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7MER – Summative Assessment Managing Employment Relations

Introduction: Summative Assessment Managing Employment Relations

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Employee relation refers to the connection between the manager and the employee, when the connection is on good terms and positive it is beneficial to the organization as a whole. There is huge importance in handling people on an individual level and collectively within the organization. Effective human resource managers focus on improving the relationship between employer and employee. Better employee relations are necessary because it leads the success and growth of the organization by increasing the productivity of employees at the workplace. With a better organizational environment in the workplace, the business can be more growing entirely and hold its top talent (Jacoby, 2018). The company's staff must have a healthy and positive connection with each other and also the employer.

Various problems cannot be solved individually and to solve this problem it is needed that decisions can be taken collectively and this can be done through better connections with each other. With better employee relations people can work collectively which reduces the burden on an individual level because when people work collectively, it is easier for them to share the tasks and projects between all. Also, a positive and healthy employee relationship creates a positive atmosphere within the organization which gives a sense of belongingness. This report explains the different theories and perspectives on employment relations which give an understanding of how employees work collectively under the organizations and how this is important for the company to maintain a positive connection between employees and employers (Guest, 2017). It is also describing the impacts of regional, national, and international contexts which design employment relations with examples. There are some roles and functions of the diverse parties to limit and handle employment relations which are highlighted through example.

Different theories and perspectives on employment relations structural labor market changes, and inter-firm network relationships

A positive company culture encourages employees to work actively and give their best in attaining organizational goals. Managing healthy connections with employees not only includes better communication but also includes recognition of employees' efforts in the workplace. Some theories give a clear understanding of employee relations such as –

Unitary theory: Unitary theory involves all employees within the organization sharing similar interests and purposes. This theory involves administration and employees within the firm sharing a common objective, through their honesty and loyalty to the company (Heery, 2016). Businesses that apply this theory relies their workplace on a solid sense of cooperation between the employer and staff, which empowers employees to concentrate on the main purpose.

Perspective on this theor:

Alan Fox claimed that the unitary theory or ideology was not a real or true, since it left without the acceptability of conflict. This highlights that companies will face conflict, regardless of the interest of managers and employees. Additionally, organizations with this theory can face poor interactions and misinterpretation among the firm's staff and employers. Ultimately, stopping the organization to support the performance of employment relations. This theory is focused more on negotiating and collective bargaining as it identifies different needs and wants under a sub-group that can be the source of disputes mainly between the management and labor market. The biggest disadvantage of this theory is the power and authority that employers or managers hold. The essential instability and imbalance of rights between capital and labor affect workforce performance in the workplace. This statement of this view is that the company survives in perfect harmony and overall conflict is avoidable.

Conflict theory: Conflict theory is a perception introduced by Karl MARX about power dynamics depending on access to resources. It is used by organizations to acknowledge workplace dynamics and obstacles and use it to make it a healthier and positive work atmosphere. This theory explains people’s behavior within the organization. Those people who generally has authority and power involving senior executive officer, managers, and leaders have rights, liabilities, and access to resources (Regalia and Regini, 2018). They normally limit assets like wages and time off, which can motivate a workforce to work effectively, based on how the executives disperse the resources. Conflicts theory is related to how power and authority affect decision-making, target setting, goal fixing and connections relies on who has access to the resource they need. Acknowledging how to implement this theory in the workplace, this can support the organizations’ leaders, in creating impartial choices and assuring their firms to treat every employee equally.

Perception of theory:

Alan Fox argued that this theory views the firm as the union of the sectional group with diverse values, expectations, and goals. the staff has diverse beliefs and objectives from those of management, and these beliefs and objectives always struggle with those of management. Conflict theorists criticized that dispute is a foreseeable, normal, efficient and common situation in businesses, which is fixed by settlement and promises or combined bargaining. According to conflict theory, trade unions are reasonable challenges to executive rule or rights and highlight competition and alliance. This view recognizes trade unions as authentic delegate companies which empower groups of employees to impact and change an executive decision. Rose further says that the pluralist point of view would look to be most relatable than the unitary outlook in the scrutiny of employment relations in various bigger unionized companies and compatible with enhancement in a modern community.

System theory: System theory is a different method of knowing, managing, and planning businesses. Employee relations is a manpower discipline concerned with making connections between employers and the workforce (Bean, 2021). System theory can offer a fresh new perspective for proposing employee-connection enterprises, enabling executives to acknowledge their staff’s significance and role as an essential system in the firm, rather than seeing employees as overhead through the eyes of accounting. 


Otobo and Dunlop criticized that an employment relation method at any one time in its enlargement is related to embrace of specific expertise, some specific circumstances, a belief which fixes the employment relations system collectively, and a structure of rules implemented to regulate actors at the workplace and work for the union. As per the view of Dunlop, systems theory gives the methodical tools and the hypothetical root to create employment relations as an academic discipline in its own right.


Banking is a customary sector with several categorized frameworks. At the same time, it is facing major alterations with digitalization and moving customer behavior. The finish banking firm “Aktia” and the structure or culture design organization, revolutionary, feel that to hold outer transitions, they are required to dual down on what is already implemented well in Akita's inner atmosphere. By taking opinions and listening to Aktia’s workforce and executives on an online platform, they addressed the greatest portion of their culture and environment: working collectively for the customer, innovativeness, fearlessness, and responsibility.

The impact of local, national, and global contexts shaping employment relations climates. Examples of organizational practice

Employment relations climates mean the attitudes, values, and norms that design how managers, employees, and legal institutions connect or communicate with each other in the workplace. The effect of a native, domestic, and international perspective on employment connections climates is complicated and diverges depending on several elements such as the types of industry, the size of the business, and the economic, cultural and political perspective of the country in which the business functions (Coe, et.al 2017).

Local contexts, such as the condition of the local economy, the accessibility of different job opportunities, and the availability of a solid labor community, can highly impact the employment relations climate under a company. But in the local context, there are some challenges that executives and employers face when focusing on coherences employment exercises around the globe.

Select which practice to harmonies: -Employers can first reflect on which portion of their employment exercises they want to coherence. Subject to coordination with local lawsuits and disabling the practical consequences of harmonization, a global approach could be followed for different employment practices containing fair opportunities, global sentiment, business morals, and corrective and complaint procedures.

Consider the impact of local laws and market practices: -Before enrolling the terms of policy, the executive must deliberate on the influence of local employment rules in each authority in which it desires to apply a similar policy. The employer must have a systematic knowledge of the requirement and limitations of local regulation before determining the content or nature of a policy or an exercise.

Acknowledge cultural sensitivities and discrimination laws: -When deliberating the influence of local laws, care must be taken to find cultural gaps and issues of justice. Employers must ask whether or not a certain advantage will mix with traditional averages.

National context can also design the employment relations climates, specifically in nations with solid federal régime that have the authority to administer labor laws and regulations. For example, in countries with solid labor guards and a huge level of unionization, laborers are more likely to be safe from discrimination and partial behavior and managers are more likely to be allegedly answerable for their actions (Jacoby, 2018). In difference, in countries with poor labor securities and limited levels of unionization, laborers may be helpless to mistreatment and abuse, and employers may be clever to act with larger freedom.

Global contexts, like globalization, technical alteration and monetary liberalization, are also designing employment relations climates in several ways. For instance, the progress of global employment and the measure of jobs to countries with inferior labor charges have headed to enlarged competition among laborers and decreased negotiating power for laborers in several nations. In addition, development in technology has guided essential transitions in the nature of work, with various jobs becoming more adjustable and requiring new skills. Organizations that apply their tactic accurately will cover the number of opportunities to both revenue and create social belonging on an international level.

A strategic approach to climate: -Climate transition is now an element of political life and is performing a progressive role in business rivalry. Conservatory gas emissions will be growingly analyzed, measured, and priced. while an individual leader or executive can affect how instant and essential the influence of climate alteration will be, firms require to take action now. Organizations that continue handling climate transition solely as a business social accountability concern, rather than a corporate problem, will hazard extreme significance. Although, a firm's climate schemes will be impacted by stakeholders' desires and expectations, and norms for communal accountability. But the impacts of climate on business functions are now so perceptible and specific that the problem is best identified with the techniques of the planner, not the promoter.

From the effectiveness of strategy: -There is no one-size-fits-all method to climate transition. Every firm's method will rely on its specific business and must link with its entire tactic. For each organization, the method must involve enterprises to reduce the cost that is related to climate and threats in its value chain (Townley, 2019). Business leaders require to initiate considering carbon emissions as highly expensive because they are or soon will be, and firms require to evaluate and decrease their weakness which is related to climate environmental, and financial shocks. Each company needs to acquire those common rights, as a substance of functional efficiency.

Risk: investing in global safety: Climate transition may occur shortly, and its impacts could be dangerous. How multinational companies react today in the areas that may be highly affected will impact the feasibility of the markets in those parts. Rather than withdraw from them, organizations require to enhance their future resilience. This is a very important strategy for corporate social responsibility. Organizations require to expect the ways that climate transition may nonstop impact their businesses, consisting of supply-chain collapses, employee relocation, and the effect on the image.

Wartsila Energy, a wide leader in ecological energy solutions, has the desirable goal of directing the change towards a 100% renewable energy future. To attain this goal, the firm required a bold and different business growth tactic. Wartsila’s skill enlargement lead, Kati Jarvinen, initiated occupied for the firm in the middle of its approach procedure. The company’s past growth approach was completed customarily, with less input from the workforce. But this time company's energy was preparing to incorporate each employee's perception into the procedure of addressing tactic abilities. Wartsila's business had been quite balanced and stable, but now the company is seeing a new condition in the market. The energy change is greater, entire market needs are transforming, and its rivals challenge it all the time. So it is leading the entire firm to work in a more responsive and active way

The roles and functions of the different parties to control and manage the employment relationship with the examples of organizational practice

An employee relationship concentrates on building and providing people practices that enlarge and manage positive working connections between employer and employees (Townley, 2019). Working nearly with unions and employee leaders, companies will require to ensure that people's exercises are equal and reflective. There are majorly two parties included in employment relations.


Employers retain some specific powers and authority such as they have the authority to recruit and fire employees. Management can also impact the employee's needs by practicing their right to shift, close or merge a factory and to impose technological alterations. several employers apply questioning strategies to disrupt unions and their strikes. Employers try to earn the loyalty of employees in many ways.

They are highly focused on implementing motivation, pledge and effectiveness of workers. Employers convey on their level as well as through their associations with workers or employees' leaders to resolve the issues of terms and conditions of employment. Some employers exchange decision-making power with employees. 


Employees look to enhance the terms and conditions of their jobs. They share opinions with the administration and voice their complaints. They also expect to exchange decision-making rights with the administration. In their difficult time, employees get help from trade unions and labor regulations (Freedland, et.al2016). Trade unions use power both at the factory level and industry level. 

Among other things, employment or worker rules look to identify what can be an unfair negotiating position between employer and employees. The term of the employment relationship is basic to all laws full systems and customs, but the duties, powers, and privileges related to it diverge from nation to nation. Similarly, the benchmarks for deciding whether or not an employment connection exists can diverge even though in several nations general concepts like reliance or subordination are found. There are some functions through which employment relations can be improved.

Start with on boarding-

The best way to improve employment relations is by linking employees in on boarding (García,et.al 2019). People communications are exponentially more impactful to familiarize with a new firm than training videos and long meetings. Identify new employees to their coworkers early in a casual setting so they can begin creating positive connections.

Create a supportive atmosphere for staff-

Companies must create a positive and supportive culture within the firm so employees can feel safe and comfortable. Making policies that concentrate on staff wellness will help organizations in building a better work culture. By making building a safe workplace where the workforce feels recognized and prevents discrimination and negativity, empowers better employment connections.

Streamline Communication-

Bad communication is one of the main blockages in creating some solid workplace connections. Interaction barriers can make colleagues feel detached between a jumble of confusion and negative attitudes. This has a poor impression on coworkers and productivity. Therefore, companies must fix some communication rules and norms to implement the way companies' teams interact. Businesses must highlight clear objectives, fix team roles and motivate cross-collaboration to get work completed. As result, firms' employees communicate with easiness and build solid connections.

Professional development- 

By investing in employees’ companies can get better results from employees. Businesses can offer opportunities to employees so they can learn through skill-exchanging and cross-team alliances. Meeting discussions and companywide training opportunities are a unique and impactful way to motivate better relations and communications. Concentrating on addressing and inclusion supports the workforce to feel recognized and secure, so they can be themselves. The knowledge of new skills helps group members in expanding day-by-day. Escaping teams can create a team of employees who never work collectively, providing them a chance to get to know each other while they expand and develop new skills (Prassl and Risak, 2015).

Create benefit packages-

Employee relations executives and HR managers frequently work collectively when preparing benefit packages. Benefit packages indicate all the advantages that are offered to employees for their work or performance such as holiday time, sick leave, and health insurance. During the package creation, companies can ask their employees about what they need and desire and also they can compare the prices of different brokers. Now many firms offer better advantages for staff who were with the firm for a long time and give fewer advantages to new employees.

Negotiate new contracts-

Contracts negotiations are another essential function of employers. Salaried employees sign an agreement that highlights all the benefits and incentives they will acquire and what employers want them to do in the workplace (Piore, 2018). Once that bond expires or the time limit of the contract is ended employer and employee can continue their job by discussing mutually. This mutual understanding also creates a positive relationship at the workplace.


Employee relations is the term that means an organization's attempts to build and manage a positive connection among its staff. Many firms now focusing on making a better work culture where employers and employees can make better relationships at the workplace. This report is concluding the different theories and perspectives of employment relations such as unitary theory, conflict theory and system theory. These theories of employment relations can support expertise firms in understanding classified dynamics and try to apply processes so the entire team and contributors feel valued. The report is explaining the impact of local, nationalized, and international contexts determining employment relationships climates. Local context choose which practice to harmonies, what type of laws are impactful, etc. This report also highlights the role and function of the diverse parties that are involved in making better service relations. The chief parties that are involved in creating employment relations are employer and workers. Offering different benefits and involving employees in the decision-making process can create a positive relationship in a workplace.


Bean, R., 2021. Comparative industrial relations: An introduction to cross-national perspectives. Routledge.

Coe, N.M., Hess, M., Yeungt, H.W.C., Dicken, P. and Henderson, J., 2017. ‘Globalizing’regional development: a global production networks perspective. In Economy (pp. 199-215). Routledge.

Freedland, M., Bogg, A., Cabrelli, D., Collins, H., Countouris, N., Davies, A.C.L., Deakin, S. and Prassl, J. eds., 2016. The contract of employment. Oxford University Press.

García, G.A., Gonzales-Miranda, D.R., Gallo, O. and Roman-Calderon, J.P., 2019. Employee involvement and job satisfaction: a tale of the millennial generation. Employee Relations: The International Journal, 41(3), pp.374-388.

Guest, D.E., 2017. Human resource management and employee well?being: Towards a new analytic framework. Human resource management journal, 27(1), pp.22-38.

Heery, E., 2016. Framing work: Unitary, pluralist, and critical perspectives in the twenty-first century. Oxford University Press.

Jacoby, S.M., 2018. The embedded corporation: Corporate governance and employment relations in Japan and the United States. Princeton University Press.

Jacoby, S.M., 2018. The embedded corporation: Corporate governance and employment relations in Japan and the United States. Princeton University Press.

Piore, M.J., 2018. The dual labor market: theory and implications. In Social stratification (pp. 629-640). Routledge.

Prassl, J. and Risak, M., 2015. Uber, taskrabbit, and co.: Platforms as employers-rethinking the legal analysis of crowdwork. Comp. Lab. L. &Pol'y J., 37, p.619.

Regalia, I. and Regini, M., 2018. Trade unions and employment relations in Italy during the economic crisis. South European Society and Politics, 23(1), pp.63-79.

Townley, B., 2019. Foucault, power/knowledge, and its relevance for human resource management. In Postmodern Management Theory (pp. 215-242). Routledge.

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