Managing a Business/-


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 pls kindly help for below question.

  Explain various cultural aspects of employement reltions.Discuss the recent developments in employement relations.How power and authority would play a role in industrial relations?

5. Explain various cultural aspects of employment relations. Discuss the recent developments in employment relations. How power and authority would play a role in industrial relations? Explain.
Factors Influencing Strategic Employee Relations

Frequent meetings keep management informed of employees' concerns.
•   What Are Strategic Partnering Relations?
•   An Example of Employee Relations
•   Factors Influencing Changes in Strategic Management
•   Ways to Improve Employee Relations
•   Strategic Plan for Employee Compensation and Benefits
•   External & Internal Environmental Factors Influencing HR Activities

The subject of employee relations -- also known as industrial relations -- encompasses the relationship between employees and employers. Employee relations are influenced by a number of factors, all of which affect the strategic balance between labor and management. It is important to be aware of the key factors influencing employee relations in order to strike a proper balance.
Unions and union organizing significantly affect employee relations. Once a union is established, employees do not bargain on their own behalf. Instead, union representatives bargain for them. Unions can be a source of employee empowerment, as union employees may feel as though they share a common goal. Additionally, unions provide arbitration of labor disputes and grievance procedures.
Communication is a key factor influencing employee relations. Employees who feel they can air grievances, and be heard, typically have higher morale. Effective communication in the workplace involves keeping employees informed of performance expectations and keeping them abreast of any changes in company policy or procedure that may affect them. Open communications, such as in monthly meetings or through weekly memos, assist in alerting management to workplace problems before these problems begin to affect morale.
Company Culture
Each company or corporation has its own culture. Company culture encompasses many things, not the least of which is they way managers relate to employees. Company culture often dictates how employees are treated. For instance, a company culture that emphasizes punishment over reward usually creates an environment of fear and low morale. A company culture that embraces employees' unique attributes and emphasizes reward tends to improve relations between management and labor.
Wages are a significant factor influencing strategic employee relations. When a company provides employees with industry-standard wages -- or wages that are above industry standards -- employee relations typically run more smoothly. Benefits and bonuses also affect employee relations, as they tend to make employees feel valued and appreciated.

Employee Relations deals with a variety of issues surrounding the work environment of employees of  the company.
Employee Relations include, but are not limited to:
-Providing independent counseling to employees and/or supervisors to resolve work-related problems that may relate to performance and/or discipline based issues,

-Mediating disputes and advising all sides involved on matters relating to employee relations and human resources policies,
-Coordinating Employee Assistance Program (EAP) services,  Administering the staff grievance process,  
-Monitoring Employee Performance Management Systems (EPMS),
-Counseling and reviewing Reduction-In-Force plans (RIF),
-Administering the College unemployment insurance program. Issues or problems that arise in the workplace may be addressed with the immediate supervisor, the department head or vice president.
Employees also can visit the EMPLOYEE  RELATIONS  MANAGER  to receive advice, counseling, and suggestions on how to deal with any workplace issue, personal concern, or problems with co-workers and/or supervisors.

Values in the Employment Relationship.

The Changing Employment Relationship Values

Old Values>>>>>>>>>>>>>> New Values

Specialized Employment >>>>>Flexible Deployment
Internal-focus >>>>>>>>>>>>>Customer-focus
Job-focus >>>>>>>>>>>>>>>>Performance-focus
Functional-based Work >>>>>>Project-based Work
Human Dispirit & Work>>>>>>> Human Spirit & Work
Loyalty >>>>>>>>>>>>>>>>>>>Commitment
Training >>>>>>>>>>>>>>>>>>Learning & Development
Closed Information >>>>>>>>>>Open Information

Conceptual Framework of Employment Relations
the training of practitioners rather than with theory and measurement. It is thus related to the basic social sciences as engineering is to the physical sciences or medicine is to the biological sciences.
Any problem in industrial relations has to be approached on a multi-disciplinary basis,
drawing from the contributions of the above disciplines. The causes of an industrial dispute may be, by nature, economic, social, psychological or political or a combination of any of them. Labour economics provides an economic interpretation of
the problems growing out of employer-employee relationship. Industrial sociology explains the social background of the workers, which is essential for the understanding
of industrial relations. Industrial psychology clarifies certain concepts and provides empirical tools in areas such as recruitment, placement, training, fatigue and morale.
For instance, attitudes and morale surveys are powerful tools to discover causes of industrial strife and to evolve methods for their prevention. Labour laws and their interpretation by tribunals and courts contributes to the growth of industrial
jurisprudence. Application of quantitative analysis and labour statistics throws light on the exact state of industrial relations during a particular period. Political aspects also assume importance in industrial relations, particularly in a developing economy dominated by centralised planning. In fact, the growth of industrial relations as a scientific discipline depends upon the extent to which it integrates the contribution of established disciplines in the social sciences.
There is no country where industrial relations is entirely a matter of tradition or custom nor is there a country where the employers, the workers or their organizations and the government do not at all interact to build up the country’s industrial relations system. It has been a mixture of traditions, customs and a web of action, reaction and interaction between the parties. The industrial relations system may be conceived at different levels, such as national, regional, industrial and workplace. The concept of the system has been influential in establishing industrial relations as a discipline in its own right. The concepts of the system approach are operationally definable.
An industrial relations system may be defined as comprising the totality of power interactions of participants in a workplace, when these interactions involve industrial relations issues. It is viewed as an integral and non-separable part of the organisational structure and its dynamics. An industrial relations system includes all
the individuals and institutions that interact at the workplace. Regardless of the level at which the system exists, an industrial relations system can be viewed as having
three components: (1) a set of individuals and institutions that interact; (2) a context within which the interaction takes place; and (3) an output that serves to govern the future relationship of the parties. The components of industrial relations system are:
i) Participants: The participants in the industrial relations sphere are composed of duly recognised representatives of the parties interacting in several roles within
the system.
ii) Issues: The power interactions of the participants in a workplace create industrial relations issues. These issues and the consequences of power interactions find their expression in a web of rules governing the behaviour of the parties at a workplace.
iii) Structure: The structure consists of all forms of institutionalised behaviour in a system. The structure may include collective procedures, grievances, and settlement practices. Legal enactments relevant to power interactions may also be
considered to be a part of the structure.
iv) Boundaries: In systems analysis, it is possible to find an issue which one participant is totally indifferent to resolving while, at the same time, the other participant is highly concerned about resolution of the same. These issues may serve to delimit systems boundaries.
The role  varies  with  the  organizations.


Employee Relations deals with a variety of issues surrounding the work environment of employees of  the company.
Employee Relations include, but are not limited to:
-Providing independent counseling to employees and/or supervisors to resolve work-related problems that may relate to performance and/or discipline based issues,

-Mediating disputes and advising all sides involved on matters relating to employee relations and human resources policies,
-Coordinating Employee Assistance Program (EAP) services,  Administering the staff grievance process,  
-Monitoring Employee Performance Management Systems (EPMS),
-Counseling and reviewing Reduction-In-Force plans (RIF),
-Administering the unemployment insurance program. Issues or problems that arise in the workplace may be addressed with the immediate supervisor, the department head or vice president.
Employees also can visit the EMPLOYEE  RELATIONS  MANAGER  to receive advice, counseling, and suggestions on how to deal with any workplace issue, personal concern, or problems with co-workers and/or supervisors.

The New Employment Relationship Model There are four characteristics that distinguish this model from other models found in the management literature. These factors include: 1.This model is one of the few empirically researched models, which mean that it has a degree of academic rigor. 2.The model looks at the employment relationship from the dual perspective of the individual and the organization. Most models look at the psychological contract from the perspective of the employee and how he or she needs to change. Few models consider how the employer and employee relate to each other based on a set of specific values. 5 3.The model is based on eight values that can be used to align the shifting individual and organization paradigms. 4.A description of each value is provided, in terms of why it is important and what the appropriate individual and organizational response needs to be to implant the value as a feature of the company’s culture.
1 New Employment Relationship Model Individual Accountability New Value of the Employment Relationship Organization Accountability Work in a variety of organizational settings.
Flexible Deployment Encourage employees to work in other organizations or organizational units within the same organization.
Serve the customer before your manager. Customer-focus Provide information, skills & incentives to focus externally.
Focus on what you do, not where you work. Performance-focus Link rewards & benefits with performance rather than organizational dependency.
Accept & embrace yourself as a project-based worker rather than a function-based employee.
Project-based Work Focus on projects rather than organizational functions.
Find work that is meaningful. Human Spirit & Work Provide work (wherever possible) that is meaningful. Commit to assisting the organizational achieve its organizational outcomes.
Commitment Commit to assisting employees to achieve their personal objectives.
Be committed to life-long learning. Learning & Development Enter into a partnership for employee development.
Be willing to contribute to the organizational decision-making processes.
Open Information Providing employees with access to information about organizational goals, needs, & HR systems. SOURCE: Baker, T. B. (in press).
The 8 values of highly productive companies: Creating wealth from a new employment relationship.
In summary, the eight values are defined as follows: • Flexible Deployment is the provision of a functionally flexible work force; • Customer-focus is breaking the organizational barriers to focus on the requirements of the customer; • Performance-focus is linking rewards and benefits with performance rather than organizational dependency; • Project-based Work is boundary managing the shift from functional to crossfunctional organizational structures; • Human Spirit & Work is increasing the likelihood that workers will find their organizational work meaningful; • Learning & Development: is shifting from a training culture to a broader learning and development culture; • Commitment is a more pragmatic substitute for loyalty; and • Open Information is moving from a closed to open information environment. The application of these eight values in a company culture is a dual responsibility of the individual and the organization.

What Is Power & Authority in Industrial Relations?
Power and authority are the same in industrial relations as they are anywhere else. The basic concept of industrial relations involves the interaction between management and labor, as well as ownership and management. Authority and power are at the center of this field, which examines industry, as the main productive mechanism of a nation, and the method by which millions make a living. The way that power and authority are used in the workplace is important for basic moral goods like liberty, equality, fairness and merit.
Power and Authority
o   Power is a more abstract concept than authority. It can be found in every sphere of life. Power is the ability of one person to use another person as a means to an end. In the field of industrial relations, power is about using the ownership of capital to control labor. Authority, by contrast, is the legal and/or moral right to use power.
Power and Labor
o   Industrialization created a situation in western Europe where the bosses, those who owned capital, had all the power, while labor had little. Since the owner controlled all the means of production -- such as machines, the shop, the land and the tools -- all the worker had was his own body and the ability to do as he was told. Industry considered itself to have the authority to do this because it was successful, it was making the nation strong and it served the interests of the government and military apparatus. This concept was not to last. Nevertheless, in earlier industrial relations, the issue was the application of "authority" merely to the fact that some industrialists were more successful than others and, hence, could control their labor.
Authority and Competition
o   Capitalist industry and its relations with labor bases the concept of authority on the results of competition. An entrepreneur has the authority to tell his workers what to do and how to do it because he is successful -- he has given the people what they want. Therefore, he has made profits and, therefore, has a great amount of authority that backs up his power. On the other hand, unions base their authority on the fact that they are as necessary to success as the managers and owners. In both cases, industrial relations bases authority on those aspects of production that the two groups have that are indispensable: management coordination and labor power.
Balance of Power
o   Organized labor held that mere success did not give anyone the right to use power arbitrarily. Unions came into existence to redress this imbalance, and redefined the notion of "industrial relations." In large industrial enterprises, workers could band together and make demands. The capitalist had as much need of them as they needed the capitalist. They used that power to strike, or to refuse to work. This is an exercise in raw power. Once governments began to recognize the unions' right to exist, to negotiate better working conditions and pay, the worker's union became an authority, not merely an exercise in power.

Today’s professional industrial relations director, or by whatever title he is designated, no longer views his job as personalizing management, or that of a social worker in a factory, or a union buster, he looks upon his department as an adjunct to management supervision at all levels; he keeps other executives informed about new discoveries, programme trends and needs. At the same time, he provides efficient service in the operation of several centralized services.
A successful industrial relations programme reflects the personnel viewpoint, which is influenced by three main considerations:
a) Individual thinking
b) Policy awareness and
c) Expected group reaction
Individualized thinking makes if imperative for the administrator to consider the entire situation in which the affected individual is placed. Policy awareness underscores the idea of the consistency of treatment and the precedent value of any decision which a management takes; while expected group reaction balances what we know of human nature in groups against an individual’s situation in the light of the policy that has been formulated and implemented. In all these different circumstances, reality demands that all the three aspects of the personnel viewpoint should be considered at once in terms of the past, the present and the future. This viewpoint is held at all the levels of management from the top to the bottom, from the top executives and staff to the line and supervisory personnel.


The staff employed in the industrial relations department should know the limitations within which it has to function. The industrial relations director generally has several assistants who help him to perform his functions effectively, and he usually reports directly to the president or chairman of the board of directors of an organization.

The functions of the industrial relations staff are -
1. Administration, including overall organization, supervision and co-ordination of industrial relations policies and programmes.
2. Liaison with outside groups and personnel departments as well as with various cadres of the management staff.
3. The drafting of regulations, rules, laws or orders and their construction and interpretation.
4. Position classification, including overall direction of job analysis, salary and wage administration, wage survey and pay schedules.
5. Recruitment and employment of workers and other staff.
6. Employment testing, including intelligence tests, mechanical aptitude tests and achievement tests.
7. Placement, including induction and assignment.
8. Training of apprentices, production workers, foremen and executives.
9. Employee counseling on all types of personnel problems-educational, vocational, health or behavior problems.
10. Medical and health services.
11. Safety services, including first aid training.
12. Group activities, including group health insurance, housing, cafeterial programmes and social clubs.
13. Suggestion plans and their uses in labor, management and production committees.
14. Employee relations, specially collective bargaining with representatives and settling grievances.
15. Public relations.
16. Research in occupational trends and employee attitudes, and analysis of labor turnover.
17. Employee records for all purposes.
18. Control of operation surveys, fiscal research and analysis.
19. Benefit, retirement and pension programmes.


The basic requirements on which a successful industrial relations programme is based are :-
a) Top Management Support: - Since industrial relations is a functional staff service, it must necessarily derive its authority from the line organization. This is ensured by providing that the industrial relations director should report to a top line authority to the president, chairman or vice president of an organization.
b) Sound Personnel Policies: - These constitute the business philosophy of an organization and guide it in arriving at its human relations decisions. The purpose of such policies is to decide, before any emergency arises, what shall be done about the large number of problems which crop up every day during the working of an organization. Policies can be successful only when they are followed at all the level of an enterprise, from top to bottom.
c) Adequate Practices should be developed by professionals: - In the field to assist in the implementation of the policies of an organization. A system of procedures is essential if intention is to be properly translated into action. The procedures and practices of an industrial relations department are the “tool of management” which enables a supervisor to keep ahead of his job that of the time-keeper, rate adjuster, grievance reporter and merit rater.
d) Detailed Supervisory Training :- To ensure the organizational policies and practices are properly implemented and carried into effect by the industrial relations staff, job supervisors should be trained thoroughly, so that they may convey to the employees the significance of those policies and practices. They should, moreover, be trained in leadership and in communications.
e) Follow-up of Results: - A constant review of an industrial relations programme is essential, so that existing practices may be properly evaluated and a check may be exercised on certain undesirable tendencies, should they manifest themselves. A follow up of turnover, absenteeism, departmental morale, employee grievances and suggestion; wage administration, etc. should be supplemented by continuous research to ensure that the policies that have been pursued are best fitted to company needs and employee satisfaction. Hints of problem areas may be found in exit interviews, in trade union demands and in management meetings, as well as in formal social sciences research.
The organisation  I  am   referring to

The  organization, I am  familiar  with  is  a
-a  large  manufacturer/ marketer of  safety products
-the products  are  used  as  [personal  protection safety] [ industrial  safety]
-the products  are  distributed through  the distributors as well as  sold directly
-the  products  are  sold  to various  industries like  mining/fireservices/defence/
as  well  as  to  various  manufacturing  companies.
-the  company employs  about  235  people.
-the  company  has  the following  functional   departments
*finance/ administration
*human resource
*customer  service
*warehousing/  transportation

THIS  covers the development of policies and programs, as well as transparent reporting and accountability, in the following areas
-employee  relations
-rewards management
-industrial  conflicts
-work conditions
-Collective bargaining
-Efficiency wages
-Employment contract
-Indentured servant
-Labour and employment law
-Unfair labor practice
-Workplace Fairness
-Employee stock option
-Employee or Fringe benefit

This is a summary of the six workplace agreements.
Individual transitional employment agreements
An Individual transitional employment agreement  is a transitional individual agreement that can be made by certain employers and employees. An individual transitional employment agreement has a nominal expiry date of no later than ........
Employee collective agreement
An employee collective agreement is made between your employer and a group of employees who will be covered by the agreement. You can appoint a bargaining agent to bargain on your behalf.
Union collective agreement
A union collective agreement is made between your employer and a union or unions that represent you. The agreement sets out the terms and conditions of employment. The union or unions will be negotiating on your behalf.
Employer greenfields agreement
An employer greenfields agreement is an agreement in relation to a new project, business or undertaking which your employer is proposing to establish. When making an employer greenfields agreement your employer must not have any employees employed in the new project, business or undertaking.
Union greenfields agreement
A union greenfields agreement is an agreement between a union and your employer in relation to a new project, business or undertaking which they are proposing to establish. The agreements are negotiated between your employer and a union on behalf of you
Multiple business agreement
A multiple business agreement is a collective agreement that enables multiple employers to make a single agreement that applies to all of their businesses. Typically, a multiple business agreement could be used in a franchise operation where there are a number of businesses carrying on the same type of business that wish to offer you the same working conditions


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Leo Lingham


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