Literature Review on the Employer-Employee Relationship

Literature Review on the Employer-Employee RelationshipBACKGROUNDThe Employer-Employee dealing is no doubt an enormous topic in kind-hearted choice caution that covers key atomic number 18as of Employment human kinship, Collective Bargaining, surgery and pay heed also Employee involvement which help to determine the nature of giving medicational commission and performance.The employment relationship aspect deals with the role and influence of law which determines the rights and responsibilities/rules that govern the behaviour of both employer and employee which has an impact on how relationship works issue. However in recent geezerhood sunrise(prenominal)er concept take a crap emerged in Human Resource oversight that has considerable switch overd relationship that was formally dependent upon interaction of formal legal regulations.(Beardwell and Claydon 2007)Collective dicker is a situation where representatives of both parties come together to negotiate on matters relating to pay, terms of employment and working conditions, in recent years there has been a shift from the traditional incarnate bargain to a more individualised system of bargaining.(Henderson 2008).Performance and reward management relates to the use of individualised pay, performance-related pay and performance management. This factors determines behaviour in terms of need, communication and level of commitment.(Beardwell and Claydon 2007)Employee involvement is a form of employer-employee relations that allows more participation of the employee in organisational decisions, this is when employees can buoy influence decisions that are normally reserved for management(Marchington and Wilkinson 2008).Employee relations is characterised by both conflict and cooperation, Marchington and Wilkinson (2008) described the management of employee relations as being vital to the success or visitation of an organisation and it is seen as central to Human resource management.(Dawson 199 5)acknowledged that the achievement of organisational objectives depends upon employment relations, evidence from (Limerick 1992)suggests that individual empowering should be consistent in the event of strategic change.Considering the warring nature of industries and technological advancement, the importance of employer-employee relationship becomes more critical, reason being that to meet constant changing necessarily of consumers, effective human resource management becomes very crucial in achieving business success.I am an MBA (General Management) Student and I am interested in this topic because as a succeeding(a) General Manager/business owner I want to slang a better understanding on the effective ways developing imperious employee relations, also to have an idea of the factors that motivates employees, how strategic objectives can be achieved through effective communication with employees? I am basing my explore on a multinational company.The greatest asset of an organ isation is considered to be the Human Resource and the greatest challenge of an organisation is how to manage these human resources efficiently and effectively so as to achieve set objectives of the organisation, my search objective leave be to stress the importance of employer-employee relations, because in the UK the relationship is considered to be an employee to do a particular concern in return for wage or salaries for the work they do and this goes beyond mere work for pay.PRELIMINARY analyze OF THE LITERATUREFor the purpose of this research, my focus give up be on the impact of employer-employee relations on key areas of Collective bargaining, performance and reward management which places emphasis on motivation and various reward systems, also emphasis forget be placed on employee involvement and participation in the context of organisational commitment, all these shiftings constitute to the achievement of organisational objectives.The literature reassessment will be divided into four partsA brief history and DefinitionTheoretical and Empirical literatureBenefits of usual employer-employee relationsEmployer-employee relations within the UK including FordA brief historyIn the early 70s the relationship among employers and employees in work place was more of a collective relationship which involves collective bargaining where representatives of both employer and employees meet to negotiate on matters relating to pay, terms of employment and working conditions, representatives of employees are known as trade union(Henderson 2008). Organisations were promote to recognise and work with trade unions so as to improve the employment rights of workers through collective bargaining(Marchington and Wilkinson 2005).However, in the early 1990s, countries like UK where trade unionism were super recognised witnessed a significant go under in trade unionism, employee relations changed from the traditional collective method of bargain to a more individualise d method as a number of increase in sophisticated HRM manner initiative in communication, participation and recognition(Henderson 2008)(Edwards 2003) described the relationship between employer and employee as a system where both parties have common and divergent interest, this is a situation where employer and employee communicate their requirement and views to one another in terms of agreement on work related issues.Theoretical literature(Newell and Scarbrough 2002) posed different dimension on how organisations handle issues of employee relation and on this basis four management dash have been suggestedSophisticated human relations employees are viewed as the most valuable resource of the organisation, emphasis employees appraisal and extensive method of communication aimed at enhancing employee loyalty and commitment. Trade unionism is discouraged. Many US companies adopt this sprint.Consultative approach this is similar to the first approach only those trade unions are reco gnised. This style is mostly found in the European countries such as GermanyTraditional style employees are seen as a mere factor of production, it represents the Taylors management approach. Unions are opposed.Constitutional style this is similar to the traditional style only that unions are recognised and accepted.It limitation above theory is that different management styles can be used in the same organisation for example the sophisticated human relations style can be used when managing managers while the traditional style when managing other employee(Newell and Scarbrough 2002).Considering theories that relate to performance and reward management, motivation theories like the Maslows hierarchy of need, his theory identifies five levels of inescapably. Level 1- physiological needs like food, water and comfort. The organisation provides financial reward. Level 2-safety needs the organisation provides this by benefits. Level 3- social needs the organisation satisfies employees so cial need through social gathering. Level 4-esteem needs the organisation helps to satisfy employee esteem needs by showing employees appreciation of work done. Level 5self-actualisation needs deal with self needs, discovering individuals full potential(Beardwell and Claydon 2007). Researchers have often criticised this theory following the proportion that there is no clear relationship between needs and behaviour. Alternatively Alderfers ERG theory suggested that needs could be categorise into three instead of Maslows five these types of needs are existence, relatedness and growth. Herzberg identified two factors based on his research namely motivators and hygiene factor(Beardwell and Claydon 2007).Several other theories of motivation will be examined in my dissertation.Besides motivation, modern theory in employee participation known as employee engagement was defined by CIPD 2007 as the combination of commitment to the organisation and its values that goes beyond job satisfactio n and motivation. This can be linked to psychological contract which will be later discussed extensively, but this has to do with a stronger emotional attachment between employer and employee that helps in attracting and retaining employees(Henderson 2008)The concept of soft model HRM throws light to the positive attitude created from the use of appropriate HRM practices together with communication, motivation and leadership enhances commitment to the organisation and improved performance (Guest 2002). while the Hard HRM model emphasizes on the effective utilization of employees, ensuring that HRM strategy are driven by overall corporate strategy(Keenan 2005).Empirical literatureIn a research carried out by (Edgar and Alan 2005) they stated that effective HRM policies and practices should be measured by their comprehend lumber, not simply by the number of practices introduced.Another important issue raised by (Mac Mahon 1996) is that, even in microscopical firms where the need fo r improved productivity is very important, reward systems was rarely tied to productivity and performance, and also conflict between employer and employee tend to be rare rather conflict was apparent on a personal level.(Savolainen 2000)also linked employer-employee relations with the aspect of leadership and suggested three development strategies 1)Trust building or participative strategy, 2)The entrepreneurial cooperative strategy, 3)Negotiative strategy. Findings also revealed how organisation change or move towards a new workplace and the role of line managers.Another research suggest that the effective communication of information and ideas to employees should be real through practice and commitment, findings also revealed that organisation should assess current culture to desired objectives and as a result new attitude often needs to be acquired by both employer and employees(Owusu 1999). In the work of (Dawson 1995) evidence suggest that human resource strategy has shifted focus of job design to career development, acquisition development which enhanced employee involvement.From my findings I have discovered that most research on areas of employee relations have focused more on the impact of HRM practices on employee performance, however few researchers have worked on employee relations and how it affects organisational commitment and performance, the justification for this research is to shed more light on the impact of this relationship and how it can be improved to enhance organisational performance. I have decided to look at a car manufacturing company (Ford motor company).BenefitsThe mutual relationship between both parties increases motivation which in turn leads to increase productivity and profit maximization.Estenson (1999) describes employer-employee relations as a key ingredient in the implementation of quality improvement(Savolainen 2000).Furthermore, (Sadri and Lees 2001)said a positive relationship between both parties could lead to a c ompetitive advantage over other firms in the industry and also provide enormous benefits to the organisation.Employee Relations within the UK and Ford Motor CompanyIn the early 1990, the Workplace Industrial Relation Survey reported a decline in trade unionism in the UK, which was replaced by employee involvement in form of line managers who were responsible for HR activities(Henderson 2008).Thus some empirical research in Britain confirmed a key role of line manager in handling human resource activities notable in areas of employee relations(Redman and Wilkinson 2006).Finding of Hamill pointed out that a lower percentage of US owned plant in the UK recognized unions also that US owned company were more likely to have implemented individualized pay(Eric and Jonathan 1995).Ford is the biggest selling motor company in the UK with several large plants located in the UK. Ford Britain and its dealers employ around 35, 000 community in areas of product development, manufacturing, sales a nd marketing and service departments.However in recent times Ford launched a diversity strategy which has helped to them embrace the new employee relations in Employee engagement(FORD MOTORS COMPANY 2009).RESEARCH QUESTIONSThe following question and objectives are based on findings from the background and literature review.Should employers embrace employee involvement and participation?Does mutual relations between employer and employee lead to organisational commitment?What is the relationship between organisational commitment and organisational success?Apart from pay, how else should employers reward performance?Should employees be involved in ambit organisational objectives?RESEARCH OBJECTIVESTo critically discerp how positive employer-employee relationship can impact on organisational success.To critically evaluate the benefits of employee involvement in setting organisational goals and objectives.To critically take apart how different management style can impact on employee behaviour in terms of motivation and commitment.To critically evaluate the relationship between employer and employee in Ford Motors company and how it affects their performance.To recommend ways of improving employer-employee relations to achieve higher productivity and profit maximization.RESEACH PLANResearch perspectiveAccording to (Jewell 2008)states that the prescribed approach is based on the experiment and desire to establish causality between variables. However the positivism aspect of this research is to establish a relationship between employer-employee relations and the achievement of organisational objectives. There are two variables namely dependent and independent variables, the independent variable here is the employer-employee relation and the dependent variable is the achievement of organisational objectives.Both quantitative and qualitative research will be done through primary (from questionnaires) and secondary data. Both deductive and inductive argument will b e used.Research DesignMy research design will be a case study design which entails an extensive analysis of a single case. This would be an analysis of Ford Motor Company.Data collection MethodData will be collected in dept from different sources I will use two different sources of data collection methods Secondary and Questionnaire.Secondary Data This will be collected from existing sources such as textbooks, articles, internet, and journals.Access to these Data will be done through the universitys online databases such as Science Direct, Emerald and the Internet this will address the first three research objectives. However secondary data will limit to fully address the fourth objective that is why primary data will used.QuestionnaireThe fourth and twenty percent objectives of this research is to seek information from mostly employees of Ford Motor Company on how they are being treated by employers and how it affects their performance, this will be topper achieved by a the use qu estionnaire. Questionnaires will be distributed to over 300 people and I expect a rate of return of 30-40 %. My questionnaire will be brief so as to achieve this.However access to respondents will be achieved through a family friend in London whose friend is an employee in fords manufacturing plant in Dagenham, London. I have contacted him and he has decided to help with the distribution of the questionnaire bureaucracySampleA Quota sampling method will be employed for my questionnaires because I wont be able to send questionnaires to all the employees of Ford, so the study will be based on a small percentage of employees mainly in the engineering department of the company and my findings will then be generalized.Analysis of DataFor the questionnaire I will use outmatch to present a descriptive and presentational analysis for data collected. The level of analysis will be more bivariate which will allow me analyse two variables together.LimitationsThe first limitation will be the ge neralisabilty of my research because it is a single case study and I will focus on a small percentage of a large population of Ford employees in the UK.The second limitation will be the validity of my research work I will make sure I go through the literature of my study frequently so as to guard against data not applicable to my research.The third limitation will be the response rate and collection of questionnaires in order to keep the response rate high like 40% more questionnaires will be distributed.Concerning reliability to the research, I will try to ensure that a result of the research is replicable in future.Another limitation mogul be that employee might be reluctant to disclose some information about their employers which might affect the reliability of the research.Ethical ConsiderationsResearch ethicsI have read and understood the BES ethics students handbook, and i will comply with the BES ethical guidelines and complete the ethics compliance and checklist forms. All documents regarding ethical approval will be submitted. Results from surveys will be kept confidential and safe. In addition I will seek approval of my questions for my questionnaire from my supervisor, also the reason and intended result for the research will be explained in front of the questionnaire.PlagiarismAs for plagiarism, I understand what it means and the consequences, I will make sure I cite and acknowledge the work of others.REFERENCESAnon. (FORD MOTORS COMPANY 2009) Ford Motors Company online NOV. 11, 2008Beardwell, J. and Claydon, T. (2007) Human Resource Mnangement A Contemporary Approach. Essex Pearson Education LimitedDawson, P. (1995) Redefining Human Resources Management Work Restructuring and Employee Relations at Mobil Adelaide Refinery. International journal of Manpower 16, (5/6) 47-55EDGAR, F. and ALAN, G. (2005) Human Resource Management Practice and Employee Attitude Different Measures- Different Results. PERSONAL REVIEW 34, (5) 534-549Edwards, P. (2003) Th e Employement Relationship in the Field of Industrial Relations Theory and Practice in Britain. Oxford BlakwellEric, L. and Jonathan, M. (1995) Multinational Corporation and Employee Relations. Glamorgan Business School, Glamorgan MCB University PressGuest, D. (2002) Human Resource Management, incorporated Performance and Employee Well BeingBuilding the Worker in Human Resource Management. Industrial Relations 44, (3)HENDERSON, L. (2008) Human Resource Management for Mba Students. London undertake work of Personnel DevelopmentJewell, S. (2008) How to Write a Research Proposal. CoventryKeenan, T. (2005) Human Resource Management. Edinburg Edinburg Business SchoolLimerick, D. (1992) The Shape of the New Organisation synthesis of Human Resource Management. Asia Pacific journal of Human Resources 30, (1)Mac Mahon, J. (1996) Employee Relations in Small Firms in Ireland An Exploratory Study of Small Manufacturing Firms. Employee relations 18, (5)Marchington, M. and Wilkinson, A. (2005 ) Human Resource Management at Work. london Chartered Institute of Personnel DevelopmentMarchington, M. and Wilkinson, A. (2008) Human Resource Management at Work. London Chartered Institute of Personnel DevelopmentNewell, H. and Scarbrough, H. (2002) Hrm in Context A Case Study Approach. New York PalgraveOwusu, Y. (1999) Importance of Employee Involvement in World Class Agile Management Systems. International journal of Agile Management systems (1/2) 107-118Redman, T. and Wilkinson, A. (2006) Contemporary Human Resource Management. Pearson EducationSadri, G. and Lees, B. (2001) Developing Corporate Culture as a Competitive Advantage. Journal of management Development 20, (10) 853-859Savolainen, T. (2000) Towards a New Workplace CultureDevelopment Strategies for Employer-Employee Relations. Journal of Workplace Learning 12, (8) 318-326