Managing Employee Relations

Role of Employees in an Orgaization

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Introduction to Employee Relations

Employment relationship is the behavior and communication between the employer and employee. This in turn will aid the London Underground to overcome the problem of strike by properly understanding what are the need and demand of the employees. The railway authority was the non-departmental public body set up in UK under the Transport Act 2000, in order to set strategic direction for the railway industry. The size of this strike was relatively small. The main aim of this strike is to achieve various benefits for the employees who are working late night. In this case study RMT a democratic organization has been undertaken with an aim to rep on London Underground. In this report, case of London Underground has taken which indicates about the strike made by the employees. In of which LU's chief operating officers has talk to staff and offer them the following things. Officer announced an average 2% increase in the basic pay, RPI inflation. He also announced £500 non consolidated “launch bonus” to all the staff on night tube lines. He also announced £2000 “transition bonus” for the drives who were working overnight.

In this report various necessary measures have been undertaken in order to find out the actual cause of the strike. In this report various key employee relations topic are included i.e. collective bargaining. In order to resolve this strike problem two management style are undertaken I.e. Consultative style and collectivism style. It could be interpreted that in order to overcome this problem an organization should try to focus on the employee voice. Thus, in order to overcome the problem of the strict the conceptual underpinning may be undertaken in the form of ER perspectives. And at the same time an organization should make efforts to impose the various powers in such a way that it does not hurt the employee mind.

Impact of the structure on strike

Following of this structure can delay the dissolution of the strike. Because the structure is too long. Involvement of all the persons present at different level can delay the decision. The strike may not be properly because the different persons work in different manners. Ideas and suggestions of the different person can jumble up the ideas of all individuals that can create a big mess.

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Mayor's London strategy consists of the ways through which Transport for London and partner will convert the plan into reality over 20 years. This strategy provides support to the social and economic development of the country. It helps in improving the access to the transport system and thereby makes contribution the development of UK.

If the condition of the strike arises again than in that case management of London Underground should thoroughly understand what employee wants. What is the main cause for the strike? Management should talk to all the employees and try to resolve the problem. They should try to provide to the employee what they want. Strike was fairly handled well. The reason behind this could be that management of London Underground are easily able to dissolve the strike with 24 hours by offering them various allowances that employee's really wants.

1) Stakeholders

Stakeholders is independent party who are affected by the organization, strategy or projects. And at the same time these stakeholders can affect the working of the organization. These stakeholders can be present at both internal and external environment and they can be at the junior or senior level.

Some of the key stakeholders and there vary interest in lieu of the London Underground case are

Employee

Employees in lieu of London Underground strike simply want safety of their life and at the same time relief from late night job or increase in the basic salary or monthly bonus and remuneration.

Customer

Customers in lieu of London Underground customers want that they need not to wait for long time for the tickets and at the same time they want healthy environment at the station and safety of their life.

Authorities/Management

Management in context of London Underground strike case, management has made a certain offers in front of the staff members in order to manage all the problems that arising.

Thus, in order to satisfy the stakeholders London Underground management has taken into consideration the two styles that is consultative style and collectivism style. Consultative style is the style of leadership which focuses on using the skills and ideas of other people in order to solve various problems. Thus, by undertaking this style into consideration LU management has offered various solutions to the staff members like increasing their average pay or providing them bonus and many more things. This style was followed by the LU management in order to solve the night tube problem that is faced by the works that are working after 6:30 pm. This strike was made by the employee in order to get more safety and security of their life along with bonus. It is the style in which an individual form a group in order to achieve the desire target effectively. In case of London Underground strike same style was adopted by both the employees and the management.

London Underground management has considered the above mentioned style in order to resolve the strike. They have form a big association considering the Rail, Maritime and Transport union in order to overcome the problem of strike.

There are three types of trade union that are taking place in the London. Craft union represents the workers in specific occupation. This union tries to develop employee relations by studying every individual behavior and its related occupation. Industrial Union represents the workers in the industrial sectors like transportation and food services. This union makes an attempt to develop the employee relations by considering the various activities performed by every individual. Public sector unions are similar to that of industrial union. These union works for all regardless of their occupation. This union develops employee relation by considering the demand and behavior of the employees.

According to Robson, 2015, development of trade union will prove to be beneficial as well as hazardous to the London Underground management. But in year 2015 and 2016 the groupism of four trade unions created the problem for management of London Underground. These unions want the increment in drivers pay and at the same time they want that staff should be provided with the healthy working environment. They want that 2% pay of the driver should be increased. This union also wants that management of London Underground should pay staff members bonus up to £600. Thus, at last it can be said that involvement of the four unions together into the strike has create a big problem for the LU.

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2) Power, control and conflict

An organization should make efforts to impose various power and control on the employee in such a way that it does not hurt any employee. Company can use this power in order to overcome the problem of strike faced by London Underground.

Employee relationship shows the behavior and communication that take place between employee and employer. A healthy employee relationship between the employer and employee will create a healthy working environment in the organization. This in turn will assist the company to achieve its desired objectives. A positive employee relationship will aid the company to overcome the various conflicts that arises within an organization. Many a time this employee relationship can also prove to be barrier in the success of the company. It can create groupies in the organization and groupies will lead to the conflict.

Pluralism is the theory which says that several veto groups are formed out among the various political powers in various democracies especially in United States. According to this theory only one veto group can win at a time. Thus, taking into consideration the above mention case it can be concluded that two veto group is formed out. One is of the employee union and other is of LU management. As the per case it can be concluded that chance of winning of employee union is much more as compared to LU management. Because the size of the employee union is much bigger than that of LU management. Employee union is formed with the involvement of four unions. This in turn will create the press on LU management.

The situation of functional conflict arises when there is disagreement among the parties but in a healthy manner. This conflict can be dissolved easily in the general board meeting. Likewise, on the other hand condition of dysfunctional conflict arises when there is disagreement among the parties in an unhealthy manner. This conflict results in strikes and lock-outs.

There are also different types of conflicts that arise in every business organization. According to the case study of London Underground it could be analyzed that organized and unorganized conflicts arises. The condition of organized conflict arises when the parties to the contract thought that they can successfully be able to counter the other party. Similarly, unorganized conflict arises when the parties who are the actual cause of the organized conflict are not able to introduce any solution or change. Thus, it can be said that the condition of organized conflict has arose in the London Underground because employee wants safety of their life along with this they also want increment in the salary of the employees that are working late nights. Thus the condition of strike arises because the LU management is not at all able to provide security to the employees on their demand before.

Thus, according to the case study it could be said that power lies in union. Because; union is made up large group of people with high power. Thus, after applying the concept of pluralism it can be concluded that condition of strike arose in the London Underground was due to the dissatisfaction among the employees which in turn has resulted in dysfunctional and organized conflicts. Thus, by using this concept management of London Underground was able to easily overcome the problem of strike in simply 24 hours by offering to the employees what they want.

In this case it can be concluded that employee union wins and London Underground management losses.

3) Employee Voice

Employee should be provided with more health and safety measures. There basic salary as well as different type of allowances rate should be increased specially for the works who are working late night. Proper lighting facility should be provide to them. Along with these all safely pick and drop facility should be provided to the employees who are working late night.

Employee Voice refers to the participation of the employee in every decision making process of the organization. According to the Clarke, voice of employee is extremely important because there are many challenges faced by the company. And at the same time it could be said that there are many business concepts which keeps on changes and one of the most important one is trust. If employee voice has been taken into consideration than the condition of London Underground strike would not have occurred. Management of London underground can also resolve this problem by listing to the employee voice. Because; undoubtedly employee’s are the only the persons who work for the betterment of the company. Thus, it can be said that its management responsibility to take care of its employee. Thus, in order to resolve the strike chief officer of London Underground has announced an average 2% rise in basic salary, non-consolidated bonus to the employees working late night.

Benefits and Criticisms of various principles mentioned:-

Consultation

It is the process of formally consulting the expert. Therefore, there are various advantages which London Underground Association can avail. Consultation with the higher authority will aid the association to know the various ideas and suggestion which in turn can result in strict resolution. But at the same time poor design can produce the misleading results which in turn can enhance the condition of conflicts. Moreover, it could be said that use of these principle will prove beneficial for the managers and Association.

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Employee involvement

Employee involvement exists in the organization that deliberately establishes work cultures, processes and systems to encourage the employee input and feedback. Use of these principles will aid the London Underground Association to generate better ideas in order to resolve the condition of conflict. Employee involvement will aid the London Association to increases the employee commitment. The principles of employee involvement will also benefits the company in managing the manager-employee Boundary. But at the same time it could create criticism for the London Underground Association. It can generate a legal problem and at the same time creates capacity for mistakes.

Employee participation

Employee participation is the participation of the employee directly. Thus, it could be said that the condition of strike may not occur if LU management in advance has focus on the health and security of the employees who are working after 6:30pm till late nights. Thus, in order to overcome this problem principle of Employee participation will prove to be beneficial for the company only when London Underground association will consider the involvement of employee who have came directly to share their ideas and solution. Thus, in order to overcome the problem of strict management has undertaken into consideration the employee participation which in turn has prove to be beneficial for resolving the strike.

Management rationale for involvement: - In order to ensure that decision made is the best, it must be rational. In order to manage all the activities properly London Underground Association should consider the management of rationale for involvement.

4) Collective bargaining

The pay and conditions of most of the employees in the UK are not negotiated. Collective bargaining is not only considered across the economy; however in the public sector, 63% employees are covered by collective bargaining and the ratio is more as compared to the private sector. In private sector, collective bargaining is only about 16% and when this ratio increases, impact arise most probably on all the levels of company or on business entities. There is still industry level bargaining in some sectors like textile and furniture industry; however in the year 1980, there was a clear move to bargaining at local level and a number of employer federation found to be involved in collective bargaining. In addition to the same, some workers in the public sector are covered by pay review bodies rather than collective bargaining. There is no legal requirement for the employer to negotiate with the Union except in the case when legal obligations are required to be considered under decision aspects. In such cases, the union has the right to bargain over pay, hours and holidays.

As per the case scenario of workers of London underground went to the strike in order to fulfill their demands. Workers demand for the increment in their salary if they work after the 6.30pm till late night along with health and safety of their life. In addition to this, workers are not satisfied with the working condition as well as safety measures which are adopted by an organization in order to overcome the strike condition faced by the London Underground unit. Thus, better arrangements for the health and safety aspects are also one of the main cause due to which workers went on strike. In order to remove the problem of lock out or strike London underground had undertaken the collective bargaining as a tool. Thus, the use of collective bargaining style has assist the London Underground management to smart resolve the strict by fulfilling the employees demand which proves to be beneficial for them also. Moreover, strike and lock-outs closely impacts the functioning of the business organization. Thus, company arranged the meeting with the representative or leader of the workers to bargain the terms and conditions which are imposed by all the workers. In meeting, leader of the workers presents the demand from the workers side and thereby make efforts to fulfill their all demands. In addition to this, company also represents their views and suggestion.

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In collective bargaining, company makes high level of efforts in order to find out the solution of the lock-outs . In this, organization had announced that they will rise in the basic by 2% and the inflation whichever is higher in 2016 and 2017. Along with it, organisation had also announced the £2000 in the form of transition bonus for the drivers who performed their functions overtime. This aspect evolves satisfaction among the employees and encourages them to perform their best efforts which make contribution in the attainment of the organizational goals and objectives. In addition to this, London underground had announced £500 as a non-consolidated bonus to all the staff of night tube lines. Nevertheless, on the behalf of the bonus aspects employees sidelined the health and safety measures. Through collective bargaining organization got success in removing the lock outs within 24 hours. Thus, by negotiating all the terms and conditions organization is able to facilitate the smooth functioning of the business organization.

Conclusion

From this project report it has been concluded that company undertakes collectivism style to manage the problem effectively and efficiently. It can be seen in the report that it places more emphasis on working in group rather than individually. Through this, organization is able to build and sustain competitive advantage over others. Besides this, it can be inferred that conflicts arose between the management and staff and they went to strike. Thus, it can be concluded that maintenance of employee relationship in the organization can assist the organization to easily overcome the conditions like strike by providing the employee what they want and what are the reasons for the strike. Moreover, after analyzing the whole situation of London Underground strike it could be concluded that management of London Underground was not able to actually understand what employees wants. This carelessness has resulted into the strike. Thus, in order to overcome this problem London underground has undertaken the collective bargaining style to resolve the conflicting situation. By negotiating the terms and conditions with the team leader company got success in abolishing the strike within the 24 hours. But the trade union is not happy with the proposal given by the management of London Underground. The four unions that are involved in the LU strike have again planned to do the strike in January 2016 and on 15 &17 February. This strike has taken place related with the disputes of the drivers pay and staff working conditions.

Thus, some of the recommendations to the management of London underground which they can undertake in order to overcome the problem of the strike and to see that it does not occur again are as follows:-

References

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