- Internal Code :
- Subject Code : BUSM4593
- University : royal melbourne institute of technology
- Subject Name : Employment relations
Employment Relations from a Global Perspective
Table of Contents
Introduction
Discussion
Conclusion
References
Introduction to Employment Relations from a Global Perspective
As global industries grow and develop, so does the need for innovation and development to change the economic situation around the world. New technologies, marketing strategies, developing markets and competition should all be considered for effective technology management in pharmaceutical company. Changes in some industries are much more fundamental than others. Strict surveys of price controls that can reduce government controls can change consumer preferences and unexpected challenges. Observing the unprecedented growth at the beginning of the Millennium, the global pharmaceutical industry now faces the challenge of developing for the speed of most markets. Importantly, when referring to the globalization of the pharmaceutical industry, they refer to the growth and expansion of global pharmaceutical companies in the global market. Specifically, a pharmaceutical company may research, manufacture or sell any of the following products: pharmaceuticals and clinical tests with trial, monitoring equipment, and other support services, including healthcare and medical device insurance, medical device insurance, and patient care. Finally, biotechnology, pharmaceutical industry in general, biotechnology drugs, therapeutic devices and integrations are changing in light of the growth of healthcare (Jungmittag, et al., 2013).
Discussion on Employment Relations from a Global Perspective
Employment Relation Theories in Germany
The model of German employment relations has not been the same for the last 15 years. A wide range of employers have various types of interest organizations in Germany, just as Switzerland and Scandinavia. These three types are called the General Business Association, the Special Employees Association, the companies or trade associations represent general economic and commodity market interests from a national perspective and employers are associated with the collective bargaining of social policy, labor market profits, and employment. These two types of voluntary organizations work intensively together. On the other hand, the Chamber of Commerce is a government body that performs various government and semi-government functions and membership of all organizations is compulsory. Industry and regional organizations are affiliated with the German Employees Association (Bundesvering Deutscher Arbizbrevende or BDA). Industry associations are collectively responsible for bargaining with employers, the exact membership density of employer associations is unknown, but they have estimated about 75-80% of all workers hired in the past.
One of the main regulators of the determination of wages, labor and employment in Germany at the regional level is the provision of joint contract at the industry level. To date, the industry-wide co-contracting system has played two roles. On the other hand, this level of contract can be seen as a sign of solidarity among the workers of different organizations. Small business workers benefit from the organized workforce of large companies. The system, on the other hand, acts as a "productivity whip" for companies that lag behind industry standards for productivity and spending (Strohmeier, 2013). At the agency level, labor-management councils take advantage of these vacations to increase wages and benefits in second round negotiations, often resulting in higher wages. The system is still in place at the time this article was written. About half of all German companies and about a quarter of all German workers still have industry-level joint contracts.
About half of these companies are not covered by the joint venture and are still considering existing contracts for their own wage levels and benefit packages. Finally, when separating blue-collar workers from white-collar workers, the combined consent menu often includes both status groups - higher levels (salaries) under separate contracts. In addition to salaried staff. Despite the relatively stable structure of collective bargaining, there are four trends that challenge the collective bargaining system. First, large companies regularly reduce costs, increase flexibility, and reduce supplier pressure. In many cases, this pressure can only be met within the proposed general framework of industry-wide joint ventures. The supplier finds alternative payment methods that violate the industry’s collective agreement or below industry-level standards. This increases the tendency towards two-tier systems.
Second, firms create profit centers and restructure their firms by rotating business units. It is one of the main drivers of the factory-level "discount bargaining" movement that has spread to Germany since the 1990s. Third, companies use outsourcing to transfer jobs to “cheap” co-contracts or to remove them from contract protection as a whole. According to a 2002 survey, in 19% of outsourcing cases, existing joint ventures were abandoned. In the other 39% of cases, the new is probably valid for workers involved in "cheap" co-contracts, the remaining 42% of workers covered by previous contracts. And fourth, companies transfer their activities to other countries. That means it will completely change the labor management system. The "offshore" option has grown in low-cost countries since most countries in Central and Eastern Europe joined the EU (Dhanesh, 2014).
Employment Relation Theories in United States
For example, in the U.S. HRM literature, HRM is often mentioned when describing the interaction between the executive-level activity and the relationship between individual employer and employee at the workplace level. Used in this way, it is usually used to describe something that is quite different from the old form of management or labor relations. The final signs of the wide application of money outside the workplace in the U.S. HRM literature include the kind of interdependence that exists between states, employer unions, and organized work. Employee relationships employed in these positions include short-level relationships between managers and employees and macro-level interactions between outsiders. This is often the case in established American terminology for managing such relationships.
The most notable feature of the large British organizations is that they are a region historically classified as a labor-management scholarship state. In most English literature, the term is actually used in two ways. The relationship of employment in this use is expected to grow in the form of collaborative interactions between employers and employees in terms of employee flexibility, efficiency and loyalty in trade unions in the context of scheduled functional activities and interactions and workplace conflicts and high-performance outcomes. The literature uses it as a second positive and pluralistic concept when describing the existing institutional and regulatory settings in which HRM's functional activities and interactions occur. This second use proves that trade unions and state intervention in the form of labor laws and industrial courts make it easier to recognize it as an important part of the British workbook in the United States (Men, 2011). The employment-related relationship thus applied has another meaning, recognizing the multiplicity of group interests and the possibility of conflict in the workplace and usually includes formal rules, informal practices governing relationships, it becomes clear in dispute resolution and negotiation methods that determine practices.
Labor abbreviations as legal support are less productive than voluntary labor and labor volunteers are an entity that fluctuates depending on the degree of legitimacy of their ability to manage the effort. That being said, it is hoped that the combination of psychological and social values of an organization will encourage individuals to work in a systematic and collaborative manner to achieve their goals. In this case you will see that the society involved is indigenous, feudal, industrial, capitalist or socialist. A volunteer organization to achieve such goals involves a division of labor and responsibilities among itself. Instead of these formally or informally assigned departments, some people need more writers than others to guide and coordinate their work commitments.
The Implications of Employment Relations Models to Formulate Strategic Practices Appropriate to Organizations
Employee relationship, commonly defined, is the relationship between employers and employees. Also, Australian pharmaceuticals company needs to know the effective employee relations strategies, while some organization doesn't know about it and many aren't sure how to form a strategy. Besides, employee relation is influenced by several aspects, all of which has an impact on the strategic balance between employees and employers. Develop a strong employee relationship strategy including making a desire-based environment. In the working environment, workers want to feel good about where they work and what they do. Organization wants to be satisfied with performance, productivity, as well as developing future leader. In addition, the effective employee relationship strategy will have an effect on employee engagement, resulting in better performance of organization (Waters, et al., 2013).
Along with that, Australian pharmaceuticals company effectively implement HR policies that accurately reflect their core values and philosophy and the relationship between management (employers) and employees; Sometimes policies are set up to address current and future situations. The more flexible and consistent the situation, the higher the level of staff engagement. Organizational policy covers a wide range of areas including: promotion system, management compensation package, recruitment strategy, occupational health and safety, employee management relationships, information and communication system
Recognition for the convenience of employees has now become a strategic path. It has led to mutually beneficial relationships and solidarity between employees and employers and this will reduce their willingness to leave. Al-khozondar (2015) noted that low recognition, career opportunities, and career development are the main reasons why people want to leave the company. Furthermore, Al-khozondar (2015) also shows that recognition in term of employee’s participation in the management, self-fulfillment and respect are significant factors for employee participation that contribute to employee satisfaction and retention.
In other words, J. Stacey Adams presented equity theory in 1963 to show how people view justice in social relationships. People recognizes the amount of input gained from a relation than the output and how much exertion another people presents. Equity theory also suggests that if people assume that there are differences between individuals or two groups, the person is expected to be concerned as the ratio between the output and the input, which are not equal that will reduce motivation and will reduce job commitment by the group which feels cheated. Moreover, employees compare the results of their inputs with the same employee with the same activity. Thus, the equity that will be given in the case will be judged on the basis of the judgment of the workplace relationship. Employees will be more responsible and productivity will increase and will feel part of the organization when they know that there is a balance between input and output. Therefore, the equity theory has observed the relations between employment relations and employees work behavior. Equity theory clarifies that staffs cognitively make comparison of their contributions (i.e. skills, knowledge, abilities, energy, time, experience, and qualification) into the company with that of equivalent person or persons (similar in inputs) outside and within the firm. By implication, where employee sees an extensive gap between output and input in regards to pay inequality, the concerned company may be a victim of increased anxiety, insecurity, low organizational commitment, low involvement and productivity, and high labor turnover.
Equity is very important for many companies. An important strategy for retaining talent is to establish and maintain a suitable work environment. Equity is a fundamental factor in job relationships because employees need to be aware of their work ethic in order to be compensated, assisted, appreciated, recognized, supported, supported, enhanced and developed. Inequality leads to frustration, dissatisfaction and frustration. Satisfaction and frustration are stressful work-related stress that ultimately leads to less engagement and commitment (Chang-sheng, 2012). If employees realize that management treats them unfairly, they are less devoted as well as often counter-productive and if it is not controlled, this can lead to low commitment, absenteeism, low capacity development, less commitment, and higher rates of attrition.
Influence of Stakeholders on The International Employee Relationship and Organizational Management
Stakeholders are individuals or groups who have interests, claims or partnerships with an organization. Thus, generally, the main focus of the stakeholders is on the organizational performance of the organization and ensures that it remains at an acceptable level. Even though stakeholders usually do not participate in the organizational management, they can influence the Partners do not participate in the management of the organization, but they influence the international employment relationships.
It is perceived that globalization of this pharmaceutical organization has multiple advantages, not just risks and disadvantages. In general, international businesses will face more challenges than domestically growing businesses. In the context of international business, various aspects like legal, social, economic, political, cultural and even ethical need to be considered. In addition, stakeholders should be able to positively influence the international employee relationship so the productivity o the company will be increase. Rules and regulations may vary by one country to another. This forces companies to adapt to the legal framework in which they transact. It is also very common for the cultural environment of the countries involved. This means that the organization strives to adapt to the priorities and expectations of the country in which it operates (Persson and Wasieleski, 2015).
Conclusion on Employment Relations from a Global Perspective
In the context of globalization, pharmaceutical companies of Australia are in the process of integrating and collaborating with each other in the form of pharmaceutical networks around the world. In terms of product development and business operations in new markets and research and testing of new drugs, pharmaceutical companies are expanding their diverse populations and resources with the goal of increasing growth (Lee and Kim, 2017). This study discussed the Employment relation theories in Germany and United States along with the implications of employment relations models to formulate strategic practices appropriate to organizations.
References for Employment Relations from a Global Perspective
Al-khozondar, N., 2015. Employee relationship management and its effect on employees performance at telecommunication and banking sectors. Employee relationship management and its effect on employees performance at telecommunication and banking sectors.
Chang-sheng, F., 2012. An Analysis of Employee Relationship Management about the Corporation [J]. Enterprise Vitality, 4.
Dhanesh, G.S., 2014. CSR as organization–employee relationship management strategy: A case study of socially responsible information technology companies in India. Management Communication Quarterly, 28(1), pp.130-149.
Jungmittag, A., Reger, G. and Reiss, T. eds., 2013. Changing innovation in the pharmaceutical industry: globalization and new ways of drug development. Springer Science & Business Media.
Lee, Y. and Kim, J.N., 2017. Authentic enterprise, organization-employee relationship, and employee-generated managerial assets. Journal of Communication Management.
Men, L.R., 2011. How employee empowerment influences organization–employee relationship in China. Public Relations Review, 37(4), pp.435-437.
Persson, S. and Wasieleski, D., 2015. The seasons of the psychological contract: Overcoming the silent transformations of the employer–employee relationship. Human Resource Management Review, 25(4), pp.368-383.
Strohmeier, S., 2013. Employee relationship management—Realizing competitive advantage through information technology?. Human Resource Management Review, 23(1), pp.93-104.
Waters, R.D., Bortree, D.S. and Tindall, N.T., 2013. Can public relations improve the workplace? Measuring the impact of stewardship on the employer-employee relationship. Employee relations.
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