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The role of HR in an organization
The role of HR in an organization
The role of HR in an organization
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1.0 Introduction
Human Resource Management of business organization is responsible to various responsibilities to ensure the operations of the business are possible with adequate staff and necessary skills are in them. Playing the most important service for any business, human resource manager are responsible to the most important and challenging aspect that is employee employer relations. This aspect of human resource management gets recognition in the organization, among the employee, national government and international body. Employee employer relations are the most critical aspect of human resource management for a country in a bigger picture.
Various technical aspects mostly law, need to be well understood and practice by the human resource manager or industrial relation manager of a business organization.
All this is process and procedures was not built in a day, many years of labor relations have educated the world society on the improvement and necessary for having a stable and fair industrial relations.
“Companies and their workforces must offer that little bit extra to survive and win in the global economy. This is where good employment relations play a vital role. When employers, employees and trade unions or other employee representatives work together in a relationship of mutual trust the benefits are enormous”
Rita Donaghy,2001.
1.1 Definition of Employer Employee Relations
Employer employee relation or employment relations is the relationship between an employer and his employees, as individual or as a group (Maimunah,2009). Scholars have defined and given various name such as industrial relations (IR), labor rela...
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...ard internationally regards to the labor satisfaction and their problems and well suite in the agenda to be a developed country by 2020.
1.6 Ministry of Human Resource (MOHR)
Focusing to the industrial relations (IR), Ministry of Human resource is to encourage harmonious relationships between employers and employees with the nation’s productivity being the foremost interest. To facilitate in field of industrial relations (IR) four main departments and their functions are important to be addressed:
i) Department of Labor – Settle dispute between employers and employee over payment or non- payment, retrenchment and retirement benefits. Empowerment with the Employment Act 1955. ii) Department of Industrial
Relations - Help to settle disputes between employers and conciliation
Today we see the labor reforms put in place along with organizations that hold business to safety precautions like OSHA, Occupational Safety and Health Association. Today, worker’s fight for higher minimum wage but outside of America, there are worker’s fighting for the same rights we did back in the 1900’s. Back in 2013, in Bangladesh, a series of fires occurred. This raised questions about safety and treatment of workers. Within a few months, the government allowed the garment workers to form trade unions along with a plan to raise the minimum wage. And soon after, the United States pushed for Bangladesh to improve their labor standards. All of this happened within half a year, where back in the 1900’s it took over 50 years, starting with the coal miners. Without the workers as a sturdy base for the business, the company with crumble and fall. And without those businesses to help the economy grow, the government will cease to
To conclude this analysis on the basis of the labor’s extensive history, Sloane & Witney (2010) propose, “it is entirely possible that labor’s remarkable staying power has been because of the simple fact that to many workers, from the nineteenth century to the present, there really has been no acceptable substitute for collective bargaining as a means of maintaining and improving employment conditions” (p.80). In the end, it is important to anticipate unions and employers presently work together to find solutions that will enhance collective bargaining strategies and practices to serve the interest of both parties.
The balance of power between management and labor has long been an issue. Historically, employers had the upper hand, and workers were afforded few rights in terms of pay, working conditions, or fair treatment (Fossum, 2012). Individual workers found that they had little influence over their own work situations and were frequently at the mercy of employers. Over time though, some progress was made in drawing attention to the plight of workers. The power of organizing began to give groups of workers some voice in workplace matters. Unfortunately, however, initial attempts at unionization of workers during the nineteenth century were short-lived and often marked by violence (Fossum, 2012). It was not until the twentieth century that major legislation gave unions a sense of legitimacy and workers slowly gained some leverage in the employer-employee relationship.
In many nations, the relationship between labor and production has often been a tense one. On one side of the equation, businesses have insisted on greater productivity at lower costs. On the other side, labor (most often in the form of labor unions) has insisted that increased productivity can be best be achieved if the workers have a reasonable “living” wage and job security (Howard 2002).
... labor problems are in the past. But even in developed countries, examples of child labor abuse are present in agricultural and service industries. There is still much work to be done educationally, politically and legally.
Employers favor and consider the unitarist approach rather than the pluralist approach. The unitarist approach includes common interests between employers and employees and refer to the responsibility of management to control and manage conflict (Moore&Gardner, 2004, p. 275). The unitarist approach indicates that employees should have loyalty to only one authority that is management (Ross & Bamber, 2009, p.25). The unitarist approach discusses legitimacy on managerial authority to prevent third party involvement from unions and treat them unnecessary. Trade unions play a key role in the employee relationships, although the membership of trade unions have been declined because of the unitarism approach. The pluralist approach recognizes that the organizations are made up of “sectional groups that interest may agree or may conflict with rival sources of leadership and attachment” (Geare, Edgar& McAndrew, 2006, p.1191). The Industrial relations explain the relationship between the employees and management which arise from either directly or indirectly from union-employer relationship (Saif, 2013, p. 34- 35). Saif (2013) states that “it is in the interest of all to create and maintain good relations between employees (labor) and employers (management) (p.34).industrial relations covers the aspect of trade unionism in collective bargaining, industrial disputes and employees participation in management. Employees’ associations and trade unions appear to have developed a ‘protest movements’ against the working condition in the
The main purpose of Human Resource Management is to increase the effectiveness and contribution of employee’s attainment of organizational goals and objective (Youssef, C.). Many areas of HRM have been discussed in this course. Those areas are EEO and Affirmative action, Human resource planning, recruitment, and selection, Human resource development, compensation and benefits, safety and health, and employee and labor relations. All these categories have an impact on how an organization is managed. Although there are many things that impact a business, the most important thing about managing a business is selecting the right people to help the company succeed.
Employee Organisations & Unions If employers and employees have a history of good working relationship and mutual trust, reaching decisions, which are fair under the circumstances, would be achievable. For example, if the business is poor and redundancies are possible, it would be impossible to find a solution to suit everyone so the employer would have to make a difficult decision. Good relations between employers and employees are only possible if both feel that they can discuss major problems and anticipated changes, if there can be discussion and consultation about key issues and if they genuinely want to work together to find a solution. After employees have been involved in a consultative process they are usually more likely to accept a negotiated outcome.
The Importance of the Human Resource Function Human resources are the backbone of any business. It deals with the most important resource in the business – people. For any business to achieve its objectives they must plan their resources and one of their key resource is people. They need to get the right people and develop. them well in order to meet the organisation’s aims successfully.
Labor relations emerged as response towards combating the economic unrest that accompanied the 1930 Great depression. At this period, massive unemployment, decreasing salary and wages, and over competition for jobs despite poor working conditions, was being experience; especially in the US. In turn employees were aggravated and therefore resorted to labor strike that often escalated to violence. To avoid such incident that could potentially harm further an ailing economy, the US government set precedent by passing their first related Labor relationship act, also referred to as the Wagner act. This act excluded public sector and some employees in the informal sector, farm workers to be specific. However, the progressive change in business and labor environment, necessitated changes in the labor laws to ensure they are more inclusive (Haywood & Sijtsma, 2000).
Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce. (1)
Recognition of Human Rights in Industry. This implies that “labour is no more an article or commodity of commerce” which can be purchased and disposed of according to the sweet whims and caprices of the employers. The workers are to be treated as human beings, given a sense of self-respect and better understanding of their role in the organisation and their urge for self-expression is to be satisfied. The recognition of labour as human beings and the treatment of labour on human grounds provide the basic pre-requisites for achieving industrial
The role of the government on industrial relations is very important as it sets the legal framework that industrial relations operates in. Appropriate industrial relations legislation should recognize the requirements of both employers and employee’s. Both the employee and the employer want to profit from each other but are also reliant on each other. This means that the equal bargaining power of employers and workers must be recognized (Peetz, David. 2006). Appropriate industrial relations laws should address any imbalance of power and give both groups an equal degree of control. Appropriate industrial relations should not only allow a mixture of both collective and individual bargaining but also facilitate employee participation in day to day workplace decisions. After all it’s the structure and framework of the employment relationship, which is governed by legislation that leads to good Industrial Relations.
Employment relationship is the relationship between the employers and the employees within an organizational setting. An employment relationship comprises of an economic exchange, power relationship and an open-ended contract. Broadly employment relationship is part the industrial relationship; which it is not just confined to the relation between the employees and the employers but also contain other major stake holders. “An industrial relation framework is a concept used to describe the arrangements by which the terms and conditions of work and the employment relationship are determined” (Nankervis, 2011). The stake holders in the Australian Industrial Relations are the state and federal government, industrial tribunals, state and federal employees, employer associations, trade unions and the employees. The “Fair Work Act (2009)” is the piece of legislation that regulates employment and other Industrial Relation parties’ disputes. The goal of Industrial Relation system is to safeguard the right of the employees and management, minimize conflicts, increase productivity, and to improve the economic conditions of workers in the existing state of industrial managements. For many HR professionals IR is employment relationship but with unionized work force. There are three perspectives to the Industrial Relation; Unitary perspective, Pluralistic perspective and Marxist perspective.
The theory holds work to be governed by a wide range of formal and informal rules and regulations, which cover everything from recruitment, holidays, performance, wages, hours, and a myriad of other details of employment. It asserts that these rules are what industrial actors try to determine, that their establishment is influenced by the wider environmental context in which the actors operate, and that the actors themselves share an interest in maintaining the processes of negotiation and conflict resolution. On the back of these assertions four elements are held to make up the system of industrial relations rule-making. The first is industrial actors, which consists of employers and their representatives (i.e., employer associations), employees and their representatives (i.e., trade unions), and external agencies with an interest in industrial relations (i.e., government departments and labour courts). The second is the environmental context, which