- Introduction
- Explaining the major theoretical approaches that underpin the employment relationship
- Analysing and comparing the roles and responsibilities of governments, employers and trade unions in shaping the employment relationship
- Considering the meso, micro, and macro-level contexts within which each stakeholder operates.
- Providing real-world examples or case studies of companies within retail industry
- Analysing the outcomes and implications of these influences
- Evaluating the effectiveness of each stakeholder's roles
Introduction
Stakeholder plays an effective role in developing the employment relationship. In the context of business unit, stakeholders mainly include government, trade-union, employers etc. Employment relationship is majorly based on amount and contract to an agreement among the employers, parties and employees with the mutual obligations regarding both work and pay. The employee relations refer to the organizational efforts to manage the positive relationship with the workforce. The goals of good employee relations involve inspiring the loyalty of workers, reducing the turnover, boosting the engagement and creating the positive culture of company. The chosen industry is retail; a vast sector which ranging from the departmental stores to the machines, from town square to digital storefront. The report will also focus on the explaining the major theoretical approaches within the employment relationship. This also will compare the roles and responsibilities associated with the employment relationship.
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Explaining the major theoretical approaches that underpin the employment relationship
The employment relationship within the retail industry is majorly shaped by the interaction of different stakeholders. This can include the employers, government and trade unions. The effective theoretical approaches can include the Pluralism, Unitarism, Marsim and Pluralism which helps in understanding the practical implication and relationship.
Theoretical approaches
- Unitarism: This views the organization as the harmonious and integrated entity within the one source of expert within the management. This provides that the all of the stakeholders share the similar goals and conflict is irrational and rare (Unitarism, 2023). Within the retail industry, this perspective manifest with the initiatives which are management driven aimed to develop commitment and employee loyalty. The workers are majorly perceived as the benevolent leaders who care for the welfare of workers and government regulations. These are designed to provide support for the growth and efficiency in business.
- Pluralism: This identifies the existence of the different interest within the companies, focusing on the role of different groups (trade union) within the employment relationship. This can be outlook conflict as the manageable and inherent through conflict bargaining and negotiation (Duggan, et al, 2020). The approach particularly showcases the roles of employer association and trade unions in representing the different interests. Within the retail sector, the pluralism focuses on the significance of the bargaining agreements to manage the employee needs and employer, along with the governments which working as the mediators to make sure about the fair practices.
- Marxism: This views the relationship of employment as the inherently exploitative; which is majorly rooted with the conflict within the capital labour. This emphasises on the economic inequalities and power dynamic among the employers and workers. Within the retail industry, the theory of Marxist focuses on the issues such as working conditions and wages disparity. The trade unions have an important role in supporting the rights of workers. Further, the government policies play an effective role in social justice and regulating the practices of labour.
- Stakeholder roles: The government works for establishing the effective and legal framework which governing the relationship of the employment via the labour regulations and laws. They make sure about the compliance with the working hours, wages laws and standards of health & safety. The employer implements the strategies and manages the workforce to boost profitability and productivity. In the retail industry, employers introduce the incentive programs, development opportunities & training to reduce turnover and motivate the workers. The trade unions showcase the collective interests, job security and developed condition of working.
Analysing and comparing the roles and responsibilities of governments, employers and trade unions in shaping the employment relationship
The employment relations can be attracted by the three kinds of primary stakeholders which are employers, government and trade unions.
Roles and responsibilities
- Government: The government develops the regulatory framework which contributes in governing the relationship of employment. They can set the wages, develop labour laws and manage the working hours, this makes sure about the anti-discrimination and workplace safety policies. From the perspective of pluralist, the government works as the neutral arbiters which can make sure about the balancing the employee interests and the employer. By making sure about the compliances with the meditating disputes, labour laws and offering the social security. For instance, Laws related to wages, within the retail sector, put impact on the compensation structure and also protects the low income of employee from the exploitation.
- Employers: The way in which employers manage and maintain the workforce majorly affects the profitability, productivity as well as engagement of the employees (Green et al, 2020). They are mainly responsible for the training, development of work environment, hiring and setting the policies of workplace. The Unitarist theory majorly views the employers as the figures of paternalistic who aligns the organizational goals with the employee’s interests. This offers the safe conditions of working, fair wages and care development opportunities.
- Trade unions: This represents the workers collective interests, job security and development of the working conditions. They majorly engage in dispute resolution and collective bargaining within the retail industry. The Pluralism underscores the significance of the effective trade union within the negotiating the fair and balance the power dynamics. By negotiating the labour contracts, offering the platform for workers voice and protect the rights of workers. Within the retail industry, the union negotiate on the challenges such as work hours and pay scale, this makes sure that the workers are heard and grievances can be heard.
Competitive analysis
- Governments vs. employers: The government majorly sets the legal parameters in which they operate. Further, it also makes sure about the compliances and policy implementation. Whereas, employers are focused on the daily operations & management and this also focuses on achieving the goals of organization within the retail industry.
- Employers vs. Trade Unions: The Employers aims to minimize the cost and boost the productivity. This may increase the conflict with the high interests within the trade unions regarding the better conditions and higher wages (Reichelt et al, 2021). The theory of pluralist supports needs of compromise and negotiation. On the other side, the theory of Marxist focuses on the characteristic conflict among the groups.
- Government vs. Trade Unions: The trade unions and governments collaborate to offer protection to the worker’s right. Though, the relationship may be argumentative if the policies of government favour the capitalist interest related to the labour rights. Within the pluralism, the government mainly works as the mediators, in the theory of Marxist, they can be functions as the capital control.
Considering the meso, micro, and macro-level contexts within which each stakeholder operates.
The role of the employers, governments and the trade unions within the relationship of the employment are majorly influenced by the framework in which they are operating. These can be understood at meso, macro and micro levels which affect the roles of stakeholders.
Macro level
- Governments: Within the macro level, the government majorly operates in the international and national legal, economic and political framework. This majorly includes the national laws of labour, labour standards and economic policies. The macroeconomic conditions mainly include economic growth, recession which in turn has direct influence on the policies of government and employment. For example, at the time of economic recessions, the government can apply the stimulus packages which can protect the jobs within the retail sector which highly influences the union’s negotiations and employer strategies.
- Employers: The employers within the retail industry can be affected by the competition, trends of global market and different economic policies (Budd, 2019). The factors of macroeconomic include trade policies, currency fluctuations, inflation which can shape the business strategies. The global competitions may determine retailers to influence the wage structure, optimise the cost of labour and employment practice. The changes in the regulatory aspects at macro level may force the employers to regulate the operational practices related to the novel labour laws.
- Trade unions: This operates with the international and national labour rights, with the broader framework. They may be influenced by the conditions of labour market and policies of national economic.
Meso level
- Governments: Within the Meso level, the interaction of the government with the regulatory bodies, industry associations and regulations, policies of local governments can be vary by employment conditions and region. The programs related to the regional development of economy may affect the employment practices within the retail industry. For example, the incentives of the local government for the businesses may lead to the development of the initiatives related to creation of job.
- Employers: At meso level employers interact with the supply chains, industry associations and local communities. The strategies are majorly shaped by the industry standards and market conditions. The market conditions of the regional labour, this can include the wages levels, skill availability; this may put impact on the employer practices.
- Trade unions: This majorly operations in the region and specific industries, government bodies and different unions. The strategies are majorly shaped by the condition of labour market and labour issues.
Micro-level
- Governments: Within the micro level, the government majorly interact with the employee and individual businesses via the employment tribunals and offices of local labour. The local enforcement related to the mechanisms of dispute resolutions and labour laws can directly put impact on the employee rights and employer compliance within the workplace level.
- Employers: The employers majorly operate within the retail stores and different locations, by managing the employee interactions and daily operations (Meijerink and Keegan, 2019). The practices related to the store level management which can include the training, scheduling and evaluation of performance, this can affect the productivity and employee satisfaction.
- Trade unions: This engages with shop stewards within the workplace level and members, this addressing the grievances and employee concerns. The union presence can boost the conflict resolutions and working conditions.
Providing real-world examples or case studies of companies within retail industry
- Government influence (Wal-Mart): This is the largest retail within the international bases, this has majorly affected by the policies and regulations of government within the different countries. In the US, Fair labour standards act commands the overtime pay, minimum wages and standards of record keeping can affect the employment practices of Wal-Mart (Wal-Mart, 2023). The compliance related to the FLSA, this lead to adjust the working hours and boost wages.
- Employer influence (Starbucks): These refer to the employees as the major “Partners” and provide the comprehensive benefits; this can include the tuition reimbursement, healthcare and stock options. The benefits can developed the positive work environment, boosts the employee loyalty and reduce the turnover. The commitment of Starbucks is related to the ethical practices and social responsibilities can attract the talent and boost the brand reputation.
- Trade union influence (TESCO): This is one of the biggest retailers within the UK, this highlights the influences related to the trade unions. Union of Shop, Allied and distributive workers denote the employees of TESCO and engages within the collective bargaining. Within the year 2020, USDAW has negotiated a major increase in pay for the employees of TESCO, showcasing the role of union in developing better wages (Tesco Pay deal: Usdaw secures a 9.1% increase in hourly pay taking the basic rate over the real Living Wage, 2023).
- Combined influence of stakeholder (Amazon): This is main player in the global retail; this exemplifies the complex of employer, trade union and employers’ influences. The organization has faced the inspection from labour organizations and government related to the labour practices. In the year 2018, the organization raised the minimum wages to the 15 GBP for each hour within the US. The organization has to face the challenges related to the trade unions which are seeking for the development in working conditions.
Analysing the outcomes and implications of these influences
- Government influence: The effective government regulations which can include the standards of health and safety and wages laws, this led to fairer wages and improved working conditions. For example, compliances of Wal-Mart within the FLSA resulted in the boost the wages for the workers with the lowest pays. The compliances related to the government regulations may boost the operational costs. The developed working conditions and higher wages needs the effective financial adjustment, this can put impact on the profit margins.
- Employer influence: The organizations such as Starbucks, this provides the employee welfare and comprehensive benefits, boost the employee satisfaction and reduce the rates of turnover. The positive environment is developed by the policies related to the proactive employer. The employers who majorly invest within the workforce may gain the competitive benefits by retailing and attracting the top talent.
- Trade union influence: The trade unions can include the USDAW within the TESCO, this have negotiated the working conditions and better pay for the workers. The union presence offers the workers with the platform to negotiate the conflict and voice concerns. This leads to manage the power dynamics within the workplace. The efficient union representations may lead to boost the labour relations boost the cooperation among the management, employees and reduce the conflict.
Evaluating the effectiveness of each stakeholder's roles
- Government: The government implement the labour laws which make sure about the safe working hours, fair wages and practices which are non-discriminatory. The regulatory framework is helpful in managing the positive relationship of employment and employee rights. This offer the advantages which can include the health care and unemployment insurance and provide the safety for the workers, this contributes in the security and well-being. The government offer the arbitration and mediation services to address the disputes among the employees and employers, this can be helpful in fostering cooperation and decrease the workplace conflicts.
- Employer: The employers which prioritise the welfare of workers, this seem within the organization such as Starbucks, this develop the positive environment of work which can boost the loyalty and job satisfaction (Spurk and Straub, 2020). Offering the opportunities for the career development and training which helpful in workers feel invested and valued. The employers may address the conflict by working with the communication channels, regular feedback and open door policies. The employers mainly invest in the relations of the employee which mainly see the high productivity and low rates of turnover.
- Trade Union: This plays an effective role in working conditions and negotiation of fair wages, this make sure about voice of workers heard and respected. The collective approach may develop the mutual respect and sense of harmony. This facilitates the mediate disputes and grievance procedure among the employers and employees, this help in address the conflict within the structured manner. This is effective within the securing the better conditions for the workers and offer the platform to resolve the grievances.
Conclusion
Conclusively, it can be stated that the employers, government and trade unions are important in shaping the effective employment relationship. The government makes sure about the workers protections and legal compliance; the employers can boost the productivity and employee welfare. Further, it has been articulated that the trade unions plays a crucial role in developing the effectual working conditions and fair wages for the workers. The efficient interactions between these stakeholders can develop the sustainable and balanced employment relationships. This in turn offers benefit to the businesses and employees as well. Within the retail industry, this is important for developing the job satisfaction, manage the fair practices of labour and boost the job satisfaction, also make sure about the long term based success of the organization.
References
Books and Journals
Budd, J.W., 2019. Employment with a human face: Balancing efficiency, equity, and voice. Cornell University Press.
Duggan, J., Sherman, U., Carbery, R. and McDonnell, A., 2020. Algorithmic management and app‐work in the gig economy: A research agenda for employment relations and HRM. Human Resource Management Journal, 30(1), pp.114-132.
Green, N., Tappin, D. and Bentley, T., 2020. Working from home before, during and after the Covid-19 pandemic: implications for workers and organisations. New Zealand Journal of Employment Relations, 45(2), pp.5-16.
Meijerink, J. and Keegan, A., 2019. Conceptualizing human resource management in the gig economy: Toward a platform ecosystem perspective. Journal of managerial psychology, 34(4), pp.214-232.
Reichelt, M., Makovi, K. and Sargsyan, A., 2021. The impact of COVID-19 on gender inequality in the labor market and gender-role attitudes. European Societies, 23(sup1), pp.S228-S245.
Spurk, D. and Straub, C., 2020. Flexible employment relationships and careers in times of the COVID-19 pandemic. Journal of vocational behavior, 119, p.103435.
Online
Tesco Pay deal: Usdaw secures a 9.1% increase in hourly pay taking the basic rate over the real Living Wage, 2023. Online. Available through https://www.usdaw.org.uk/About-Us/News/2024/Mar/Tesco-Pay-deal#:~:text=the%20real%20Livi-,Tesco%20Pay%20deal%3A%20Usdaw%20secures%20a%209.1%25%20increase%20in%20hourly,to%20%C2%A312.02%20per%20hour
Unitarism. 2023. Online. Available through <https://www.oxfordreference.com/display/10.1093/oi/authority.20110803110720290>
Wal-Mart, 2023. Online. Available through https://www.walmart.com/