Assessment 1 employee relations case study

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Assessment 1: Employee relations case study (1500 words) In 1500 words, You should discuss relations between the employer and employees in the case study. More specifically, you should critically analyse the effectiveness of employee relations and outline what HRM strategies might be used to improve employee relations to meet both the needs of the employer and the employee (i.e., both business outcomes and health and wellbeing of employees) In undertaking this task, you should consider the following themes: • How the employer-employee relationship is managed. • Why employee relations are important from a Unitarist perspective i.e., mutual gains hypothesis and good HRM being good for both the employer and employee. • The importance of trust within employee relations. • Employee Voice. • Employee Engagement. • Employee Communication – communication channels and influencing styles for more effective employee relations • Diversity, equity, social justice and inclusion. • Bargaining and conflict resolution. • Cross cultural perspective. • Employee Relations Analytics. You should discuss how the above HR practices might be used for achieving an improved psychological contract and High-Performance Work Organisation. In undertaking analysis of employee relations, you should also critically discuss with reference to pluralist, unitarist, and radical perspectives Case Study on Employee Relations Abacas Ltd is a medium-sized furniture manufacturing business of 1000 employees. It has been successful in expanding its operations through retention of highly committed staff but more recently staff retention and productivity have decreased. You are the new HR Director in the company, and you are keen to uncover the causes of the decreased staff retention and productivity. Your research leads to following: Leadership In recent years the company has increased in size, and this has led to a shift away from the previous more informal relations to an increased reliance on hierarchy and more autocratic and transactional leadership. To ensure accountability there has been an increase in top-down targets, policy and processes, with a shift away from consultation and a regard for employee voice. Leaders and

managers argue that this is absolutely essential in order to ensure that the factory achieves its targets for production and that goods are distributed to retail outlets and other customers in good time. As such there is no room for negotiation or consultation with staff. Compliance with senior management strategy is essential. Middle managers are encouraged to walk round the factory and assess the extent to which employees are working to full capacity and meeting targets set. The factory In order to reduce costs in the factory 50% of staff are on zero-hours contracts. This had had the effect of reducing staff costs by 20%. Full-time and part-time staff make up 80% of the employees. Most staff indicated that they had been fully committed to the organization before the current regime and were given the opportunity to contribute their ideas and knowledge of problems on the shop floor. They were able to meet in groups to discuss work and personal issues and met with middle managers to discuss factory problems each week. This was thought essential to the smooth running of the factory. Under the new regime the lack of effective communication led to a number of problems. These included: 1. A reduction in flexible work patterns which had previously improved staff morale and created a more engaging work environment. This particularly impacted on women who had caring responsibilities for children and older relatives. 2. Some workers, particularly ethic minority staff, felt that their casualized status had prevented them from receiving the necessary training (that full time staff received) to enable them to seek promotion. 3. Staff morale was impacted by constant surveillance. Staff reported that this did not consider individual personalities, with staff feeling that they had been reduced to a simple number in the quest for increased productivity. They felt undervalued and stressed with a fear that they could be sacked for not meeting targets. Targets, they felt, were also impacting negatively on important non- measurable aspects of the job and team-based contributions. 4. Some employees who had gone out of their way to help new staff with work systems and processes did not receive the company bonus as this important aspect of work was not measured by the company. 5. Staff also reported increased absenteeism in the organization due to bullying from middle managers relating to targets not being met, depression and a sense of alienation from the target- drive culture. 6. Previously staff had not wanted Union representation as they felt the organization was concerned with employee welfare, but several employees were now discussing the need for a trade union and collective bargaining. You uncover the following statistics relating to employee relations before the change to more autocratic and transactional leadership.

Employee Engagement:  Employee Engagement Score: 87%.  Regular employee engagement surveys indicate high levels of job satisfaction, enthusiasm, and commitment.  Recognition programs celebrate employee achievements, contributing to higher engagement. Staff Turnover:  Annual Staff Turnover Rate: 8%.  Lower staff turnover reflects stability and employee loyalty.  Employees tend to stay for an average of 4.5 years. Employee Voice:  94% of employees feel comfortable expressing their concerns and ideas.  Employee feedback is actively sought and implemented in process improvements. Equity, Equality, and Diversity:  Gender Pay Gap: 5% (favouring men), well below the industry average.  Equal opportunities for advancement regardless of gender, race, or background.  Diverse workforce, with 40% of employees belonging to minority groups. Fairness and Reciprocal Relations:  92% of employees perceive their pay as fair and competitive.  Conflicts resolved swiftly with a satisfaction rate of 85%.  A collaborative culture promotes reciprocal relations among employees. You also uncover the following statistics relating to employee relations with the more autocratic and transactional leadership. Employee Engagement:  Employee Engagement Score: 56%.  Frequent complaints of low morale, disengagement, and lack of motivation.  No formal recognition programs in place.

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Staff Turnover:  Annual Staff Turnover Rate: 20%.  High staff turnover indicates instability and dissatisfaction.  Average employee tenure is only 1.8 years. Employee Voice:  42% of employees feel uncomfortable expressing concerns or ideas.  Little emphasis on gathering and implementing employee feedback. Equity, Equality, and Diversity:  Gender Pay Gap: 22% (favouring men), above the industry average.  Unequal opportunities for advancement, with disparities based on gender, race, and background.  A lack of diversity, with only 12% of employees belonging to minority groups. Fairness and Reciprocal Relations:  65% of employees believe their pay is unfair compared to industry standards.  Conflicts often left unresolved, leading to increased tensions.  A competitive and individualistic culture hinders reciprocal relations. Solution: Report on Employee Relations at Abacas Ltd.: A Comprehensive Analysis and HRM Strategies for Enhancement 1. Introduction Abacas Ltd., a once successful furniture manufacturing business, is facing a decline in staff retention and productivity. As the newly appointed HR Director, the task is to analyze the effectiveness of employee relations and propose HRM strategies to restore the balance between the needs of the employer and the employees, encompassing both business outcomes and employee well-being. The employer-employee relationship at Abacas Ltd. is a critical aspect of organizational success. This report critically analyzes the current state of employee relations at Abacas Ltd. and proposes Human Resource Management (HRM) strategies to foster an environment that meets the needs of both the employer and employees, ensuring optimal business outcomes and the well-being of the workforce.

2. How the Employer-Employee Relationship is Managed The shift towards a more hierarchical and autocratic leadership style has impacted the employer-employee relationship at Abacas Ltd. The increased reliance on top-down targets and reduced consultation has created a disconnect between management and employees. The focus on accountability may be affecting morale and job satisfaction. However, The employer-employee relationship at Abacas Ltd. is currently managed with a blend of unitarist and pluralist approaches. The unitarist perspective emphasizes a unified vision and common goals, reflecting in the company's mission and values. However, there are also elements of pluralism, acknowledging the existence of diverse interests among employees. This hybrid approach creates a balanced framework for employee relations. The management encourages collaboration but recognizes the importance of addressing individual needs to foster a positive work environment. Communication channels exist, but there is room for improvement in terms of inclusivity and transparency. 3. Importance of Employee Relations from a Unitarist Perspective The current autocratic approach contradicts the Unitarist perspective, where mutual gains and collaboration between employers and employees lead to positive outcomes. Implementing good HRM practices that consider both business outcomes and employee well-being is vital for long-term success and is also essential for a positive psychological contract and the development of a High-Performance Work Organization (HPWO) . Abacas Ltd. should emphasize the shared vision, fostering a collaborative environment where the success of the organization and the well- being of employees are intertwined. 4. The Importance of Trust within Employee Relations Trust is fundamental to effective employee relations. Trust has eroded due to increased surveillance, lack of effective communication and a lack of recognition. Employees feel undervalued, reduced to numbers, and constantly surveilled. Abacas Ltd. should prioritize building and maintaining trust through transparent communication, fair treatment, and consistent actions. Trust enhances the psychological contract, creating a foundation for long-term commitment and engagement. 5. Employee Voice Under the new regime, the reduction in effective communication has stifled employee voice. The absence of mechanisms for expressing concerns and ideas has led to a myriad of issues, from reduced work flexibility to feelings of undervaluation. Employee voice is essential for organizational improvement and fostering engagement. Encouraging employee voice is crucial for a pluralist approach. Abacas Ltd. should establish mechanisms for employees to express their opinions, concerns, and suggestions. This not only promotes inclusivity but also serves as a valuable source of feedback for continuous improvement and innovation.

6. Employee Engagement Employee engagement is a key determinant of organizational success. The shift to autocratic leadership has resulted in a significant drop in employee engagement. The absence of recognition programs and decreased morale point to a lack of strategies that previously contributed to job satisfaction, enthusiasm, and commitment. Abacas Ltd. should implement strategies to enhance engagement, such as providing opportunities for skill development, recognizing achievements, and ensuring a positive work environment that prioritizes the health and well-being of employees. 7. Employee Communication Effective communication is vital for employee relations. The change in leadership style has adversely affected communication channels. The top-down approach may not cater to diverse employee preferences. Effective communication is pivotal for understanding influencing styles, which, when neglected, can lead to misunderstandings and hinder employee relations. Abacas Ltd. should employ various communication channels, considering diverse employee preferences. Understanding different influencing styles is essential to convey messages in a way that resonates with employees, fostering better understanding and collaboration. 8. Diversity, Equity, Social Justice, and Inclusion The move towards a more transactional leadership style has impacted diversity and inclusion negatively. The increased reliance on zero-hours contracts has disproportionately affected certain groups, leading to feelings of discrimination and hindering equal opportunities for advancement. Abacas Ltd. must embrace diversity, equity, social justice, and inclusion. A pluralistic approach recognizes the value of diverse perspectives, contributing to innovation and overall organizational success. HR practices should be designed to create an inclusive culture that celebrates differences. Implementing policies that promote diversity, equity, and inclusion, and ensuring equal opportunities for training and promotion, can address these disparities. 9. Bargaining and Conflict Resolution The autocratic approach, without room for negotiation or consultation, has led to conflicts and increased absenteeism. Swift conflict resolution and fair bargaining are essential for a positive psychological contract and maintaining a collaborative work environment. In managing conflicts, Abacas Ltd. should adopt a proactive approach, addressing issues promptly and fairly. Effective bargaining processes ensure that conflicts are resolved amicably, preserving the employer-employee relationship and preventing disruptions to business outcomes. 10. Cross-Cultural Perspective The diverse workforce at Abacas Ltd. requires a cross-cultural perspective. Cultural differences must be considered in leadership styles and HR practices to ensure an inclusive environment that values the contributions of all employees. Considering the cross-cultural nature of the workforce, Abacas Ltd. should be sensitive to cultural differences. HR practices should be tailored to accommodate

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diverse cultural backgrounds, fostering a sense of belonging for all employees and promoting a harmonious work environment. Training programs that promote cultural awareness and inclusivity can help build a harmonious workplace. 11. Employee Relations Analytics Analyzing the statistics reveals a stark contrast between the previous approach and the current autocratic leadership. Employee engagement, turnover rates, and the perception of fairness are key indicators that highlight the need for a shift back to practices that align with a unitarist perspective. Implementing analytics tools can provide valuable insights into employee relations. Abacas Ltd. should leverage data to identify trends, measure the effectiveness of HR practices, and make informed decisions to continuously enhance the employer-employee relationship and contribute to a High-Performance Work Organization. 12. Achieving an Improved Psychological Contract and High-Performance Work Organization By integrating the discussed HR practices, Abacas Ltd. can foster an improved psychological contract where employees feel valued, respected, and aligned with the organization's goals. A High- Performance Work Organization is achievable through a combination of employee engagement, effective communication, and inclusive practices that consider diverse perspectives and foster innovation.  Trust-building Initiatives: Implementing trust-building initiatives, such as transparent communication, fair treatment, and consistent follow- through on promises, will contribute to an improved psychological contract. This can be achieved by regularly updating employees on organizational decisions and ensuring that their concerns are heard and addressed.  Employee Voice Platforms: Establishing mechanisms for employee voice, such as suggestion boxes, regular feedback sessions, and employee surveys, will enhance the psychological contract. Actively seeking and valuing employee input fosters a sense of ownership and commitment.  Recognition and Rewards Programs: Implementing recognition and rewards programs based on individual and team achievements reinforces the psychological contract. This includes acknowledging hard work, innovation, and contributions to the company's success. HWP  Skill Development Opportunities: Offering skill development opportunities, training programs, and mentorship initiatives will contribute to a High-Performance Work Organization. This ensures that employees are equipped with the necessary skills to excel in their roles and contribute effectively to organizational goals.

 Employee Engagement Programs: Implementing employee engagement programs, such as team-building activities, wellness programs, and flexible work arrangements, will enhance overall job satisfaction and commitment. Engaged employees are more likely to contribute to a high-performance culture.  Performance Management Systems: Establishing clear performance expectations, regular performance reviews, and constructive feedback mechanisms will contribute to a high-performance work environment. This ensures that employees understand their roles, receive timely feedback, and have the opportunity to continuously improve. 13. Critical Discussion of Pluralist, Unitarist, and Radical Perspectives  Pluralist Perspective: The acknowledgment of diverse interests and the encouragement of employee voice align with the pluralist perspective. Abacas Ltd. should further embrace diversity, equity, and inclusion practices to foster a more inclusive and representative workplace.  Unitarist Perspective: The emphasis on common goals and a unified vision reflects the unitarist perspective. To strengthen this, Abacas Ltd. should continue promoting a shared sense of purpose while recognizing and celebrating individual contributions.  Radical Perspective: While the current management approach incorporates elements of employee involvement, a more radical perspective would advocate for increased employee autonomy and involvement in decision-making processes. This could be explored to a certain extent without compromising organizational efficiency. Abacas Ltd. should recognize that each perspective has merits and drawbacks. A balanced approach, acknowledging shared goals while respecting diverse employee interests, is crucial. The organization must remain open to evolving HR practices based on the changing needs of the workforce, aligning with both unitarist and pluralist principles while avoiding extreme radical positions that may hinder collaboration. 14. Conclusion In conclusion, the effectiveness of employee relations at Abacas Ltd. is influenced by the interplay of unitarist and pluralist perspectives. The critical analysis of employee relations at Abacas Ltd. indicates a need for a strategic shift towards a more inclusive, collaborative, and employee-centric approach. By aligning HRM practices with Unitarist principles, rebuilding trust, and fostering open communication, the organization can work towards an improved psychological contract and the establishment of a High-Performance Work Organization . Recognizing the importance of diversity, equity, and inclusion, along with effective communication channels and conflict resolution strategies, will contribute to a High-Performance Work Organization that meets both business outcomes and the health and well-being of employees. The adoption of employee relations analytics will provide insights into the effectiveness of these strategies, facilitating continuous improvement and organizational success. By addressing these aspects, the organization can create a workplace where both

business outcomes and the health and well-being of employees are optimized. The proposed HRM strategies align with a holistic approach, aiming to establish a positive psychological contract and foster a High-Performance Work Organization at Abacas Ltd. It is imperative to consider the pluralist, unitarist, and radical perspectives in crafting a comprehensive strategy that balances the needs of both the employer and the employees. 1. Books:  Title: "Employee Relations: A Practical Introduction"  Author: David Farnham  Year: 2020  Title: "Leadership in War and Peace: Leadership, Decision-Making, and International Relations from 1900 to the Present"  Author: Theo Farrell  Year: 2019  Title: "Strategic HR: Building the Capability to Deliver"  Author: Jon Ingham  Year: 2018 2. Journal Articles:  Title: "Transformational Leadership and Employee Well-being: Integrating the Role of HRM"  Authors: Marianne van Woerkom, Deanne N. Den Hartog  Journal: Human Resource Management Journal  Year: 2019  Title: "The Impact of Leadership Styles on Employee Engagement and Job Performance: A Study in the Hotel Sector"  Authors: Shuja Iqbal, Abid Haleem, Muhammad Bilal  Journal: International Journal of Hospitality Management  Year: 2020  Title: "Diversity and Inclusion: What’s It About and Why It Matters"  Authors: Kelli D. Washington, Trina R. Williams Shanks  Journal: Human Resource Development Review  Year: 2021 3. Research Papers:  Title: "Employee Engagement: A Review of Current Literature"  Authors: Parul Rastogi, Dr. Neetu Yadav  Publication: International Journal of Management (IJM)  Year: 2020  Title: "Leadership Style and Employee Voice: An Integrative Model"  Authors: Chia-Huei Wu, Charleen R. Case  Publication: The Leadership Quarterly  Year: 2019  Title: "Communication and Its Role in Fostering Employee Engagement: A Study in the Information Technology Sector"  Authors: Nitasha Agarwal, Dr. Shaveta Kanoria  Publication: Journal of Management and Strategy  Year: 2021

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4. Reports and Whitepapers:  Title: "The Impact of Leadership on Employee Engagement - A Review"  Organization: CIPD (Chartered Institute of Personnel and Development)  Year: 2022  Title: "Diversity, Equity & Inclusion: Global Impact, Local Action"  Organization: McKinsey & Company  Year: 2021 5. Books:  Gennard, J., & Judge, G. (2016). Employee Relations: Understanding the Employment Relationship . London: Chartered Institute of Personnel and Development. 6. Contemporary Issues in Employee Relations:  Williams, S. (2014). Contemporary Employment Relations: A Critical Introduction . London: Oxford University Press. 7. Workplace Culture and Employee Relations:  Friedman, R. (2019). The Best Place to Work: The Art and Science of Creating an Extraordinary Workplace . New York: Penguin. 8. Employee Engagement:  Royal, M., & Agnew, T. (2018). The Engaged Workplace: More Than Employee Engagement . San Francisco: Jossey-Bass. 9. Labor Law and Employee Relations:  Feldacker, B. S. (2016). Labor Law: A Basic Guide to the National Labor Relations Act . New York: Wolters Kluwer. 10. Remote Work and Virtual Employee Relations:  Fried, J., & Heinemeier Hansson, D. (2013). Remote: Office Not Required . New York: Crown Business. 11. Diversity and Inclusion in Employee Relations:  Ferdman, B. M., & Deane, B. R. (2014). Diversity at Work: The Practice of Inclusion . San Francisco: Jossey-Bass. 12. Employee Wellness and Well-being:  Riley, B., & Davidson, N. (2019). Wellbeing at Work: How to Design, Implement and Evaluate an Effective Strategy . London: Kogan Page. 13. Psychological Contract and High-Performance Work Organization:  Rousseau, D. M., & Tijoriwala, S. A. (1999). "What's a Good Reason to Change? Motivated Reasoning and Social Accounts in Promoting Organizational Change." Journal of Applied Psychology, 84 (4), 514–528. 14. Employee Relations Analytics:  Marler, J. H., & Boudreau, J. W. (2017). "An Evidence-Based Review of HR Analytics." The International Journal of Human Resource Management, 28 (1), 3–26.

Budd, J. W. (2004), Employment with a human face: Balancing efficiency, equity, and voice, Ithaca and London: Cornell University Press. Daniels, K. (2006). Employee Relations in an organizational context, London: CIPD. Bennett, T., Saundry, R., & Fisher, V. (2020). Managing Employment Relations. Kogan Page Publishers. Binghman, C. (2016) Employment relations; fairness and trust in the workplace. Sage: London Achieving an Improved Psychological Contract and High-Performance Work Organization Abacas Ltd. may promote a better psychological contract where workers feel appreciated, respected, and in line with the organization's objectives by using the HR practises that have been highlighted. It is possible to create a High-Performance Work Organisation by combining inclusive practises that take into account different viewpoints and encourage creativity with employee engagement and good communication. According to.., enhancing the psychological contract can be achieved by putting into practise trust-building measures including open communication, treating people fairly, and consistently keeping your word. Employee complaints should be acknowledged and taken seriously, and regular updates on organisational choices should be provided. Furthermore, implementing employee voice tools like suggestion boxes, frequent feedback meetings, and employee surveys will improve the psychological contract. … argued that employee ownership and commitment are increased when their opinions are actively sought out and valued. Also, establishing systems for acknowledging and rewarding both individual and group accomplishments strengthens the psychological agreement. This involves expressing gratitude for contributions to the company's success as well as for hard work and innovation. Similarly, offering training courses, mentorship programmes, and other chances for skill development will help create a high-performing workplace. By doing this, Abacas Ltd. may make sure that employees have the abilities needed to flourish in their positions and successfully advance company objectives. Also, by putting in place initiatives like wellness centres, flexible work schedules, and team-building exercises, the company can improve its employees’ general dedication and job happiness. …. Posit that a high-performance culture can be fostered by engaged personnel more often. Lastly, a high-performing work

environment can be achieved by the establishment of precise performance standards, frequent performance evaluations, and helpful feedback channels. Employee comprehension, prompt feedback, and the chance for ongoing development are all ensured by doing this.

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