Since the 2008 global financial crisis, managers in the capitalists United States and the UK have been keen on increasing productivity while suppressing employment-creation resulting in work effort intensification and stronger managerial prerogative (Gregory & Harary, 2012, p.508). In these two countries, the emphasis since the financial crisis has been that operational and financial productivity in an organization can be improved by increasing employer involvement and individual bargaining (Morgan & Zeffane, 2003, p.544). Australia has also been seeing a transition inclined towards modern and individualized employment relation system instead of a collective traditional one. According to Campbell & Brosnan (1999), these changes are to blame on the involvement of the two main political parties in Australia in satisfying the needs of big corporations and foreign private investments through widening the wage gap between employers and employees, and …show more content…
the deregulation of the Australian labor market (p.353). The deregulation of the Australian labor market has been effective through dismantling the awards system in order to move Australia closer towards a system similar to the United States at federal and state levels since the 1980’s (Campbell & Brosnan, 1999, p. 355). Furthermore, in the diverse and fast changing world of today, where talented individuals are considered valuable assets, managers need to use advanced HRM systems in order to attract a diversity of unique talented minds to help keep their competitive advantage over competing firms (Oyler & Pryor, 2009, p. 426). Based on literature review, this essay argues that due to several factors, the organization of work place in some industrial countries such as, Australia, United States of America, and the UK, has moved from a traditional collective employment relation systems towards more modern and individualized systems. These changes are influenced by trends that existed since the 1980’s, or has been becoming more common and acceptable among job seekers. Some of the influencing trends are, a rise in casual employment, a drop in the density of trade unions, and a drop in levels of job’s autonomy. The levels of casual employment in Australia have been rising to challenge the effectiveness of traditional collective bargaining of trade unions (Watts, 2001, p.137) as casual employees do not seek collective interests that opposes the employers’. Since the 1980’s , employers have changed the nature of casual employment by converting usual permanent employment positions to casual ones, and expanding the average length of which an employee is considered a casual ( Watts, 2001, p. 139). The periods of economic growth and decline that Australia has witnessed since the 1980’s has caused casual employment to become more acceptable. Women entering the labor force market is another main factor behind the trend of casual employment, especially women with children who are usually willing to fulfill ‘’in time labor’’ positions because of their circumstances and commitments that prevent them from working a permanent employment position which is common in a growing economy such as Australia’s (Watts, 2001, p.140). Furthermore, According to Watts (2001), the deregulation of the Australian labor market and the dismantling of the awards system has caused the levels of casual employment to rise as some employers took advantage of the limitation in benefits coverage for casual positioned employees (p.144). According to ACTU (1999), around 60 percent of employees in casual positions would rather work in a permanent employment position (as cited in Watts, 2001, p.142) which amplifies the disadvantages casual workers experience as opposed to the advantages guaranteed by the awards’ system to permanent employees. As casual employment represents an advantage for employers and a disadvantage for employees and ‘’…has become the norm rather than the exception’’ (Watts, 2001, p. 139), employers have gained more prerogative to achieve maximum efficiency and productivity possible as employees lost their collective bargaining power. Therefore, it is reasonable to relate the rise of casual employment to the transition in use of a contemporary employment relation system instead of a hierarchy one. Due to the trend of casual employment, the density of trade unions in the United States has been (Holt, 2007) declining since the beginning of the 1950’s (p. 2), Australia and the UK have witnessed a drop in the density of unions by half in 1988 (Holt, 2007, p.2). Nowadays, workers in these democratic countries, where consumer culture is the norm and capitalism is the law, are guaranteed their fair wages and benefits by systems of awards which reduces the urgency for collective bargaining. Since the most recent generation of workers is oriented towards consumer’s lifestyle and prefer to live in a society that shares collective responsibility instead of socialist views (Holt, 2007, p.5), employees share the purpose of the organization with the employer which is providing satisfactory value to the consumer. When employees do not share collective interests that is controversial with employers’, the demand for trade unions diminishes. According to Halt (2007), individualism has gained great leverage over collectivism in term of popularity in capitalist countries where the employer is responsible for fulfilling the needs of the employee (p.7) reducing the need for a trade union’s collective bargaining. Halt (2007) also related the demise of trade unions to the expansion of service sector over heavy industries (p.8) since it is more difficult to unionize workers in the service sector based on similar interests. In most democratic countries, unionism is considered a choice towards a socialist way of life which does not agree with the views of the consumer life style oriented, and highly educated generation of the workforce. Capitalism, and employers’ success in attending the needs of their employees have been causing drops in unions’ density since the 1970’s (Halt, 2007, p.11) which is another trend pulling industrial countries away form a traditional employment relations system towards a less collective, and more individualized one. After their research concluded that workers who are more involved in the organization of work, have higher job autonomy than workers under strong managerial prerogative, Dobbin and Boychuk (1999) asserted that the drop in density of trade unions is positively related to the drop in levels of job autonomy (p.260), the method in which work is going to be performed. The drop of job autonomy can be explained by the effects of applying Human Resource Management (HRM) systems in capitalist countries (Dobbin & Boychuk, 1999, p.261). Since managerial prerogative is relatively high when applying a HRM approach, workers participate less in the process of decision making in the workplace reducing their job autonomy. According to Dobbin and Boychuk (1999), the economy of some of the largest capitalist countries of the world such as, the US and Australia, is dependent on routine oriented, low autonomy practices (p.258). According to Fayol (1949), in capitalist countries, managers can be less dependent on the skills of their workers to achieve ultimate efficiency and productivity since they have the power to distribute tasks and organize sequence of work (as cited in Dobbin & Boychuk, 1999, p. 260). Thus, the reliance of today’s capitalist economy on low autonomy, high skill, and routinized practices for living is another trend pushing towards the use of a contemporary employment relations system rather than a traditional one. Unlike most researchers who recognize the transition towards a contemporary employment relation system, Peter Drucker viewed the transition as a positive trend that is most suitable for managing the educated, globally aware, and diverse workforce through the economy that is dependent on massive scales of production and long work hours.
Drucker also believed that industrial communities should be formed out of industrial organizations in order for workers to feel esteemed and fulfilled through achieving their work without the need to achieve their social needs outside the work place (as cited in Gregory & Harary, 2012, p.424). According to Drucker, management is the only actor in the employment relation system that has the ability to manage the diverse workforce of today for the benefit of all mankind (as cited in Gregory & Harary, 2012, p.420). Drucker’s views are still relevant because in the diverse demographics of the work place today, managing diversity through contemporary employment relation systems is
essential. Most capitalist countries of the world have witnessed a transformation from the use of traditional ER systems to the use of modern ones during the past two decades. Many researchers claim that it is caused by the decline in density of unions, job autonomy, and the rise of casual employment. Most of these researchers are against the advancement of a modern ER system claiming that it supports managerial prerogative over employees’ interests. On the other hand, peter ducker claims that the modern diverse cultural dimension can only operate through a HRM system that respects and supports individualism and maintains competitive advantage by attracting exceptional skills.
Connell & Irving (1992) identify ‘class structure’ in Australia with the ‘ruling class’ owning property/business, and the ‘working class’ in the way of labourers whom ‘act together in resistance to the capitalists’. This is relevant today in Australia with the privileged having majority of the power and wealth. Moreover, exploitation of the ‘working class’ continue to maintain less power within the workplace & less wealth. Connell & Irving offer an uncomplicated view of class structure, (1992: p 40):
Dabscheck, B. , Griffen, G. and Teicher, J. (1992), Contemporary Australian Industrial Relations, Longman Chesire, Melbourne.
Throughout the 20th century, Australia has maintained a system of tribunals to make decisions about wage and non wage outcomes and to help resolve industrial disputes. Institutional forces affect the operation of the free market in order to improve labour market outcomes, such as guaranteeing minimum wages and conditions. The four institutional forces that affect labour markets are Governments, Trade Unions, Employer associations and Industrial Relations tribunal.
The rise of industrial age led to the rise of industrial factory systems. As the industries grew larger as well as the workplace, it required more employees. As the employees grew in the workplace, their relationship with the employer became less personal hence individuals lost power. (History of Labor Unions Summary & Analysis, 2014) emphasizes that there was little to nothing an individual could do to pressure a large industrial business to increase his/ hers wages or shorten his/hers hours or provide a better working environment. The increasing migrants in Australia during the 1960’s continually replenished the supply of unskilled workers making it difficult for any employee to attain any leverage in negotiations with their employers. This led to employee’s embracement of collective action which then led to the rise of unions. According to (Burchielli, R 2006) Unions are seen as the power house of employees in the workplace, their role was to give employee a collective bargaining with their employers for better working environment, better wages and benefits such as paid leave. However union membership have decreased over the last couple of decades, according to (Australian Bureau of Statistics (ABS), 2013) in 1986 46 % of employees were members of trade unions by 2007 the figures have dropped to only 19%. There...
Sappey, R., Burgess, J., Lyons, M., & Buultjens, J. (2009) Industrial relations in Australia: work and workplace. Frenchs Forest: Pearson Australia.
Harbridge, R. and Walsh, P. (2002), Globalisation and labour market deregulation in Australia and New Zealand: Different approaches, similar outcomes, Employee Relations, 24(4): 423-436.
The Essential Drucker is a compilation of Peter Drucker’s selected insights and writings on management for the past sixty years. The book has twenty-six selections which were divided into three parts: Management, Individual, and Society. The first section, Management, highlights the different ideas about management such as the origin and definition and its use and application in the business organization. The second part of the book focuses on the individual. This section talks about the principles that an individual can learn and imbibe, and what skills he or she must develop in order for him or her to effectively manage a business or an organization. The third section of the book concentrates on the society. After introducing and discussing
Clutz, R. (1995). Labour and management: Working together for corporate transformation. Canadian Manager, 20(3), 16.
...e Bargaining, Managerial Prerogative and the Protection of Workers Rights: An Argument on the Role of the Law and Regulatory Strategy in Australia under the Workplace Act 1996 (Cth). Retrieved on April 9, 2013, from http://www.google.co.ke/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CDAQFjAA&url=http%3A%2F%2Fwww.law.unimelb.edu.au%2FE8812500-7599-11E2-84E10050568D0140&ei=t0RkUdT0K62V7Ab48IC4Bw&usg=AFQjCNEfV17R8n5eNatsPXKQRxB9bqvUig&bvm=bv.44990110,d.ZGU.
The Australian Labor Party has been influenced by the ideology of a social democracy which is characterised as a democratic society which protects its people by providing universal welfare. Social democracy is characterised as support for various government interventions which aim to promote an equality in opportunities available and provide a fair distribution of social resources (Miragliotta, et al.,.,2013, pg 208). The Labor Party has also been influenced by labourism which involved the implementation of the White Australia Policy to protect Australian workers and a regulated labour market which provides all Australian workers with a sufficient wage to support themselves. Labourism also provides welfare payments if people are unable to work and supports protectionism such as placing tariffs on products to support the Australian made goods and services (Miragliotta, et al., 2013, 208). The Australian Labor Party has been influenced by several ideologies since its formation such as socialism seen in a social democracy and labourism which is what Labor continues to stand for
De Ferreire Kemp, F. (2007). Leadership and diversity: Constant Companions. Industrial Engineer: IE, 39(5), 40-43, Retrieved July 27, 2011, from http://ehis.ebscohost.com.csuproxy.egloballibrary.com.
The impact of diversity in the workplace is contingent upon several factors. Across companies diversified workforces are becoming increasingly common. To successfully manage a diverse workforce, organizations are ensuring that employees understand how their values and stereotypes influence their behavior toward others of different gender, ethnic, racial, or religious backgrounds; are gaining an appreciation of cultural differences among themselves; and behaviors that isolate or intimidate minorities are being improved (Noe et al., 2010, pg. 302).
Dunlop(1958) argues that in the system of industrial relations, there are 3 major components in the system. There are the actors, the context and the common ideology. The actors consist of the employers and their organizations and employees and, if present, the groups that represent them and the state or government agencies. The second major component, the context, is the situation or environment that influences any decision or activity, this is usually technology, market constraints or distribution of power in the wider society. The common ideology, under which the purpose of this essay falls, can be seen as a binding idea or theory which the actors share for the purpose of stability in the system. Under the common ideology component, there are various conflicting theories or frames of reference.
Moreover, this equivalent opportunity concept in workplace diversity is aimed for guaranteeing that business organizations make the most out of the difference from workforce varieties rather than to losing ability which may help the businesses to be more proficient and effective. Workplace diversity carries with the heterogeneity that should be sustained, developed and acknowledged as method for enriching organizational effectiveness in this modern society (Henry & Evans, 2007). In order to make sure organizations achieve the diversity goals, businesses should take the appropriate actions to boost culturally diverse employees. Thus, businesses need to gain progress toward multiculturalism, which should incorporates to avoid employees ' impression of the degree of separation and bias, the equal rewards and punishment, the openness of critical information, and the chances for employees to stepping up for their career goals in future (Brown, 2008). Truly, develop and implement multiculturalism in the workplace is not an easy thing to do for businesses. It needs a certain numbers of policy and regulations to follow and adjust before businesses or organizations are actually considering diversity. Also, work diverse group come from people that has different ages, ethnicity, and sexual orientation working together to form a multicultural workplace. There are some
Diversity in the workplace is very important in today’s global workforce because workers in the economy all over the world are currently made up of many different ethnicities, varied cultures, beliefs, and backgrounds. People that are involved in management such as managers, and supervisors could greatly benefit from being accustomed to diversity in the workplace because their job entails dealing with a multicultural work environment on a daily basis. Knowing how to handle diversity in the workforce and having the necessary skills for supervisors would be beneficial not only to them but also to the success of the company and economy because a strong, diversified workforce will create a more “creative, innovative, and productive workforce.” (Kerby, 2012).