Employee Voice Mechanisms and Their Outcome - Essay Example

Employee Relations – Employee Voice mechanisms and their outcome Employee involvement and their participation are initiated and encouragement by the management of a company to obtain information about the employee and their commitment to the organization. The paper delves into the various aspects of employee relations such as employee involvement, participation, why such relations are needed and the mechanisms via which the communication is done. By employee involvement methods the management gathers the consent of the employees rather than imposing any decision over them. Whereas employee participation is the extent to which the employees are involved in the decisions of the company. This might include joint meetings, bargaining as a group and representation of workers on the board, but all the power lies with the management only. Therefore Rose comments that Employee voice covers, "a wide range of processes and structures which allow and even empower employees, directly or indirectly, to contribute to decision making within the organization" (Rose, 2008, p. 334). Further into it the discussion will cover aspects of voice mechanism in detail and how the current methods of voice have changed. Also the various outcomes of such voice mechanisms for the workers will be dealt with. Finally, Legal changes and methods of improvement will also be discussed (Gennard and Judge, 2005, p. 180; NASA). This paper attempts to discuss the growing need for a good employee employer relation and how the existing rules are changing to make way for new rules. Employee Involvement In the early part of the twentieth century the management of the working class by F.W. Taylor took a very controlled approach, particularly in the field where the workers had to be divided into their specializations. To keep a check on the functioning’s of these employees the management engaged a number of hierarchical roles of authority so as to maintain discipline, order, efficiency and to inculcate within them a sense of duty and not to oppose the management in its decisions. Increased competition and technological complicacies require higher skills and a commitment strategy. So accordingly nowadays, the workforce jobs are designed to include the functions of the firm and include severe of planning. The focus shifted from self to the performance of the team, that is, shared goals and technical know how. Standards need to be improved by and by and the company considers the efficiency of the group. Also very important is the matter of giving the employees an assurance or a security that they would be heard on various issues. Thus the management accepts the suggestions of all the employees, customers, public and the owners. No company in today’s world can perform without the full commitment of the employee. Employees always want to be a part of a successful organization which provides them security, income and opportunity for self-development (Gennard and Judge, 2005, pp 181-183). Why companies involve the employees can be explained by the fact that employees are always better informed about the work that they do than the managers. Employee involvement leads to better perks from the work than through bargaining, which furthers job satisfaction and motivation. Also mutual trust is built between the firm and the employee when they are allowed to be incorporated in the management decisions and most importantly healthy relations lead to less harsh means of control (Gennard and Judge, 2005, pp 181-183). There are other reasons for involving employees as well, such as improvement in the morale and loyalty. They remain even better informed and try to understand every aspect of their work. From the point of view of incentives, they accept changes in the working techniques, increase team spirit, increases productivity and accept mobility across jobs. This gives the management more control and relies on the employees for profitability. The most important reason is keeping the trade unions at bay. An anti-union employee will try to keep unions outside the company and in case of presence of one it tries to keep them pacified and less obsessive, whereas a pro-union member would gain the cooperation of the union in whatever stand the management takes and help to contain the demands (Gennard and Judge, 2005, p. 184). Employee Voice Mechanisms High rates of quitting jobs are losses to the company as it means giving training to new employees and leads to lower than average performances of the company. So the companies in order to retain their employees and improve performances resort to voice mechanisms, or methods of communication with the employees, to know the problems they are facing and giving the employees a chance to develop their skills in the relevant fields, to be properly informed and to contribute to the growth of the organizations. Such incorporation of voice mechanisms has helped the companies to provide better security to the workers and reduce the quit rates (Batt, Colvin, and Keefe, 2001, p. 3). It is of utmost importance that employees know what to do and why they need to do it and also have an influence on what happens to them at their workplace. Some of the advantages involved with good employee communications show that the organization registers improved performance, improved and better decision making, better commitment from the employees, essential amount of trust and increased job satisfaction (Management Study guide, n.d.) There are many employee voice systems in place nowadays in various companies. Communication methods range from simple to complex. Some the communication methods can be spoken, written, direct or indirect, and they are chosen aptly based on the size of the organization involved. But mainly they are categorized under upward problem solving voice mechanisms and the other is representative participation (Blyton and Turnbull, 2004) Under upward problem solving, the face to face method of communication involves group meetings, cascade networks, large scale meetings and inter-organizational meetings. Cascade networks are a network to communicate quickly in large networks. Large scale meetings involve the direct communication of the managers and directors with the employees. Inter departmental meets enable a steady approach in all departments. Written methods of communication involve permanent or important category of information and requires a very detailed plan of the same. Journals and newsletters are examples of the same. Electronic mail helps to communicate with employees located far away form the management (Gennard and Judge, 2005, p. 190; Rose, 2007) Attitude surveys are designed to get an idea of the employee satisfaction, usually done yearly. Suggestion schemes are a method where the employers communicate their ideas to the managers. Project teams involve a group of people working together (CIPD Research Report, 2001, pp 27-28; Blyton and Turnbull, 2004) The Representative participation type of employee voice mechanism involves the employee representatives meeting with the managers by and by via committees or groups. Mostly this kind of representation involves a presence of a union and can be include collective bargaining. Representation without unions is also possible or co-existence of both union and non unionized groups may be possible. This kind of voice representation usually involves the representatives of the unions mediating with the managers and higher authorities. There are many types of this kind of representation, starting with joint consultants, where representatives of the employees meet the managers and discuss issues of importance to both the parties on pre decided dates. Partnership schemes can involve mutual gains where cooperation is the key for both the parties. This includes involvement in depth. European work councils may be another method where the employee representatives meet the senior managers in accordance to European Laws. The last form, called collective representation is a unionized movement where the unions negotiate with the managers for the pay and address their grievances (CIPD Research Report, 2001, pp 28). Upward problem solving It has been found that a third of the employees use electronic media to communicate with their seniors and provide their opinion. In the cases involving the service sectors or where the majority of the workers are white collar workers, especially in multinational companies. The vice-president of a telecom company in USA uses electronic messages to communicate with all staff. In some other firms’ employees like chat rooms rather than direct correspondence (CIPD Research Report, 2001, pp 28-29). Two way communications are another major way of communication an example of which can be given by briefings before a particular matter is discussed. Another example may be a brief meeting with the staff for the head to highlight important issues. Such two way communication is important for any organization to discuss important issues. Rose, 2007) Suggestions schemes are not used by all organizations, an example of which might be given by a company giving its employees certain prizes for the best suggestion received from them. Thus in this way the employees are encouraged to present their views to the managers and may prove to be very useful. Such information might not have been conveyed in the absence of a suggestion scheme. Suggestions have proved to be such a success for many companies that they are known to have given drinks or prizes for the important and relevant suggestions to the employees. Only problem arises in the case where transparency is absent, where the managers might reward their favorites (CIPD Research Report, 2001, pp 30; Rose, 2007) Use of employee and attitude surveys is widespread, and considered as good management. The results of these attitude surveys help the companies to shape their goals and look towards changing their policies to better serve the employees and also to know what they want from the organization (Blyton and Turnbull, 2004). Project teams are widespread all over the world. They are very important to the functioning of an organization. At big companies, team members are assembled from different departments so as to give the group an edge and manage their work efficiently according to the requirements. This auger group learning and motivates the workers to achieve higher goals and makes them understand the ethics of working in a team. Representative participation This kind of participation is used in many companies over the world. Here a senior level employee makes a presentation to all the employee representatives. Mostly unionism has been the outcome of such groups. Several companies have both unions and non-unionized groups (CIPD Research Report, 2001, pp 33). Many companies maintain this parallel system along with the unions because in case of unhealthy relation with the union the non unionized staff representatives can come in handy (Torrington, 2011; Marsden, 2007, pp 3-4). Certain companies have partnerships between the employees and the managers. This may include mutuality and inclusiveness and both sides understand their roles very well. European works councils are prevalent in the continent of Europe. In situations where representation seems bad, direct contact with the employees is a practice of employee voice (Blyton and Turnbull, 2004). The final form of voice that is collective representation is the formation of strong trade unions that give voice to the employees of the firm. Wages, benefits and even individual grievances become the agenda of a trade union. Collective representation can prove to come up with challenges for the organization and the effects maybe indirect. For example a demand for a change in the management may actually seem bad, but then on changing the management it was found that that the workers were correct. It also contributes to collective effort and reduced absenteeism (CIPD Research Report, 2001, pp 36). The managements approach to the union is also very critical. Most firms do not want to entertain much collective representation; rather they were supportive of the partnership type of representation (CIPD Research Report, 2001, pp 37). Employee Voice as of now Employee voice has changed over the past decade with emphasis more on the non-union mechanisms. Recent up veal’s in the world financial market has also affected the employee relations and social partnerships and non-union representation methods may serve well for the company in such turbulent times. Previously a generation had received considerable financial gains due to the rising market and both the sexes taking up work. In recent times however, the average wages remained stagnant. Spending cuts have been the mantra for the big companies. Trade unions thus historically are born out of adversity and not really at good times (CIPD Report, 2010, pp 2-4). Research suggests that a mixture of both informal and formal methods of voice can have a good effect on the employee attitude. Collective voice can make working of the management more recognized, and show that they care. During the recent financial crisis the unions, mostly in the private sector have supported the efforts of the management to check the number of pink slips issued (CIPD Report, 2010, pp 4; Torrington, 2011). Legal Developments According to law, employee voice is basically exchange of information and consultation. The European Works Council is a fresh method of voice and quite different from the age old voice systems of the British which put emphasis on the trade unions. The ECW criticized the British Law and showed how information exchange and consultation could be achieved by recognizing employee voice with no union as such. New laws coming into effect are believed to be harsh towards the employers as it might increase their cost and as well as the probability of leakages of secret and confidential information (CIPD Report, 2010, pp 4-5). Also according to the laissez-faire liberal market model the employee voice is actually a private matter where care of the employees might be taken by the employers or not. This however is only possible when efficiency is a surety; equity is fair and the freedom to quit exists. Two policies have been proposed, one which is unitarist, deals with the assumption of a long term relation between the employer and the employee, and benefits are an outcome, whereas a pluralist’s model is another where the relationship between the employer and the workers is a bargain and involves conflicts and a not so equal power to the employee voice. Thus it is evident that employee voice is not really a private matter and keeping in view the democratic rights and the needs of the workers public policy debates are needed (CIPD Report, 2010, pp 6). Non-unionized employee representation plans (NERP’s) have become more common now. It is a system where one or more employees act as the representative of the others in discussing matters of concern for the both which includes the terms and conditions of work. Although there is almost no evidence of NERP’s shifting to unions, still debates over the possible problems of these to be converted to unions are on. NERP’s can act as a platform for the union movement. To keep the NERP’s from changing into unions some of the methods deployed by the management maybe, more investment, less management changes, usually an early warning to the management and mixing up the members so that bonds do not form. Therefore, employee voice is not only important to a great extent but it is equally important for the company to regulate employee voice so that it does not become too powerful. Voice mechanisms old and new have been instrumental in helping the companies tackle financial crisis and tough times. The work of the recruiter is thus not stuck at employment but to nurture and make the employee grow with experience. As discussed above, we see that the companies have found out new innovative methods to benefit employees and in parallel the union’s voice have collapsed over the years but voice had not. From the discussions stated above, it is evident that companies are looking for solutions which are sustainable and is in the interest of the firm. The amount of regulation needed has also increased for the organizations. Internal survey of the employees has gained considerable popularity than outsourced surveys, but problems exist such as the growing interest of the employees in other agendas rather than voice. References 1) Batt, R., Colvin, A and Keefe, J (2001), Employee Voice, Human Resource Practices, and Quit Rates: Evidence from the Telecommunications Industry, New York : CAHRS Working Paper Studies. Available at: http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1066&context=cahrswp&sei-redir=1&referer=http%3A%2F%2Fwww.google.co.in%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3Demployee%2520voice%2520mechanisms%26source%3Dweb%26cd%3D10%26ved%3D0CHIQFjAJ%26url%3Dhttp%253A%252F%252Fdigitalcommons.ilr.cornell.edu%252Fcgi%252Fviewcontent.cgi%253Farticle%253D1066%2526context%253Dcahrswp%26ei%3DGFShTsudB4XsrAe3_IyBAw%26usg%3DAFQjCNH2qyK2li65eLv4iLPUdRTe4bj2ng%26cad%3Drja#search=%22employee%20voice%20mechanisms%22 (accessed on October 24, 2011) 2) Blyton, P and Turnbull, P, (2004), The Dynamics of Empoloyee Relations, Edition 3, Basingstoke: Palgrave Macmillan. 3) CIPD Report (2010), A decade of change in employee voice, London: CIPD. 4) CIPD research report, (2001), Management choice and employee voice, Research Series, London: CIPD Publishing. 5) Gennard, J and Judge, G., (2005), Employee relations : People and organizations, London: CIPD Publishing, Edition 4. 6) Management study guide (n.d.), What is employee relation, available at: http://www.managementstudyguide.com/what-is-employee-relations.htm (accessed on October 24, 2011) 7) Marsden, D. (2007), LSE Research online: Individual employee voice: renegotiation and the performance management in public services, London : Routledge. 8) NASA (n.d.), Employee Relations, available at: http://ohcm.ndc.nasa.gov/employee_relations/whatis.htm (accessed on October 24, 2011) 9) Rose, E., (2007) Employment Relations, 3rd Edition, London :Pearson Publication. 10) Torrington, D et al, (2011) Human Resource Management, Edition 8, London : Prentice Hall. Read More