1. 6 Decision making to improve human resource performance
Can you think of any recent examples in the media of poor employer-employee relations?
Why do these stories make the news?
6.5.1 Making human resource decisions: improving employer-employee relations
AQA Business

2. 6.5.1 Making human resource decisions: improving employer-employee relations
In this topic you will learn about
Influences on the extent and methods of employee involvement in decision making
How to manage and improve  employer- employee communications and relations
Value of good employer-employee relations

3. employer–employee relations
Employer-employee relations are the defining features of how employers and employees interact with each other on a day to day basis
Employee representation are the systems put in place to aid communication between employers and employees
Giving a voice to employees through a recognised body that represents them
In large organisations one to one discussions with all employees is not a realistic option
The elected voice must have a clear remit and the objectives understood by all related parties
Methods include:
Trade unions
Work councils
Recap.
What is meant by hard and soft HRM?

4. Trade Unions
National organisations with a remit to protect its members and improve their economic and working conditions
Key objectives of TUs are:
Securing jobs
Maximising pay
Ensuring safe and acceptable conditions
Fair treatment of members by employers
Represent members through collective bargaining
Partnership approach i.e. unions should be seen to be working with the employers to achieve industrial democracy
What actions can unions take to enforce their power?

5. Trade unions Unions can work with employees and employers to
Enhance business performance
Improve international competitiveness
Implement change
Lower labour turnover
Increase motivation
Unions work to avoid industrial action and solve potential disputes before they happen
Strike action is a last resort. Why do they still happen?
Rail workers vote for strike action
UK rail strikes suspended after 2% pay rise offer
Are they effective?

6. Employer-employee relations
An industrial dispute exists when there is a disagreement between the employer and the employee or employee representative
Industrial action is when the employees take sanctions to try and impose pressure on the employer
Work to rule
Demonstration
Lobbying
Strike
It is better to avoid disputes before they become troublesome than try to resolve them later
The Simpsons Half Assed work ethic

7. Employer-employee relations
Avoiding disputes
Early involvement of employees and employee representatives
Clear communication
ACAS - an independent body that can be called in to help avoid (or resolve) disputes by helping both parties work together
It is better to call in their services sooner rather than later
Advisory
Conciliation
Arbitration
Services
ACAS’s mission is to improve organisations and working life through better employment relations.

8. Employer-employee relations
Resolving disputes
Open and honest communication
Explore all avenues
Industrial action (as a last resort)
Utilise the services of ACAS
Conciliation – facilitates debate
Arbitration – if both parties agree to arbitration then the solution presented by ACAS has to be accepted by both parties
An independent study has revealed that ACAS
saves the UK economy £800 million per year.

9. Works councils
A group made up of managers and representative employees who meet regularly to discuss issues relating to the business and specifically issues affecting the workforce
Pay and working conditions
Workforce plans
Proposed or planned changes to business activities
Employees have a legal right to request a works council if working in a business with over 50 employees
Representatives must be elected
The council should have one representative per 50 employees

10. Advantages and disadvantages of employee representation
Medium for effective 2 way communication
Reduces feeling of “them and us”
Employees kept informed
Employers have some understanding of employee perceptions
Improved motivation
Less risk of industrial disputes
Opportunity cost of time
Can cause conflict due to different agendas
Slows down decision making
Employer may not be able to respond to employee wishes
Non homogeneous employees

11. Managing Communication with Employees
The process of passing information between interested parties
To the right person, at the right time and in a format that is understandable to the recipient
Effective communication with employees is important:
Coordinates
Motivates
Clarifies roles
Eases the implementation of change
Enables feedback
Facilitates decision making
Keeps everyone informed
Provides focus
Communication is an important aspect of employer-employee relations.

12. Managing Communication with Employees
Selective communication
Who needs to know and why?
Methods of communication
Method appropriate to content
Increased use of technology
Intranet and e mail
Avoid information overload
Individual, group or whole staff
Barriers to communication
Sender
Noise
Feedback
Recipient

13. Importance of communication to employee-employer relations
Open and honest communication
Involving employees in the decision making process
Genuine consultation
Two way communication
Reasons for and plans for change
Managing employee relations
The way in which employees and employers communicate and negotiate with each other
You Tube Dilbert: Consult Video

14. Value of good employer-employee relations
In pairs - What is the value of good employer- employee relations?
Produce a short report
Try to include references to:
HR objectives
HR data
Motivational theorists
Leadership models

15. 6.5.1 Making human resource decisions: improving employer-employee relations
In this topic you have learnt about
Influences on the extent and methods of employee involvement in decision making
How to manage and improve  employer- employee communications and relations
Value of good employer-employee relations