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Management of Employee Relations - Essay Example

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Author : blandamissouri

Summary

The essay "Management of Employee Relations" will analyze how the current economic downturn has given more power to the managers when they negotiate with their employees, giving them certain options which can bring out clear perspective about manager’s equation with labors…

Extract of sample
Management of Employee Relations

In this globalised world, an economic problem in one country will not get restricted to that country but gets spread to other countries. This is what happening today, with the economic recession starting in the USA, is having a very negative effect all over the world. The economies of most of the countries in the world are directly and indirectly dependent on the U.S.’s economy and with liberalization happening everywhere, the negative effects in the USA will be felt everywhere, with businesses worldwide facing the negative impact.
Many companies are suffering losses and as a result of it several companies are opting for retrenchment strategy. Cost cutting would have to eventually result in job cutting. Layoffs have become a common thing these days with companies. Fewer job requirements and constant layoffs irrespective of the sector made employers to be choosy about the kind of employees they want and more dominant in deciding the compensation package for them. Many reputed organizations have quietly cut the salaries and other fringe benefits to their employees. Employees are forced to take it, as they don’t have any option although it will have a negative impact. People are the most valuable asset of any organization, and as many have found to their peril, exaggerated redundancy of staff or the mismanagement of people leads to certain disaster. Managers have upper hand these days and really have become dominant. Instead of thinking about how to optimize productivity and overcome financial problems, managers look at the easy way out.
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