Management and Workforce Relations (Cambridge International A-Level Business)

Cooperation between management and the workforce

• Workplace relations refers to the interactions between managers and workers in a business, including

  • How change is communicated and implemented
  • How grievances and disciplinary action are pursued
  • The level of consultation on key decisions
  • Fairness and effectiveness of business processes

• Positive workplace relations between management and workers brings a range of benefits

Benefits of positive workplace relations

Good relationships between managers and workers leads to benefits including increased productivity, low levels of staff turnover, improved cooperation and fewer days lost due to industrial action

1. Low staff turnover

• When workers have a positive relationship with their managers, they are less likely to leave or face dismissal

1. Few days lost to industrial action

• Industrial action is where trade union members, in dispute with management, protest or take action, such as strikes, to achieve their aims
• Effective workplace relations mean that disruption as a result of industrial action is unlikely

1. Employee cooperation

• Employees may 'go the extra mile' for the business if they feel valued
• Support from employees for key decisions means that objectives are more likely to be met

1. High productivity

• Good working relationships mean workers are less likely to be absent from work and more likely to be focused on maximising output
• Workers are more likely to contribute ideas that lead to improved performance

1. Good reputation as an employer

• Businesses with good relationships avoid negative publicity
• These businesses attract and retain the best staff

1. Ease of implementing change

• Significant change is more likely to be welcomed rather than feared
• Employees look to play their part in implementing change

Employee morale and welfare

• Some businesses make great efforts to improve employees' welfare

  • Looking after workers is likely to lead to long-term loyalty and high levels of motivation, which can have a positive impact on labour productivity

Strategies to improve welfare

Work-life balance

• Ensuring employees have a healthy work-life balance can lead to several advantages

  • Less stress-related absence lowers business costs and reduces disruption to production
  • Increased employee output, as when they are at work, their focus is likely to be improved
  • A more diverse workforce that has time to enjoy leisure and creative activities outside of working hours

Ways to improve work-life balance

Exam Hint Flexible working may appear to offer benefits that are largely focused on the employee

In the exam, you could be asked to analyse the impact on a business of flexible working

You should focus your answer on improved employee motivation and productivity, as well as the ability to attract a larger number of candidates to advertised job roles

The impact on employers and employees of trade union involvement in the workplace

• A trade union is an organisation whose members come together to achieve common goals

  • Union members pay a membership fee and elect representatives in the workplace

• They negotiate with employers to improve terms and conditions of employment for workers

  • Improved pay
  • Increases in paid holidays
  • Reduced hours of work
  • Sufficient rest breaks
  • Improved training and development
  • Better facilities

• Trade unions can also give individual advice when employees have a problem at work

  • They also lobby governments to pass laws that favour employees, such as improved health and safety regulations

Examples of trade unions

• Trade unions can use a range of approaches to resolve conflict in the workplace. These include:

  • Collective bargaining
  • Work-to-rule
  • Strike action

Collective bargaining

• A process where trade unions negotiate with employers to reach agreements on terms and conditions of employment

  • It is a structured way for employers and employees to come to a mutually acceptable agreement
  • Trade unions have greater negotiating power than individual employees
  • Negotiations typically cover a range of issues, including wages, working hours, benefits and workplace conditions

The collective bargaining process

This process leads to conflict resolution and collective agreement

• The goal of collective bargaining is to reach a collective bargaining agreement

  • This is a legally binding document that determines the employment relationship for a specified period

    • Both parties must adhere to the terms of the agreement
    • If further disputes arise, tools such as mediation and arbitration can be used

Other forms of industrial action