Human Resource Management

Introduction

In order to succeed, any organization should have an effective human resource management strategy. In fact, one of the main goals of human recourse management strategy is an improvement of employees’ performance. This strategy requires a great number of skills, as well as experience. While developing human recourse strategy, any manager should think ahead of the company’s as well as employee’s needs. However, it is also important to take serious steps and employ HR practices that will ensure long-term productivity and help in creating a workplace where mutual trust and respect are the basis of any relationships.

First of all, it is important to define the term “Human Resource management.” The reason is that this is a quite popular strategy nowadays that can reshape employment relationships significantly. De Silva (2012) asserts, “The key elements of Human Resource management include employee involvement in effecting change, greater customer orientation, and ensuring that the skills of employees are appropriate to the production of goods and provision of services acceptable to the global market.” Therefore, its main tool is the development of strategies, which can improve organizations and make them more effective.

Organization is a complex concept; that is why it is important to pay attention to organizational behavior. Organizational behavior is an approach to the study of management and organizations incorporating anything relevant to the design, management, and effectiveness of an organization (Martin, 2005). In fact, management is always an organized activity. When two or more people work together to attain a common objective, they always have to coordinate their activities (Agarwal, 1982). It is also important to find some differences and similarities among management and trade unions.

In fact, there are many issues, on which managers and trade unions are likely to share common rather than divergent interests. For example, it is important to stress that both employees and employers have a common interest. Labor and management may cooperate consciously to the advantage of both through promoting efficiency and productivity, eliminating wastes, reducing cost, and improving the quality of the product (Sinha, 2006). That is why in order to benefit both employers and employees, managers and trade unions need to create strategy, which can satisfy interests of both sides.

Organizations versus Trade Unions

In order to analyze trade unions, as well as traditional organization, it is necessary to define the notions. Trade union can be interpreted as “a continuing organization of employees established for the purpose of protecting or improving, through collective action, the economic and social status of its members” (Sinha, 2006). According to this definition, trade unions are interested in protecting their own interest. In addition, Webb considers unions as bodies that are defending sectional economic interests, rather than working-class interests as a whole (Farnham, 2002). Therefore, any trade union is primarily focused on collective representation of its workers.

There are also certain objectives of trade unions. Samuel Gompers, the founder President of the American Federation of Labor said, “Trade unions were born of the necessity of workers to protect and defend themselves from encroachment, injustice, and wrong… To protect workers in their inalienable rights to a higher and better life; to protect their lives, health, liberties and to secure to them the fight to life (Sinha, 2006). Thus, trade unions are focused on satisfying interests of their workers. In addition, Webb also identifies seven trade union regulations: the standard wage rate, the normal working day, sanitation and safety at work, new processes and machinery, continuity of employment, entrance into a trade, and rights of trade (Franham, 2002). That is why trade union is interested in providing as well as sustaining these important rights. In addition, the constant underlying purpose of trade unions is participation in job regulation.

Traditional management is slightly different from the concept of trade unions. In general, “Management is the process of working with and through others to achieve organizational objectives in a changing environment” (Kreitner, 2010). Therefore, management is always focused on cooperation with workers. The steps of management usually include functions like planning, organizing, staffing, directing, and controlling (Tulsian, 2008). These objectives show that management is a gradual process, which involves employers and employees, as well.

In addition, project management is developing rapidly nowadays. Project manager has many responsibilities. He or she must control company resources within time, cost, and performance (Storey, 1989). Thus, it is important to stress that, unlike trade unions, management has no social contract objectives that can inhibit forcing tactics (Salacuse, 2003). Overall, trade unions are more focused on regulation while management on cooperation. Nevertheless, there are still many issues, on which managers and trade unions are likely to share common rather than divergent interests.

Avoiding Conflicts

First of all, managers and trade unions are both interested in avoiding conflicts. That is why it is also important to solve any conflicts between them and establish a good system of negotiations. In fact, conflicts are always unfavorable for any organization. Thus, the common interests of employers and employees demands that, for most of the time, they build their business on the mutual interests, rather than the diverging issues (Franham, 2002).

In fact, any conflict always has serious implications and can influence the atmosphere at organization negatively. For employers, any organized or informal conflict with their employees in the workplace results in lost output, lost revenues, and loss of reputation for fair dealings with those whom they employ (Franham, 2002). In addition, employees are always suffering from conflicting relations with their managers. Employees are hired by their employers and do not have any ability to resolve the situation according to their own interest. The reason is that employers usually have the last word in any conflicting situations.

Nevertheless, management is always developing effective strategies, which can help in avoiding different conflicts with employees in the future. For example, Sinha (2006) mentioned that there are three important objectives in promoting labor-management cooperation: increase in the efficiency and productivity of the enterprise, creating and maintaining industrial democracy, and preserving industrial peace. Therefore, these are some traditional forms of control and management, which can resolve any conflicting situation.

Rules and Arrangements

In addition, managers and trade unions are both interested in creating effective rules and arrangements for their workers. Good employee relations, from both employer’s and employee’s points of view, means establishing sensible institutional arrangements between the parties to engender mutual trust between them (Farnham, 2002). Satisfactory collective bargaining can only be achieved with the help of effective legislation. That is why mutual rules should be created in order to achieve trustworthy relations between them.

It is collective bargaining that sets the terms, on which cooperation takes place in the field of common interests, guaranteeing each its proper share in the fruits of cooperation and participation (Sinha, 2006). Both employers and employees have some expectations from their cooperation. For example, employers seek predictable labor costs, a stable workforce, co-operative employees, some flexibility amongst their employees between the tasks and functions they do (Farnham, 2002). They expect their employers to be dedicated and hard working.

At the same time, workers are also concerned about employees satisfying their interests. That is why the principle of accountability is extremely important in any organization. Everyone who exercises power must account for what he or she does: explain, justify, and take responsibility (Giacalone, 1989). Employees, and recognized unions, in turn, see amongst other things reasonable terms and conditions of continuous and secure employment, fair management decisions, equality of opportunity, opportunities for training and development, job satisfaction, family-friendly policies, and ability to influence the organizational decisions affecting their daily working lives (Farnham, 2002). That is why in order for managers as well as workers to have their expectations met, clear rules of the game should always be supported by each party.

This goal requires the provision of rules and procedures aimed at reconciling any potential conflicts between them. In this way, employers and employees, management and unions can satisfy their common interests together and avoid any costly employees relations’ confrontations between them (Farnham, 2002). Formal rules can always ensure that both parties would avoid conflicting situations. There are different kinds of rules, which can be divided into three main categories: unilateral, bilateral, and trilateral rules.

Unilateral rules are made by:

• Employers and managers (company or management rules);
• Management organizations (policy statements);
• Workers (customs and practices);
• Trade unions (union rules);
• The state (statute and common law) (Farnham, 2002).

Agreements are considered bilateral between:

• Employers and employees (contracts of employment, workforce agreements);
• Employers or employers’ associations and trade unions (collective agreements) (Franham, 2002).

General rules usually cover many important topics. For example, agreements usually include rates of pay, additional payments, overtime pay, hours of work, holiday arrangements, holiday pay, sick pay, maternity pay, and other (Farnham, 2002). This is how the company can regulate its relations with employees. There are no significant distinctions between agreements in management and in trade unions. Thus, company and management rules are regulated internally, as well as customs and practices, since changing them does not require the consent of external authorities, such as trade unions, or management organizations of the state (Farnham, 2002).

The employee relations agreements and rules are made at diverse levels. Nevertheless, customs and practices are made at workgroup and department levels, with company rules, contracts of employment, company collective and workplace collective agreements, and the policy statement of management organizations (Farnham, 2002). Nevertheless, there are also some agreements, which are regulated externally. 

Government

External regulation of organization can be conducted by the government. It is necessary to stress that the state is also concerned about good relations between employers and their managers. This is usually expressed through government policies, the law, the state’s employee relations agencies, and its role as an employer in its own right (Farnham, 2002). Government is responsible for the creation of proper balance of power in society. It is also interested in establishing justice in any internal organization. For example, it monitors relations between employers and their employees in order to ensure that workers’ rights are not violated.

Therefore, one concern of government, as the ultimate source of power in society, is ensuring that any unresolved conflict between employers and employees, especially where trade unions are involved, over either their market or managerial relations, does not degenerate into what it considers unacceptable or unlawful behavior (Farnham, 2002). The main reason of such concern is that such conflicts can seriously threaten national economy and create disorder in society. In addition, this aim is very difficult to achieve, that is why government intervenes in such relations using different methods.

Very often employment relationships are very confusing. That is why government seeks to provide a framework of the law, including state enforcement agencies, within which the parties in employee relations are expected to conduct their activities (Farnham, 2002). Laws have always guaranteed protection of rights, and that is why they need to be enforced properly. Moreover, as an employer, government seeks to provide its “good” employment practices, to facilitate the effective recruitment and retention of appropriately qualified public servants (Farnham, 2002).

Managers as Negotiators

Unlike medicine or law, management does not have any fixed norms of managerial behavior (Tripathi, 2008). Consequently, managers always need to be creative. In order to develop good relations with the stuff, managers should use different methods and techniques. That is why managers always act as negotiators. Negotiation requires some degree of cooperation but, at the same time, both parties seek to advance their individual interests (Lax, 1986).

“Managers negotiate with those whom they cannot command but whose cooperation is vital, including peers and other stakeholders outside the chain of command or beyond the organization itself” (Lax, 1986). In addition, achieving organizational effectiveness is easier through examining internal relations between management and subordinates. That is why the job of the negotiators on both sides of the table is managing the negotiation process over obstacles and around barriers to reach the goal (Salacuse, 2003). Managers, as well as their employees, need to understand that cooperation and mutual agreements are vital for preserving peaceful work atmosphere. Lax (1986) asserts, “The reliance of the parties – superiors and subordinates alike – on each other for the possibility of realizing joint gain, preserving working relationships, or minimally, avoiding interference, leads to some margin of liberty or irreducible discretion.”

There are also different negotiation tactics, which can be used by any manager effectively. For instance, there is a joint problem solving technique. In this case, a manager should never assume that the more one side wins, the more other side loses (Jackson, and Mathis, 2011). This is the case when managers can negotiate with the people they command. Sometimes managers negotiate with subordinates, who often have their own interests, understandings, sources of support, and areas of discretion (Lax, 1986). Thus, it is important to share each other’s ideas. In fact, favorable climate can only be achieved by listening, as well as understanding other’s interests (Lax, 1986).

The role of trust in negotiations is extremely crucial. Both managers and subordinates perceive trust as a necessary condition at work (Cardona, 2013). That is why it is vital to achieve a high level of trust between the two conflicting parties. In the negotiation process, there will be a greater likelihood of a beneficial outcome for the organization if a high degree of trust exists between the conflicting groups (Jackson, and Mathis, 2011). In addition, favorable climate as well as trust can be created by the organization through promoting communication between managers and their subordinates. Choo (2002) asserts, “The main role of these conversations is to create, take care of, and initiate commitments in an organization.”

Griffin (2011) notes, “Organizations themselves do not have ethics, but do relate to their environment in ways that often involve ethical dilemmas and decisions.” There are also some differences between traditional organizations and trade unions. For example, there are some environmental factors, which tend to produce a favorable climate for management negotiators as compared with their trade union counterparts. Therefore, each manager should scan different environmental factors. Choo (2002) determines environmental scanning as “the acquisition and use of information about events, trends, and relationships in an organization’s external environment, the knowledge of which would assist management in planning the organization’s future course of action.” There are many external and internal factors, which can affect the organization. That is why scanning of the environment is vital.

The external environment may impinge on public sector labor – management relationships (Lewin, 1988). There are many kinds of the external environment factors, which are related to society, economy, and politics. Durai (2010) gives the following example, “Social environment of an organization consists of the beliefs and behavior of the employees, customers, suppliers, shareholders, and all others who interact with the organization.” Stable economic environment is also vital. Economic dimension represents consumer purchasing power, unemployment rate, and interest rates, which are part of an organization’s economic environment (Daft, 2010).

There are also legal environment factors that, as a rule, are shaped up by the law. Political stability is another essential factor for organizations to develop successfully. Finally yet importantly, technological environment is created when the knowledge of science is applied effectively for practical use (Durai, 2010). Therefore, these important environmental factors tend to produce a favorable climate for management negotiators as compared with their trade union counterparts.

Management is usually focused on negotiation and collaboration with employees. Nevertheless, reduced assertiveness of trade unions raises questions about collective bargaining, employee involvement and communication (Storey, 1989). That is why trade union leaders and activists have to reconsider their traditional attitudes towards the statutory regulation of employee consultation (Bach, 2005).

Conclusion

In conclusion, human resource management is a popular practice. It can bring numerous benefits to the companies’ productivity, and it is important to establish a proper, as well as gradual plan of human resource development. Strategic human resource management serves as one of the main determinants of the organization’s performance. Organization is a complex concept; that is why it is important to pay attention to organizational behavior. There is a difference between management and trade unions.

Trade unions are interested in protecting their own interest. For example, Webb saw unions as bodies defending sectional economic interests, rather than working-class interests as a whole (Farnham, 2002). Therefore, trade union is primarily focused on collective representation of its workers. Traditional management is slightly different from the concept of trade unions. Consequently, management is always focused on cooperation with workers. The steps of management usually include functions like planning, organizing, staffing, directing, and controlling (Tulsian, 2008).

Overall, trade unions are more focused on regulation while management on cooperation. Nevertheless, there are still many issues, on which managers and trade unions are likely to share common rather than divergent interests. That is why in order to benefit both employers and employees, managers and trade unions need to create strategy, which can satisfy interests of both sides.

Managers and trade unions are both interested in avoiding conflicts. In fact, any conflict always has serious implication and can influence the atmosphere at organization negatively. For employers, any organized or informal conflict with their employees in the workplace results in lost output, lost revenues, and loss of reputation for fair dealings with those whom they employ (Franham, 2002). In addition, employees are always suffering from conflicting relations with their managers. The reason is that employers usually have the last word in any conflicting situation.

In addition, managers and trade unions are both interested in creating effective rules and arrangements for their workers. Mutual rules should be created in order to achieve trustworthy relations between them. Both employers and employees have some expectations from their cooperation. That is why the principle of accountability is extremely important in any organization. Everyone who exercises power must account for what he or she does: explain, justify, and take responsibility (Giacalone, 1989).

There are many rules and other arrangements between employers and employees. General rules usually cover many important topics. For example, agreements usually include rates of pay, additional payments, overtime pay, hours of work, holiday arrangements, holiday pay, sick pay, maternity pay, and other (Farnham, 2002). The employee relations agreements and rules are also made at diverse levels. Nevertheless, there are some agreements, which are regulated externally.  

Government is responsible for the creation of proper balance of power in society. It is also interested in establishing justice in any internal organization. The main reason of such concern is the fact that such conflicts can threaten national economy seriously and create disorder in society. In addition, this aim is very difficult to achieve; that is why government intervenes in such relations using different methods.

In order to develop good relations with the stuff, managers should use different methods. That is why managers always act as negotiators. There are also different negotiation tactics; for instance, there is a joint problem solving technique. The role of trust in negotiations is very important. Both managers and subordinates perceive trust as a necessary condition at work (Cardona, 2013). That is why it is crucial to achieve a high level of trust between the two conflicting parties.

There are also some other differences between traditional organizations and trade unions. For example, there are some environmental factors, which tend to produce a favorable climate for management negotiators as compared with their trade union counterparts. There are many external and internal factors, which are related to society, economy, and politics. Each of them can affect an organization. That is why scanning of the environment is vital. Overall, stable economic as well as the political situation always tend to produce a favorable climate for management negotiators. 

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