3.6.5 Making human resource decisions: improving employer-employee relations

Effective communication essential. Links all activities together. When effective, ensures everyone working towards common goal + enables feedback on performance - could help staff feel have real input into key decisions. Vital for success of decision-making - need HQ info, so need to know what shop floor staff know about competitors + customers - provides managers w/ info they need. Good quality info should be: easily accessible, up to date + cost effective.

Well-run organisation w/ effective delegation + consultation, good communication will flow from bottom to top. If vertical communication weak, frustrated staff may look for trade unions to represent views to management. Overall business leader cna do things to help eg:
 - talk to every new member of staff - impossible for boss of big company, but possible for others
 - take regular initiatives to meet w/ staff; some retail bosses go out every Friday to 2 or 3 diff stores to discuss problems w/ shop floor staff
 - if staff know complaints/suggestions being addresses, happy to keep contributing thoughts. Most staff want workplace to be eddicient, allows them to do as good a job as poss; inefficiency frustrating for all

Good relations valuable b/c staff + management need to get along in LT for business to do well. As changing external market conditions can force change, eg redundancies, degree of trust valuable. Staff will accept diff ST if believe staff + management headed in right direction. Can be disruptive to have senior execs paying themselves huge salaries + bonuses - good employer-employee relations needs to be based on belief 'we're all in it together'.

Intelligent bosses realise success depends on full participation of as many staff as poss. Small firms may have informal group of 1 person from each dept; monthly meetings used to raise issues + problems, + discuss future plans. Larger firms, more formal methods to ensure structure to allow element of workplace democracy. Alternatively, organisation's staff may be represented by trade unions.

Organisation employees pay to join to gain greater power + security at work - unity is strength. Greater influence collectively in relations w/ employers than as individuals.

Some assume union membership obly for low-status jobs, but some powerful groups committed to membership even tho trade unions declining in Britain eg PFA inc almost all Premiership players. 

Traditionally, unions concerned w/ obtaining satisfactory rates of pay for fair amount of work in reasonable + safe working conditions. Most important aspect of trade unions now, protecting workers' rights under law + negotiations over pension rights.

'Collective bargaining' important aspect of union activity. Means union bargains w/ employers on behalf of all workers. 

Management must recognise union's right to bargain on behalf of members - w/o this, actions taken by union illegal. Would leave union open to being sued. Until recently, even if all staff joined union, management didn't have to recognise it. Why companies need to recognise a union:
 - helpful for managers to have small representative group to negotaite w/ - collective bargaining
 - in situations of difficulty, eg relocation, union officials can be consulted at early stage. May give workforce confidence that management acting properly - promotes consultation rather than conflict
 - trade unions provide channel of upward communication not been filtered by middle managers. Senior managers expect straigh talking about worker opinions/grievances.

Trade unions

Works council - committee of employer + employee representatives - meet to discuss company-wide issues. Worked well in German, but not UK. Under EU legislation, larger companies operating in 2+ EU countries must set up Europe-wide works council. Discuss issues eg training, investment etc. Won't cover issues eg pay - generally dealt w/ by trade unions reps.

Employee groups - organised by business but w/ representatives elected by staff. Lack real credibility b/c created by business. Staff may suspect management frown upon those who raise critical issues .

Employee co-operatives - from huge organisations to small businesses. B/c all staff part-owners of business, all have right to have voices heard at every stage in decision-making process. Board of directors inc representatives from ordinary shop-floor workers, ensures everyone's voice is heard.