Supporting Good Practice in Managing Employment Relations

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SUPPORTING GOOD PRACTICE IN MANAGING EMPLOYMENT RELATIONS

1. Describe 4 factors, 2 internal and 2 external, which impact on the employment relationship.

Employment Relations is defined by David Farnham as “that part of managing people that enables competent managers to balance, within acceptable limits, the interests of employers and those of employees in the labour market and workplace”. The employment relationship is affected by:

External Factors:
Economy
The level of economy affects the attitude of the employers towards the employees. For instance, with the current economic and financial crises, the budget of businesses has shrunk, affecting staff remuneration and other related expenditures. Consequently, there have been salary-cuts, redundancies, reduction or nonpayment of special allowances, reduction or suspension of various human resource development programs, reduction or stoppage in recruitment of new employees and the overstretching of existing labour both in time and task. In this situation the bargaining power of the employees is weakened and the conditions of are less favourable for them.

Government Policies
Employment Laws affect employee relations in various way imposing rules on: Working time, national minimum wage, trade union recognition, parental leave, unfair dismissal, equality of employees. For instance Labour party’s policies are more employees oriented, aiming to improve job security, conditions, and pay for workers. They introduced the national minimum wage and support the fairness of working conditions. The Labour Party included a commitment to an Equality Bill in its 2005 election manifesto, which brought to life the Equality Act 2010 aimed at putting together all the previous pieces of Equality Legislation. The Conservative Party is more focused on supporting business growth.

Internal Factors:

Working Contracts:
The type of working contract also affects the relationship between the employer and the employees. Employment contracts are set in place to outline the employee and employer’s terms, conditions and rights with regards to the employment. The employee has statutory rights enforced by law and employment contracts must include them and they are set in place to protect the employee. Additionally there are contractual rights which are not statutory but are agreed between the employer and the employee. Organisational Culture:

Organisational culture is defined as the associated norms of an organisation, while employee behaviour is seen as the outward expression of an employee's perception of organisational culture, then organisational culture precedes employee behaviour. Leaders have the ability to influence and manage organisational culture. When this is done effectively, employees will express those values positively through their behaviour. Leaders can influence organisational culture and hence employee behaviour

2. Define the following types of work contract: permanent, temporary, fixed term, and explain the main applications of each.

The contract of employment regulates the terms and conditions of employment between the employer and the employee. An employer is a person or an entity who hires the services of another person paying a wage or a salary. The employee is conversely the person who is hired to provide services in exchange for compensation. The contract of employment stipulates what the employer will provide and it specifies what the employee is entitled to receive in terms of company policy, company benefits, and labour legislation. It also regulates the behaviour of the employee in the workplace. Employees are under a duty to obey instructions, provided these are lawful, reasonable and within the scope of the contract agreed.

There are various types of employment contract such as:

The contract of permanent employment
Permanent contract of employment is a written agreement between the employer and employee which does not stipulate an ending...
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