Generally, the paper "Advantages and Disadvantages of Government Involvement" is an outstanding example of management coursework. The emergence of foreign markets and the subsequent increase in international and multinational organizations have increased human resource management issues and concern. In this case, the concept of international human resource management was developed in a bid to enhance and facilitate the management of global human resource issues. As a result, the development of international human resource management as a key business and global economic strategy for success led to the emergence of concerns and stakeholders involved in the process.
Such identifiable stakeholders include the emergence of employee lobby associations and groups, employers associations to defend the employees’ rights as well as international human resource management organizations as well as the international labour organization (ILO). The emergence of these stakeholders complicated human resource management as well as the handling of employment relations. However, the inclusion of an additional stakeholder, the government has increasingly complicated handling of employment relations in the local and global contexts. While as some argue that government inclusion increases overall sanity and rule of law in employment relations, others perceive it as an obstruction and barrier to effective relations development.
It is based on this emerging debate that this essay is developed. The essay seeks to evaluate the merits as well s demerits of government involvement in employment relations in an Australian context. Advantages of Government Involvement The government involvement in employment relations had a wide range of merits and positive implications in the long-run functioning of the global human resource market as well as the economy at large. One such merit is policies and regulations development.
The government is mandated with the responsibility of developing organizational policies and structures in the economy. Goodwin and Maconachie (2011) conducted a study to evaluate the role of government in developing labour regulations and frameworks. The study developed a hypothesis that governments across the globe have constitutional mandates to protect their citizens. In this regard, governments are charged with ensuring that there are fairness and equitability in employments. Therefore, the study argued that governments are a necessary tool in enhancing regulatory equality in the market. Profit oriented organizations gear their strategic objectives at gaining increased profitability in the industry.
In this case, the organizations strive to reduce overall production costs in the market. One such area that is increasingly targeted for reduced costs is the human resource management aspect. As such, organizations seek out to reduce human resource costs through a number of avenues. On one hand, they reduce remunerations extended to the workforce. Thus, the human resources are under-compensated resulting in human resource exploitation. In addition, organizations reduce and compromise on employees working conditions and safety in order to reduce human resource costs.
This can be evidenced by a study developed by Hopkins (2008). The study evaluated the human resource exploitation trend adopted by multinational organizations in the Asian market. The study established that multinational organizations had increasingly offshored their production activities into the region due to available cheap labour. In this regard, the study argued that the organizations established sweatshops in which the working conditions were poor allowing for reduced production costs. The study sought to compare the functioning of the labour market in both the European and the Asian market.
On one hand, it established that the European market was increasingly regulated by the respective governments. As such, the working standards acceptable minimums were established and any violations were subjected to legal prosecution. Therefore, it was impossible for multinational organizations to exploit the European labour market. However, the situation is different in the Asian market. Governments in these markets strive to develop avenues to attract foreign investments in the market to allow for increased economic growth. Therefore, the lack of regulatory measures on labour relations led to the emergence of sweatshops.
This can be evidenced by an example of the Apple Company. Despite its social responsibility approach, its supplier in the Chinese market, the Foxconn utilizes cheap labor and sweatshops to develop the organizational inputs.