Managing Employment Relationships: Assessment Answer

Introduction

Employee relationship management (ERM) manages the relationship between the various employees within an organization and is considered to be a specific field of Human Resource Management. ERM is the process of adopting controlling methods and practices to regulate employee relations. Managing the employment relationship involves creating and maintaining a positive and productive relationship between an employer and their employees (Bulińska-Stangrecka & Bagieńska, 2021). Effective employment relationship management is crucial to ensuring that both parties feel valued, respected, and motivated to achieve their goals. To manage the employee relationship effectively, one must understand how people work and communicate clearly and effectively with all stakeholders (Dewnarain, 2019). These include the employees themselves, management, and other employees.

ERM aims to reduce risk by maintaining an employer's ability to attract and retain employees and assist with job satisfaction and career development for existing employees (Juanamasta, 2019). It also aims to protect the rights and well-being of employees and maintain a healthy working environment. Employee relationship management is essential for organizations to grow, expand, and protect the workforce and its effectiveness. Human resource management, employee relationships, and management of the employee-employer relationship are all subfields of human resource management (Men, 2021). They are interconnected, and there must be seamless communication and collaboration between them to optimize workplace culture and performance.

It is a proactive management approach that considers all risks avoidable and tries to prevent them from occurring and, once they have occurred, reduces the impact. The ERM framework describes the organization as having three primary actors: the stakeholder, manager, and supervisor, with a fourth secondary actor – the organization as a whole. The primary actors (employee, employer, and organization) have goals. Each of the actors also has responsibilities, and the performance of these responsibilities is impacted by one or more risks (Pernicka et al., 2021). Risks that arise can be divided into five broad categories: risks of legal, regulatory, operational, human resource and business strategy, and social and compliance.

Components of ERM

Various components affect the functioning of the management based on the employment relationship (Sofi et al. 2019). The fundamental concepts of Employment Relationship management are as follows:

Organizations Code of Conduct:

It plays a major role in risk aptitude. A healthy work culture sets the tone for employers' work standards and the ability to deal with risks.

Setting Objectives and Goals:

Setting objectives and goals sets a common goal for the management. When everyone knows they are working towards a particular goal, the target will be reached adequately.

Identifying Risks and Opportunities

Through this, risk can be identified and can be worked on it. The suitable opportunities can be dealt with appropriately.

Information and Communication

Good information and communication help the management to work in a better way, and even the work runs in a better way.

Fair and Consistent Policy

The management would have a fair and consistent policy related to the procedure and communication of the employee.

Process of ERM

The organization uses a framework to identify, assess, and manage risks that could affect their operations and objectives. ERM is a comprehensive approach that involves the entire organization and considers all types of risks, including strategic, financial, operational, and compliance (Anton & Nucu, 2020). The ERM process involves the following steps:

Risk Identification

The organization identifies potential risks that could impact its objectives.

Risk Assessment

The organization assesses the likelihood and impact of identified risks. This may involve quantifying risks using risk models or qualitative assessments.

Risk Mitigation

The organization develops and implements strategies to mitigate or manage identified risks. This may involve risk avoidance, reduction, sharing, or acceptance.

Monitoring and Reporting

The organization monitors and reports on the effectiveness of its risk management strategies. This may involve tracking risk indicators, reviewing risk reports, and updating risk management plans.

Collective Bargaining

Collective bargaining is the process by which representatives of employees and employers negotiate the terms and conditions of employment. From the employer's perspective, collective bargaining is necessary to manage labor costs and ensure a stable workforce. From the employee's perspective, collective bargaining is seen as improving wages, benefits, and working conditions (Doellgast & Benassi, 2020). These benefits are typically negotiated at the employer/employee level. When the contract terms are negotiated at the employer/employee level, the contract is called a union collective bargaining agreement (CBA). The United States is one of only a few countries that have a national CBA (the National Labor Relations Act (NLRA) that grants special labor protections to all employees (Cazes & Martin, 2019). The NLRA requires that collective bargaining agreements include a list of mandatory subjects of bargaining, including wages, hours, terms, and conditions of employment.

Merits

• Collective bargaining can lead to better working conditions for employees, including better wages, benefits, and work hours.
• A collective agreement can provide job security for employees, reducing turnover rates and associated costs.
• Collective bargaining can increase job satisfaction and employee morale, as employees feel that their voices are heard, and their interests are represented.
• Collective bargaining can improve relations between management and employees, as both parties are vested in reaching an agreement that benefits everyone.
• When employees are satisfied with their working conditions, they are more likely to be productive and motivated, which can improve the organization's overall performance.

Demerits

• Collective bargaining can be a time-consuming and costly process for both employers and employees. Negotiating a collective agreement can require significant resources, including time, money, and expertise.
• Collective bargaining can lead to conflict and tension between employers and employees, as both parties seek to maximize their own interests.
• A collective agreement can limit the employer's ability to make changes to the terms and conditions of employment, which can reduce flexibility and adaptability.
• Collective bargaining can lead to unintended consequences, such as increased wage inflation or reduced innovation, that can have negative impacts on the organization.
• Collective bargaining is a process that is focused on the interests of the group, rather than the individual. This can lead to a lack of voice and representation for individual employees.

Employer Perspective

Employers often view collective bargaining as a way to manage labor costs by negotiating favorable terms and conditions of employment with employee representatives. By negotiating a collective agreement, employers can ensure that they have a stable workforce, which reduces turnover costs and improves productivity (Schnabel, 2020). Employers may also use collective bargaining to address workplace issues such as health and safety, performance management, and employee training and development. However, employers may also view collective bargaining as a challenge to their authority and decision-making power. The negotiation process can be time-consuming and costly, and employers may feel pressured to make concessions that they view as detrimental to the organization's bottom line. Employers may also be concerned about the potential for strikes or other labor actions if negotiations break down (Pernicka et al., 2021). With the current debate on collective bargaining, labor unions have been increasingly successful in defending their right to collectively bargain on behalf of the employees they represent, as recognized in the first amendment to the U.S. Constitution.

Collective bargaining has been occurring on a state-by-state basis since the early part of the 20th century, and in many states today, employment and labor relations are regulated by state law, not by federal law. There are numerous labor relations statutes and regulations throughout the U.S., but there are only two general types of state laws that govern collective bargaining:

 The National Labor Relations Act and state labor laws, such as laws in New York, Michigan and California. State Labor Relations Board Rules Every state has a labor relations board (Board) that has the power to establish rules and regulations governing collective bargaining (Julius, 2023). State labor boards are also responsible for investigating unfair labor practices and enforcing labor laws, such as those found in the National Labor Relations Act, among other laws. The rules and regulations issued by the Board can vary from state to state, and each state will have slightly different Board rules.

Collective Bargaining Agreements

Collective bargaining agreements are contracts negotiated between employees and their employer. There are many different types of collective bargaining agreements:

Standard Agreements (also known as collective bargaining agreements): These are comprehensive labor contracts negotiated by labor unions. Standard agreements contain provisions relating to wages and benefits, seniority, grievance procedures, and discipline and termination procedures. In addition to the standard agreement, there are many different types of addendums to standard agreements. Some addendums contain additional employee benefit provisions, for example, maternity leave, employer contributions for medical insurance and retirement plans, and job training. Other addendums provide different standards for the treatment of seasonal employees.

Specialty Agreements: Also known as supplemental agreements, specialty agreements are agreements that supplement a standard agreement. These agreements usually address the specific terms and conditions of employment at the firm's site of operations. For example, the union and the employer may enter into a specialty agreement to address safety issues, job training, hours of work, holiday schedules, or other terms and conditions related to a single workplace.

Joint Committee Agreements: Joint committee agreements are collective bargaining agreements negotiated with an association of employers. A joint committee is the employer group for a defined geographic area or a particular type of industry. A joint committee typically includes many employers that are in the same geographic area, but sometimes employers from different localities in a single state may form a joint committee.

Industrial Welfare Agreements: Industrial welfare agreements are negotiated for a specific line of business. An example of an industrial welfare agreement is one that deals with the terms and conditions of employment for a small group of employers in an industry or a group of industries. An industry-specific agreement sets forth the terms of employment for workers.’s

Employee’s perspective

Employees view collective bargaining as a way to improve their wages, benefits, and working conditions. By negotiating with employers as a collective group, employees can achieve better outcomes than they would be able to negotiate individually (Aloisi & Gramano, 2019). Employees may also use collective bargaining to address issues such as job security, workplace safety, and work-life balance. However, employees may also view collective bargaining as a challenge to their individual rights and freedoms. Employees may feel pressure to conform to the demands of the union, even if those demands do not align with their personal preferences. Additionally, some employees may view union membership as a burden due to the associated dues and other fees. Moreover, many employees are not aware of the collective bargaining process and the advantages that it may offer.

This guide provides an overview of collective bargaining for employees and highlights some of the legal requirements for union membership and collective bargaining in Canada. It also provides practical suggestions on how to conduct a union organizing drive and address employee concerns regarding the use of union dues.

Collective bargaining can occur between one or more unions and employers. Under the labour laws of Canada, only employees who are subject to the Employment Standards Act are entitled to unionize. However, some collective bargaining may also occur between employers and their employee associations (Doellgast & Benassi 2020). Employees who are employees under the Employment Standards Act may be represented by a union in collective bargaining. These employees have the right to opt-out of union membership. However, other workers who are not subject to the Employment Standards Act may be represented by a union or an employee association.

The rules for unionization vary from province to province. For example, Quebec, Manitoba, and the Northwest Territories allow only unionized employees to bargain collectively. However, other provinces allow employees to collectively bargain if they are not also subject to the Employment Standards Act, as long as certain rules are observed.

A collective agreement is the result of negotiations between a union and the employer. The employer is represented by its representative on the negotiating committee.

Collective bargaining includes the following process:

The union initiates an organizational campaign. It may use its website, social media, local newspapers, or other means to inform workers about unionization (De Stefano & Taes 2022). The union may also hold public meetings or solicit volunteers to distribute union information at workplaces. When a union campaign targets individual workers, the union must obtain the individual’s written consent. This allows the union to solicit consent from each individual worker and may prevent workers who disagree with union activities from joining (Cazes & Martin 2019). If the union does not get an individual’s consent, then it must be considered that the individual has never joined the union. The union must provide a fair and accurate description of the benefits and potential benefits associated with union membership. The union must also inform workers of the dues that they will be required to pay if they join the union.

The union may also conduct a vote to determine whether the majority of the employees support unionization. This election may be conducted through secret ballot. If a majority of employees support the union, the union can apply for certification by the provincial Labour Relations Board (Pernicka et al. 2021). The board may then certify the union if it determines that a majority of the employees have authorized the union to represent them in collective bargaining.

Collective bargaining may also occur between two or more unions. It is very common for unions to negotiate collectively for wage increases and benefits, and to discuss scheduling, job security, and other issues. For example, for many years, teachers, nurses, and various public service employees in Canada have collectively bargained with employers (Julius, 2023). As a result of these collective negotiations, union membership has increased and wages have increased. Under the law, union members may not be disciplined or dismissed for union activity. However, union members must still have a reasonable excuse for missing work. If a union member misses work without a reasonable excuse, then the union may not provide him or her with pay. The union may also be required to pay the employee for his or her absence.

If a union member is disciplined or dismissed for missing work without a reasonable excuse, then the employer can make the union pay the amount that the member would have been entitled to receive if he or she had reported for work. Unions may also conduct disciplinary hearings. For example, the National Union of Public (Aloisi & Gramano 2019). Employees have disciplinary hearing procedures that may be used when an employee is dismissed. Generally, if an employer refuses to enter into a collective agreement with a union, then the employer will be charged with an unfair labour practice. For example, an employer who refuses to bargain with a union may be charged with refusing to bargain collectively or refusing to meet with a union.

Conclusion

Managing the employment relationship requires ongoing effort and attention. By fostering clear communication, fair policies, recognition and rewards, professional development opportunities, employee engagement, and effective conflict resolution, employers can create a positive and productive workplace culture that benefits both employees and the organization. ERM reduces the likelihood of surprises and unfunded losses or mandates. Breaking down silos within an organization is a huge challenge. An integrated approach to risk management across departmental lines significantly improves communication by allowing participants to “speak out of the same hymnbook.” ERM is about being able to identify risk across the board. It is about having the tools to evaluate internal and external risks before they occur. ERM saves money, reduces risks and increases revenues. It can help an organization build better, more integrated teams. With ERM, people from across an organization can identify and quantify risks and develop risk mitigation plans and strategies that can be used across departments, not just within a specific line of business (Pernicka et al., 2021). By managing risks before problems occur, ERM frees organizations up to pursue their goals and objectives with increased confidence.

References

Anton, S. G., & Nucu, A. E. A. (2020). Enterprise risk management: A literature review and agenda for future research. Journal of Risk and Financial Management, 13(11), 281

Aloisi, A., & Gramano, E. (2019). Workers without workplaces and unions without unity: Non-standard forms of employment, platform work and collective bargaining. Employment Relations for the 21st Century, Bulletin of Comparative Labour Relations, 107.

Bulińska-Stangrecka, H., & Bagieńska, A. (2021). The role of employee relations in shaping job satisfaction as an element promoting positive mental health at work in the era of COVID-19. International journal of environmental research and public health, 18(4), 1903.

Cazes, S., Garnero, A., & Martin, S. (2019). Negotiating our way up: Collective bargaining in a changing world of work. OECD Publishing: Paris, France.

De Stefano, V., & Taes, S. (2022). Algorithmic management and collective bargaining. Transfer: European Review of Labour and Research, 10242589221141055

Doellgast, V., & Benassi, C. (2020). Collective bargaining. In Handbook of research on employee voice (pp. 239-258). Edward Elgar Publishing.

Dewnarain, S., Ramkissoon, H., & Mavondo, F. (2019). Social customer relationship management: An integrated conceptual framework. Journal of Hospitality Marketing & Management, 28(2), 172-188.

Juanamasta, I. G., Wati, N. M. N., Hendrawati, E., Wahyuni, W., Pramudianti, M., Wisnujati, N. S., ... & Umanailo, M. C. B. (2019). The role of customer service through customer relationship management (Crm) to increase customer loyalty and good image. International Journal of Scientific and Technology Research, 8(10), 2004-2007.

Julius, D. J. (2023). The current status of graduate student unions: An employer's perspective. Journal of Collective Bargaining in the Academy, 14(1), 15.

Men, L. R. (2021). The impact of startup CEO communication on employee relational and behavioral outcomes: Responsiveness, assertiveness, and authenticity. Public Relations Review, 47(4), 102078.

Pernicka, S., Glassner, V., Dittmar, N., & Neundlinger, K. (2021). Forces of reproduction and change in collective bargaining: A social field perspective. European Journal of Industrial Relations, 27(3), 345-363.

Schnabel, C. (2020). Union membership and collective bargaining: trends and determinants (pp. 1-37). Springer International Publishing.

Sofi, M. R., Bashir, I., Parry, M. A., & Dar, A. (2020). The effect of customer relationship management (CRM) dimensions on hotel customer’s satisfaction in Kashmir. International Journal of Tourism Cities, 6(3), 601-620.

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