The Employment Relations Systems of Many Countries Are Converging as a Result of Globalization - Assignment Example

QUESTION AND ANSWER {Insert university name} {Insert instructor’s name} {Insert student’s name} August 24, 2012. QUESTION AND ANSWER 8. The employment relations systems of many countries are converging as a result of globalization. Critically discuss. It is evident that employment relations systems of many countries are converging as a result of globalization. According to Martin and Ross (2000, 120) globalization is a process of rapid cultural, institutional and economic integration among nations. The aforementioned unification is not only driven by trade liberation and capital flow but also technological advancements. The aspect of globalization has reduced barriers between nations resulting into new forms of work organizations and sharing of labor standards that are internationally accepted. Additionally, due to the fact that thee is increased level of unemployment in addition to weal labor movements, most nations have decided to converge their employment relation systems. Increase in the contingent labor force has impacted on the current economic phenomenon on not only industrial relations but also on employers and employees an aspect that is attributed to globalization. Moreover, due to the fact that globalization has resulted into increased foreign direct investment and free trade, countries have seen the importance of converging employment relation systems. Consequently, globalization has impacted on working conditions, wages and employment resulting into need for adapting similar or converging employment relation systems with an aim of addressing the problems. As a result of immense competition from multinationals, nations have seen the need of adapting converging employment relation systems. The need for employment relation system convergence by nation is as a result of the existing global pressures that force nations to stay on economic gap. In order for the nations to stay on a global economic map, the nations have ensured that they attract foreign investment and multi-national companies by adapting international employment relation systems. On the other hand, developing nations with an aim of attaining economic growth have adopted various legal changes as well as employment practices which are converging with other of other nations and employment relations systems are steered towards the same direction. The adopted similarities range from collective bargaining structures, workers legal rights, lay off policies and safety legislation for the workers. Furthermore, at the workplace, the aforementioned convergence on the existing employment relations systems are taking two forms namely: functional flexibility and numerical flexibility. The main aim of the functional flexibility convergence is to improve the workers skills and make them to be in a position to multi-task in producing complex goods and services that meet the international standards. However, the numerical flexibility entails lack of unionization thus making countries to adopt convergent employment relation system with an aim of addressing the problem. Globalization has also made nations to institutionalized employment relation systems so as to make the element of convergence likely. The need to develop a collective bargaining power among the foreign workers as a result of multi-national companies and direct foreign investments, nations have embraced converging employment relation systems. The need to protect the interests and rights of foreign workers has made countries to embrace similar employment relations. Finally, the converging employment relations are aimed at reforming and maintaining global social stability. Q5: Organizations cannot do business in foreign countries without understanding their employment relations systems. Critically discuss. The new information technology is one of the factors that make it essential for organizations that need to business in the foreign countries to have a better understanding of their employment relation systems. Technological changes have impacted on the organization structures, the location and the nature of the work. Consequently, technological changes have made work to be performed outside the work. Therefore, it is essential for foreign nations to under the existing employment relation systems on the same. Consequently, many nations are embracing industrial restructuring which include technology upgrading and public sector privatization. The mentioned process has caused a number of social consequences like redundancy which have caused strained relationship between workers and employers and even the government of the host country; therefore it is essential to understand this to avoid employee-employer conflict. As a result of changes taking place in the workforce, it is essential for organizations to have a better understanding of the employment relation system of foreign countries in order to have knowledge of how to effectively manage the workforce. This is due to the fact that most nations have experienced emerging workforces which have high levels of skills and education that need to be managed differently. Moreover as a result of the employees’ skills, it is essential for the organizations to have a better understanding of the employment relation systems so as to avoid having any form of conflict with the employees. Additionally, most emerging work arrangement as a result of globalization does not fit into the traditional employment relations systems. Unionization is essential in the employment relation systems and due to the fact that that the unions role are changing, it is essential for organizations to have a better understanding of employment relations systems of other countries before they decide to do business with them. Currently, unions are focusing more on the industrial relations and aims at improving the working conditions of the employees and protecting their interests through collective bargaining or negotiation. Therefore, it is essential for the organizations to understand the country’s employment relation system and the role of the trade unions. The organizations also need to understand the role of the employees, employers, trade unions and the state in the employment relations systems. This will be essential in resolving any form of arising conflict and ensuring that there are harmonious working relations which will result into level of production. Consequently, the employment environment has undergone various changes due to globalization. This has made labor allocation to change from being controlled by the state to being controlled by independent recruitment agencies and state agencies combination. This has made employees to be in a position to negotiate for both their benefits and salary. Hence before organizations venture into foreign countries, it is essentials that they understand the bargaining power of the employees and recruitment agencies. Finally, most countries have put into strategic human resource management practices and policies. This has made harmonious employment relations to be in place as human resource management practices and policies are steered towards proper training and recruitment, motivational systems, career development, management and leadership style. Therefore, in understanding employment relations systems, the organizations will also be aware of the strategic management human resource systems of the foreign country. Q7: Although the International Labour Organisation ( ILO ) had done a lot in terms of making working conditions better for workers everywhere, the organization still has inherent weaknesses. What is your opinion on this statement? The international labor organization has done a lot in terms of making conditions better for workers all over the world; however it still has some inherent weaknesses. Even though ILO has the potential of enforcing the human rights of the workers all over the world, it has failed to apply it. For example all the member states have the obligation but the ILO committee lacks the authority to enforce compliance. This is due to the fact that, the ILO committee holds the belief that its role is not to impose penalties or condemn the government. Additionally, the ILO committee lacks the competence to implement the same but it instead relies on persuasion power in ensuring that human rights standards are observed. Another evident weakness of the ILO is its evident susceptibility to political dynamics and considerations. ILO is an international state that represents not only states but also employer and employer associations and it has found itself being influenced making it ineffective in realizing its key goals. For instance, at times ILO becomes so absorbed in the political debates an aspect that makes some nations to withdraw their membership. ILO has failed to facilitate the adjustment of workers to economic change. Even though ILO has various conventions linked to domestic employment policy, unemployment benefits and vocational training, there is no mechanism that commits countries that are prosperous to assist those that are in a state of distress. Therefore, it is essential for the ILO to work hand in hand with UNDP, IMF and World Bank with an aim of offering social safety net insurance to nations that are still developing that not only ratify but also enforce major ILO conventions. Even though, ILO has ensured good working conditions for the workers, the prevalence of informal economy mostly in developing countries has been a draw back. In the informal economy poor working conditions still persists especially for workers in migrant, temporary, precarious and temporary work. Additionally, hazardous child labor is still common in most countries. ILO has found it challenging to address the problem despite putting more efforts in curbing the same. Consequently, due to the fact that there are new methods that provide advantages to employers in form of decision making power, benefits, responsibility and autonomy, the aforementioned have been offset by reduced employment security, higher rate of unemployment, limited career prospects and increased rate of peripheral workers on temporary, casual or part-time contracts. However, the ILO structures have been circumvented or augmented by emerging ones known generically as strategic human resource management policies which tackle workplace issues as payment systems, personnel systems, training, and teamwork many which were dealt with by ILO. The aforementioned has made the ILO not to effectively tackle issues affecting workers without conflict with the established strategic human management systems. Finally, ILO has a poor understanding of the functioning and evolution of global production systems. Lack of knowledge base on multinational enterprises, enterprise development and export processing zones has made ILO not effectively achieve its goals. Q4: Lately, multinational companies and their activities have come under the security of non-government organizations, governments, and civil society at large. Why have they been criticized and what have they done to rectify their impacts? In your answer make reference to three international framework agreements and corporate social responsibility endeavors. In the recent past, multinational companies as well as their activities have been criticized not only by civil societies but also government and non-government organizations. It is argued that multinational companies are mainly interested in profit making and not the right of the consumers. This is due to the fact that multinational companies have monopoly power which makes them to be in a position to make excess profits. Moreover, due to the fact that multinational companies dominate the local market an aspect that makes it challenging for local small firms to thrive. For instance, it is evident that larger supermarkets are squeezing the margins of small shops thus resulting into less diversity. Governments of some countries have criticized multinational companies based on the fact that the companies make use of their economies of scale to drive local firms out of the market. This is because multinational companies enjoy huge amount of capital compared to the small firms. Consequently, in the effort to ensure profit maximization, the multinational companies have resulted to use of non-renewable resources an aspect that has contributed to pollution and placed the environment under threat. Finally, government, civil societies and non-government organizations have criticized multinational companies for using slave labor whereby they under pay their employers according to the western/international standards. In addressing the negative impacts the multinational companies have adopted a number of strategies. In ensuring that they do not drive small firms out of business, the multinational companies have merged with some of the small firms. On the aspect of environmental impact, the multinational companies have adapted renewable energy resource to avoid environmental pollution. On tackling the issue of exploiting their workers, multinational companies have ensured that they employees are paid good salary in accordance with the international standards. Corporate social responsibility is mainly based on employment relations. For instance Coca-Cola Company has ensured that it puts in place acceptable employment practices. It has further developed corporate social responsibility programs which are wholly known as corporate codes of conduct for the employees. These codes of conduct aim at addressing the basic labor standards and ensuring that the rights of the employees are met. Multinational companies have also adapted unique mechanism with an aim of improving the lives of the workers through effective and meaningful corporate social responsibility. Additionally, the companies have ensured that effective negotiation policies are in place so that the rights of the workers are met. Corporate social responsibilities have also motivated workers making them to feel that they are part of the companies. References ILO-International Labour Office (2004). The Global Seafearer. Living and working conditions in a globalized industry. Geneva, International Labour Office. Martin, A. and G. Ross (2000). “European Integration and Europeanisation of Labour”, in: M. Gordon and L. Turner (Eds.), Transnational Cooperation among Labour Unions. Ithaca, Cornell University Press, 120-149. Read More