6 Decision making to improve human resource performance Can you think of any recent examples in the media of poor employer-employee relations? Why do these stories make the news? 6.5.1 Making human resource decisions: improving employer-employee relations AQA Business

6.5.1 Making human resource decisions: improving employer-employee relations In this topic you will learn about Influences on the extent and methods of employee involvement in decision making How to manage and improve  employer- employee communications and relations Value of good employer-employee relations

employer–employee relations Employer-employee relations are the defining features of how employers and employees interact with each other on a day to day basis Employee representation are the systems put in place to aid communication between employers and employees Giving a voice to employees through a recognised body that represents them In large organisations one to one discussions with all employees is not a realistic option The elected voice must have a clear remit and the objectives understood by all related parties Methods include: Trade unions Work councils Recap. What is meant by hard and soft HRM?

Trade Unions National organisations with a remit to protect its members and improve their economic and working conditions Key objectives of TUs are: Securing jobs Maximising pay Ensuring safe and acceptable conditions Fair treatment of members by employers Represent members through collective bargaining Partnership approach i.e. unions should be seen to be working with the employers to achieve industrial democracy What actions can unions take to enforce their power?

Trade unions Unions can work with employees and employers to Enhance business performance Improve international competitiveness Implement change Lower labour turnover Increase motivation Unions work to avoid industrial action and solve potential disputes before they happen Strike action is a last resort. Why do they still happen? http://www.bbc.co.uk/news/business-33377128 Rail workers vote for strike action http://www.bbc.co.uk/news/uk-32956876 UK rail strikes suspended after 2% pay rise offer Are they effective?

Employer-employee relations An industrial dispute exists when there is a disagreement between the employer and the employee or employee representative Industrial action is when the employees take sanctions to try and impose pressure on the employer Work to rule Demonstration Lobbying Strike It is better to avoid disputes before they become troublesome than try to resolve them later The Simpsons Half Assed work ethic https://www.youtube.com/watch?v=0vbI-P6mFbg

Employer-employee relations Avoiding disputes Early involvement of employees and employee representatives Clear communication ACAS - an independent body that can be called in to help avoid (or resolve) disputes by helping both parties work together It is better to call in their services sooner rather than later Advisory Conciliation Arbitration Services ACAS’s mission is to improve organisations and working life through better employment relations. www.acas.org.uk

Employer-employee relations Resolving disputes Open and honest communication Explore all avenues Industrial action (as a last resort) Utilise the services of ACAS Conciliation – facilitates debate Arbitration – if both parties agree to arbitration then the solution presented by ACAS has to be accepted by both parties An independent study has revealed that ACAS saves the UK economy £800 million per year.

Works councils A group made up of managers and representative employees who meet regularly to discuss issues relating to the business and specifically issues affecting the workforce Pay and working conditions Workforce plans Proposed or planned changes to business activities Employees have a legal right to request a works council if working in a business with over 50 employees Representatives must be elected The council should have one representative per 50 employees

Advantages and disadvantages of employee representation Medium for effective 2 way communication Reduces feeling of “them and us” Employees kept informed Employers have some understanding of employee perceptions Improved motivation Less risk of industrial disputes Opportunity cost of time Can cause conflict due to different agendas Slows down decision making Employer may not be able to respond to employee wishes Non homogeneous employees

Managing Communication with Employees The process of passing information between interested parties To the right person, at the right time and in a format that is understandable to the recipient Effective communication with employees is important: Coordinates Motivates Clarifies roles Eases the implementation of change Enables feedback Facilitates decision making Keeps everyone informed Provides focus Communication is an important aspect of employer-employee relations.

Managing Communication with Employees Selective communication Who needs to know and why? Methods of communication Method appropriate to content Increased use of technology Intranet and e mail Avoid information overload Individual, group or whole staff Barriers to communication Sender Noise Feedback Recipient

Importance of communication to employee-employer relations Open and honest communication Involving employees in the decision making process Genuine consultation Two way communication Reasons for and plans for change Managing employee relations The way in which employees and employers communicate and negotiate with each other You Tube Dilbert: Consult Video

Value of good employer-employee relations In pairs - What is the value of good employer- employee relations? Produce a short report Try to include references to: HR objectives HR data Motivational theorists Leadership models

6.5.1 Making human resource decisions: improving employer-employee relations In this topic you have learnt about Influences on the extent and methods of employee involvement in decision making How to manage and improve  employer- employee communications and relations Value of good employer-employee relations