Singapore Employment Relations System - Case Study Example

HRM in the Global Environment: Background Paper on Singapore Employment Relations System Name: Institution: Course Title: Tutor: Date: 1.0 Introduction Countries significantly employ different systems, principles, structures, ideologies and frameworks in administering various aspects of their economy (Jost, Federico, & Napier, 2009, p.313; Finnemore & Sikkink, 1998, p.290-293). These factors ultimately impacts on patterns of interaction that takes place within that given country (Almond, 1956, p.396). One such aspect relates to systems of employment relations where a country can be informed by pluralism, unitarism and Marxism or have a combination of the same so as to suit their needs (Abbott, 2006, p.191-197). Such varying systems of employment relations implies that international expatriates in human resource management have to be well versed with the system of the country they have been deployed so as to avoid unnecessary setbacks such as industrial actions and strained internal working relations yet human resource is critical to the success of an organisation. Anchored on this realisation and using case example of Singapore and with assumption that the author as HR manager for a British bank based in Singapore, the discourse outlines a background paper on Singapore for use in briefing expatriate managers who are being re-deployed to that country within the domain of employment relations. The issues to be covered within this background paper include the general guiding philosophy – manpower planning, role of employees, management & employers, trade unions and government within the manpower philosophical employment relation framework. 2.0 Employment Relations Abbott (2006, p.188) observes that the concept of employment relations is conceptualised differently in different countries. For instance, he notes that in most America human resource management literatures, employment relations system refers to ‘interactions that exist between individual employers and employees at the level of the workplace’. However, in regard to British HRM literature, the concept refers to ‘interactions that can take place between the state, employer associations and organised labour’. For the context of the discussion within this paper, the paper adopts conceptualisation fronted within British HRM literature that appreciates that employments relations take place within the narrowed focus/ micro-level as fronted in American HRM literature and at macro-level where there is possibility of government intervention. Bray, Waring & Cooper (2011), identifies three critical philosophies in employment relations which include unitarism, pluralism and radicalism. Abbott (2006, p.191-197) identifies pluralism, unitarism and Marxism as the principal philosophies informing employment relations system of a country. Frege, Kelly & McGovern (2011, p.210) notes that Marxism and Radicalism as one at the same thing. Kelly (2002, p. 69) indicates that depending on various factors such as vested interest, economic, political and social systems various interested entities such employers, employees, government and trade unions are likely to advance different position thereby giving rise to a particular employment relations system of a country. The overall anchoring of pluralist view that conflict is inevitable (Abbott, 2006, p.192-193).Pluralist relationship appreciates the fact that there are numerous vested players and thus there is need to create balance between labour and capital. It is geared towards creating a balance between these competing interests so that not any of the interested parties have domination over the other (Budd Gomez & Meltz, 2004, p.196). Cradden (2011, p.10) observes that we can have adversarial or integrative pluralism with integrative having more positive attributes as compared to adversarial one. On the other hand, unitarism advocates for harmonious co-existence as conflict between management and employee/ trade unions is seen as unnecessary and avoidable. As such cooperation is paramount within this domain (Leat, 2008, p.12). Such views are theoretically anchored on views such as human relations theory and scientific management theory (Abbott, 2006, p.192). Cradden (2011, p.10) indicates that unitarism consists of deliberative, high commitment, bureaucratic & low commitment unitarism with the most outstanding being deliberative unitarism. The last is the Marxist/ radicalism that views a relationship where employers have a bearing over employees and thus, to counter the same there is need for constant contestation (Leat, 2008, p.14). This is greatly supported by theories such as postmodernism, feminism and labour process theory (Abbott, 2006, p.195-196) 3.0 Background to Singapore Taking cue from the definition adopted above, it is significant albeit in brief to examine three integral factors that highly informs the kind of employment relations systems adopted by a country (Lam, 2005, p.400). These are the political system, economic system and national culture which defines the social values of a nation. Singapore was founded in 1819 as British colony. Later, in 1963, it joined Malaysian Federation, but opted out two years later. Presently the country has a population of over 5 million and the country is mostly dominated by Chinese ethnic group at 72.2% with Malay being second at 13.3% and Buddhism being a dominant religion at 33.9%. The country has adopted a parliamentary system of governance; common law legal system and free market economy (Central Intelligence Agency, 2014). For more detailed description see appendix 1. 4.0 Background Issues: Employment Relations System in Singapore As already stated, in assessing the employment relations in Singapore and developing background paper for expatriates, the informing definition/ conceptualisation is based on the definition fronted by most British HRM literatures of seeing employment relations as ‘interactions that can take place between the state, employer associations and organised labour’ (Abbott, 2006, p.188). The information identified in this section constitutes integral aspects of background paper for briefing expatriate managers posted in Singapore Branch. The issue to be tackled include the general philosophy, role of employers & management in regard to this employment relations philosophy, role of employees, role of unions & role of the state. Singapore exemplifies countries that have experienced phenomenal economic growth since independence by adopting new public management systems (Cahyadi, et al., 2004, p.2). According to Venu Menon (2007, p.2), while Singapore has adopted free-enterprise economy modelled along British system, government intervention is significant in various aspects as it owns, controls, regulates and allocates labour, land and capital resources. This pervasiveness is felt right from international finance to trash collection. Specific to employment, the state has a greater bearing on annual wage increment and setting of minimum of fringe benefits in public & private sectors. However, this intervention is not a direct one, but that one which is built on development of partnership with businesses and labour (Lam, 2005, p.405). In a nutshell, Venu Menon (2007, p.2) observes that ‘state intervention in the economy managed to be pro-business without being anti-labour, at least regarding material welfare’. Laggett (2005a, p.349-353); Laggett (2005b, 177-198) observes that Singapore’s employment relations has continually undergone metamorphosis since its inception in 1819. The first industrial relation phase that was initiated in 1959 and lasted up to 1960 is referred to us as colonial administration. The second phase which lasted up to 1968 is referred to us as regulated pluralism. The third phase which lasted up to 1997 is referred to us as corporate paternalism. The last which is the ongoing employment relation system is referred to us as manpower planning (see appendix 2). Manpower planning employment relation system constitutes the bulk of the discussion for the background paper as it is the present general philosophy being implemented in Singapore as initiated by People’s Action Party since 1997. Therefore the first issue an expatriate manager posted in Singapore should be aware of is the general guiding philosophy identified earlier as manpower planning. The second background information that should be at the disposal of an expatriate manager posted in Singapore within manpower planning employment relations philosophy is the role of employers such as Singapore National Employer’s Federation (SNEF) or management as the representative of employers in the whole process. Laggett (2005a, p.352-253); Laggett (2005b, 193-194) indicates their ultimate function is to interact with Ministry of Manpower (MOM) and National Trade Union Congress (NTUC) in a manner that enhances employees’ mobility and flexibility. In this regard, they are to address issues such as competiveness, building corporate citizenship, and development of high-value jobs and win workers. Within the same philosophical framework within Singapore, the next important background information for incoming expatriates posted in Singapore is the knowledge about the role of employees within this frame. Bray Waring & Cooper (2011) observes that employees have to express loyalty to the organisation. However, they are permitted to expresses their interest and participate in conflict and negotiation process. The fourth is the role government in the whole process as informed by manpower planning industrial relations framework. Laggett (2005a, p.351) notes that the government’s role is to take care of macro environment issues/ policies that enhance strategic relations in human resource management. For instance, the sub-committee within the larger economic committee set up to look at ways of reviving the economy identified six issues for employment relationship which included ‘integration of manpower planning; development of lifelong employability; augmentation of the talent; transformation of work environment; development of vibrant manpower industry and redefinition of partnership’ (Laggett, 2005b, p.187-188). Thus, a foreign manager posted in Singapore should be aware of the fact that within employment relationship system in Singapore government has an interventionist role which is anchored on partnership with businesses and labour. The last is the role of trade unions such as National Trade Union Congress (NTUC) within the domain of manpower planning employment relations. Their focus is on building exchange relationship with employers such as SNEF and government through MOM so as to ensure workforce mobility and lifelong learning. For instance, NTUC seeks to “Enhance Employability for Life; Strengthen Competitiveness; Build Healthy Body & Healthy Mind” (Laggett, 2005a, p.352; Laggett, 2005b, p.189). Thus, for expatriate is prudent to know that in singapore, trade unions challenges the management and employers. However, this is done in a constructive manner so as to attain the overall goal of manpower planning. 5.0 Conclusion The aim of the discourse was to develop a background paper on Singapore’s employment relations system that can be utilised by expatriate posted to the island nation by a British bank. The paper identified five important issues that are critical for an expatriate in navigating employment relations in Singapore. These issues are the overall philosophy, the role of employers & management, employees, trade unions and government within this overall employment relations framework. The paper established that government has a role of intervention so as to create a mutual environment for business and labour. Secondly, the employees are expected to show loyalty. However, with reasons they expected to dissent so as to engage employers either through trade union or individual bargain. Thirdly, trade unions have the mandate of engaging with MOM and SNEF so as to ensure lifelong learning and mobility. Lastly, employers & management have the mandate to engage with MON & NTUC so as to guarantee workforce mobility & flexibility. References Abbott, K. (2006). A review of employment relations theories and their application. Problems and Perspectives in Management, 1(2006), 187-199. Almond, G. A. (1956). Comparative political systems. The Journal of politics, 18(03), 391-409. Budd, J. W., Gomez, R., & Meltz, N. M. (2004). Why a balance is best: the pluralist industrial relations paradigm of balancing competing interests. Theoretical Perspectives on Work and the Employment Relationship, Champaign, IL: Industrial Relations Research Association, 195-227. Cahyadi, G., Kursten, B., Weiss, M., & Yang, G. (2004). Singapore’s economic transformation. Global Ur-ban Development. Central Intelligence Agency (26 February, 2014). The World Factbook - East and Southeast Asia: Singapore. Retrieved on 12 March 2014 from: https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html. Cradden, C. (2011). UNITARISM, PLURALISM, RADICALISM... AND THE REST?. Available at: http://www.unige.ch/ses/socio/publications/dernierespublications/sociograph10-1/sociograph_working_paper_7.pdf. Finnemore, M., & Sikkink, K. (1998). International norm dynamics and political change. International organization, 52(4), 887-917. Frege, C., Kelly, J., & McGovern, P. (2011). Richard Hyman: marxism, trade unionism and comparative employment relations. British journal of industrial relations, 49(2), 209-230. Jost, J. T., Federico, C. M., & Napier, J. L. (2009). Political ideology: Its structure, functions, and elective affinities. Annual review of psychology, 60, 307-337. Kelly, J. E. (2002). Industrial relations: approaches to industrial relations and trends in national systems. London: Routledge . Lam, N. M. (2000). Government intervention in the economy: a comparative analysis of Singapore and Hong Kong. Public Administration and Development, 20(5), 397-421. Leat, M. (2008). Employee Relations. Available at: https://www.ebsglobal.net/documents/course-tasters/english/pdf/h17er-bk-taster.pdf. Leggett, C. (2005a). The fourth transformation of Singapore’s industrial relations. Reworking, 347. Leggett, C. J. (2005b). Strategic Choice and the Transformations of Singapore’s Industrial Relations (Doctoral dissertation, Griffith University). Venu Menon, S. (2007). Governance, leadership and economic growth in Singapore. Available at: http://mpra.ub.uni-muenchen.de/4741/1/MPRA_paper_4741.pdf. Appendix 1: Singapore’s Profile Source: Lam, 2005, p.398 Appendix 2: Transformations of Singapore’s Industrial Relations Source: Leggett, 2005, p.348 Read More