New Behavioral Influences for Organizations
There have been changes in styles of managing employees. Changes in organizational behavior have come about as management experts have attempted to use a better understanding of sociology (group dynamics) and psychology.
Hierarchical Vs. Flat Management Structure
U - Strict division of labor, employees undertake narrow specialized tasks, control technique - creates sharp division between employer and employees.
Flat Management Structure - closer communication, less "middle" management - efficiency gains, more harmonious, reduces conflict, increases flexibility.
Team Structures - members and leaders - creates a culture of teamwork, equal authority, motivates - their work contributes to concrete outcomes, increase employee autonomy and lead to a degree of self management, must have strong commitment from employees and employers.
Economic Influences:
The way in which the economy can effect employment relations:
- Wage determination and the role of industrial tribunals.
- Pace of economic growth can affect employment levels, types of employment and recruitment policies.
- Changes in economic structure can affect the skills required by employees and the training programs of businesses .
Economic Cycle:
The economic cycle reflects changes in demand for goods and services and can effect employment relations in a number of ways:
- need to change recruitment and remuneration policies in times of strong economic growth to attract and maintain high quality staff.
- consider expanding training programs to overcome any skills shortages.
- make remuneration packages more generous.
- in times of recession businesses may need to cut back number of employees and reduce size of business - downsizing .
- Downturn can lead to more flexible employment - part time, casual and temporary employees.
The Economic Cycle:
- Recovery.
- Boom.
- Recession.
- Depression.
Globalization:
Affects Business In Many Ways:
- Opening of domestic markets to international competition through reductions in trade protection (tariffs).
- Need for greater flexibility - decentralization of employment relations, reducing role of unions and industrial tribunals.
- Change in workplace structure - implementing faster workplace change.
Effective Employment Relations
The Role of Employment Relations in Business Success
The employment relations function is to manage the relationship between the employer and employees effectively in order to develop competent, flexible, productive employees committed to the organization.
Communication Systems:
Good communications systems can improve business through a number of ways:
- Senior management can communicate their ideas and goals to employees quickly and more clearly.
- Employees may have useful contributions and ideas which may be wasted without effective communication systems.
- If employees feel that they are involved, their job satisfaction and motivation will increase.
- Greater focus on common goals, and efficient resolution of problems can avoid conflict in the workplace.
Grievance procedures are mainly used to deal with personality conflicts and disciplinary matters. They can help prevent a workplace issue from developing into a serious dispute.
- Stage 1: Employee and supervisor meet with union representative and line manager. If no resolution...
- Stage 2: Union officials meet with human resources specialist. If no resolution...
- Stage 3: Senior union official meets with senior manager.
Worker participation - Communication in the workplace is changing with the use of e-mails. Improvements suggested by employees are often critical to a firm's competitiveness and success.
Team briefings - A range of team strategies are employed in industry today, from project teams who work together for the duration of a project to quality circles. Team briefings allow senior management to communicate their "vision" to employees.
Quality circles involve employees meeting voluntarily to discuss, and analyze and resolve specific problems such as safety.
Semi-autonomous teams/self-managing work teams - A semi autonomous team is a form of participative work organization where a group of employees assumes a high degree responsibility for a task or a group of tasks. In a self-managing work team (SMWT), the employees take responsibility for planning and organizing their work including the allocation of the tasks within the group.
Rewards and Working Conditions
Intrinsic rewards are those that the individual derives from the task or job itself, such as a sense of achievement. Extrinsic rewards are those given or provided outside the job itself. They may be monetary or non-monetary.
Monetary Rewards:
- Bonuses and cash payments.
- Deferred payment schemes such as superannuation.
- Issuing of shares and stock options to employees.
Non Monetary Rewards
- Employee recognition schemes.
- Informal praise for a job well done.
- Skill development and on the job training.
- Promotional opportunities.
- Lateral career movement (into different occupations).
- Flexible hours of work - By supporting employees lives outside of work, a business will enable those employees to be more focused on their job.
- Study or parental leave/childcare - Can increase employee productivity, improve business recruitment and elevate employee morale.
- Exciting workplace environment.
- Decision making responsibilities.
- Job security.
Flexible Working Conditions:
This allows some firms to operate shifts at much more intensive levels during peak seasons, with the benefits passed on to employees all year round, eg longer holidays in the in quieter parts of the year.
- Job Sharing involves two employees voluntarily sharing one permanent full-time job. This arrangement is now popular with women returning t he workforce after having children, but requires commitment and communication between the two job-holders to be effective.
- Part-time work allows employees to work fewer than full-time ordinary hours. Conflicting views are emerging about the benefits achieved from flexible working hours and permanent part-time work from the viewpoint of employees.
- Family friendly programs are effective in retaining staff in the longer term as they recognize the interdependence of work and family life and reduce problems involved in managing family responsibilities.
- Common family friendly policies include provision of job sharing, flexible hours/conditions.
- Family friendly policies include: flexible working arrangements, leave, family support, childcare, flexible salary packages.
