Chapter 5

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Employee Relations

Teachers Guide
This case illustrates the importance of internal communication in reducing employees grievances. As Ian has not explained the evaluation criteria to James, James has a grievance against Ian. This case also prompts students to think about how a company can deal with employees grievances. Students are encouraged to consider whether Ian has violated the companys rules. In the event of misconduct, they should think about what disciplinary actions the company should take.

Think It Over
1 James feels that he was unfairly evaluated as he was not informed about the evaluation criteria. He also believes that Ian evaluated his colleague, Helen, more favourably because of their close relationship. If I were the marketing manager, I would conduct an investigation of Jamess case. I would first call Ian for a meeting to explain the case. I would also read through the evaluation reports on James and Helen to see if there were any irregularities. I would tell James how his case would be handled and keep him informed of the investigations progress. I would also inform James of the investigation results, and explain any corresponding corrective actions in the event malpractices were found. 3 What disciplinary action the company might take depends on the managements belief and the companys practice. If the company wants to help employees correct their misconduct and comply with the companys rules with a minimum amount of punishment, the company may take non-punitive disciplinary actions against Ian. The company could first give Ian an oral reminder or have an oral discussion with him. This is aimed at helping Ian correct his behaviour. If the company thinks that non-punitive actions are insufficient in urging an employee to improve, it may want to correct an employees misconduct through a series of disciplinary actions which have increasing seriousness. It may take progressive disciplinary actions against Ian. The company could first give Ian an oral warning. 4 Maintaining good employee relations enhances harmony in a working environment. This helps minimise conflicts between management and employees, and eventually helps develop employee loyalty and commitment to the company.

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p.127

Teachers Guide
News from newspapers and the Internet provides a good source of information about employee relations. Teachers can begin by showing students real-life examples or using recent news to arouse students interest in this topic. Teachers are advised to keep abreast of the latest news. Teachers can also use the news as an example to show students the importance of maintaining good employee relations in a company.

p.128

Additional Information
Similarly, technological development such as computerisation and automation may also adversely affect industrial relations. For example, as companies computerise their operations, they may need fewer employees. This may result in layoffs and thus less harmonious industrial relations.

p.131

Additional Information
Recently, the Employers Federation of Hong Kong has taken a proactive role in expressing employers concerns to the government, trade unions and the general public. These concerns are related to various employment-related issues such as: (1) labour importation; (2) employee compensation; (3) minimum wages; (4) collective bargaining; and (5) manpower and training. p.132

Additional Information
The table below shows the cases concerning disputes between employers and employees received and disposed (cases that have been concluded) by the Labour Tribunal from 2007 to 2009 (up to 30 September). Caseload 2007 Cases received Cases disposed 6,160 6,066 2008 7,199 4,867 2009 (up to 30 Sep) 6,314 4,369

Cases received and disposed by the Labour Tribunal

Additional Information
Despite the wide range of issues covered by employment related legislation, some responsibilities of both employers and employees may be derived from customs and practices. Common law duties of employers may include:
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Providing a reasonable opportunity for employees to work and paying agreed wages Taking reasonable care to ensure that all employees are safe in the workplace and compensating any employee for injury sustained during employment Treating all employees in a courteous and polite manner

Common law duties of employees may include: Being ready and willing to work for the employer Offering personal service to the employer (i.e., not taking a second job without agreement) Taking reasonable care in the conduct of their personal service

Working on the employers time, obeying reasonable orders during that time, and not deliberately disrupting the employers business Not disclosing any trade secrets to an employers competitors

Check Your Progress

Q1 The three major components in an industrial relations system are described as follows: Environmental factors: Environmental factors refer to all of the external factors that influence industrial relations, including market and budgetary constraints, technology and

distribution of power in society. Actors: Actors refer to the parties involved in the industrial relations system such as employees and trade unions, employers and related employers /industry associations, and the government and its specialised agencies. Outcome: Outcome refers to the rules of the workplace that are established to govern practices in the workplace. These rules usually fall into three areas: compensation; the duties and performance expected from employees; and the rights of employees.

Q2 The government regulates the relationship between employers and employees by introducing various employment-related regulations and laws (e.g., minimum wage, leave arrangement and mandatory provident fund). The government also influences industrial relations through its specialised agencies such as the Labour Department, the Labour Tribunal and the court.

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Check Your Progress

Q3 White collar workers can use the Occupational Safety and Health Ordinance to seek compensation from their employers. Alternatively, they may use the Employees Compensation Ordinance if the injury is suffered as a result of an accident arising out of and during the course of employment.
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Q4 Workers should use the Employment Ordinance (Chapter 57) to protect their interests concerning leave arrangement. Q5 Employees can contribute to health and safety of the workplace by: taking care of the safety and health of themselves and others in the workplace, and using equipment or following work practices provided by the employer.

p.138

Teachers Guide
Draw students attention to the differences among collective bargaining, conciliation, mediation and arbitration.

Additional Information
In collective bargaining, an impasse might occur when both parties are unable to move forward towards a settlement. This occurs when one party demands more than the other is willing to offer. This can be resolved by the intervention of a third party (i.e., conciliator, mediator or arbitrator). There comes a time when conciliation, mediation or arbitration is needed. If the impasse cannot be resolved, a strike will likely be the result.

p.140

Check Your Progress

Q6 (a) Employers can benefit from collective bargaining as this allows them to avoid negotiating with individual employees on a case-by-case basis. Collective bargaining also provides a formal channel for employees to express their opinions and suggestions for improvement. This two-way communication enhances employees morale and helps them develop a sense of belonging. All of these will eventually enhance the companys productivity. As for employees, collective bargaining helps improve group cohesiveness as they need to work together to increase their bargaining power relative to their employers. If employees can successfully bargain for better terms and conditions of employment, they will also be more satisfied with their work. This will also improve their morale and productivity. Q7 Possible issues would include: conditions of employment, payment terms, working hours, rest days, and sickness allowances, etc. (Any two of the above)
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(b)

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p.141

Additional Information
In mediation, a neutral third party tries to assist the parties in reaching an agreement. The mediator usually holds meetings with each party to determine their respective standpoint, and then uses this information to find common ground for further bargaining. The mediator is always a go-between, and does not have the authority to dictate terms or offer concessions. He communicates assessments about the likelihood of a strike, and the possible settlement packages available, etc.

p.142

Check Your Progress

Q8 The major difference between conciliation and mediation is that the conciliator must be impartial and is not supposed to impose a solution on the two parties. The final agreement should be arrived at by the two parties themselves. However, the mediator can suggest a solution for employers and employees.

p.143

Check Your Progress

Q9 The mediator first needs to listen to the opinions of the flight attendants and the airline. He should then encourage both parties to proactively narrow their differences of opinion through communication and discussion. For instance, he should encourage the airlines management to reconsider if there are ways to control costs other than reducing fringe benefits. After gathering the views of both parties, the mediator should give professional advice and suggest a solution to both parties. (e.g., a more moderate reduction in fringe benefits instead). Finally, he can try to help them reach a mutually acceptable agreement (e.g., the flight attendants and the employer can come to a mutual agreement on how moderate the reduction in fringe benefits should be.)

Additional Information
Unlike mediation, arbitration can guarantee a solution to an impasse. With arbitration, both parties are committed to accepting the arbitrators decision. The main topics of arbitration are: Interest arbitration: This focuses on working out a labour agreement. The parties use it when they do not have such agreements or when one or both parties want to change the agreement.
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Rights arbitration: This refers to contract interpretation arbitration. This usually involves interpreting existing contract terms. For example, an employee may question the employers right to have taken disciplinary action.

p.144

Check Your Progress

Q10 With arbitration, the arbitrator is empowered to determine and dictate the settlement terms for the two disputing parties. However, in mediation, the mediator can only suggest a feasible solution for the parties and help them reach a mutually acceptable agreement.

p.145

Additional Information
Orientation is by no means a one-time activity. In order to ensure that new employees can adapt to their new working environment effectively, the manager should regularly evaluate how well they are doing. He should also carefully address any questions and concerns raised by these new employees. Moreover, the manager needs to continuously evaluate the effectiveness of the orientation programme. He needs to examine if the existing programme can meet the needs of the company and new employees. This, in turn, helps the company improve its programme. The manager often needs to collect feedback from the new employees. He can collect the information in the following ways: Anonymous questionnaires completed by new employees

In-depth interviews with new employees Focus group sessions with new employees

p.146

Try This Activity

A1 The orientation programme for tellers at HSBC may include: Organisational orientation session: This can be a general orientation session held at the headquarters. Its aim is to present basic information about the company to the new tellers. The information and activities of this orientation include: Overview of the company; Key company policies and procedures; Compensation and other fringe benefits; Introduction or tour of the companys physical facilities (e.g., cafeteria, entrances for
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employees, pantry); and

Safety and accident prevention.

Departmental and job orientation: This can be a more specific orientation session held at the branches. Its aim is to familiarise the new tellers with their immediate supervisor and colleagues before they start work. The information and activities of this orientation include: Functions of the department Job duties and responsibilities Specific policies, procedures and regulations related to the branch and the job

Tour of the branch Introduction to employees of the branch

p.147

Teachers Guide
Remind students of the concept of downward, upward and lateral communication mentioned in Chapter 9 of Business Environment and Introduction to Management.

p.149

Additional Information
A company newsletter and magazines can be used as a means of bringing together all employees of a company, especially if it is a multinational company. Staff from different regions can be informed of happenings in other countries, changes in staff, and policy decisions that may or may not affect them directly. Employees can also be encouraged to participate by submitting articles for publication and taking part in contests. As employees learn what is going on within the company, they can develop a greater sense of belonging to the company.

p.150

Discussion Questions
1 I would not only prepare the electronic version, but also a printed version of the newsletter. The printed version can give employees as well as their family members a good impression about the company. The printed newsletter can be used as a promotional vehicle. As employees may bring the printed newsletter home, this may help promote the firms corporate image to various external stakeholders. Since the printed newsletter is published on a quarterly basis, production costs can be kept at an acceptable level. As a large multinational bank, it should be able to afford the cost. 2 At a large multinational bank with a huge amount of information, Mike should employ a
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professional communicator to prepare the newsletter so that information can be prepared and disseminated in a professional and attractive manner. 3 Advantages of having a regular meeting every week: Mike can gain a better understanding of the operations of different departments and this can facilitate his management. Regular meetings can facilitate communication and understanding among different departments, thus improving inter-departmental coordination and cooperation. Disadvantages of having a regular meeting every week: Regular meetings may be quite time-consuming and distract the department heads (including Mike) from work. Weekly meetings may be too frequent and department heads may not have too much to report. This may eventually turn the meetings into an unproductive routine and a burden for the department heads. Given the advantages and disadvantages of having a regular meeting with all department heads, Mike can start with monthly meetings, instead of weekly meetings. This can relieve the department heads burden. At the same time, Mike can still gain from having a regular meeting.

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Check Your Progress

Q11 (a) (b) (c) An employee submits a report or proposal to his superior. A company announces a company policy to its employees.

An accounting officer communicates with a marketing officer regarding a customer billing. (Any other reasonable answers) Q12 The following are ways in which companies can make use of advanced information technology to enhance internal communication:

Information can be circulated among employees via the companys internal email system. A company can use its Intranet to enable the staff to share information. A multinational company can use video-conferencing to facilitate virtual meetings among employees from different geographic locations.

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p.152

Activity
Select news articles about employee grievances and ask students to (i) identify the reason for the employees grievances (ii) discuss how the company is affected (iii) suggest ways to improve employee relations at the company

Teachers Guide
Highlight the differences among dissatisfaction, a complaint and a grievance.

Additional Information
Certain grievances are more serious, as they are usually more difficult to settle. Disciplinary cases and seniority problems, including promotions, transfers, and layoffs, are good examples. Others include grievances that grow out of unfair treatment, overtime, vacations and incentive plans.

p.153

Additional Information
A grievance is often a symptom of an underlying problem. This can result from a poor relationship between employers and employees.

p.155

Additional Information
To handle grievances effectively, companies need to: 1 Provide adequate training to staff involved in handling grievances and familiarise them with relevant laws, company policies and procedures. These staff should be well trained to: (a) listen to the points made by employees and analyse the matter carefully; (b) consider views from all parties involved in the matter; and (c) consider all evidence carefully. These can help them make decisions fairly. 2 Notify the employee and all the parties involved about (a) the decision made; and (b) the appeal process within a reasonable period of time. Inform employees about the grievance handling mechanism and the grievance handling procedure. Familiarise all employees with their job-related rights and responsibilities.
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Ensure that all grievances are dealt with as quickly and fairly as possible.

p.156

Check Your Progress

Q13 When a company is not able to handle a grievance properly, the resulting job dissatisfaction will hamper employees morale. This may lead to high staff turnover or even the outbreak of industrial disputes. Consequently, the companys productivity and image will be adversely affected. Q14 Dissatisfaction is anything over which employees are unhappy, regardless of whether they have openly expressed their unhappiness. A complaint is a spoken or written dissatisfaction expressed by employees to their supervisor or manager. A grievance is a complaint which employees have formally presented to the management or their trade union.

p.157

Teachers Guide
Teachers can quote more examples of situations in the workplace when disciplinary action is needed. Common causes of disciplinary action include: Violation of safety rules which involve potential danger either to the employee or his colleagues Insubordination, which may affect the motivation of a group and may create unnecessary stress in the workplace Failure to wear specialised hygienic clothing, the consequences of which may lead to potential damage to output Failure to maintain an appropriate standard of dress which may affect the companys public image Abuse of time-off provisions General non-compliance with the rules of the company

Additional Information
Nowadays, companies are faced with disciplinary problems that do not occur within the workplace. Examples may include: Involvement with competition or undertaking private work to the detriment of the employer Personal abuse of alcohol or drugs which adversely affects performance at work Violations of the law which indirectly affect the employer If the above issues have an impact on the employees conduct at work, managers must consider
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taking action against the employee.

p.158

Additional Information
Because of the serious implications of the disciplinary action, the company should set up clear guidelines as to what level of management is authorised to carry out suspensions and dismissals. However, all management, including the employees supervisor, has an important role to play. It is important for the company to have clearly stated procedures administered fairly and consistently within the company. Both supervisors (or managers) and employees should be allowed to state their cases properly.

Additional Information
In order to establish a fair and effective disciplinary action procedure, managers need to pay attention to the following: 1 Judge an employees misconduct or violation based on evidence rather than rumours or general impression. 2 3 4 5 6 Warn the employee of the consequences of the violation in advance. Investigate the matter fairly and thoroughly before taking any disciplinary actions. Apply the rules, regulations and punishment fairly. Ensure that the punishment is proportional to the seriousness of the misconduct and the employees previous work history. Do not make decisions while angry. This may affect the fairness of the disciplinary actions.

Teachers Guide
Draw students attention to the differences between non-punitive disciplinary actions and progressive disciplinary actions.

p.160

Discussion Questions
1 Judys uncooperative behaviour is clearly unacceptable as this violates the companys rules. This has set a bad example at the company. The companys operations will be adversely affected. Hence, Ivan should take proper disciplinary actions to correct her behaviour. Ivan can resolve the problem in the following ways: He can explain to Judy all of the relevant work rules. He can have a discussion with Judy to better understand her concerns/problems.
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He should build up a trustful relationship with Judy. He can informally talk with Judy to

better understand her. If he really believes that he cannot handle the problem by himself, he may also consider asking John to meet with Judy and him to sort out the problem. (Any three of the above) 3 Non-punitive disciplinary action can be employed. Ivan can first give Judy an oral reminder. If Judy repeats the misconduct, he may give her a formal written reminder. After giving a formal written reminder, if Judy repeats the misconduct within six weeks, Ivan can ask her to take a one-day paid leave. After allowing her a paid decision-making leave, if Judy repeats the misconduct again, Ivan can dismiss her.

Teachers Guide
What disciplinary action Ivan might take depends on the managements belief and the companys practices. Alternatively, students may propose progressive disciplinary actions. Ivan may want to correct Judys misconduct through a series of disciplinary actions with increasing seriousness. He may first give her an oral warning. After giving an oral warning, if Judy repeats the misconduct, Ivan can issue her a written warning. After a written warning, if Judy repeats the misconduct, Ivan can suspend her from work for a specified period of time. After a disciplinary suspension, if Judy repeats the misconduct again, Ivan can dismiss her. 4 I should have a meeting with Judy. At the meeting, I should ask her to present evidence to substantiate her complaint. I should then verify the evidence and conduct an investigation (including talking with Ivan in order to listen to the other side of the story). After the investigation, I should inform Judy of my decision as well as the rationales behind it. In the event that Judys complaint is considered to have merit, I should take disciplinary action against Ivan.

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Check Your Progress

Q15 Non-punitive disciplinary actions aim to help employees correct their misconduct and comply with the companys rules with a minimum amount of punishment (e.g., oral reminder/discussion, a formal written reminder, a paid one-day decision-making leave and dismissal). On the other hand, progressive disciplinary actions aim to correct an employees misconduct through a series of disciplinary actions with increasing seriousness. This involves more
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serious disciplinary actions (e.g., an oral warning, a written warning, suspension and dismissal). Q16 Since browsing pornographic pictures during office hours is definitely inappropriate behaviour at work, the manager must take proper disciplinary actions to correct his employees behaviour. In terms of seriousness, such misbehaviour is not a criminal act (though an unethical one). It may not warrant such severe actions as suspension or dismissal. In view of this, the manager may consider the use of progressive disciplinary actions. For example, he may give an oral warning to the offending employees.

Teachers Guide
What disciplinary action the manager might take depends on the managements belief and the companys practice. Alternatively, students may propose non-punitive disciplinary actions. The manager may want to help the employee correct his misconduct and comply with the companys rules with a minimum amount of punishment. He may first give the employee an oral reminder or have an oral discussion with him.

ASSESSMENT

Short Questions
5.1 Technology plays an important role in employee relations. For example, the use of email, the Intranet, or video-conferencing can facilitate instant and regular communication between management and employees at a large company (especially a multinational company) in a cost-effective manner. However, by relying solely on technology, managers and employees may lack personal contact and may feel distant from each other. Misunderstanding can easily occur. This can be detrimental to the development of harmonious working relationship in the workplace. (Any other reasonable answers) 5.2 By providing employees with safety and health protection in the workplace, an employer can avoid breaking the law. Staff absenteeism can also be lowered. Moreover, as the staff feel more secure and better protected, staff turnover will also decrease. Productivity, along with the companys business performance, can thus be enhanced. 5.3 The followings are the reasons for employee grievance: Employees may disagree with performance evaluation results given by their superiors. These poor performance evaluation results may affect an employees future pay rises and
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promotion prospects. If an employees performance is evaluated as unsatisfactory, he may not be able to receive a salary increase. He will thus feel very disappointed. Employees may disagree with how work is allocated and feel that they are being treated unfairly. If an employee perceives that he has received more work assignments than his colleagues, he may feel angry with his immediate supervisor. Employees may challenge decisions made by management. For example, a factory worker received an instruction from his supervisor that he needs to relocate from the

Hong Kong production plant to the plant in Shenzhen. He then challenged his supervisor about whether he had the authority to make such a decision. (Any two of the above) (Any other reasonable answers) 5.4 (a) A trade union is an organisation of workers that aims to achieve common goals in terms of human resources issues (e.g., working conditions and compensation). It helps boost employees bargaining power (as compared with the bargaining power of an individual employee) when seeking improvements in employee welfare from employers. For example, the Hong Kong Confederation of Trade Unions and the Hong Kong Federation of Trade Unions assisted bar benders in negotiations with their employers association in 2007. They advised the bar benders on negotiation strategies and helped in liaising with all the parties involved. After lengthy negotiations, the bar benders were able to obtain a higher average daily wage. (Any other reasonable answers) (b) Employers associations serve as a collective voice for employers to express their views on employment-related matters. For example, the Employers Federation of Hong Kong often takes a proactive role in expressing employers concerns to the government, trade unions and the general public. It advised that employers should be conservative regarding salary adjustments despite possible signs of economic recovery in 2009. (Any other reasonable answers) 5.5 The information and activities of the organisational orientation session include: Overview of the hotel Key hotel policies and procedures Compensation and other fringe benefits Introduction or tour of the hotels physical facilities (e.g., cafeteria, entrances for
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employees, pantry) Safety and accident prevention (Any three of the above)

5.6

Christine should be well aware of the following issues as stipulated in the Employment Ordinance (Chapter 57): Rest days Holidays with pay Paid annual leave Sickness allowance Maternity protection Severance payment Long service payment Employment protection Termination of employment contract Protection against anti-union discrimination (Any three of the above)

Essay Questions
5.7 When designing an internal communication programme, PCCW should pay attention to the following issues: PCCW may consider hiring professional communicators to prepare company newsletters and magazines and draft announcements. This helps ensure that the communication materials are well written, professionally presented and interesting to readers. To ensure that information can reach all staff, PCCW should encourage both vertical

(upward and downward) and lateral communication. Information disseminated to employees should be accurate, clear and consistent. Different departments should avoid sending out contradictory messages as this would confuse employees and undermine the credibility of the messages. PCCW should ensure that its employees can easily access the information they need. This can facilitate the employees work and enhance the transparency of the companys policies and strategy. PCCW can make use of conventional printed materials such as company newsletters and magazines for internal communication. These materials can make a great impression on both employees and their family members. PCCW may use new communication modes such as Intranets, emails, interactive websites, and video-conferencing to enhance the efficiency and effectiveness of internal communication.

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The most effective means of internal communication is face-to-face communication because it enables people to express their views and clarify misunderstandings immediately. Therefore, whenever feasible, managers at PCCW should always communicate with their subordinates face-to-face. (Any three of the above)

5.8

With increasing awareness of the rights of working women, most people today regard sexual harassment as rather serious misconduct in the workplace. As such, it should be dealt with seriously. As there are a number of complaints about Tom and the evidence also supports these complaints, it appears that more serious disciplinary action is justified. I would skip some of the steps involved in normal disciplinary action. Hence, if the types of sexual harassment involved are serious (which have not been mentioned), I may consider dismissal. In any case, it seems that the misconduct deserves at least a written reminder (in the case of non-punitive disciplinary actions) or a written warning (in the case of progressive disciplinary actions). (Any other reasonable answers)

5.9

To design an orientation programme for the newly recruited teachers, the high school can divide the orientation programme into two main sessions as follows: Organisational orientation session: This orientation session is conducted by the school management and is aimed at presenting basic information about the school to the new teachers. The information should include: (1) an overview of the school; (2) key school policies and procedures; (3) compensation and other fringe benefits at the school; (4) an introduction or a tour of the schools physical facilities; and (5) school rules regarding safety and accident prevention.

Departmental and job orientation session: This orientation session is a job-specific orientation session and is aimed at helping new teachers better understand the exact requirements of their job performance. It can be conducted by the new teachers immediate supervisor (panel head) and/or other teachers. The information and activities of this orientation should include: (1) functions of the department; (2) job duties and responsibilities; (3) introducing the new teachers to the department; (4) specific policies, procedures and regulations related to the department and the job; and (5) a tour of the department.

5.10 I do not agree with the statement that small companies do not need to strengthen their orientation for new recruits. Although the operations of small companies tend to be
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straightforward, with fewer written regulations and guidelines, an orientation programme should be conducted in order to help the new recruits better understand the corporate culture, together with the jobs requirements and responsibilities. An orientation programme can be used to provide new recruits with basic background information, company policies and procedures, as well as more specific information about their jobs. The new recruits will then find it easier to adapt to the new working environment. (Any other reasonable answers) 5.11 The benefits that can be derived from collective bargaining fall into three areas: For employees: Collective bargaining offers a good opportunity for employees to improve their group cohesiveness as they need to work together to increase their bargaining power relative to their employers. If employees can successfully bargain for better terms and conditions of employment from their employer, they will also become more satisfied with their work. The increased work satisfaction will, in turn, improve their morale and productivity. For employers:

Collective bargaining can save employers valuable time in negotiating terms and conditions with each employee on a case-by-case basis. Collective bargaining provides a formal channel for employees to express their opinions and suggestions to the company for improvements. This two-way communication will have a positive impact on employees morale and sense of belonging to the company. All of these will eventually contribute to higher productivity for the entire company.

For society:

Collective bargaining provides a proper channel for employers and employees to resolve their conflicts. This helps reduce disputes and promote societal harmony. In collective bargaining, employees always join together (as represented by their trade union) to negotiate with their employer. This joint effort narrows the power gap between employers and employees. Collective bargaining can also help reduce exploitation and discrimination against individual workers in society.

Case Analysis
5.12 (a) Bill may first try mediation rather than arbitration to resolve the dispute. Mediation involves a process whereby a third party (mediator) helps the employer and employees reach a mutually acceptable agreement. This collaborative dispute resolution method should give both parties more opportunities to exchange views and can help them reach
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a mutually acceptable agreement. Arbitration can be a rather adversarial () dispute resolution method as this empowers a third party (arbitrator) to settle a dispute between the employer and employees by making an independent decision for them. (b) Bill should initiate the established grievance handling procedure to handle the workers grievances about Ivan. He should refer the case to Ivans immediate superior for investigation. This superior will then examine the matter and give his decision to the workers. If the workers disagree with his decision, they may bring the matter to the next senior manager (e.g., the department head).The manager will then arrange a meeting with the workers and examine all the relevant evidence. If the grievance is still not resolved by this manager, Bill (the HR manager) and/or the senior management should investigate the case and issue the companys final decision to the workers within a reasonable period of time. (c) Since theft is a criminal offence, it is very serious misconduct in the workplace. In view of the criminal nature of the misconduct, dismissal is an appropriate measure. The company should also consider reporting the case to the police so that Ivan will be punished according to the law. Other possible consequences of these employees grievances are: job dissatisfaction and deteriorating employee morale outbreak of industrial disputes between the company and employees or the trade union a negative corporate image in the eye of the public (Any two of the above) I support Gabriels initiative of putting a grievance handling mechanism in place. This will convey to the employees that the hotel will handle employee grievances seriously through a fair, transparent and objective system. This understanding will enhance trust between the employer and employees, thus further promoting employee relations at the company. The following two internal communication solutions can help rectify the situation: More personal interaction between the management and employees should be emphasised in the workplace to ease employees work pressure. This face-to-face communication can help management identify the underlying causes of the high pressure at work. This will, in turn, help the management cope with the problem. Gabriel may formulate clear, accurate and consistent work rules and procedures for the managerial staff to follow. This information should be clearly conveyed to the managerial staff as well as to other employees. Internal communication would help
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5.13 (a)

(b)

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establish mutual understanding between the management (including Wyman) and employees regarding the job requirements and standards, thus avoiding unnecessary misunderstanding and/or mismatching of expectations between the two parties. (Any other reasonable answers) 5.14 (a) The company wants to increase its sales revenues without incurring additional costs. It is thus requiring its employees to work longer hours. However, the employees may want more pay for longer working hours. Some employees may not want to work long hours. (b) Martin will have to communicate with the employees. He needs to thoroughly explain to them the companys financial situation. He may need to negotiate with them to achieve an acceptable solution. Martin may consider adjusting the salespeoples wages or giving them a higher commission to motivate them. Bonuses can also be granted to the salespeople if they achieve a preset target. If the budget allows, Martin can consider recruiting temporary staff to help out in the outlets as this may help the company save on the cost of fringe benefits. (Any other reasonable answers) Individual employees usually have less bargaining power than employers. A trade union can represent many employees and is more powerful. It can help salespeople by protecting them from unfair practices by their employer (i.e., being forced to work long hours). It can also help the salespeople in negotiations (e.g., collective bargaining) with the company for fairer wages and better working conditions.

(c)

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