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Effect of trade unions in the economy
• Review of literature on the various components of human resource management
• Review of literature on the various components of human resource management
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Recommended: Effect of trade unions in the economy
Since the number of UK employees in the trade union climbed to a peak of over 13 million in 1979, Trade Union member is decreased to 6.5 million in 2013. (Office for National Statistics, 2014) This downward trend is related to the development of Human Resource Management (HRM) and also link to the change in motivation employees, the general economy, working conditions, employees’ laws and Trade Union laws.
The most important reason for workers leaving trade union is because some workers do not need trade union at all. This condition has a strong correlation with the development of HRM. Human resource management is a strategic, integrated and coherent approach to the employment, it’s in order to maximize employees’ performance and make them develop in an organization. (Armstrong and
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Good industrial relations are related to HRM and employee relation. Employees maintaining good relations with employers can improve employee engagement and make every employee feels they are co-owners of the gains of business. Thus to reduce collective bargain and strikes and increase productivity.
HRM is developing fast since 1979, in 1980s, Michael Beer and his colleagues produced the Harvard model of HRM. At same time, Fombrun proposed the matching model of HRM. It caused a large number of organizations to believe that employees are key resources of business and realize the importance of keeping employees’ loyalty. As a result, HRM was concentrating on improving motivation of employees at that time. About 1990, a theory of hard and soft HRM model have been put forward, which hard focuses on the development of the organization when soft focuses on employees’ development. In 1990s, with the 5-p and European model of HRM came up, HRM increase flexible arrangement for employees and focus on more aspects, like environment. After 2000, HRM becomes more valuable, so, a number of
As companies look to expand operations and hire new employees, many economic and environmental factors are taken into consideration. The cost of labor is one of the primary concerns as labor generally constitutes a large part of company budgets. The organization of labor by unions further increases this concern. The wages of unionized workers are significantly higher than the wages of nonunion workers in almost every industry (Fossum, 2012). Higher wages generally result in reduced company profits, lower share prices, and reduced shareholder returns (Fossum, 2012). Unionization also reduces the employer’s flexibility with regards to hiring, transferring, or promoting employees (Fossum, 2012). Productivity may be negatively impacted by unionization because merit is often eliminated as a criterion for wage increases or promotions (Fossum, 2012). As a result of these negative impacts, employers are motivated to oppose unionization.
Whilst it is evident that there is a decline in union membership, it is important to analyse why this is so and what the unions are doing to combat the downward trend. In attempting to tackle this issue, it is important to state the main objectives of a union that attract employees to join a membership and why the memberships are declining.
The rise of industrial age led to the rise of industrial factory systems. As the industries grew larger as well as the workplace, it required more employees. As the employees grew in the workplace, their relationship with the employer became less personal hence individuals lost power. (History of Labor Unions Summary & Analysis, 2014) emphasizes that there was little to nothing an individual could do to pressure a large industrial business to increase his/ hers wages or shorten his/hers hours or provide a better working environment. The increasing migrants in Australia during the 1960’s continually replenished the supply of unskilled workers making it difficult for any employee to attain any leverage in negotiations with their employers. This led to employee’s embracement of collective action which then led to the rise of unions. According to (Burchielli, R 2006) Unions are seen as the power house of employees in the workplace, their role was to give employee a collective bargaining with their employers for better working environment, better wages and benefits such as paid leave. However union membership have decreased over the last couple of decades, according to (Australian Bureau of Statistics (ABS), 2013) in 1986 46 % of employees were members of trade unions by 2007 the figures have dropped to only 19%. There...
Industry deregulation, amplified contest and toil mobility have made it extra hard for traditional unions to maneuver. In current decades, unions have experienced partial expansion because of transferal from "old economy" industries, which often implicated manufacturing and big companies, to lesser and medium-sized companies exterior of manufacturing. In the current past, prospective union associates have increase into a bigger number of companies. This leads to negotiating collective bargaining being difficult job, as union’s officials have to work with a bigger number of well-versed managers and most of the times have a difficult time systematizing employees. Therefore, the management ends up having the day by giving what they had brought to the table of negotiations (Greenhouse 1).
Factories were known for their ill treatment of their employees, long hours and dirty and unsafe conditions. In 1866, unions started to form to improve working conditions for the workers. A fundamental problem faced by democratic societies is as long as people live their lives individually and go their separate ways and be selfish individuals, they are unlikely to meet collectively to resolve issues. There needs to be meaningful unity among people to alleviate this problem to get people obliged to one another, so there is a willingness to sacrifice for shared goals. Bonding of its citizens creates a democracy. Unions seemed to offer the middle class a chance to become a crucial part of fostering institutions of constitutional democracy. The unions have went through several transitions, but have always worked for the working force. I will discuss the history of the various unions, their wins and losses, and the struggle of the employee to achieve democracy in the workplace.
Q: Which of the following two concepts is more critical for international Human Resource Management: understanding the cultural environment or understanding the political and legal environment? Why? Include key terms and concepts from the textbook.
Labor unions were established as a way for workers’ needs and grievances to be heard by management. According to Fossum (2012), “forming a union creates a collective voice to influence change at work” (p. 7). The collective voice of workers in a union holds much more power than any single employee’s voice. It can loudly draw attention to mistreatment or abuse of workers. The organized collective voice of workers demands to be treated in a fair way by its management in terms of wages, hours, benefits, and working conditions.
The importance of Human Resource management is associated with the beginning of mankind. As the knowledge of survival had begun including safety, health, hunting and gathering, tribal leaders passed on the knowledge to their youth. However more advanced HRM functions were developed as early as 1000 B.C and 2000 B.C. Since the modern management theory took over, the working environment was transformed into a more friendly and safe work place. The workers were termed as most valuable resources. While some companies took the human side of employment seriously, there were others who did not find it mandatory. Hence they faced huge labor unions and factory shut downs (Henning, 2001).
Human resource management (HRM) encompasses the activities of acquiring, maintaining, and developing the organization's employees (human resources). "The traditional view of these activities focuses on planning for staffing needs, recruiting and selecting of employees, orienting and training staff, appraising their performance, providing compensations and benefits, and making their career movement and development." HRM involves two aspects:...
Fox, Alan (1966), Industrial sociology and Industrial relations. Royal Commission on trade Unions and Employers Association. Research Papers 3, HMSO, London
Employee benefits coordinator play a significant role in Human Resource Management. Employee Benefits coordinators are responsible for assisting with employee benefits, maintaining employee data base, managing all insurance billings and maintain employee files, sick pay, vacation and retirement. This study explores the importance of employee benefits to corporations, government agencies and non profit organizations. This paper also researches the effects on the management team and on individual employees’.
The relationship between employer and employees plays a pivotal role in the performance of the organization. Employers and employees have certain responsibilities towards each other which facilitate a fair and productive workplace. Positive work relationships create a cooperative climate with effort towards the same goals. Conflict, on the other hand, is likely to divert attention away from organizational performance.
The pluralistic approach accepts the legitimacy of workers forming themselves into trade unions to express their interests, influence management decision and achieve their objectives. The pluralistic approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. The role of managers/management would lean towards enforcing, controlling, persuading and coordinating. Trade unions play an important role in this approach, being that employees can join unions to protect their interests and influence decision making by the management. Trade unions balance the power between management and employees, hence its an important factor in this approach and industrial
Human Resource Management (HRM) is fundamentally another name for personnel management. It is the process of making sure the employees are as creative as they can be. HRM is a way of grouping the range of activities associated with managing people that are variously categorised under employee relations, industrial/labour relations, personnel management and organisational behaviour. Many academic departments where research and teaching in all these areas take place have adopted the title department of human resources management. HRM is a coordinated approach to managing people that seeks to integrate the various personnel activates so that they are compatible with each other. Therefore the key areas of employee resourcing, employee development, employee reward and employee involvement are considered to be interrelated. Policy-making and procedures in one of these areas will have an impact on other areas, therefore human resources management is an approach that takes a holistic view and considers how various areas can be integrated.
Industrial relations is an umbrella concept that overall encompasses the relationship between the employer and the employee on the contrary Industrial conflict between or among groups, industries and government. Economically, the factor of productivity in workplace is very important