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DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
1
Developing an ER Strategy for Management at Google
M Wilson
LHR400:
Comparative Employment Relations Systems
Professor Leslee Spiess
April 12, 2022
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
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Executive Summary
In modern organizations such as Google, human resource management does its best to
ensure that employee relations are catered to not only to maintain a competitive advantage but
also to improve performance and productivity as well as resolve labor conflicts. Therefore,
organizations implement strategic employee relations approaches to ensure that employee
concerns are managed. Google reports that there are issues with employee productivity and labor
unrests since employees began to join the Alphabet Labor Union. As such, this report outlines
two strategies; the Contingency or Best-fit approach and the Universalistic or Best Practices
approach. These strategies implement the egoist and pluralist theories in employment
management. They also outline how the different actors in employment relations such as
employers, employees and trade unions play essential roles in maintain workplace performance
and order. The recommendation is that alongside the universalistic and contingency approaches,
employees ought to be allowed to participate in decision making as well as have a forum to voice
out their concerns and suggestions.
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
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Table of Contents
Introduction
4
The Best-Fit or Contingency HR Model
5
Best Practice or Universalistic Model
6
Critical Analysis
8
Recommendations
10
Conclusion
11
References
13
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Developing an ER Strategy for Management at Google
Introduction
Employee relations are basically relationships that exist between employers
(organizations) and their employees. According to
DeMaria (2018
), the requirements of
employee relations state that it is appropriate to regard employment as a psychological contract
between an employee and an employer. As such, the employer is expected to treat the employee
fairly and justly, where the concept of equality and justice depends on how the employer relates
with the employee. In the dawn where Google management is facing a crisis with employee
unrest and many employees continuing to join the Alphabet Worker’s Union, it is essential that
the company management develop and implement employment relations strategies to sustain
company performance and minimize labor unrest. Often, a lot is at stake when it comes to
employee relations. Situations such as lack of communication, and failure to honor contract
agreements leads to high employee turnover, low productivity and labor unrest. Thus, the
purpose of creating an employee relations strategy is to develop a work environment that
provides people’s needs. As such, the employees seek to feel good about their work and where
they work while the organizations want to feel good about performance, productivity and
management. The most effective employee relations strategies positively affect employee
engagement and eventually result in outstanding organizational performance (
Paauwe & Boon,
2018)
. Therefore, Google’s management, especially the strategic human resource management
ought to strategize a system that implements the Best-fit or contingency HR model and the
Universalist or best practice model as strategies that influence the organizational performance as
well as the labor unrest.
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
5
The Best-Fit or Contingency HR Model
According to
Khalil (2019
), the best-fit or contingency theory does not comprise
universal human resources policies and practices. This means that the policies and practices
implemented by the HR are dependent on the context in which the company, in this case Google
operates, the business strategies as well as the organizational culture (
Turner, 2020)
. Scholars
who have studied this approach claim that HR policies and procedures for this approach are
specific to the organizational environment and a requirement for the successful operation of the
organization. This translates to the fact that the policies and procedures applied by HR need to be
proper based on specific circumstances that surround the company when in a contingency model.
As such, the organization will need to consider the operational processes, external environment
and culture of the company. This means that while HR considers the organizational needs, it will
also consider those of the stakeholders.
Baik, Kim & Patel (2019
), suggests that the best-fit
model assesses the extent to which a vertical integration exists between HR policies and
procedures and business strategies of the company.
A vertical integration that exists between the business strategy of the HR practices and
policies in an organization play a critical role in the effectiveness of human resource
management functions implemented in the organization. The process also includes individual
and team-based performance in the company (
Ali, Lei & Wei, 2018)
. Therefore, the strategic HR
management should keep in mind the roles played by individuals and teams, which comprise of
employees in relation to the company business. As an indicator, when the organization attains the
“fit” level, it means that the strategic HR management system for employee relations is effective.
On the contrary, when the indicator level is “unfit,” the SHRM architecture is believed to be
ineffective (
Baik, Kim & Patel, 2019)
. Thus, in strategic employee relations, a vertical
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
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integration of “fit” entails gaining leverage through policies, procedures and process. Therefore,
the best fit scenario is described by an explicit relationship between employee relations, internal
policies and procedures and the external market in the business. This provides a guarantee that
the organization will have exceptional competencies that enable it to attain competitive
advantage.
Essentially, Google needs to embrace the contingency approach as it predicts the
organizational behavior and the outcomes from the evaluations can aid in understanding
employee problems. Following the increasing labor unrests, the contingency approach can be
utilized to predict, assess and manage employee behaviors and strategize ways in which they can
motivate the workers (
Khalil, 2019)
. The contingency approach would help Google explain the
specific factors, both independent and dependent variables, that affect the relationship between
employers and employees such as communication, rewards and incentives and other workplace
violations and conditions that could drive employees to protest. Since this is not the only strategy
that can be used to structure a company or solve employee concerns, there is a need for
employees to consider other alternative strategies as this approach depends of the situation.
Best Practice or Universalistic Model
The best practice model or the Universalistic approach presumes the presence of superior
and best HRM practices that guarantee the greatest organizational performance when a company
implements them. From a pluralist perspective, employment relationships are presumed to be
indeterminate and open-ended. Therefore, pluralist strategic models have the potential of creating
conflicts in the labor market as well as the workplace since people have unique aspirations,
interests and objectives (
Schmidt & Müller, 2021)
. Therefore, the Universalistic approach is a
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pluralist models that is implemented in an organization with the assumption that the people in an
organization have different attitudes, beliefs and values as well as unique interests.
In a Universalistic model, trade unions are sally involved and they have legal backing to
represent employees and help them in power decision making processes. The best practice model
emphasizes on the fact that conflicts in an organization can be resolved using industrial relations
(
Hans, 2021)
. This provides the organizational management a chance to utilize consultative
techniques to provide solutions and react to conflicts. At Google, the issue with productivity and
labor unrest is obvious that there exists a conflict that needs resolution. Therefore, the
Universalistic approach provides collective bargaining as a strategy to solve organizational
conflicts from a pluralist perspective.
The concept of industrial pluralism has since the 1940s dominated the practice of
collective bargaining (
Turner, 2020)
. Thus, in industrial pluralism, collective bargaining is seen
as a way of creating a self-government where the participants legislate policies and regulations
for their place of work and then deduce committees that would oversee the application of the
policies and regulations to individual cases (
Schmidt & Müller, 2021)
. Essentially, the
Universalistic model guarantees that an organization would record gains in employee
performance if the organization identifies and implements best practices regardless of the market
condition, industry or location. In addition, implementing the best practices would incorporate
collective bargaining which would in return solve the problem of labor unrest in the company.
Since at Google the employees have already joined the Alphabet Union, Google ought to
embrace the change and instead work collaboratively with the labor union such that all parties
benefit. One of the most significant roles played by trade unions is to develop democratic process
and eventually create industrial order. Employees are lured voluntarily to join labor unions to act
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
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as their representatives to their employers. As representatives, unions take part in collective
bargaining and annulation agreements, and in so doing, they play a vital role in settling
organizational disputes between employees and employers as well as making decisions that in
one way or another impact employee relations (
Hans, 2021)
.
According to the course text, collective bargaining allows employers and their companies
together with labor unions to establish fair working conditions and wages as well as a medium
for effective labor relations. For instance, issues such as equal treatment, fair wages and working
time, occupational health and safety as well as training are some of the issues that collective
bargaining cold have in their agenda (
Hans, 2021)
. These same factors could also affect work
performance and lead to labor unrest. Therefore, implementing the universalistic approach which
applied collective bargaining would be an ideal pluralist approach at Google.
Critical Analysis
As a company, if Google decides to implement employee relations strategies, it is
essential that they consider a couple of factor that includes, employee needs, conflicts, the labor
union and the organization’s needs (performance and productivity). As mentioned earlier,
employee relations entail the relationship between employers and employees and there is the
requirement that the former treat the latter fairly and justly. On the other hand, the employees
ought to reciprocate to their employers through loyalty and high performance and productivity.
Various elements that influence employee relations include communication, compensation and
rewards, performance and productivity, organizational effectiveness, objectives and goals (
Ali,
Lei & Wei, 2018)
. All these factors affect both employers and employees. Hence, while the
employer need to acknowledge the value and efforts and input of employees, the employees
ought to give back by being loyal and productive.
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
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Often, organizations undergo challenges that may bring about conflicts. For instance, at
Google, the problem with productivity and labor unrest resulted from probable conflicts related
to working conditions and policies. Therefore, employees may have opted to join the Alphabet
Union so that it can represent their grievances. In order to resolve the problems of productivity
and labor unrest, the company needs to develop and implement the strategies described earlier.
The contingency and universalistic approaches are ideal strategies that the Google can
implement. They both apply egoistic and pluralist values to ensure peace and order within the
organization. With the egoist theory, individual self-interests and freedom yield the optimal
results via free market relations. In pluralist approach, optimal results are attained when there
exists a balance between the interests of the employer and those of the employees.
In employee relations various actors play essential roles. The main actors in employment
relations include employees, employers, and unions. According to
Wailes, Wright, Bamber &
Lansbury (2016
), the role of employers is to create a positive working environment and
relationship with the employees. These positive relationships include compensating employees
for the work done, ensuring that working hours and overtime is reasonable and providing
employees with opportunities to grow while guaranteeing employment security. Therefore, the
role of the employer is to secure the work and work environment of the employees. On the other
hand, employees also have their role to play. Employees should execute their skills and
knowledge as per the contract they signed in good faith and fairly. It is also the employees’ duty
to abide by polices, rules and regulations of the workplace and maintain confidentiality to the
company.
Unions also have their role to play by playing as representatives of employees to their
employers. In this case, unions play the strategic role of collective bargaining with the main
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focus being settling conflicts and engaging in decision making that involves the well-being of
employees (
Zheng, Molineux, Mirshekary & Scarparo, 2015)
. The influence of labor unions in
any organization may directly or indirectly affect the productivity of a company either negatively
or positively. For instance, the labor unrest experienced in the company may have been
influenced by the labor union. However, if Google implements the universalistic approach where
collective bargaining is applied, the union may positively affect the company by restoring peace
and eventually productivity.
Recommendations
In order to ensure that there is maximum productivity and less labor unrest, Google need
to develop a system where employees can participate in decision making as well as voice out
their grievances to their employers. According to
Bray and colleagues (2014
), employees’ voice
and participation in the company comprises various aspects. Often, organizations and unions
engage in disputes that ought to be resolved for the company to perform well. As such, unions,
employers, employees and organizations should implement group participation with their various
bosses and employment groups. In addition, Google needs to relieve stress among employees by
allowing them the freedom to make autonomous decisions, especially if the decisions involves
issues such as the contract contravening its provisions. In this case, employee should be allowed
to make a personal decision to seek assistance such as seeking representation from the labor
union.
The aim of implementing a system where employees participate in important decisions,
precisely those that affect their well-being at the workplace as well as recognizing their voice
when they have concerns to raise is essential in ensuring peace and order in the company and
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
11
with the trade unions (
Zheng, Molineux, Mirshekary & Scarparo, 2015)
. In addition, employee
participation and acknowledging their voice contributes to improved performance in that they get
the sense that their opinion matters and a sense of belonging (
Wailes, Wright, Bamber &
Lansbury, 2016)
. Consequently, employee loyalty increases and in return, better performance and
increased productivity. Therefore, implementing these recommendations at Google would act as
a risk management strategy to prevent and manage employee performance and productivity as
well as minimize labor conflict.
Conclusion
Overall, in the modern corporate world, traditional employee relations have been
replaced by strategic human resource management (SHRM). SHRM is more effective and
efficient as it focuses on the overall performance in a company rather than an individual tackling
organizational difficulties (
Turner, 2020)
. The report described two strategic employee relations
theories that would be ideal at Google in tackling performance and labor unrest. One of the
approaches is the contingency or best-fit model that treats employees from a psychological
perspective. Therefore, the policies and procedures as implemented by the organizational
management or human resources are dependent on the company’s goals, objectives, culture and
strategies. The other strategy is the universalistic of the best practice model, which essentially
emphasizes on improving organizational performance. The universalistic approach incorporates
the pluralist theory where collective bargaining is applied. Hence, in the case of labor unrest as
experience at Google, the universalistic approach would allow trade unions (the Alphabet Union)
to take part in representing employees. Thus, both of these approaches would be ideal in
improving performance and reducing labor unrest. To boost these strategies, the report
recommends that Google implement all actors in employee relations; employees, employers and
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
12
unions collaborate to make positive work environments. Also, employees should be allowed to
participate in making both personal and organizational decisions that involve their welfare as
well as have a forum where they can voice out their concerns to the relevant authorities.
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References
Ali, M., Lei, S., & Wei, X. Y. (2018). The mediating role of the employee relations climate in the
relationship between strategic HRM and organizational performance in Chinese
banks.
Journal of Innovation & Knowledge
,
3
(3), 115-122.
Baik, K., Kim, K. Y., & Patel, P. C. (2019). The internal ecosystem of high performance work
system and employee service-providing capability: A contingency approach for
servitizing firms.
Journal of Business Research
,
104
, 402-410.
Bray, M, Waring, P, Cooper, R and Macneil, J (2014). The study of employment relations:
Analytical tools, Chapter 2 in
Employment Relations: Theory and Practice
(3rd ed.).
Sydney: McGraw-Hill.
DeMaria, A. T. (2018). Elements of Effective Employee Relations: Work Rules
(continued).
Management Report for Nonunion Organizations
,
41
(3), 3-5.
Hans, S. (2021). Strategic Human Resource Management and Employee Relationship
Management: An Approach for Realizing Sustainable Competitive Advantage.
IUP
Journal of Organizational Behavior
,
20
(4).
Khalil, S. (2019). The performance implications of collaborative activities in international
buyer–seller exchanges: a contingency approach.
Journal of Business & Industrial
Marketing
.
Paauwe, J., & Boon, C. (2018). Strategic HRM: A critical review.
Human resource management
,
49-73.
DEVELOPING AN ER STRATEGY FOR MANAGEMENT AT GOOGLE
14
Schmidt, W., & Müller, A. (2021). Workplace universalism and the integration of migrant
workers and refugees in Germany.
Industrial Relations Journal
,
52
(2), 145-160.
Turner, P. (2020). Engagement Driven Strategic HRM. In
Employee Engagement in
Contemporary Organizations
(pp. 223-256). Palgrave Macmillan, Cham.
Wailes, N., Wright, C, Bamber, G. & Lansbury, R (2016). ‘Introduction: An internationally
comparative approach to employment relations’, in Bamber et al. (eds),
International and
Comparative Employment Relations
, SAGE, London, 6th Edition, Chapter 1.
Zheng, C., Molineux, J., Mirshekary, S., & Scarparo, S. (2015). Developing individual and
organisational work-life balance strategies to improve employee health and
wellbeing.
Employee Relations
.
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