Table of Contents

LO1:

Understand the context of employee relations against a changing background.......3

1.1

Explain the unitary and pluralistic frames of reference....................................................3

1.2

Assess how changes in trade unionism have affected employee relations.......................3

1.3

Explain the role of main players in employee relations....................................................4

Referen 6
LO2:

Understand the nature of industrial conflict and its resolution..................................6

LO1: Understand the context of employee relations against a changing

background.
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1.1
Explain the unitary and pluralistic frames of reference.
The unitary frame of reference:
Unitary frame of reference is a system where the managers think themselves as only source of
legal power and authority. Here, the managers think that all the employees follow the instruction
or leadership of their own leaders and carry on their functions with a view to pursue common
interests of the organization. There remain no opposite group to interfere and thus the employees
are driven towards a common goal. In this system the employees feel free to continue their tasks
as there is no other team or group than their own superior to influence their job (Lewis, Thornhill
and Saunders, 2003).
Pluralistic frames of reference:
In the pluralistic frame of reference there remains different interacting groups who are
contending to pursue their own interests. Here, the managers allow the freedom of developing
different groups and expressing their own choice. The managers are not the only source of legal
power and authority rather various groups raise in different sectors of the organization and the
loyalty is mended by leaders of those groups, which often remain viable with one another for
achieving resources. In this system interests of all stakeholders are to be considered carefully so
that on group is fully deprived of its interest. Although sometimes it becomes difficult to keep
balance among all the interests but the decision taken under such condition can be more fruitful.

1.2
Assess how changes in trade unionism have affected employee relations.
Statistical data shows that during the last 35 years there has been a significant change in the trade
unionism practice in United Kingdom. There has been a large decline in the membership of the
trade union. There were around 14 million members of trade union in 1980 which is now
fluctuating around only 7 million in 2014. The reasons behind this change is that the declining of
industries like coal, steel, printing, engineering and the docks etc. which the strongest sectors of
trade union.
Again, it is not only the decline of membership which brings changes in trade unionism
but other factors like redefined pattern of demand, technological revolution, knowledge growth
of workers are also responsible for these changes.
In the present days, due the influence of globalization and technological development the
trade unions functioning more actively and strongly than any other time in the past which in the
long run building a more strong employee relations.
As the Government patronization has increased to a large extent for the sack of trade
unions which is giving them a better position in the society and enabling them creating a better
employee relations.
Due the rapid knowledge growth among the employees, they are becoming more
conscious regarding their rights and power which is increasing their willingness to join the trade
union.
Thus ups and down in the trade union over the period of times actively affects the employee
relations.
1.3
Explain the role of main players in employee relations.
Employee relation refers to the state of maintaining communication between employees and
management regarding different concerns like workplace decision making, conflicts, grievance
satisfaction, collective bargaining and problem solving. A good employee relationship is always
beneficial for the organization. It motivates workers to work more enthusiastically, thus it

increases productivity, saves costs, time and other resources. There are some parties who plays
main roles in employee relationship. Their roles are discussed below:
Role of Managers: The manager should be the role model to the employees. He should
not discriminate among the employees. He should treat them equally and remain free form all
sorts of partialities.
A manager should be easily approachable and should not be someone arrogant. He should
make sure that all important decisions are taken in an open condition where everyone have the
opportunity to get a common view.
The managers have to establish a healthy and competitive working environment where
the workers will eagerly accept the challenges. He must ensure that the employees are well paid
rewarded for good job.
Role of Trade Unions: Trade unions represent the employees in different situation and
acts as a collective bargaining agent on behalf of them so that they can express their demand
more boldly to the management. Trade union provides different types of welfare facilities like
proper salary, job security, health care, insurance facility etc. to the employees so that the can
maintain their living standard. It also put an open eye whether the employers are free from unfair
labor practice. Trade unions play an important role in developing labor laws for the protection of
the workers.
Role of State: Government develops and implements different laws, uses social forces
like industrial police, conciliator, arbitrator etc. to maintain a peaceful employee relationship.
Govt. also regulates the level of employment, ensure price stability, balance of payment,
exchange rate which are indirectly helpful to build up a better employee relationship.

Referen
Lewis, P., Thornhill, A. and Saunders, M. (2003). Employee relations. Harlow, England: Financial Times
Prentice Hall.

LO2: Understand the nature of industrial conflict and its resolution.

2.1 Explain the procedures an organization should follow when dealing with different
conflict situations.
Generally conflict refers to the term of a serious disagreement between two parties on a
particular subject or a point of view. Conflict raises from unsatisfied interests of the parties
involved. According to the Business Dictionary- conflict is Friction or opposition resulting from
actual or perceived differences or incompatibilities.
While a conflict situation raises in an organization it should be solved as soon as possible
because conflict causes low productivity and wastes valuable resources. Conflicts can be dealt
by following some certain procedures. These are:
a) Informal procedure: It is a process of solving any conflict without the help of any third party.
Here, the representatives from the both side of employees and the employers meet together and
finds a solution for the conflict.
b) Formal Procedure: In this procedure a third party like arbitrator form the outside of the
organization is requested to solve the conflict between the parties.
c) Step by step Procedure: Step by step procedure includes the following steps:
I.

Recognizing the root of conflict: In the first step, person dealing with the conflict

II.

must identify the source of conflict which is to be dealt.

Looking beyond the incident: Sometime the situation is such that, the parties
involved in the conflict are arguing for a minor reason that occurred long ago but

which has turned into a matter of personal stress, reason why they are attacking each
other leaving real problems. So the mediator has to find out the real causes behind the
conflict.
Finding the solution: Here, the mediator has to find out a solution which will be

III.

acceptable by the both parties of conflict. The solution should be such that none of the
parties get totally deprived rather it should try to find a solution where interest of both
IV.

parties are kept.

Agreement: Finally, an agreement should be made between the parties stating that
they have accepted the solution found by the mediator. The agreement can be either
written or oral. But written agreement is more preferable because it acts as a legal
document in case of any further problem.

By following these procedures stated above we can solve any conflict on permanent basis and
prevent its return.

2.2 Explain the key features of employee relations in a selected conflict situation.
Unison is the second largest trade union on UK having over 1,282,500 members at present is
protecting the rights of both public and private sectors employees. While handling variety of
conflict situations, employee relation also takes various features. Some of the key features are
discussed below:
The organization do not make any discrimination among the employees while dealing with any
conflict between the parties associated with the conflict. All parties are treated equally so
everybody keep their trust on this organization. Unions for multiple member of industries are
seen here when management and employees engage in conflict. All these unions function
together to reach their ultimate destination that is to solve the conflict in an effective and
efficient way.
In most situation, conflicts among the employees and employers are addressed through
negotiation. Another feature of employee relation in particular conflict situation is collective
bargaining.

Moreover, poor communication are often seen in the organizations which creates a poor
employees and finally leads to a conflict situation within the organizations. Again unfair
employee treatment pollutes a good employee relation and brings about an inevitable conflict
situation.

2.3 Evaluate the effectiveness of procedures used in a selected conflict situation.

Unison is a large organization where a large number of trade unions from different industries get
together to solve their internal and external conflicts and thus to keep up with their interests.
Here, conflicts situations raised among the employers and employees are dealt with a collective
effort so there might have some advantages and disadvantages of such dealings.
The formal procedure is meant to be the more effective procedure where the reason
conflict is very sensitive. Extreme conflict situations based on the issues like minimum standard
salary, minimum working hours, job security, overtime payment etc. should be dealt by the
formal procedure of conflict solution. Because in these case the parties involved do not trust each
other, so employing a third party for solving the problem will be more effective here.
Where the conflict situation is less sensitive and of common type, the informal procedure
of solving conflict will be more effective than the other procedures. Because the parties engaged
with the conflict remain flexible as the problems are not so sensitive that can create fatal conflict
in future, so these type of conflicts can solved by the participation of the contending parties
without any involvement of third party.
The step by step procedure is a bit of lengthy, time and resources consuming so it will be
less effective when there is scarcity of time and resources. But on the other hand, where a deep
observation is required to solve the conflict this procedure will be more effective.

LO3: Understand collective bargaining and negotiation processes.

3.1 Explain the role of negotiation in collective bargaining.
Collective bargaining has been defined as- a process of discussion and negotiation between two
parties, one or both of whom is a group of persons acting in concert.
From the above definition we can understand that negotiation is an inevitable part of
collective bargaining and plays a significant role to make it fruitful. Collective bargaining is
process where discussion goes on between the parties involved in conflict, but very often the
discussion may results in vain unless there is a negotiation between the parties. The discussion
may go on and on, many proposals can be raised, but in most of the cases these will be
contradicting with each others interest until there is a compromise in the form of negotiation
between the parties. For this reason the negotiation is much needed for a better and successful
collective bargaining which is beneficial for both for the employers and the employees. So the
role negotiation appears to be greater for the ultimate solution of any conflict situation between
the management and employees through the collective bargaining approach.

3.2 Assess the impact of negotiation strategy for a given situation.

Negotiation is a dialogue between two or more people or parties intended to reach an
understanding, resolve points of difference, to gain advantage for an individual or collective, or
to craft outcomes to satisfy various interests.- Wikipedia
There are basically two types of negotiation strategies:

Distributive negotiation: it is the extreme form of negotiation strategy. The impact of this
negotiation is that the gain of on party will surely causes loss for the other party.
Integrative negotiation: it is the cooperative form of negotiation strategy. The parties involve
here behave in a flexible manner. It provides win-win solution for the conflict situation.
The impact of negotiation strategy can effect a given situation either negatively or
positively. It can never equally satisfy the interest of the both parties of the conflict situation.
If we consider the negotiation strategy of the Unison we will find that it acts as an important tool
for the employers for handling the conflict situation among the managers and employees.
Unisons negotiation strategy is found to be very effective because it satisfies the employees
grievances and provides a perfect solution for the problems. Its negotiation strategy maintain a
high precautionary measures for future conflict and provides effective solution of the conflicts.

LO4: Understand the concept of employee participation and involvement.

4.1 Assess the influence of the EU on industrial democracy in the UK.
Industrial democracy is defined in Business dictionary as -Participation of employees'
representatives from all or most levels of an industrial organization in its decision making
process.
As United Kingdom is a participant country of European Union (EU) so it has a great
influence on the industrial democracy of UK. Some these influences are stated below:

Decision making process of workers in a firm is prominently encouraged by

European legislation.
In UKs industry the new concept of partner based relationship is established
which leads both the managers and the unions to work for the same interest is
influenced by the EU.
Many vulnerable UK industries are being protected by the EU policies.
Management and the employees of Britain are being taught about the benefits of
engaging in employees decision making process by the EU.
Britains industrial sectors are provided with equal support by the European
Union.
Employers are protected from exploitation by the EU legislation.
Share holdings are encouraged by EU with the use of share savings scheme and
share holding

4.2 Compare methods used to gain employee participation and involvement in the decision
making process in organizations.
Successful Employees participation in organization decision making process always add some
positive value to the organization. There are a number ways of making the employees involved
in organizations decision making process. Some of these methods are discussed below:

Participation at board level: In this method employees are allowed to participate in the
organization board of directors so that they can represent the problems and demands of
the employees to the management.
Participation through ownership: It is the method involving the employees in decision
making process by making them partly owner of the company through selling share to
them.
Participation through the collective bargaining: This method involves the participation
of the employees to the collective bargaining procedures so that they think themselves as
a part of management and take part in decision making process.
Participation through the job enrichment: In this method employees job conditions
are up lifted by different schemes such as promotion, increment, insurance facility, etc. so
that they become motivated and take part in decision making procedure.
Participation through quality circle: Here circle of some member is formed who are
expert in particular sector. Anyone can be a part of this circle of he or she can meet the
minimum level of expertise. Thus they get motivated and take part in the decision making
process.

4.3 Assess the impact of human resource management on employee relations.

Human Resource Management and employee relation are so closely related with each other. We
cannot think about HRM alone without employee relation similarly employee relation alone
without HRM. The task of keeping a better employee relation is mainly vested on Human
Resource Management (HRM) department of an organization. HRM department of an
organization provides proper guideline and motivates the employees with a view to achieving
ultimate organizational goal with the help of a peaceful employer-employee relationship.
A proper HRM practice can leads to a better employee relation which in term brings
about higher productivity with the use of lowest possible resources.
On the other hand if the HRM department fails to maintain a healthy employee relations
this will bring about inefficiency in the workplace which will cause waste of valuable resources
to a great extent and thus leads the organization towards destruction.

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