve relations with the employees so that it is able to balance the inefficiencies. A poor relationship with co-workers and management causes inefficiency at workplace. A recent study demonstrates that this is actually affecting the overall productivity in an organization than most people may understand. In detail, according to a recently released survey, employee engagement and organizational culture indicates the employees are disappointed with their manager. This affects the management and staffs and is harmful effect for the company in achieving growth. Rakon persistently working with customers on principal frame technology and goods helping in influencing the way people work and play in today's world.  Rakon recognizes the market requirements allowing leading employee management policies (Noe, et al 2007).

Improvement of Relations between Workers and Management

It is important to manage relationship in between the employer and the employee.  Organizational management and employee unions are only efficient enough if they mutually admit that the erstwhile has a rightful and esteemed idea. Management is responsible for controlling resources. Both are responsible for creating a better work environment for an organization.

It is correct to state that, communication is the lifeline of an organization.  It is one of the important parts in an organizational cultural development. Continuous communication between the employers and the employee union helps in the working association and minimizing disputes. There are numerous factors that continually influence the employer’s business and might also have an effect on employees from time to time (Petrick, 2017).

It is important for the business organization to manage the various allied factors that can hamper the growth in the organization. Employers can get better relation between employee unions all the way through the acceptance of proactive employment policies. The Employers know that the employee unions look for securing employee comfort and can reduce the requirement for steady negotiation by approving policies and practices that improve employee welfare.

It is evident in the current scenario that the Employers and employee unions can also work together in teams by enhancing their working relationship. This will ultimately result in an effective employers and employee union’s relationship.  Philosophy of Trade Union in the context of 21st Century organisation

The Trade unions are called as association of workers or organization formed jointly by labour, workers or employees to attain demands for enhanced circumstances at their work atmosphere. The union therefore negotiates contracts and state of affairs with employers, keeping employee contentment far above the ground and defending workers from dangerous or unjust working conditions. These unions survive to deal with problems that are faced by labourers. These problems may include any of the issue concerning the pay, unfair work rules, timings and so on. It is important for the organization to manage relationship between the trade union and workers in order to gain desired result and growth. Entire communication taking place in between the employer and the workforce in general take place through trade union. The trade unions are also liable and accountable for upholding discipline among the workers. Their core purpose is to make certain dealings or being conserved surrounded by management and workers and trade union. For attaining the goal it is important to take disciplinary action alongside the workers who ever misbehaves.  It is however important to manage the differences occurring in the organization (Lengnick-Hall, et al 2009).

The Trade unions are governed by the law prevailed in the country. It is mandatory for the company to follow the rules and regulations as established.  There is a necessity to provide a solution to meet with the issues taking place in the organization. One should follow the process and form of registration for configuration of the trade union according to the law. Trade union shaped in agreement with the law has the rights known by the law of trade union. With rights of the trade union, it is bind to perform certain duties with respect to workers. In order to resolve the issues it is mandatory for the trade union to bargain collectively.

Mutual Respect

It is the duty of every trade union registered under the law to work proficiently. The main purpose is to achieve certain objectives that are mentioned in details. The primary object in the context of 21st Century organisation is to defend the safety of the workers and exploitation against by the Management or employer.  Moreover in the context of modern business organization it is evident to manage the responsibility of every trade union to sustain management for its operation and add to organisation or company by way of cheering workers in a positive way.

The trade union are responsible to address critical issues taking place in the organization. It is thereby necessary for Rakon Limited to manage the critical issues that can be met through the trade union. It is important for the business organization to measure the changes taking place in the surroundings. The trade Union do play a complex dual role by managing the internal equality action within the organisational hierarchies. Apart from the manager they are give a duty to ensure external equality action, appealing employers at place of work on equality issues as representatives. The roles played by Trade Union are not mutually exclusive, and frequently overlie. Through a representative it is important to manage the social groups that are able o pressure workplace bargaining and negotiations. In other words the union members are capable enough to voice their needs, relatively leaving the union at the mercy of red tapism. It is important as per the current necessities that are stated earlier. There is a sudden shift towards ‘Managing Diversity’, equality strategies that have become more business driven.  The role of the union is considered beneficiary to the employees within the overall aim of social justice. So, it is relevant in the workplaces to counter balance the work force that is apprehensive with people and not simply profits (Sparrow, Brewster & Chung, 2016).

Employees are leaving the organization due to many reasons that are unknown to the employer. In such a situation it is relevant for the employer to develop effective strategies keeping in mind the need of the employees.  These retention strategies are important as per the current need and necessity in Rakon Limited.  These retention methods do have a significant impact on the organizational turnover. 70% of managers believe that the employees leave mainly due to pay-related reasons. There are mainly seven reasons why employees leave a company:

  • In case if the Employees feel that the job or workplace is not what they expected.
  • Sometimes there is a mismatch between the job and person.
  • There is diminutive training and feedback process.
  • Restricted growth and improvement opportunities
  • In certain cases the Employee feels undervalued and unrecognized.
  • Sometimes there is an extreme stress from overwork and have a work/life imbalance.
  • Lack of trust and confidence in senior leaders.

In order to retain the employees for a longer time period it is important to implement an effective retention strategy so that the employees feel accomplished at work. It is suggested to Rakon Limited to implement effective strategies in order to retain efficient workforce (Bakker & Leiter, 2010).

It should run certain effective job security programs to meet the needs of the employees. An employee should feel safe and secured at the workplace. This is the only way through which they can perform work in an effective way.

The compensation package needs to be given as per the industry standard. Employees generally compare their package with the other competitor in the industry. Employees paid well works in an effective way .

Regular Communication

It is important for an employer to understand the employee. It is the duty of employer to create a conducive work environment promoting the rights of every individual working in the organization.  Rakon has a multicultural background that requires a healthy atmosphere among the employees. It is important to create a right atmosphere in order to attain desired growth. The design of the organization should promote wellness at work & should cultivate positivity.

It is however important for the business organization to develop relationship with the employees by resolving disputes. Rakon motive is to gain next generation solutions. This can only be achieved by making strong employer and employee relations. Innovation in the field of information and technology is constantly changing (Kyndt, et al 2009).

In order to manage the effective relationship it is necessary to deal with highly competitive Global Market

There are challenges in the global market regarding strong Talent pool

In order to Nurture talent at all level of organisation it is necessary to manage the diversity at workplace in an effective way

The Inclusive Approach in the organization is there to manage the activities in a well an effective way. This is one of the primary motives in the organization that focuses over utilization of the resources (Sandhya & Kumar, 2011).

It is important to adopt Employer Brand for Employees so that it can build efficient relationship within the organization. This is important to ensure that there is a need of continuous development of the organization’s business and sustainable high performance. The work unions stand for employees in accomplishment of the best terms and conditions of employment. By respecting each other space they can easily gain organizational goals (Aguinis & Kraiger, 2009).


To Conclude, Employee management and retention is an effective activity that is important for the organization. Rakon Limited is a Multinational organization that requires implementation of effective HR policies in order to gain result.  The critical HRM issues are discussed well in the report establishing the relationship in between the HR policies and the organizational growth. Detail, according to a recently released survey, employee engagement and organizational culture indicates the employees are disappointed with their manager. The report places the role of the Human resource department in an effective way by evaluating the specific role. In this way the company can stay connected 24/7 through video conferencing provides with an effective business solution.  


About Rakon, (2017). (Online). Retrieved from: (Accessed on: 3 July 2017)

Aguinis, H., & Kraiger, K. (2009). Benefits of training and development for individuals and teams, organizations, and society. Annual review of psychology, 60, 451-474.

Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Bakker, A. B., & Leiter, M. P. (Eds.). (2010). Work engagement: A handbook of essential theory and research. Psychology press.

Kyndt, E., Dochy, F., Michielsen, M., & Moeyaert, B. (2009). Employee retention: Organisational and personal perspectives. Vocations and Learning, 2(3), 195-215.

Lengnick-Hall, M. L., Lengnick-Hall, C. A., Andrade, L. S., & Drake, B. (2009). Strategic human resource management: The evolution of the field. Human resource management review, 19(2), 64-85.

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2007). Fundamentals of human resource management. Boston, MA: McGraw-Hill/Irwin.

Petrick, J. (2017). (Online). Retrieved from: (Accessed on: 3 July 2017)

Sandhya, K., & Kumar, D. P. (2011). Employee retention by motivation. Indian Journal of science and technology, 4(12), 1778-1782.

Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.

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