In general, the paper "Actions of Managers during Current Economic Scenario Worldwide " is a great example of management coursework. The current economic scenario worldwide is slightly depressing. With several great financial setbacks, the economy’ s financial vigour has deteriorated to quite an extent. This financial pressure has shrunk the market’ s demand-supply cycle which has had severe effects on organizations whether big or small and also on the employees associated with them. With lower demands for products, surplus labour employing organizations have a labour-to-work mismatch. These circumstances give rise to a situation where there is a sudden decrease in workload but the workforce strength is constant if not increasing.
As primary targets of this downturn, the organizations operating and running businesses in the economy struggle to maintain profits and to manage the cost structure of the organization. It hence becomes evident that organizations would want to have a re-look at superfluous and redundant resources including human resources. This situation thus gives the managers of these organizations, an opportunity to negotiate and re-negotiate their terms which were otherwise not possible in a booming economy with a huge demand for skilled labour and manpower. However, when it comes to the human component of any organization, especially the workers and labourers; an altogether new and distinct aspect of Industrial (or Employee) relations come into the limelight.
Unlike the inanimate resources of a business such as raw materials, inventory, machines, infrastructure, budgets etc. , the process of management of living resources such as its working population is not a very linear, one-directional and straightforward task. It involves several nuances of trade union associations, industrial legislations governing employer-employee relations and so on.
Consequently, it is appropriate to undergo an in-depth analysis and study of the various labour management strategies, policies and procedures, keeping in mind the interventions of all the above-mentioned factors. With this essay, an attempt has been made to justifiably present the various decision alternatives that exist for managers of an organization facing such labour management issues. Management and Employee Relations (MER) Theory and Context Employment relations is a term used to describe the association between the representatives of employee and the representatives of employers (See Figure 1) including all aspects of work and employment between the parties involved in the contract for employment (Yoder, 1977).
Industrial relation maintains a balance between feasible solutions, conflicting objectives, incentives, economic security, discipline, industrial consensus, authority, autonomy, bargain and cooperation (Lester, 1964). Figure 1: Industrial Relations and associations The existence of several entities when it comes to dealings in industrial relations brings into light, a multi-stakeholder perspective. Industrial relations are affected by several factors such as Institutions, Economy and Technology. Institutional factors refer to government policies, labour legislation, collective agreements, employee courts and associations such as community, union, value systems, etc.
Economic factors deal with the market condition (demand and supply forces), the structure of labour market and market nature (capitalist, socialist, communist or mixed). Finally, technological factors which affect industrial relations are the introduction of automation, computerization, rationalization etc. Importance Industrial relations between labour and management should be harmonious to achieve industrial peace and increase productivity. Relations which are not cordial develops discontentment and gives rise to abrupt conflicts. The government does have several judicial and arbitrary procedures for dispute resolution; however, it is better to promote openness, trust and collaboration among labour and management so as to handle everyday affairs without getting into burdensome legal intricacies.