Presentation is loading. Please wait.

Presentation is loading. Please wait.

Effective Employer -Employee Relations

Similar presentations

Presentation on theme: "Effective Employer -Employee Relations"— Presentation transcript:

1 Effective Employer -Employee Relations
A2 Business Studies

2 Aims and Objectives Aim: Understand the role of trade unions
Define trade unions Explain the relationship between trade unions and employers Analyse how the power of trade unions has changed Evaluate the effects of trade unions on stakeholders

3 Hard and Soft HRM Creating a flexible workforce Centralisation and Decentralisation

4 Employee Representation
Employee representation or participating arises when employees are part of a formal structure for involving them in the decision-making process of an organisation.

5 Employee Representation
The law requires a business to consult with employees on things such as: Redundancy programmes When employees are transferred from one employer to another (e.g. the sale of the business) On changes to pension arrangements Proposed changes to working time arrangements

6 Employee Representation Reasons
Businesses should have a form of employee representation to: Make employees' views known to management Help strengthen both management's and employees' understanding of workplace issues and other matters affecting the business Help create an atmosphere of mutual trust between employees and management and therefore improve workplace relations

7 AN: Employer Representation to Business
Advantages Disadvantages Increased empowerment and motivation of workforce. Employees become more committed to achieving objectives. Better decision making. Lower risk of industrial disputes. Time consuming – potentially slows decision making. Conflicts between employer and employee interests may block essential changes. Managers may feel their authority is undermined.

8 Trade Unions Trade unions are organisations of workers that seek through collective bargaining with employers to: Protect and improve the real incomes of their members Provide or improve job security Protect workers against unfair dismissal and other issues relating to employment legislation Lobby for better working conditions

9 Trade Unions Vs Firms? Conflict Partnership
Interests of firms and trade unions are conflicting. Higher wages for workers mean higher costs and lower profits for the firm. Union activity may then be seen as damaging to both the firm and the economy, reducing supply. The success of the firm is in the interests of both parties. A profitable firm is more likely to generate jobs and pay it’s workers well. If workers receive better pay and working conditions their morale may increase, leading to increased productivity for the firm.

10 Benefits to Firms of Trade Unions
Negotiating with trade unions (ideally a single union) saves time and cost rather than dealing with all employees individually Unions are part of the communication process between the business and employees Employee morale and motivation may be improved if they know that their interests are being protected by a union The trade union can be a supportive partner in helping a business undergo significant change

11 Trade Unions In the UK there has been a long term decline in union membership. In 2008, only 28% of people in a job in the UK were members of a trade union. That percentage is much lower in the private sector where less than one in six employees is in a union. Unionisation is much higher in the public sector – at over 50%. 4.30

12 Trade Unions

13 Trade Unions What reasons may there be for a steep decline in Trade Union membership since the 1980s?

14 Trade Unions Decline in employment in manufacturing (where union membership is traditionally strong) and an increase in employment in the service sector where unions are less well established Growth in the number of small firms which tend not to recognise (or need) trade unions Significant growth in flexible working (part-time, temporary, seasonal) – where employees see less need for union protection Improved employee involvement in the workplace – so less perceived need for collective bargaining

15 EV: Trade Unions Under UK law employers must recognise a trade union in pay and employment discussions when a majority of the workforce want to be represented and has voted for it. But there is little evidence that union members secure any significant wage “mark-up” or greater job protection than people in non-union jobs. Are trade unions a good thing for employers? Are trade unions a good thing for employees?

Download ppt "Effective Employer -Employee Relations"

Similar presentations

Ads by Google