Management & Workforce Relations (Cambridge (CIE) A Level Business)

The Value of Effective Management & Workforce Relations

• Workplace relations refers to the interactions between managers and workers in a business including

  • How change is communicated and implemented

  • How grievances and disciplinary action are pursued

  • The level of consultation on key decisions

  • Fairness and effectiveness of business processes
    

• Positive workplace relations between management and workers brings a range of benefits

Diagram: Benefits of Positive Workplace Relations

Good relationships between managers and workers leads to benefits including increased productivity, low levels of staff turnover, improved cooperation and fewer days lost due to industrial action

Low Staff Turnover

• When workers have a positive relationship with their managers, they are less likely to seek work elsewhere

• Workers are also less likely to face dismissal if they have built a strong, trusting relationship with their employers
  

Few days lost to Industrial Action

• Industrial action is where trade union members, in dispute with management, protest or take action, such as strikes, to achieve their aims

• Effective workplace relations and good communication between managers and workers mean that disruption as a result of industrial action is unlikely
  

Employee Cooperation is Likely

• Employees may be more willing to 'go the extra mile' for the business if they feel valued and are well looked-after by managers

• Support from employees for key decisions means that business strategies have a greater chance of success and objectives are more likely to be met
  

High Productivity

• Good working relationships often mean workers are less likely to be absent from work and are more likely to be focused on their output

• Workers are more likely to contribute ideas on improvements to efficiency, which can lead to better business performance
  
  

Good Reputation as an Employer

• Businesses with good employer/employee relationships may receive recognition from the media and professional organisations and avoid negative publicity

• Highly-regarded businesses are in a good position to attract and retain the best staff
  
  

Ease of Implementing Change

• Where there is trust between managers and employees, significant change is more likely to be welcomed rather than feared

• Employees will look to play their part in implementing change as they understand and welcome its importance to business success

Trade Unions & Collective Bargaining

• A trade union is an organisation whose members come together to achieve common goals

• They negotiate with employers to improve terms and conditions of employment for workers, such as:

  • Improved pay

  • Increases in paid holidays

  • Reduced hours of work

  • Sufficient rest breaks

  • Improved training and development

  • Better facilities
    
    

• Trade unions can also give individual advice when employees have a problem at work
  

  • They also lobby governments to pass laws that favour employees, such as improved health and safety regulations
    

• Union members pay a membership fee and elect representatives to represent them in the employment relationship 

• Approximately one-third of British workers are represented by trade unions 

  • In the UK, the largest trade unions represent workers in the public sector and previously nationalised industries

    • Members of Craft unions share a specific skill or craft, such as printing

    • Industrial unions recruit members from a particular industry, such as education

    • General unions accept members from a range of manual industries, such as manufacturing

    • White collar unions recruit non-manual workers, such as those employed in banking
      

  • Membership of trade unions is generally in decline

    • Government legislation has weakened their powers

    • Many economies have moved away from manufacturing

    • Part-time and flexible workers tend not to be unionised
        

Examples of European Trade Unions

	Communication Workers Union (CWU) For people working for telephone, cable, digital subscriber line and postal delivery companies in the UK
	IG Metall The dominant metalworkers' union in Germany, making it the country's largest union as well as Europe's largest industrial union
	Unión General de Trabajadores (UGT) Spain's major general trade union, representing production workers in a variety of industries

• Trade unions can use a range of approaches to resolve conflict in the workplace. These include:

  • Collective bargaining

  • Work-to-rule

  • Strike action

Collective Bargaining

• A process where trade unions negotiate with employers to reach agreements on terms and conditions of employment

  • It is a structured way for employers and employees to come to a mutually acceptable agreement

  • Trade unions have greater negotiating power than individual employees

  • Negotiations typically cover a range of issues, including wages, working hours, benefits and workplace conditions

Diagram: The Collective Bargaining Process

This process leads to conflict resolution and collective agreement

•   The goal of collective bargaining is to reach a collective bargaining agreement

  • This is a legally binding document that determines the employment relationship for a specified period
    

    • Both parties must adhere to the terms of the agreement

    • If further disputes arise tools such as mediation and arbitration can be used

Other Forms of Trade Union Action
 

Employee Morale & Welfare

• Some businesses make significant efforts to maximise employees' welfare, including their wellbeing and work-life balance

  • Looking after workers is likely to lead to long-term loyalty and high levels of motivation, which can have a positive impact on labour productivity
    

• Strategies to improve wellbeing in the workplace may include

  • Ensuring equality and diversity in recruitment, pay and opportunities for promotion and development

    • A diverse workforce can attract customers in a wider range of target markets

    • A workforce based on merit rather than discrimination is likely to be highly skilled and productive

  • Provision of facilities such as rest and worship areas, refreshments and access to advice and guidance

  • Policies such as the right to paid leave and minimising communication outside of normal working hours

  • Perks such as social events, discounts or memberships of health clubs
     

• Ensuring employees have a healthy work-life balance can lead to several advantages

  • Less stress-related absence lowers business costs and reduces disruption to production

  • Increased employee output as, when they are at work, their focus is likely to be improved

  • A more diverse workforce that has time to enjoy leisure and creative activities outside of working hours
     

• Businesses can take a range of steps to improve work-life balance, some of which can also improve operational flexibility and efficiency
   

Methods to Improve Work-Life Balance