Essay: Good Practices For Effective Employer-Employee Relationships.

Impact of External Factors on Employer-Employee Relationships

Question:

Write an essay about the supporting good practice in managing employee relations.
 

An organization mainly consists of employers and employees. A healthy relationship between the employers and employees is inevitable for the growth of an organization. But their interests differ from each other; the employers mainly focus on reducing costs and increasing profits of the organisation whereas the employees focuses on increasing their salary and other terms of employment contract such as bonus, flexible hours, etc. This paper highlights the good practices that prevail between the employers and employee in an organization (Golden et al. 2014).

Increase in competition

Competition in the market is a very important factor which influence the relationship between the employers and employees. Competition varies according to the varying industries. There are some industries in which competition may be exceedingly higher. In such industries the organisations have to focus on giving better offers and opportunities to retain their employees. With the advent of globalisation the market has become too much competitive. Competition in the market has increased manifold after the concept of globalisation has come into effect. The organisations in this competitive environment are concerned with introducing new strategies and policies I order to outdo others. In such a competitive market the employers need to come out with good job offers so that the employees stick to their organisation. Thus, increase in competition impact directly on the employment relationship (Goetsch and Davis 2014).

Losing out of external contracts

Losing out of external contracts may directly have impact on the employment relationship. An organisation is concerned with fulfilling the obligations which arise out of contracts entered into between an organization and a third party. The organisation is bound by the terms and conditions of the contract. Under the terms of the contracts, the organisation is assigned some work or task which it needs to do within a prescribed time. The kind of work or task which is assigned to an organization depends on the kind of industry under which it falls. Once a contract is signed by an organisation with a third party, the organisation undertakes to complete the assigned work. The organisation then formulate plans and strategies and allocates different tasks to different employees. In this way job is generated. Losing out of external contracts is detrimental to the growth of an organization and it hinders the economy of an organisation. Consequently it fails to allocate tasks to the employees and the employees have only two options left to them- either to quit from the organization or sit idle in their homes (Armstrong and Taylor 2014). 

Internal factors

Internal factors are controllable unlike external factors. Some of the internal factors which have an impact on the relationship status re as follows:

Management style

Effective management style plays a key role in the development of an organisation. For the progress of any organisation it is very important for the management team to consider the interests of the employees while making any decision. Including the employees and enabling them to participate in a decision making process have a positive impact on the employees. The employees feel valued and they become more focussed on their work. Their approach towards the work undergoes a change and they work with more dedication and determination. Motivating the workers is another way by which the management can bring the best out of every employees. Motivating employees can be in a number of ways. Strategies such as paying bonus or incentives or respecting a senior employee or not punishing an employee for his poor performance etc. can make the employees realise that they are an important part of the organization. The management style can be improved from time to time by introducing effective strategies and attracting employees and making them stick to the organisation. An innovative management style is inevitable to compete with the other organisations in the same industry and to retain valued employees (Blackburn et al. 2013).

Impact of Internal Factors on Employer-Employee Relationships

Culture-way things are done

The culture followed in any organisation is an important factor for determining the success and failure of the organisation. Culture of a work place does not develop overnight. It develops over a period of time. When many persons are working under the same organisation, they gradually develop some common values and ideals which shape the way of their behaviour. Various problems may arise in an organisation and it is important to deal with those problems or issues in a harmonizing way. This can only be done by involving the employees in the decision making process. A code of ethics and observance of good moral values and ideals can shape a better culture of an organization. Respecting the boss is important in any organisation. Punctuality, dedication and hard work are important for the success of any organisation. It is important to build a culture where employees have their job satisfaction and they work freely and happily and at the same time they coordinate and cooperate with the management team. Thus, culture is the deciding factor whether an employee wants to earn just money from an organisation or whether an employee gets attached with the organisation and work with respect and value. Culture ultimately shapes the employees’ attitude and behaviour towards work and determines the fate of an organisation (Imran et al. 2014). 

1. Permanent employee:

A permanent employee is an employee who has been employed without any pre-determined time limit. They do not work for a specific period of time or do not work until the completion of a specific project. They are permanent in the sense that they work until they choose to resign or until they are laid off or fired form the organisation (Lin and Han 2015).

2. An agency worker

An agency worker is a worker who works under a contract of service or under a contract of employment with an employment agency. The workers are hired to render services or work for an organisation. They are hired for a specific period of time and they have different rights and conditions of work than those of the regular workers (Biggs 2015).

3. Self-employed worker

A self-employed worker works for himself, he has his own clients and works for them. He get paid by his clients directly.  He controls his own work and enjoys the profits or suffers the loss which accrue form his work (Caliendo et al. 2014).

4. Fixed term contract employee

Fixed-term contract employees are those who work for a particular period of time under a contract with an organization. They are employed for a fixed term and at the end of their term the contract may be renewed or may be terminated (Graaf 2012).

5. Volunteer

A volunteer employee is an employee who undertakes to do work without any expectation of any kind of compensation (Rubin et al. 2015).

There are various reasons for determining the employment status. Firstly, as soon as the status of an ‘employee’ is given to an employee, he is entitled to certain rights. He will be protected against unfair dismissals, he will be entitled to a redundancy payment and he is entitled to receive a notice from the employer before he is dismissed from the job. Not only that, they are also entitled to the minimum wage payable to the employees according to the national legislation and they are governed by the provisions under the Work time regulation. They are also protected against any form of discrimination. Secondly, certain responsibilities also arise on the part of the employers. They are prohibited from treating the employees unfairly and unjustly. 

Types of Employees in an Organization

An employee is the main worker for an organisation and devotes his entire time towards fulfilling his responsibilities. He works according to the direction of the employees, coordinates with other employees and does all the tasks which are allotted to him. But he has a personal life of his own. He has certain responsibilities towards his family as well. It is very important for an employee to maintain a balance between his working life and his family life. There may be many challenges and issues which may be faced by an employee during his employment term. Some of the common challenges which a worker faces during his employment term are issues relating to maternity and child care, illness, etc. These issues are important and cannot be neglected. The workers have the right to live happily with their families. The workers may have to take leaves from work to address the family issues. The protection of employees has to be taken into consideration while formulating business strategies and policies. If employees don’t get protection, they will have no other option than to quit from the organisation and if the employees quit from the work, then there will be no production which will ultimately affect the business of the organisation. Therefore, safe conditions of work and employees’ protection are the sine qua non for the development any industry (Millán et al.  2013).

Legislation can play a key role in ensuring protection to the employees. Adequate provisions laid down under a legislation can help the employees to keep a balance between his working life and personal life. Legislations can direct the employers to grant reliefs during tough times faced by an employee. Legislative back up for the protection of the employees can help secure a reasonable and healthy conditions of work. Mandernach, B.J., Barclay, D., Justin, P., Huslig, S. and Jackson, C.M., 2015. Faculty Engagement as a Function of Instructional Mode and Employment Status (Millán et al.  2013).

Legal support may be given in the following areas to ensure that an employee is able to fulfil his duties as a worker as well as a responsible family member:

1. Working hours
2. Law relating to wage
3. Fair conditions of work
4. Right against illegal termination
5. Right to privacy
6. Right against sexual harassment
7. Maternity relief etc.

The pieces of legislation which have been enacted by the UK Govt. to ensure that the employees are able maintain a balance between his professional and personal life are as follows:

Working Time Regulations Act, 1988: This Act has laid down a provision that an employee cannot be compelled to work between 48 hours in a week. It also ensures paid leave for 28 days in year. Further it provides that an employee will get at least 20 min leave in a shift of 6 hours’ work or more.

Work and Families Act 2006: This Act gave right to the employees to get paid and leave in connection with the birth or adoption of children.

Employment Act 2008: This Act introduced amendments in a wide range of laws relating to labour. It focussed on areas relating to dispute resolution and strengthened the provisions relating to the enforcement of the minimum wage.

Employment Rights Act 1996: This Act deals with a range of issues relating to the rights that an employee is entitled to get under his term of employment. The Act has covered issues such as unfair dismissal, parenting rights, redundancy etc. (Painter and Holmes 2015). 

The reasons for treating employees fairly in relation to pay are as follows:

It will increase motivation of the staff and the workers would be of the belief that they are being valued and consequently they would give more effort and show more dedication at times of work. It will also increase the morale of the female workers who are endowed with lot of duties as a homemaker. Money is an important factor for every employees. Along with money comes other factors such as job satisfaction, conditions of work, attachment with the organisation etc. But money is the primary factor which enables a worker to support his family financially, get his children admitted in a school and meet other expenses of a family. Moreover, equal payment to all workers keep both male and female workers on the same footing and boost the performance of the female workers. The Equality Act of 2010 aims to prohibit any discrimination based on sex and treats both male and female fairly and equitably (Akhtar and Fischer 2014).

A discrimination legislation purports to prohibit all sorts of discrimination in a workplace. Treating everyone equally is important to maintain a positive culture in an organization. The Equality Act was passed in 2010 by the UK Government and it covers the following areas:

• It has prohibited all forms of discrimination based on sex, religion, disability, marriage, gender reassignment etc.
• It has extended the protection which were available to the disabled persons under the Discrimination Act 1995. The concept of discrimination arising from disability has been introduced in the Act of 2010.
• It prohibits the employers from victimizing any person who has exercised his right under this legislation and filed a complaint about discrimination.
• The Act purports to clearly give protection the breastfeeding mothers.
• The Act has given a new definition of gender reassignment. Under the present legislation, a person who changes sex does not need to undergo a medical procedure.
• The Act has made it difficult for interviewers to unfairly screen job seekers who are disabled. Under the present legislation, the interviewer is disallowed to ask any question to a person regarding his health or disability.
• Under the provisions of the Act, the employers are prohibited from maintaining secrecy of the payments made to workers. Payment to all workers has to be equal regardless of his/her gender and less payment to a worker for his disability is not allowed.
• Under the present framework the employment tribunals are empowered to give recommendations to the organisations for eliminating all forms of discrimination (Conley 2014).

Psychological contract is the perception that an employer and employee has regarding their mutual obligations towards each other.

The psychological contract between the employers and employees covers all other aspects of the employment relationship which are not expressed in the formal contract. It reduces security; enhances discretionary effort and balances mutual expectations. For the better performance of an organisation a positive psychological contract is essential to be maintained. Under the psychological contract, the employers and the employees come to a mutual understanding of the promises they have made regarding work, loyalty, security, pay, flexibility and career advancement (Noon et al. 2013). 

When an employee joins an organisation, he is ought to be treated fairly. A dismissal of an employee is considered to be fair if the employee is dismissed for the following reasons:

1. Misconduct: Misconduct of an employee is ought not to be entertained in a workplace. If an employee’s conduct affects the working ethos and values which are observed in a workplace, then his dismissal would be justified and considered to be fair.
2. Lack of qualification and capability: Employees are ought to possess necessary qualifications and capabilities to meet the requirements which are expected from them for fulfilling the obligations which an organisation undertakes under a contract. If an employee lacks minimum level of qualification or capability, his dismissal on this ground would be considered to be fair.
3. Redundancy: An employee is considered to be dismissed by reason of redundancy on the fulfilment of the following conditions:
4. If the business carried on by the employer ceases to be carried on.
5. If the place of business changes or in other words if the business is no longer carried on in the place where the employee was employed.

• If the requirements of the business for an employee to carry out a particular kind of work cease to exist.

1. If the requirements of the business for an employee to carry out work at a particular place cease to exist.
2. Statutory obligation: If a statute provides for prohibition of an employment, then the dismissal of an employee would be considered to be a fair dismissal.

A dismissal would be considered to be dismissal if an employee is dismissed on the following grounds:

1. Pregnancy: If an employee cannot attend work because of her getting pregnant and she is dismissed solely on that ground, it would be considered to be an unfair dismissal.
2. Family reasons: If an employee is not able to attend work because of his exercising his family responsibilities during time of birth of his child or during adoption of a child and the employee is dismissed on for that reason, the dismissal is considered to be an unfair dismissal.
3. Trade Union membership: If an employee becomes a member of trade union and exercised his right thereunder and the employee is dismissed on that ground, his dismissal is unfair.
4. Work time, leave and minimum wage: If an employee exercises right under the Work Time regulations or under regulations relating to minimum wage or under annual leave provisions and the employee is dismissed because of such exercise of right on the part of the employee, then the dismissal would be unfair (Woolston 2016).

An exit interview is important from the point of view of the management. Exit interviews are conducted when an employee resigns from the job and is about to exit from the organisation. An exit interview helps the managers to identify the weak points of the management team. An employee who exits from an organisation is deemed to open up and do constructive criticism of the management style or work culture. The employer, through the conduct of an exit interview, is also able to make out whether the organisation fails to offer a better career opportunity than their competitors or not. The managers may not down the key areas which a resigning employee views with scepticism and may adopt new strategies to improve on those areas and prohibit further resignation. Thus the exit interviews help an organisation to improve on their management style and adopt new ways and policies to overcome the deficiency it possesses (Doyle and Roberts 2013).

Redundancy is the most unfortunate phase from the point of view of the employer. Building a workforce is very tough and it takes a whole lot of time to reach a stage where an organisation is full of skilled and experienced labours. Under the redundancy process, the employees are dismissed and this process has to be handled very sensitively. The key stages in the redundancy process are as follows:

1. Preparation: In the preparation stage, the employers decide whether redundancy is required or not. After assessing the situation, if the employers feel that redundancy is needed, then they are required to prepare relevant documentation.
2. Selection: It is the most important stage where the employers select the employees who are to be dismissed. The criteria for selection rests on experience, skills and qualification required for the work, disciplinary records, capability etc.
3. Individual consultation: It is important to consult the individuals who are being dismissed. Effective communication and provision of an alternate employment are essential under the redundancy process.
4. Notice of redundancy: In this stage the employers send notice of redundancy to the employees and provide them with the right to appeal.
5. Termination: This is the final stage of redundancy process where the individuals are given the redundancy payment along with a written record of how the redundancy payment has been calculated (Ferner et al. 2012). 

Conclusion

The employees are very important part of an organisation and their interests are ought to be considered while important decisions are being made in an organisation. Respect of the rights of employees, non-discrimination of the employees, prohibition of unfair dismissals, mandatory redundancy payment, conduct of exit interviews, maternity benefits etc. all are necessary for maintaining a healthy environment in an organisation. 

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