STRATEGIC HUMAN RESOURCE MANAGEMENT
Muskaan Chaudhary
SHRM and HRCI Certified Human Resource Generalist || CHRMP Certified Advanced Human Resource Buisness Partner
STRATEGIC ISSUES IN INDUSTRIAL RELATIONS
The interaction between employers, employees, and the government is highlighted by industrial relations, as is the role played by various unions (such as trade unions) that were born out of these interactions. The theory of industry relations is based on a number of strategic issues.
Technology and job creation: Organizations are finding it more challenging to manage the excess labor as a result of the IT revolution and advancements in machinery and technology. To effectively re-deploy their extra workers to new tasks, they must devise new strategies and initiatives. They must also guarantee that there is harmony and peace in the industrial setting and that the introduction of any new technology does not result in job losses for employees. Policies pertaining to industrial relations must find ways to strike a balance.
Skills development: In light of the intensifying competition in the market, businesses must achieve high productivity levels and make sure that every worker reaches their full potential for competitiveness. They need highly skilled labor for this in order to obtain a competitive advantage in the market. Employers must provide a range of specialized training and skill development initiatives for staff members in order to help them stay up to date with the constantly evolving business landscape.
One of the most important issues in industrial relations is employee turnover. Retaining key personnel is challenging because there is a dearth of highly skilled labor and a glut of job opportunities. Businesses constantly fear losing their staff to rival companies.
Businesses constantly fear losing their staff to rival companies. Consequently, in order to maintain employees' loyalty to the company, employee retention strategies must be implemented.
Legislation pertaining to employees and compliance: Businesses must adhere to all government laws and regulations when creating their HR policies regarding labor relations. A great deal of the legislation is written in isolation and is challenging to administer. For instance, the Payment of Bonus Act needs to be changed right away because the wage ceiling for computing bonuses is much less than what is necessary.
Safe working culture: In the best interests of their employees, employers must always make sure that there are no hazards at work and that all safety regulations are followed.
Flexibility on the part of the employer: In light of the quickly evolving business landscape, employers must possess the adaptability necessary to reconcile traditional cultural values—such as deference to authority—with the contemporary demands of employee participation and involvement. Only then will they be able to maintain a highly motivated workforce and foster high productivity.
EMPLOYEE PARTICIPATION AND INVOLVEMENT
Employee involvement and participation have always defined the fundamentals of industrial relations. Over the past few decades, both terms have experienced significant changes and have undergone a dramatic evolution. There is a small distinction between the phrases "employee participation" and "employee involvement," despite their apparent similarity. They refer to two HR policies that are mutually exclusive and have different levels of employee interaction inside an organization. Nonetheless, both policies contribute to raising worker productivity.
Let's examine the theoretical meaning of each term.
Employee involvement is the process of giving labor, the workforce, and the employees the authority to participate with management in decision-making and to take the initiative to suggest possible improvements to current processes and systems.
Through his theory Y, McGregor was the one who initially promoted participatory management styles to organizations, which permit all workers to take part in decision-making.
In Japan, participative management has gained a lot of recognition, and it is also largely responsible for the success of many Japanese businesses abroad.
Employee involvement: When an employee is invited to take part in any business activity, it indicates that he shares and assists in carrying out the tasks alongside other organization members. These individuals collaborate and coordinate as a team to achieve predetermined goals or objectives. The team serves as a forum for members to share ideas and recommendations on how to approach a task or project in a more original and effective way. While everyone is welcome to participate, there might be variations in the degrees of engagement.
Implementing employee involvement and participation in an organization requires that:
Giving workers the accountability
educating staff members to take ownership of their actions and speak up
establishing efficient channels of communication for receiving and providing feedback
Acknowledging and rewarding conscientious workers
There exist multiple alternative approaches to foster employee involvement and participation in the decision-making process, including assigning them to boards, granting them stockholder status in the company, establishing a collective agreement, among other measures. The suggestion box is the most conventional method of involving staff members. A few of the modern concepts include encouraging "ideas campaigns" to workers to contribute fresh concepts and peer-picking initiatives.
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OBJECTIVES OF EMPLOYEE INVOLVEMENT AND EMPLOYEE PARTICIPATION
Participation and involvement of employees aid in the development of cordial relationships amongst all parties affiliated with an organization. The following are the primary goals of employee participation and involvement:
Make the most of HR: This guarantees that staff members are given the chance to contribute fresh perspectives and innovative ideas to enhance current business procedures and create a positive company culture.
Provide psychological satisfaction to the staff: Employees' psychological needs are met and their motivation to work effectively is heightened when they are involved in the decision-making process.
Keep employees: Doing so maintains their dedication to the company, and they take pride in working for such a company.
Boost productivity: Employee motivation to deliver quality work contributes to a rise in overall productivity. Involvement and participation from employees also fosters industrial democracy and creates positive working relationships between employers and employees.
Keep open lines of communication: When staff members participate in important business activities that lead to process improvements, there is an appropriate flow of communication. As a result, business procedures are improved and employee relationships are strengthened as each worker gives their all.
PROACTIVE INDUSTRIAL RELATIONS POLICIES
Given the speed at which the business environment is changing and the rise in conflicts and disagreements between management and employees, the field of industrial relations needs to revitalize.
Instead of waiting for conflict to arise and then devising a reactive strategy, industries should embrace proactive policies regarding labor relations that aid in preventing any conflict from arising.
The proactive policies de-emphasize the negative effects of an unhealthy worker-employer relationship (such as strikes, processions, suspensions and terminations, low productivity, etc.) while emphasizing the positive effects of a healthy worker-employer relationship (such as improved productivity, high employee morale, industrial harmony, and peace). The working environment has an impact on the relationship between the employee and the employer in addition to interactions. Employers ought to place a strong emphasis on proactive industrial-trial relations policies that safeguard workers' rights and foster an environment at work that promotes employee wellbeing. For instance, there ought to be established procedures and guidelines for:
Employment and conditions at work
Pay and perks
Behavior and discipline of employees
worker security
Employee well-being
Proactive workplace policies and practices protect employees' interests and lessen grievances and criticism directed towards management. This promoted proactive industrial relations by creating a positive working environment.
The management is able to predict the cause of the majority of disputes by examining the circumstances that have previously given rise to disputes of a similar nature. Proactive industrial relations policies can therefore be created to stop similar circumstances from happening in the future. Encouraging employee involvement and participation in company activities is a crucial proactive approach to industrial relations.
They would be better able to relate to their employer as a result of being able to comprehend their problem. This would support the development of a positive employee-employer rapport. We've already covered a number of strategies in the prior section to raise employee involvement and participation. Organizations should also support initiatives for skill development and training in order to help staff members achieve the necessary competency levels. Moreover, there ought to be efficient communication within the company. Effective communication allows management to keep the workforce informed about changes in the business environment, business bottlenecks, strategies, and future plans. It also allows the workforce to get ready to adjust to changes quickly and effectively.
Employers, on the other hand, benefit from knowing about their workers' issues and challenges so they can provide timely solutions before they become a source of contention or conflict. Therefore, proactive industrial relations policies must include the implementation of effective and efficient communication systems.
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