EMPLOYMENT RELATIONS CASE STUDY
Table of Contents
Executive Summary……………………………………………………………………………….2
Introduction 3
Role of Industrial Relations in HRM 3
Approaches to HRM and industrial relations in case context 3
Complementary Work practices 4
Risks associated with change in Human Resources 5
Blue Collar trade unions as compared to service sector unions 6
Conclusion 6
Bibliography 7
Executive Summary
The Case study deals with the various HR issues in the Top trucking company. The case highlights various issues of HR management, HR policies, organizational change, and management-union relationship in the context of a yard of Transport Company. The case highlights the issue that how successful implementation of right HR policies can generate the results for the organization as a whole. The various points analyzed in the report include the models of HR policies, soft and hard approach of HRM along with the risks associated with the change of key human resources amidst the change process and the difference of union support of blue collared and service sector employees.
Introduction
The case study deals with the various aspects of the industrial relations and the role of effective human resource practices. The labor unions and their relationship with the management have always been the subject of research. The literature on IR and HRM suggest various theories of collaboration between unions and management to achieve common organizational goals. The present report tries to understand the importance of unionism in a blue collared environment vis. a. vis. A white collared or a service sector organization and how the human resource professionals can work together with the labor in a cordial work environment.
Role of Industrial Relations in HRM
The study on the topic of industrial relations in various interdisciplinary forms goes back to 19th century. When traditionally defined, IR deals with employee relations and labor laws. However, more focused researchers relate it to unionism only. (Kaufman, 2010). The neoclassical literature on industrial relations in industrialized economies of USA and UK focused on the concept of union-management conflicts in the organization in the study of industrial or employment relations (Sisson, 2009). With the reducing influencing of unions, the term is now used synonymously with employee relations. (Nikoloskia, Dimitrova, Blagica, & Kacarski, 2014)The employer-employee relationship is very crucial for the growth of the organization, customer competency improvement, and better efficiency. So the management should adopt various strategies to maintain a cordial relationship. (Xesha, Iwu, Slabbert, & Nduna, 2014). Trade unions are often termed as advocates of labor rights in the light of national policy regarding employment and wages etc. However, the interest of HR managers and trade unions are interlinked as their ultimate agenda is the benefit if labor. (Daemane, 2014). There might be conflict in the union-management relations when the labor is not given enough avenues of participation and representing their interest, which can be overcome if the barriers, that would lead not only to the coordinate relationship between all the stakeholders but also increase the profits and efficiency of all the departments.
Approaches to HRM and industrial relations in case context
The case highlights two classic approaches to HRM policy, i.e. hard and soft form of HRM. The family owned management of Wollongong yard followed a harder style of HRM, which focuses on treating the trucks and labor alike. The organization had a little invest in the equipment, and the workers were treated as other resources of the organization. It is similar to Michigan model focusing on organizational strategies as a whole, managing human resource assets along with other assets in line with organizational strategies. (Ihuah, 2014). With the change in management, the new yard manager implemented the shift towards the softer HRM, more towards the Harvard model. It is more suitable for monitoring change. (Brunetto, Farr-Wharton, & Shacklock, 2011)Harvard model considers the human resources as a long-term asset rather than just a cost element of the company. This demands a vision on the part of management regarding the involvement of employees in the organization. (Agyepong, Fugar, & Tuul, 2010). The model focuses on utilizing the various human resources of the organization through proper communication and team building. (Gill, 1999).
Complementary Work practices
There were various changes implemented by the new yard manager. In the company like trucking, the organizational safety is a serious concern in the minds of workers. (ALNAQBI, 2011). The new management spent money on revamping the fleet of trucks along with cleaning up of the yard. The safety inculcated positivity toward work performance. (Zanko & Dawson, 2012), as safety was the prime cause of concern. Along with that, the next step was to train the workers to make them feel competent and confident. Training led to a sense of permanency and security among employees, thereby reducing the turnover intentions among the employees of the yard. (Hutchings, Cieri, & Shea, 2011). Lack of proper training causes a lot of problems and conflicts in the organization and among the workers. Instead of spending a lot of time in solving the problem, the unions should encourage the practice of training. (Margolies, 2011).
The next thing which was liked by the union leader and the workers is that the new manager did not run away from arguments, instead, he used them to amicably work for the mutual growth of the organization. Between the two competing theories of unitary and Marxist versions of IR, there lies the pluralistic approach which sees that the conflict is inherent in the system and the interests can be competing or shared among management and labor. (Budd, Gomez, & Meltz, 2004). In the case also, George often realized that manager was not wrong and the interest of both the parties lied in the betterment of the organization. The workers felt better and important because of the new uniforms and improved fleet. The other change implemented by the manager was that the workers were treated as adults, which means they were considered important and their opinion mattered. The researchers suggest that participation by the employees in the decision making of the business leads to better employee retention and also reduces absenteeism. (Peetz, Does Industrial Relations Policy Affect Productivity?, 2012). Not only were the workers given due importance, but the union leader George also felt very important as the yard manager treated him as equal and consulted him in important matters. Participation of trade unions led to the formulation of a kind of industrial democracy in the organization. Also when the union leaders voice out a concern, and it is solved, it is considered more credible as a collective voice. (Budd, John & Williams, 2010). The last change that complimented the whole change mechanism was the process of continuous information sharing in the organization. The yard manager adopted the policy of continuously sharing the information about the progress of the yard, drivers and the performance of union. This led to the feeling of participation and competency among the workers. This also led to the continuous flow of communication and the level of trust between the parties involved, i.e. workers, union and the management.
Thus we see that all the changes implemented by the new yard manger were focused on the shared interest of workers and the management and they all led to the increase in employee commitment and reduction of attrition rates and conflicts in the organization.
Risks associated with change in Human Resources
The top trucking company was going through various organizational changes and both, the yard manager and George were contributing towards the same. The yard manager initiated various types of changes in the company like the improvement of working conditions, new uniforms, open channels of communication, constant performance reviews, etc. On the other hand, George was also instrumental to this change being a union member as he was the key voice of the workers in the yard. He had various arguments with the manager regarding the new policies of the company but ultimately realized that the intentions of the manager were on the same line. Both the parties were equally important for the changes being implemented.
The change in manager can bring the uncertainty in the workers that the new policies might not be continued and the further changes could be detrimental for the sense of protection they have started feeling. (Hernaus, Aleksić, & Marić, 2012). The organizational changes require the implementation of many key policies which require the active participation of human resources, and as a result, they need to be handled through HR managers. (ADENIJI, OSIBANJO, & ABIODUN, 2013). If the HR manager is changed, the implementation of the policies might get delayed. The retention n of key people is very crucial for the organizations going through transformational changes as the attrition during this phase might lead to a lot of damages regarding money as well as the success of the initiatives. The HR manager and the union representative, both are key to the changes in the case, and hence if any one decides to move on, it will lead to huge investment of time and money on training of the replacement to get the policies on track.
Another very big risk associated with the change is that the certain disengaged or bad elements which left the unit because of change in policy might come back or influence the behavior of existing employees in case of a change in either of key people. During the organizational change, there is a chance of productivity decline in the disengaged people. (Aon Hewitt, 2013)
Blue Collar trade unions as compared to service sector unions
The blue collar employees are skilled or semi-skilled workers in the industries like transportation, craftsmen, etc. (Almeida-Santos, Chzhen, & Mumford, 2010). Historically trade unions have been associated with the blue collar jobs and employees. However, with changing employment scenario, the unionism is shifting from blue collar unions to primarily service sector or white collar unions. (Peetz, 2015) In service sector or white collar jobs, the support to trade unions is comparatively less as compared to blue collared ones as the former employees are more individualistic regarding their careers matters and their individual aims will dominate their actions. (Sarkar & Varkkey, 2008). The employees in public sector have a professional degree to protect their employability, and hence their reliance on trade unions is comparatively less. They are more skilled than blue collar workers, and their awareness and literacy levels are also more in the majority of the countries. This means that they have the capacity to fight and work for their individual interests without much need for the trade unions.
Conclusion
The case study is an example of the impact of organizational HR policies on the business success. The case also highlights the power of collective interest and how the management and the unions can collectively work towards the betterment of the organization as a whole. The change is unwelcome in the beginning, but if all the people are given right direction, than the process of change can not only be smooth but also bring more results than expected. The clear communication, due importance to workers’ opinion, health and safety of workers are some f the key issues which need to be prominently addressed by the HR managers to retain the good employees and get the best out of them.
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