The Importance of Employee Relation - Example

1. Employee relations is developing a positive relationship between the employer and the employee so that a cordial atmosphere is created which will help to increase the level of contribution of the employees thereby ensuring satisfaction, high morale and improved productivity. The importance of employee relation has grown with time as the development of different legal bodies both within and outside the organization looks at developing the required framework which will help to ensure that the employer and employee maintain a good relation with each other. The importance of employee relation increases in case of Australia as the enactment of different rules and regulations which look at increase involvement from both the employer and the employee has multiplied the importance of employee relation. The Fair Work Australia is one such reform in that direction which improves the overall condition of the employees and determines the manner in which laws are governing the Australian economy (Fair Work, 2013). The Fair Work Australia ensures that employers are educated, developments are monitored and interventions are possible from government bodies if the interest of the employees is exploited. This will help to improve the development of the economy as the economic impact will be positive and will help to improve the chances of achieving higher growth rate. The overall development of different rules and regulations which look at the well being of the employees and the employer has increased the importance of employment relations. The manner in which business legislation is increasing and intensifying labor laws it is imperative that the organization focuses on developing positive relations. This will help the organization to stay away from the legal aspect and will help them to concentrate on the business in hand. The strengthening of rules and regulations in Australia is a step in that direction and requires development of better relationship between the employer and the employee. 2 & 3. The explanatory model of employee relations developed by Bray, Waring & Cooper helps to understand employee relationship in a better manner as the model which has been explained looks to include things from the perspective of both the employer and the employee. The model which has been developed ensures that different theories like unitarist, pluralist and radical theories are used which thereby ensures that the entire model has been developed based on different angles and areas and provides conclusive evidence and manner in which the relation between the employer and the employee can be improved. The model further looks at looking at the present market conditions and the enactment of new rules and regulations based on which overall decisions are taken. This helps to maximize the decisions and ensures that overall effectiveness is generated which will help to look at the relationship in the most cordial manner. The fact that relationship is looked both from the perspective of the employer and the employee and highlights the manner different benefits will be associated with it helps to find out the manner in which better relations are developed. The overall model has thereby been developed in such a manner that it gives importance to the smaller information and aspects which will help to strengthen employee relationship and will thereby help to bring about the required transformation through which better productivity is gained. The process will help to build the required relationship and will further help to strengthen the overall productivity through which better relations will be established. The fact that the model uses different aspects and concentrates on using different models and theories it will ensure that the overall development of relation with the employer and the employees will be better and will help to ensure that the organization benefits due to it. The use of different theories like unitarist, pluralist and radical theories provides different advantage and disadvantage as the different theories have been developed on different assumptions and models. This thereby ensures that the applicability of the model has its usage on different fields. Further, the three theories look at developing a positive relationship between the employer and the employee and looks towards ensuring that the resources are used in the better manner. This has helped to use the different theories and has helped to bring the required transformation through which the economy has been able to perform better. The analysis will help to understand the manner in which the entire industrial relation has undergone changes and the manner in which the Australian economy has developed due to changes in labor laws. This will help to improve the working style and provide organizations with better incentive to work and raise no labor related issues in the future. The problem with the theories is that it is applicable to particular situation but is not universally correct which thereby raises doubts on the manner in which the theories will be used. The fact that the model uses different assumptions it creates doubt as getting a situation which is actually true and correct and based on the requirements is difficult. This raises doubt on the applicability of the theories and requires special effort and consideration to be able to use in the most effective manner. 4. The Australian economy has seen a lot of changes with regard to the employment levels, pattern and relationship since the 1970. The changes in legislation with regard to employment relation are being seen as the Australian government developed labor policies by relying on the Corporation Power which falls under the Australian Constitution and has been replaced by the Fair Work System. The impact of the changes has been strong in the employment sector as it has transformed the business and improved the living status of people as shown below (Fair Work, 2013) The above chart highlights that better relations has enabled the GDP of the economy to grow as it can be seen that there us a substantial difference for the last 40 years after 1970 and since the implementation of new legislations the returns have been better. This has resulted in an increase in disposable income as more and more people are being employed and has resulted in the unemployment rate to fall as show below (Fair Work, 2013) The above chart highlights that the development has helped in increase the level of unemployment. The period clearly highlights that after 1970 thereby has been a substantial change in a positive direction and has enabled the Australian economy to look at better relations which helps to provide better returns. This has further impacted the number of hours which employees work and has reduced the exploitation of employees as shown below The above chart highlights that the number of hours that the employees work has reduced and matches the international level. This has determined the amount of hour that they need to work and based on it their wages are determined. Thus, the labor reforms and development has resulted in widespread changes which has impacted the overall relation with employee in Australia and has contributed positively towards the growth of the employees and the organization. 5. The role of the state or the government is imperative in developing healthy relations as it determines the basis on which the overall relation within the organization will be developed. The government through the enactment of different rules and regulations can bring about the required transformation which will help to ensure that both the employer and the employee work in such a manner that positive relation between them is developed. This will help to increase the level of cooperation and provide an opportunity through which the resources will be used in the most effective manner. This requires active participation from the government so that relationship between the employer and the employees is developed and the business is able to gain efficiency. This will require that the government looks towards enacting different rules and looks towards achieving a balance so that a balance is achieved between the needs and requirements of the employer and the employee. This will have a positive impact on Australia as it will ensure that the benefits from Fair Work Australia are gained. This will help to multiply the effectiveness and develop the entire process through which developments are taking place. The Australian government has played an active role in ensuring that the relationship between the employer and the employee is developed as the government has enacted different legislation which ensures that overall productivity is maximized. In addition to it the government will have to continue in the same manner and has to develop new rules and regulations which look at pacifying the relationship between the employer and the employee so that a cordial relation is developed which looks at motivation, growth and better achievement of the goals. The Australian government has to impose strict measures and look towards total development so that both the employer and the employee benefits from mutual relation and it helps to bring about a change in which the Australian labor industry performs. 6. It is imperative that industrial relation is considered as a specialized area in the organization and the managers have relevant information as it entails with human beings and relation with the employees. The organization will be able to achieve their goals only when they are able to ensure a positive relationship with the employees who look towards ensuring that they are motivated to work for a common purpose. This can only be achieved if the organization is able to develop positive relationship with the employees as it will ensure that even the difficult task will be carried out effectively. Developing a positive relationship will ensure that the employees can be motivated to carry out task which are difficult and the objections from the employees will be limited. This will help the organization to ensure that their production process is carried out without any difficulty and the employees remain committed towards the goal of the organization. This will help the organization to work for the bigger picture and help them to accomplish their vision as the support from the employees will ensure that the work will be done in the most effective manner. Maintaining a good industrial relation where the manager has to play its part will ensure that the magnitude of industrial disputes will be low. The fact that both the parties are able to understand each other will ensure that the disputes if they emerge will be solves easily. This will reduce the number of strikes, lock outs and others which could have an effect on the ongoing process within the organization. This will also ensure that the manager is able to identify the different areas where specialized training has to be provided. This will thereby act as a method through which the employees can be motivated and a high rate of commitment can be ensured from them. This will thereby help to develop the entire fundamentals in such a manner that it will result in creating positivity within the organization and reduce the problems which might arise internally within the organization. 7 & 8. The role of trade unions have reduced in Australia as the enactment of new laws and rules have reduced the overall influence of unions and ensured that the employees are better educated which has helped to take different useful decisions based on which the overall inpact has been strong. The overall changes has been reflected by the changes in labor union and their control over things as seen in the chart below The chart highlights that control of trade union has decreased drastically from 1970 to 2000 as the control of labor union has fallen by 50% and remains fairly low. This has resulted in a decrease in the density rate of population being controlled by the trade union and has helped in the overall changes being witnessed in the labor market. The reduction on the role of trade unions have reduced industrial disputed and doesn’t have a significant effect on the productivity of the industry or employee. The period of 2000 showed that 1/20th of a day was lost due to industrial dispute considering that fact that the rate was very high in the 1970s and 1980s. This has helped to build better industrial relations and has evolved the labor market to perform in an entirely different manner. The Australian labor market has witnessed lots of transformation due to continuous changes in the reform sector. The 1970s highlighted a period where most of the jobs were help by full time working males. The period also highlighted a frame where male were the sole bread earner in the families. Majority of the population during the period were uneducated and one third of the population was engaged in agriculture and manufacturing industry. Slowly, with the passage of time the labor industry witnessed changes and resulted in bringing a complete transformation in the labor market. Today, both male and female are found to have equal job opportunities and many people within the household have employment which was not the scene in 1970. The growth ensured that more and more people were educated and started working in respectable positions within organizations. The transformation in the Australian labor market increased scope for the employees and helped in the development of different industrial relation issues. The increase in the level of education and growing awareness has resulted in transforming the manner in which the employees perform and think and has thereby transformed the entire industry. The Australian economy has thereby witnessed a complete turnaround and change in the manner different decisions are taken with the role of trade unions continuously decreasing. The role of trade union is continuously decreasing and with continuous reforms and legislation the role of union is further bound to decrease. The labor laws in Australia have strengthened the role of employees but at the same time have been able to reduce the role of trade union in the economy which has resulted in fewer unrest and strikes. Trade union role has changed and their role has reduced as employees have become educated and today the trade union looks as a facilitator which looks at developing positive relations between the employer and the employee. The future year will further look at reducing the role of trade union as the additional responsibility being taken by the management look at developing positive relation between the employer and the employee so that the dependence on trade union reduces. This will facilitates the development of better relationship between the employer and the employee and will help to develop the required momentum through which better relationship will be developed. Trade union will thereby have to act as a laison and will look at developing positive relationship so that the organization and the employee prospers and will help to ensure that better results can be achieved within the organization. 9. The Australian economy has seen widespread changes in the labor market. The labor market in the 1970’s consisted of 5.6 million people. The period then saw widespread changes as the total labor market grew to 9.8 million people out of whom 2.5 million were employed part time, 6.5 million were employed full time and the remaining 650,000 were unemployed. The period thereby highlights widespread changes in the labor market as the entire population of labor underwent changes. The period also showed that in 1970’s 2 out of 3 jobs were held by male whereas in 2000, 1 out of 2 jobs were held by males. One of the major factors which contributed towards an increase in higher employment rate for female was the growth in the female population. This shows that during that period there were unfair working conditions and was a period when the Australian economy looked at unfair dismissals. The overall changes in the labor workforce industry have caused considerable changes and development of new reforms in the Australian labor market. Growth in employment rate with regard to the occupation based on type of jobs shows that over the last few decades the maximum growth in people working in different occupation is seen in high skill professional jobs. This shows that the labor market looks towards hiring employees based on the skills which are demonstrated by the employees. This is added by the fact that more and more female are looking to work for blue collared jobs as compared to males working for blue collared job due to the changes that the population of male and female population working in blue collar job. Thus, the Australian economy witnessed development of health and safety occupation, employment opportunity and better legislation through which the overall economy was able to bring the required transformation. This ensured that the labor reforms helped to develop the Australian economy and contributed towards the growth of the country. 10. The Australian economy with the enactment of Fair Work Australia has brought a complete change in outlook and relation between the employer and the employee. This has affected the bargaining power of employees as the bargaining power of employees has increased. Fair Work Australia has helped in finding out development policies as the legislation aims at removing the enterprise agreement clause and restricts engagement of contractors and on hire basis. This thereby ensures that employees whether they are hired on a full or part time basis as contractual labors have to be paid the same compensation as those paid to the other employees. This clearly highlights that the bargaining power of employees has increased drastically and has resulted in better bargains from the employer. The bargaining power has also affected the state of working conditions for the employees as the working hours have been determined according to international standards. This has determined the amount of hour that they need to work and based on it their wages are determined. Organizations have been able to benefit greatly from it as it has provided a code and direction which organization needs to follow. This has affected the decision making and has made organization to ensure that maximum productivity is gained from the employees. The development of rules and regulations has thereby impacted the bargaining power of the employees and has ensured that the employees get their due share. This has helped the Australian economy to bring the required positives which looks at better relationship between the employer and the employee. This will further help to ensure that the bargaining power of the employees will further increase and will ensure that they are able to get the correct rewards and environment which will help them to perform on the highest level. 11. Industrial conflicts are differences which is present between the employer and the employees which will give rise to absenteeism, strikes, lockouts and similar other things which will have an impact on the overall productivity of the organization. The reason for industrial conflicts arises due to differences which exist between the employer and the employee and the organization is not able to develop the relationship between the employer and the employee. It is seen that the loss of working days due to industrial disputed has reduced and doesn’t have a significant effect on the productivity of the industry or employee. The period of 2000 showed that 1/20th of a day was lost due to industrial dispute considering that fact that the rate was very high in the 1970s and 1980s. This has helped to build better industrial relations and has evolved the labor market to perform in an entirely different manner. This is because of the fact that better relations between the employer and the employee has been developed. It is also true that with increased employee engagement conflicts are bound to increase between the employer and the employees as additional authority might lead towards a situation where employees start to misuse the additional powers. This will require that both the parties understand the importance of working together and the role they have to play towards the common goal which will help to resolve the differences which crops up. The reasons which has attributed towards the differences can be due to disorders in personality, poor communication, lack of proper recruitment and promotional strategy. This will require that the employees are made to understand their role within the organization and the manner they have to work to accomplish the task that has been entrusted on them. This will make the entire workforce come together and work as a single unit which will thereby ensure that the commitment level of the employees towards the organization increases. This will help the organization to be able to accomplish their goals through the best use of resources and look towards sustaining tougher competition. 12. The relationship between the employer, employee and the trade union has developed to such an extent that it looks towards better understanding and developing the required momentum through which better decisions are taken. The manner in which business legislation is increasing and intensifying labor laws it is imperative that the organization focuses on developing positive relations. This will help the organization to stay away from the legal aspect and will help them to concentrate on the business in hand. This will also help to build a positive brand image of the company as the society and others associated with the company will be able to visualize the manner in which the organization looks towards the well being of the employees. This will thereby ensure that the organization has a pool of employees who will be able to carry out the different responsibilities and will be able to ensure that the goals of the business can be achieved in the most productive manner. The relationship between the employer, employee and the trade union has developed and will help to generate the required momentum through which the resources will be used in the most productive manner. The development of different legislation has helped to ensure that better relationship is developed and will help to foster an environment where productivity increases. This has brought the required changes and has provided more power to employees which has strengthened their bargaining power and has ensured that the employees are not exploited. The Fair Work Australia is one such reform in that direction which improves the overall condition of the employees and determines the manner in which laws are governing the Australian economy. Thus, the relationship between the employer, employee and trade union has developed which will help to bring the required transformation and ensure that the resources are used in the most productive manner. References Fair Work, 2013. Review of Fair Work Act. Business Council of Australia, Australia Read More