The relation between the labors and management of an organization is the most complicated type of relation. The human resource management of an organization has to face significant difficulties to deal with the relation between the labors and management. The efficient maintenance of labor-management relationship helps to retain a harmonious work environment in the organizations; and this process helps the organization to achieve its desired goals and objectives. It can be seen that there are several reasons that lead to the conflict between the employees and management. However, with the help of pr5oper strategies, this situation can be avoided (Knights & Willmott, 2016).
Impact of Labor Unions on the Organizations
Human resource is one of the most important resources of a business organization. Human resources refer to the employees and labors of the business organizations. It can be seen that there are several companies that use unionized labors for their various business operations. These unionized labors are called Labor Unions. The impacts of labor unions on the business operation are discussed below:
Unionization: The National Labor relation Act is a prime force behind the establishments of various labor unions. As per the rules and regulations, the labors of the organizations have the rights to form, assist and join the labor unions. The labor unions help in collective bargaining with the help of representation. The main aims of the labor unions are to ensure that the labors are properly represented and to eliminate the unfair labor practices (Lichtenstein, 2013).
Increase in Wages: The labor unions impacts the organizations by increasing the wages of the labors. There are many instances where the labors are underpaid. In this kind of situation, the labor unions make collective bargaining with the management of the organization and increase the wages for the labors. This process helps to increase the productivity of the labors.
Pension Plans: The collective bargaining agreement of the labor unions helps to create the pension plants that are heavily favorable for the labors of the business organizations. All these benefit and pension plans helps to increase the cost per employees. In addition, the employees can get more than average rate of compensation (Dubofsky & Dulles, 2014).
Reduction in Workforce: The management of the organizations cannot cut the jobs of the labors due to the presence of labor unions. This create significance impact on the operations of the business organizations as they cannot unnecessarily reduce the number of the employees.
Consideration: Due to the presence of labor unions, the management of the organizations treats the labors more respect and dignity. On the other hand, the employees become motivated and loyal towards their jobs and organizations (Fossum, 2014).
Reasons fort Labor-Management Conflict
There are various reasons that contribute to the conflict between the labors and management of the organizations. The major reasons of conflicts between the labors and management are discussed below:
Wages and Benefits: Wages and benefits have been the major reasons behind the conflict between labors and management. In order to cut down the expenses of the organization, the management always wants to reduce the wages and benefits of the labors (Kochan et al., 2013).
Employee Layoffs: Cutting down the workforce is a natural practice for the management at the time of reduction of expenses. This is one of the major reasons for the conflict between employees and management. Conflicts can be arrived over the pending amount of employee compensation.
Safety: For the companies that have global presences, safety of the labors is a major contributor to the conflict between labors and employees. It has been seen that there are many safety issues for the labors of the organization like child labor issues, safety for women labors and many others.
Work Hours: It can be seen that the business organizations tend to stretch the working hours of the labors in an illegal way. This is one of the major reasons that leads to the conflict between labors and management. Many industrial conflicts can be seen over this particular issue (Roediger & Esch, 2012).
Unionization: The development of various labor unions is crucial reason for the conflicts between labors and management. The labor unions always stand behind the labors in case of any kind of injustice done by the management. This process creates conflicts.
The above discussion sheds light on the reasons of employee and management conflicts. However, the adoption of effective strategies can promote cordial relationship among the labors and management. Three major strategies are discussed below:
Implementation of Effective Communication and Resolution Channel: The lack of effective communication channel is a major reason of conflict. Hence, in order to promote cordial relationship between the labors and management, it is needed to establish an effective communication channel and conflict resolution channel in the organization. This step will provide both the labors and management the opportunity to resolve the conflicts on a quick manner (Rosenbloom, 2012).
Active Involvement of the Union in the Management: One of the major ways to promote cordial relationship between labors and managements is to invite the labors and unions in the management process of the organization. This creates a friendly atmosphere in the organization.
Addressing Key Issues: The key issues related to labors must be addressed with the combined efforts of the management and the labor unions. This is one of the major ways to improve the relationship between the labors and the management of the business organizations (Burke & Barron, 2014).
The above study sheds lights on the various aspects of the relationship between the labors and the management of the organizations. It can be seen that the labor unions have some major impacts on the business like the increase in the wages, to motivate the labors and many others. It can be seen that there are many reasons that lead to the conflict between the labors and management like the compensation issue, layoff issue and many others. However, with the help of effective strategies, one can promote cordial relationship between labors and management like the improvement in various communication channel and others.
Burke, R., & Barron, S. (2014). Project management leadership: building creative teams. John Wiley & Sons.
Dubofsky, M., & Dulles, F. R. (2014). Labor in America: A history. John Wiley & Sons.
Fossum, J. A. (2014). Labor relations. Mcgraw Hill Higher Educat.
Knights, D., & Willmott, H. (Eds.). (2016). Labour process theory. Springer.
Kochan, T. A., Eaton, A. E., McKersie, R. B., & Adler, P. S. (2013). Healing together: The labor-management partnership at Kaiser Permanente. Cornell University Press.
Lichtenstein, N. (2013). State of the union: A century of American labor. Princeton University Press.
Roediger, D. R., & Esch, E. D. (2012). The production of difference: race and the management of labor in US history. Oxford University Press.
Rosenbloom, B. (2012). Marketing channels. Cengage Learning.