The paper "Collective Bargaining as a Method of Solving Employees' Concerns in Relation to Industrial Relations" is a perfect example of a case study on management. Wal-Mart Inc. , now Walmart is a multinational retail company situated in the US that operates chains of large warehouse stores and departments across the world (Frank, 2006). The corporation was categorized as the third largest public company in the world in 2012 by Fortune Global 500 list. Fortune also placed the largest retailer and the largest world private employer with more than two million employees.
The corporation has expanded its stores to other countries; this paper will focus on China, particularly Walmart in Shanghai. Since getting the Chinese marketplace in 1997, the company has increased both its store base and sales in China with over 40 percent annually. Price, Bailey & Pyman (2012) claim that after getting its first major revenue in 2009, Walmart Shanghai stands as a massive expansion opportunity for the corporation. With 96 percent of the outlet base and even additional revenue the hypermarket as becoming dominant in that region over recent years.
This cannot only be attributed to the management only but also the employees. With the changing nature of employees’ welfare and demands in the 21st century, Walmart must always be consistent with this change to make employees motivated to produce good results. 1.0 Introduction One of the biggest precious properties of a company in the 21st century is the employee. Effective human resource ensures that the company performs well. As fast-rising economy companies like Walmart have had to invest Chinese market. However, foreign companies such as Walmart have found it tough to operate in the Chinese market due to differences in industrial relations policy, politics, and ever-changing economy (Davies, 2011, p. 117).
With nearly 2.2 million workers worldwide, Walmart Shanghai has experienced a stream of court cases and issues related to its labor force. These concerns entail poor working conditions, low wages, and insufficient health care, together with challenges entailing the corporation's tough anti-union policies. Opponents point out Walmart's employees’ higher turnover rate as proof of unhappy employees, even though other issues could be involved (Keil & Spector, 2005, p.
342). This report has identified collective bargaining as an effective method of solving employees' concerns in relation to industrial relations. Therefore the collective bargaining will employ the two approaches, unitarist values, and pluralist values in an endeavor to solve Walmart ‘ Labor unrest’ in Shanghai. 2.0 Collective bargaining Collective bargaining is a way of negotiation resulted from agreements, regulations, and joint determination. It can also be referred to as the process in which relations talks happens between employers and work collective in which liberal collectivist are preferred. Employment relations in China have faced incredible change together with China’ s move towards a marketplace economy since 1978 (Taylor, Kai & Qi, 2004).
Following 30 years of economic evolution, China has to turn into the ‘ world factory’ . The millennium has seen a sudden rush of concentrated efforts to create a new industrial relations process. This journey can be understood appropriately against social turmoil caused by China’ s surge towards the market economy at an extraordinary scale and speed for over the past 30 years. Bamber et al. (2009) advocate that one of the methods used to resolve labor unrest has been collective bargaining.
However, not all companies, in particular, Walmart which is a foreign company has not understood the concept of collective bargaining and how they should use it in relation to employment relations and management ER strategy in the retail sector, particularly in China.
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