Factors Influencing the Employee Relations

Globalization is one of the factors affecting the employee relations, otherwise known as the industrial relations. Strategic management is important because changes in employee relations has resulted to increased bargaining power of the employees, flexibility in working time as well as changing job functions and this has occurred due to the increase in competition, product processes changes due to consumer awareness combined with the increasing essence in quality, productivity and skills. An integration of all these factors has had impact on the practices and policies of the management. While managing change in the firm, the employee involvement in making sure the change is effected is very important while the management has to ensure that the skills processed by the employees are compatible with those required in the market to meet the customer needs.

With the increased importance of the employee relations, the human resources is has shifted it focus to quality, innovation and reduction of the cost. The importance of human resource management (HRM) is reflected in the personnel management in the firms. Employee relations (ER) is better viewed as a long term goal rather than short term because it deals with the way the HRM treats the people in long term view. In successful companies like General Motors itâ€™s noted that how the workers are treated is a key item feature in the long term beside other factors like the corporate culture and the objectives. Today in most industries, the HRM is recognized since itâ€™s of big concern to the company since itâ€™s not meant to only ensure that the employees comply with the laid down policies but also win commitment of the workers, this therefore makes the ER a worthy investment. HRM strategies are affected or influenced by the decisions made in relation to the structure, strategy and considering the external factors like the legal system, labor market position and the influence of trade unions.

This entry was posted on October 9, 2008 at 3:37 am and is filed under Employee Benefits. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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Factors Influencing the Employee Relations

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