CIPD Level 7 Assignment Example: 7HR01 Strategic Employment Relations
What will you learn
Employee relations involve balancing interests of both employer and employee to create a favourable workplace environment. In this unit, students will learn different perspectives of employment relations, conflict resolution and cooperation in different workplaces. Students will also evaluate and critically analyze how collective bargaining agreement determine pay; impact of negotiations between employers and trade unions and design and implementation of disciplinary procedures.
In this 7HR01 assignment answers we will critically analyse employment relations within an organisational context. We will also evaluate how direct and indirect voice impact on organisational performance and employee outcome. In case you need CIPD support to complete CIPD level 7HR01 you can talk to our expert CIPD assessment writers for assistance and solutions.
1.1 Critically evaluate different perspectives on employment relations.
The workplace relationship between employers and employees, including the policies, practices, and interactions that shape this relationship, is referred to as employment relations. There are various perspectives on employment relations, each with a different interaction level between employers and employees. The different perspectives on employment relations dictate employers’ different outcomes with their employees. A favorable employee relations climate characterized by high employee involvement, dedication, and engagement can improve business outcomes and employee well-being (CIPD, 2023). Employment relationships between individuals and their managers range from poor to very good, with most employees reporting a positive working relationship with their managers.
The unitarist perspective assumes that employers and employees share common goals and interests and that problems result from misunderstandings or a lack of communication. Conflict resolution is also easily achievable when this approach is used since the employers and employees have a shared interest in their activities within the organisation (Mzangwa, 2015). According to this viewpoint, management is responsible for creating a peaceful workplace where everyone works together to achieve the organization’s goals. This method can be advantageous because it encourages cooperation and teamwork. However, it can be unduly utopian and neglect power disparities.
The pluralist perspective recognizes that employers and employees have different interests and aims and that conflicts between them are unavoidable. The key to resolving these disagreements is establishing a system of checks and balances that allows both parties to express their opinions while negotiating a mutually acceptable solution(Kaufman et al., 2020). This approach acknowledges the significance of power disparities and provides a framework for conflict resolution. However, implementation can be time-consuming and costly.
According to the Marxist perspective, employment relations are a conflict between capitalists (employers) and workers. According to this viewpoint, employers strive to maximize profits by exploiting workers, whereas workers seek to improve their pay and working conditions. The Marxist viewpoint highlights the importance of power inequalities and the need for workers to organize and fight for their rights. However, it might be unduly simplistic and neglect the complexities of the job relationship. The Marxist perspective states that the interaction between employers and their employees is bound to get conflict, and how they are resolved matters (CIPD, 2023). According to the three perspectives, managers are responsible for implementing the most applicable employee relations technique to ensure cooperation and smooth interaction between employees and their employers.
1.2: Contrast examples of cooperation and conflict within the employment relationship indifferent organisational contexts
Cooperation and conflict are two critical components of the job relationship that can arise in a variety of organizational circumstances. Cooperation between employees and employers is the most practical interaction with the employees since they have common objectives to be achieved in the organisation. Cooperation. Cooperation in an organisation ensures smooth operations through collaborative efforts to achieve personal and collective objectives (Li et al., 2022). Employers can collaborate by establishing a mutually beneficial collective bargaining agreement. This agreement can give employees job security, fair salaries, and benefits while assuring that the company can operate efficiently and successfully. On other hand, conflicts exist in an organization’s operations, limiting its operations. However, conflicts can be resolved using different strategies and ensure that operations resume. For instance, conflicts may occur from unequal treatment contrary to the Equality Act of 2010. Such conflicts can be solved through normal intervention in the organisation or by using trade unions to resolve conflict (Van Gramberg et al., 2019). Through conflict resolution strategies, the relationships between employees and employers are maintained, effectively assisting the employees to achieve the set targets in the organisation.
Employee voice is one of the best strategies for maintaining relations in an organisation since employees can speak up to their managers, reducing the chances of conflict (CIPD, 2023). When employees seek to address a conflict in the organisation, they are most likely to speak with their line managers, who can escalate the issue to the relevant authorities to address the conflict. An example of cooperation in an organisation is the successful addressing of a problem within the organisation. For instance, an organisation may address its working conditions in a collaborative manner by speaking to line managers and a positive response is obtained. On the other hand, an instance of a conflict is where the negotiation process breaks down and leads to negative impacts such as industrial action. Another instance where employee and employer collaboration may occur is through employees seeking to achieve their personal and collective objectives within the set timelines. This eases the problem of monitoring and strict supervision of employees since the individuals perform according to expectations. Overall, cooperation and conflict are unavoidable elements of the job relationship in unionized and non-unionized organizations. Employers can build a cooperative work atmosphere by treating employees with respect, recognizing their contributions, and providing chances for growth and development. Employers can also reduce conflict by adhering to employment rules and regulations, developing clear policies and processes, and providing effective avenues for employees to raise issues and resolve conflicts.
2.1 Critically evaluate the extent to which globalisation and other international influences have shaped and transformed employment relations within organisations.
Competition for talent
Globalization and other foreign forces have had a profound impact on labor relations in enterprises all around the world. These shifts have impacted how businesses attract, train, and retain people and how they manage their staff. Globalisation has presented persons in practice with the challenge of ensuring compliance with labor rules from several countries. The increased competition for global talent is one of globalization’s most significant effects on employment relations. Companies are now fighting for the best personnel, regardless of their location, due to the expansion of multinational firms and the globalization of the labor market ( JhaandVarkkey, 2015). This has resulted in changes in recruitment strategies, with firms attempting to attract and retain individuals with a global attitude and the capacity to work in various cultural settings. As a result, the employees’ mindset also changes because they are now aware of the need to think and act globally to align the organisation to globalisation practices.
Another way that globalization has influenced labor relations is the growing emphasis on cross-cultural communication and understanding. Companies must ensure that staff can effectively communicate and collaborate with people from diverse backgrounds as they grow into new markets and work with diverse teams (Hunter and Katz, 2012). This has increasedthe emphasis on cultural knowledge and training programs encouraging workplace diversity and inclusion. Cross-cultural communication also ensures that employees and employers can operate in different locations with different cultures increasing the need to learn how to interact with other people globally. This is especially necessary as globalisation has led to an increase in employees working remotely and virtually. This allows the employees to interact with each other and other stakeholders virtually, thus, cross-cultural communication and understanding are necessary. Also, the cross-cultural communication further assists employers to understand the need for diversity in an organisation leading to further cooperation and collaboration(Hunter and Katz, 2012). This ensures that individuals from different diverse backgrounds with minimal conflicts further increase organisational productivity.
2.4 Analyse the changing nature of work in different parts of the economy.
As technology improvements, globalization, and other factors have revolutionized the labor market in various sections of the economy, the changing nature of work has been a topic of much discussion in recent years. The changing nature of work has forced employees and employers to adapt to the different changes occurring in the labor force.
One of the most notable factors is a reduction in zero-hour contracts by many employers. Zero-hour contracts have been a contentious subject in the labor market, with some workers facing job insecurity and instability as a result of the absence of guaranteed hours (Atkinson, 2022). There has been an increasing awareness of the harmful impact of zero-hour contracts on workers’ life in recent years, putting pressure on companies to decrease their use. Furthermore, certain sectors and companies have made steps to eliminate zero-hour contracts entirely (Atkinson, 2022). In the United Kingdom, for example, the government has prohibited zero-hour contracts in certain industries, such as care work, where they were regarded particularly damaging to workers. This is a significant effort by governments to eliminate employee misuse by capitalist employers who are after maximum output and minimal compensation.
Consequently, another change in the nature of work is the automation of roles that were previously designated to individuals threatening job security. According to PWC.UK (2023), more employers are using computers to handle tasks that were previously conducted by individuals. This brings the risk of a large number of individuals losing their jobs. For example, artificial intelligence has been integrated in several procedures in different industries to ease and assist operations. However, the human aspect is still necessary, and the collaboration aspect between humans and machines to achieve efficiency.
Change of labor-related legislations
Another significant change in the nature of work is the change of labor-related legislations adapting due to the nature of work. The United Kingdom has constantly been changing laws to ensure that organisations efficiently handle the workforce amidst the changing business and economic environment (Mangan, 2020). For example, the government has effectively initiated laws that offer less strict contracts for employees to ensure work-life balance is maintained improving the quality of life and employee productivity.
4.1 Critically analyse the role of collective bargaining in determining pay and other contractual issues in organisations
Collective bargaining is the process by which employee and employer representatives negotiate job terms and circumstances, such as compensation and other contractual concerns. Collective bargaining’s function in deciding wages and other contractual concerns in organizations is multifaceted, with both positive and bad consequences. The role of collective bargaining is to ensure a mutually beneficial agreement between employers and employees, especially on their terms of engagement (CIPD, 2023). This is essential because the welfares of both the employer and employee must be protected. Human resources professionals use trade unions to negotiate terms such as pay, working hours, leave, job health, work-life balance, and safety in the workplace (Denk, 2023). Pay determination and other contractual issues are negotiated by trade unions with the interests of the employees especially to minimize the pay gap between employees and other working terms that improve the employees welfare. The result of collective bargaining for employees is job satisfaction and job morale, and work retention. Consequently, there are several roles played by collective bargaining especially on determining pay and other contractual issues in organisation.
- The first main role of collective bargaining is to ensure that employees pay is commensurate to their work in the organisation. Trade unions negotiate the terms of engagement and the compensation that is enough for the work performed in organisations (Ramos et al., 2022). The collective bargaining process involves the trade unions critically analysing the existing terms of engagement for the employees and understand the terms of payment. After determination they evaluate whether other companies are being compensated within a similar range with the help of data and statistics from other organisations in the country (SvarstadandKostøl, 2022). This is essential because employee salaries are often similar to ensure employee retention and reduce employee turnover rates.
- Additionally, collective bargaining plays the significant role of ensuring that the other contractual agreements do not harm the welfare of involved parties.
- Collective bargaining assists employees to get the best possible agreements with their employers to minimize any chances of disputes in future (Fay and Ghadimi, 2020). This is necessary to protect the employees from exploitation while also reducing the chances of employers being sued by the employees incase of a dispute.
- For instance, collective bargaining agreements ensure the employees agree on contractual terms such as working conditions, termination, suspension, and disciplinary matters in case they occur (CIPD, 2023). This ensures that both parties can discuss the terms of engagement and address disputes should they occur. For example, an individual can use the terms of terminate for sue for wrongful dismissal while people professionals can also terminate or discipline while referring to the contractual terms agreed upon earlier.
- Additionally, contractual terms through collective bargaining provide information through consultation and communication to provide the involved parties information to ease operations during engagement (CIPD, 2023). More information and communication is achieved when they engage in consultative agreements to ensure that every party is aware of their roles and expectations in the binding contractual terms.
- Concessions and addition to requirements of the contractual terms are achieved in the consultative meetings in the collective bargaining process to ensure that every party is satisfied with the terms. The collective bargaining agreements can either be unionized or unionized depending on the terms of engagement between the employer and the employee to ensure the success of the negotiations. Therefore, the collective bargaining process serves critical roles in ensuring that pay contracts and other contracts satisfy the wishes of the involved parties.
4.2 Assess the impact of negotiations between employers and employee associations/trade unions aimed at problem resolution.
During the negotiation process between employers and employees, it is necessary to ensure a balance between their interests such that no party is disadvantaged. In the negotiation process, an agreement is struck after individuals agree on the declared terms hence its importance. The success of the negotiations depends on the willingness of the employers to make concessions between the involved parties. As a result, the outcomes of the negotiation determine whether the process is successful and whether all parties are satisfied with the outlined terms. The negotiation process seeks to guarantee the economic security of the involved parties thus the need for all parties to actively participate in the negotiations (NEA, 2020). The negotiation process has different impacts depending on the agreements made by the involved parties especially when a problem needs to be resolved.
- One outcome of the negotiations between employers and employee associations such at trade union is increased productivity of the employees as a result of solving the problem. Involved parties often identify a problem in the organisation and seek to solve it promptly. When the employers and the employees come to a mutual agreement regarding the problem within the organisation, the outcome of the process is increased productivity due to boosted morale and job satisfaction among the employees (Dharshini , 2020). Employees feel encouraged to work for an organisation due to successful negotiations thus leading them to work harder and increase overall productivity in the organisation. This is also beneficial to the organisation since the outcome of the process also leads to employee retention (Dharshini , 2020).
- Also, another impact of negotiation between employers and trade unions is improved working conditions in the organisation. Working conditions are a common problem that is brought up in negotiations by employee associations to ensure that employees are comfortable in the workplace (Dharshini , 2020). This is a positive outcome for both parties because improved working conditions imply the reduced risk of injuries at the workplace while the employer avoids the risk of prosecution and compensation claims.
- Additionally, another positive impact of negotiations in an organisation is the achievement of a better working relationship between the employer and the employees. A better working relationship is obtained by the organisation where employees feel more comfortable working and engaging with the employers (Elgoibar et al., 2021). This suggests that employees are more likely to improve the relationships with employers such that the overall productivity is increased.
- Also, reduced conflicts in the organisation are an impact of individuals focusing on cohesive and collaborative efforts to further increase organisational productivity (Elgoibar et al., 2021). Collaboration between employees is beneficial to the employees to ensure that operations in the organisation run smoothly further benefiting the employer.
- However, not all negotiation processes have positive outcomes in the organisation. When negotiations breakdown, there are usually negative impacts in the organisation. The most prominent outcome when negotiations fail is trade unions and employee associations, resulting in industrial action. Industrial action often occurs in organisations when employee associations and employers fail to agree to the proposed terms of solving a problem (Elgoibkar et al., 2021). This is the most severe outcome that can lead to employee associations calling for industrial action, such as strikes and legal processes, to force the organisation towards agreeing with the required terms of solving the problem. Industrial action is often the last resort to failed negotiations, and employers and managers often fail to agree upon the demands of the employees. This is usually an attempt to force the organisation to adhere to the requirements of the employees. Another impact of the negotiation process to solve a problem is through employees leaving the organisation to seek better terms of engagement with other employers(NEA, 2020). Employees often feel demotivated when they are engaged to unfruitful negotiations with their employer. Overall, negotiations often have different impacts on the organisation, but the table for renewing negotiation efforts remains to ensure that the problem affecting the organisation is solved. This gives way to positive outcomes of negotiation processes in future.
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CIPD. (2023). Research report part 2 – indicators of the employment relationship – CIPD. Retrieved April 23, 2023, from https://www.cipd.co.uk/Images/power-dynamics-in-work-and-employment-relationships_2018-the-capacity-for-employee-influence_tcm18-37312.pdf
CIPD. (2023). Working with Trade Unions. CIPD. Retrieved April 23, 2023, from https://www.cipd.co.uk/knowledge/fundamentals/relations/employees/working-trade-unions
Denk, O. (2023). The role of collective bargaining systems for labour market performance | Negotiating Our Way Up : Collective Bargaining in a Changing World of Work | OECD iLibrary. Retrieved April 23, 2023, from https://www.oecd-ilibrary.org/sites/068bb29d-en/index.html?itemId=%2Fcontent%2Fcomponent%2F068bb29d-en
Dharshini , G. M. (2020). A good negotiation process leads to success in Project Management. International Journal of Engineering Research And, V9(05). https://doi.org/10.17577/ijertv9is050835
Elgoibar, P., Medina, F. J., Euwema, M. C., and Munduate, L. (2021). Increasing integrative negotiation in European organizations through trustworthiness and Trust. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.655448
Fay, D. L., and Ghadimi, A. (2020). Collective Bargaining during times of crisis: Recommendations from the covid‐19 pandemic. Public Administration Review, 80(5), 815–819. https://doi.org/10.1111/puar.13233
Hunter, L. W., and Katz, H. C. (2012). The impact of globalization on Human Resource Management and Employment Relations in the US Automobile and Banking Industries. The International Journal of Human Resource Management, 23(10), 1983–1998. https://doi.org/10.1080/09585192.2012.668341
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Kaufman, B. E., Barry, M., Wilkinson, A., Lomas, G., and Gomez, R. (2020). Using unitarist, pluralist, and radical frames to map the cross-section distribution of employment relations across workplaces: A four-country empirical investigation of patterns and determinants. Journal of Industrial Relations, 63(2), 204–234. https://doi.org/10.1177/0022185620977578
Li, M., Peng, S., and Liu, L. (2022). How do team cooperative goals influence thriving at work: The mediating role of Team Time Consensus. International Journal of Environmental Research and Public Health, 19(9), 5431. https://doi.org/10.3390/ijerph19095431
Mangan*, D. (2020). Covid-19 and labour law in the United Kingdom. European Labour Law Journal, 11(3), 332–346. https://doi.org/10.1177/2031952520934583
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NEA. (2020). The 5 stages of Collective Bargaining. NEA. Retrieved April 23, 2023, from https://www.nea.org/resource-library/5-stages-collective-bargaining
Ramos, R., Sanromá, E., and Simón, H. (2022). Collective bargaining levels, employment and wage inequality in Spain. Journal of Policy Modeling, 44(2), 375–395. https://doi.org/10.1016/j.jpolmod.2021.09.006
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Task 2: Briefing Paper
3.2 Critically analyse how different forms of indirect voice could contribute to improved levels of organisational performance and employee outcomes.
Indirect forms of employee voice, like work councils and unions, can have a substantial effect on the outcomes of employees and organisational performance. These techniques of employee voice entail the utilization of intermediaries, who tend to represent the interests of workers to management and hold negotiations on their behalf. Unions happen to be formal organisations or bodies that represent associations of employees in negotiations and collective bargaining with employers. They negotiate with employees on behalf of the employees on matters such as job security, working conditions, salaries, and benefits. Unions happen to be typically formed in companies with a huge number of workers, such as transportation and management (Della Torre et al., 2021). On the other hand, work councils happen to be bodies that are established within a company to represent the interests of employees in the process of making decisions. Work councils can provide employees with a voice in decision-making processes and can help to promote greater job satisfaction and engagement. Both of these techniques of employee voice can offer workers with a collective voice and the potential to influence decision-making within the organisation.
One of the main benefits of unions and work councils is that they can improve employee outcomes by negotiating better pay, benefits, and working conditions. By providing employees with a collective bargaining power, these intermediaries can help to address issues of inequality and improve the overall well-being of employees (Kat, 2023). Unions and work councils can also provide employees with legal representation and support, which can help to ensure that their rights are protected. Another benefit of unions and work councils is that they can improve organizational performance. By representing the interests of employees, these intermediaries can help to promote greater job satisfaction and employee engagement. This can lead to a more productive workforce and a more positive workplace culture. Unions and work councils can also help to identify areas of organizational improvement and negotiate changes that can lead to increased efficiency and profitability.
However, there are also some limitations to unions and work councils. These methods of employee voice can be time-consuming and expensive to maintain, and they may not be appropriate for all types of organizations. Additionally, they can create tension between employees and management, and there is a risk of strikes or other forms of industrial action if negotiations break down. Furthermore, unions and work councils are often associated with industries where there is a high degree of job security and stability. In contrast, in industries where there is high competition and technological innovation, such as the technology sector, there is often less need for unions or work councils, as employees may be more willing to change jobs or adapt to new working conditions.
3.3 Critically analyse how different forms of informal and direct voice could contribute to improved levels of organisational performance and employee outcomes.
Direct forms of employee voice
Direct forms of employee voice, such as through direct communication, can have a significant impact on employee outcomes and organizational performance. Direct communication is a critical component of employee voice, which refers to the ability of employees to express their opinions, concerns, and suggestions in the workplace (CIPD, 2021). Direct communication allows employees to express their thoughts and ideas to their managers, colleagues, or other stakeholders in the organization, and can create a sense of psychological safety and empowerment among employees.
Direct communication is particularly important in organizations where hierarchy is prevalent. When employees feel that they can communicate directly and openly with their managers, they are more likely to feel valued and respected. This, in turn, can lead to higher levels of job satisfaction and organizational commitment. Employees who feel valued are also more likely to be engaged and motivated, which can lead to improved organizational performance. Research has shown that direct communication can lead to increased trust between employees and their managers (Mahan, 2019). When employees feel that their managers are willing to listen to them and take their concerns seriously, they are more likely to trust their managers. This trust can facilitate more open and honest communication between employees and managers, which can lead to better problem-solving and decision-making.
Informal forms of Employee Voice
Informal employee voice, such as through informal discussions, can also have a significant impact on employee outcomes and organizational performance. Informal discussions allow employees to express their opinions and concerns in an informal setting, such as during lunch breaks or coffee breaks. These discussions can create a sense of community and camaraderie among employees, as they share their experiences and perspectives with one another. Research has shown that informal discussions can lead to higher levels of employee engagement and job satisfaction (Busher, 2019). When employees feel that they can talk freely with their colleagues, they are more likely to feel connected to their work and their colleagues. This can create a more positive work environment, which can lead to improved employee outcomes. Moreover, informal discussions can lead to improved teamwork and collaboration. When employees have regular informal discussions, they can build stronger relationships with their colleagues. This can lead to better communication and collaboration, as employees are more likely to work together to achieve common goals. When employees work together more effectively, they are better able to achieve organizational objectives, leading to improved organizational performance.
Informal discussions can also facilitate knowledge sharing within the organization. When employees share their experiences and perspectives with one another, they can learn from each other and gain new insights. This can help to improve processes and procedures within the organization, leading to improved organizational performance. Informal discussions can help to build a positive workplace culture. When employees feel comfortable talking with their colleagues, they are more likely to build positive relationships with one another (Robinson, 2022). This can lead to a more supportive and collaborative work environment, which can enhance employee well-being and performance. By encouraging employees to have regular informal discussions, organizations can create a more engaged and connected workforce, facilitate teamwork and collaboration, and foster a positive workplace culture.
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CIPD. (2021). Employee voice | Factsheets | CIPD. Retrieved March 12, 2023, from https://www.cipd.co.uk/knowledge/fundamentals/relations/communication/voice-factsheet#gref
Della Torre, E., Gritti, A. and Salimi, M. (2021) “Direct and indirect employee voice and firm innovation in small and medium firms,” British Journal of Management [Preprint]. Available at: https://doi.org/10.1111/1467-8551.12504.
Kat (2023) Employee voice in the Workplace, Blink. Available at: https://joinblink.com/intelligence/employee-voice/#: (Accessed: April 11, 2023).
Mahan, W. (2019) Defining voice of the employee & why it’s important, workinstitute.com –. Available at: https://workinstitute.com/defining-of-voice-of-the-employee-why-it-is-important/#: (Accessed: April 11, 2023).
Nidirect. (2021, August 24). Introduction to trade unions. nidirect. Retrieved April 23, 2023, from https://www.nidirect.gov.uk/articles/introduction-trade-unions
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