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Impact of Employee Relations in Business Success | IHG hotel Study

510 Downloads1 I Published: 20 Nov ,2019

Introduction

Business organizations have to focus on the relationship between employee and employer because this will lead the firm towards success. It is the responsibility of manager to create a healthy environment in company so that all objectives can be achieved. If employee’s relationship would get improved then trust can be built and conflicts can be reduced. Through this, positive environment can be spread all around the firm. The present report is based on IHG hotel which performs its operations in the hospitality sector. They are focusing on their employee relations so that quality services can be ensured. Below mentioned report is based on employee relations that is controlled by the legislations (Kaufman, 2010). Along with this, it also explains the negotiation strategies that help the firm in order to reduce the conflicts among all the employees. Further, collective bargaining and negotiation process are also explained in detail in the report.

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Task 1

1.1 Explaining the unitary and pluralistic frames of reference

IHG Hotel focuses on the employee relations so that they will be able to provide quality services to their customers (Ng and Feldman, 2012). This kind of relationship can be measured by using the frame of references. There are two types of frames of references in which one is unitary and another one is pluralistic.

Unitary Perspective:This kind of frame of reference is related to the values, beliefs and way of thinking of management. In order to achieve success in the market, all members would share same goals and objectives. When conflicts occur in between employees then it will affect the performance of IHG Hotel. So, these issues should be resolved by the employer so that firm can get success in the market (Parzefall and Salin, 2010). Management should also focus on their loyal workers.

Pluralistic perspective:In this kind of approach, organizations get divided into sub groups and they all are focused on their set objectives and goals. The power and control is also divided among all the groups. The role of every manager is to motivate their workers and encourage participation among them so that overall performance can be improved. However, employer should also involve their employees in the decision making process so that quality decisions can be made.

IHG Hotel uses the pluralistic frame of reference in their business organization. Through this, overall performance can be improved by motivating all the employees in business (Sadikoglu and Zehir, 2010).

1.2 Assessing the way in which changes in trade unionism have affected employee relations

Trade union was very popular in 20thcentury and this can directly affect the performance of business organization. Through this, conflicts can be increased between all workers and that will indirectly affect the employee relations. They have a union leader who represent their workers and their main aim is to increase wages and other benefits of them. In the year 1824, TU has become a legal entity in the country and many workers who were working in the firm joined this union in order to get fair wages according to their work. There were many unions who perform their operations in UK as well as different changes are taking place that will affect the relations among all staff members (Turkyilmaz and et. al., 2011).

There are some macro factors that also affect the overall performance of firm. At the time when government makes any policy and legislative laws, it affects the performance of trade union and through this, employee relations get affected in IHG Hotel. Along with this, when a business organisation adopts any technological change in the firm then due to modern technological advancements, the enterprise have to reduce their workforce. Trade union get established with an objective to improve the welfare of employees who are working in IHG Hotel. Further, it also works in order to reduce the communication gap between management and their workforce. They also made some business strategies so that they can protect the rights of their staff members (Underhill and Quinlan, 2011). Therefore, when any change take place in trade unionism then it will affect the relationship among all members.

1.3 Explaining the role of main players in employee relations

This is the responsibility of all staff members and employers to maintain a healthy relationship in business organization. It is not the duty of an individual person. This kind of environment can be achieved by collective efforts. So, there are some individuals that play a significant role in order to improve the employee relations. These are:

Manager: It is the responsibility of manager of IHG Hotel to build healthy relations among all staff members (Van De Voorde, Paauwe and Van Veldhoven, 2012). He has to solve the issues that may arise between employees as conflicts can lead to negatively affect the performance of business organisation. Along with this, he has to ensure healthy competition among all employees so that overall performance of the firm can be improved.

Government agencies:It is the duty of state government to make some rules and regulations. These legislative laws have to be followed by IHG Hotel so that they can improve their growth in the country as compared to other market players. Some of the laws are minimum wages act, health and safety act and so on (Negotiating and bargaining. 2017).

Workers:These are the people who are performing their tasks in the business organisation so that firm will be able to achieve its objectives that will lead towards the success. Further, all people have to follow the laws that are adopted by IHG Hotel. Staff members need to take active participate in the activities that are conducted by industry (Walby, 2013). Through this, relationship among all the workers can be improved.

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Task 2

2.1 Explain the procedures an organisation should follow when dealing with different conflict situations

The success of the business organization is totally depends upon the good employee relationship. Sometimes, due to some factors conflicts may arise between employees so its is the responsibility of the HR to resolve those issues. IHG hotel has to adopt a procedure in order to deal with different kind of issues (Wilkinson and Fay, 2011). This procedure have some steps and these are:

Identify the problem:It is the responsibility of manager to identify the actual problem that is faced by employees. In this, he has to gather all the facts and figure of that issue so that the conflict can be resolved in an effective manner.

Look beyond the incident:Manager has to identify all the facts that why this issue has arise, how it can be reduced and so on. Sometime, problems can be occurred because of the personal reason so they have to identify these reasons.

List the possible solutions:After getting all the facts now manager has to identify many solutions so that satisfaction among all the members can be increased.

Evaluate the solutions:In this step, now he has to select one solution out of many so that conflicts can be reduced (Kaufman, 2010). Here, he can follow many strategies such as compromising, avoiding, resolving and forcing. In compromising strategy both the parties have to compromise because both will not get that they want. Sometimes, in order to manage the issues people avoid conflicts.

Document the agreement:In the last stage, the HR manager of IHG Hotel has to make the document of the solutions that both the parties get arrived at a solution.

2.2 The key features of employee relations in a selected conflict situation

Employee relations is important in order to improve the relationship between employee and employer. Through this, quality services can be ensured by motivating the employees. It is the duty of the HR manager of IHG Hotel to reduce the conflicts that are arise among workers. He can follow the pluralistic frame of references in order to improve the relationship. There are some key features of employees relations that play a important role in any conflict situation and these are:

Negotiation:It is a key feature that resolve the conflicts between all the employees and between employees and employer (Batt and Colvin, 2011). Through this technique, employee relations can be improved in IHG Hotel. However, overall performance can be improved.

Collective bargaining:This is a technique that is used to reduce the conflicts among all the members. In this all members collectively reduce their issues so that overall performance of the firm can be improved (What is Employee Relations ?. 2017).

Grievances:If any employee has any issue regarding the work then that person can fill the form of grievance. Manager identify the issue of that workers an then solve their issues so that employee satisfaction can be improved (Daymon and Holloway, 2010).

Unfair treatment: When the manger treat their employees unfairly then conflicts can be arise among workers and due to this the industry will not be able to provide luxury services to their customers.

Poor communication:When any communication gap is their between employee and employer then issues can be raised in IHG Hotel.

2.3 Evaluate the effectiveness of procedures used in a selected conflict situation

When employee relationship is not good in the business organization then conflicts may arise among employees (Kersley et. al., 2013). So, in order to reduce these conflicts IHG Hotel uses the dispute handling procedure in order to reduce these issues. Through this approach effectiveness can be achieved so the firm will be able to achieve its overall objectives as well as its performance can also get improved. In this type of approach, disputing parties can talk to each other in order to resolve their issues regarding to each other.

If all staff members who get satisfied with the solutions that is given by the manger then conflicts can be resolved. Along with this, the manager of IHG Hotel will be able to increase the satisfaction among all workers. But if all the staff members are not happy with the solution that is given by the manager then they can go to the executive director for the same. If labour get satisfied with the solution that is given by the director than issues can be resolved other the staff member can approach dispute handling team (Larson, 2015). Through this approach, satisfaction level can be enhanced. This is an effective method that is used by the firm in order to improve their overall performance.

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Task 3

3.1 Explain the role of negotiation in collective bargaining

Collective bargaining is an activity that is used by the business organization in order to to reduce the conflicts between employees and employers. Through this process a healthy environment can be ensured in IHG Hotel that will lead towards the success. In this kind of approach, managers and staff members can talk to each other so that issues can be resolved in an effective manner (Bach and Bordogna, 2011). Along with this, labours choose their representative who will support all members and place their issues in front of manager of the industry. Through this a positive environment can be created within the firm so that performance can be improved. Negotiation play the different roles in collective bargaining process and these are:

Effective solution:Through negotiation all employees and employers will be able to get an effective solution. On the other side, level of satisfaction can be increased between all parties. In order to reduced their conflicts workers talk to their seniors in a formal manner. So, people get the solution of their problem.

Collective bargaining process:Negotiation helps the firm in improving their collective bargaining process. In this kind of process there are some steps involved so that conflicts can be resolved in an timely and effective manner. Four stages are their in this process such as preparation, discussion, bargaining and documentation. In the first stage issues are identified by the manager of IHG Hotel (Baccaro and Howell, 2011). In the next stage, both the parties are discuss with each about their issues. Some conflicts are resolved by the mutual understanding with each other and then carry forward the issues that are not settles down. In the third step, both parties negotiate with each other and arrive at a solution and at last prepare a documentation of the discussion.

3.2 Assess the impact of negotiation strategy for a situation

Business organization can use the negotiation strategy so that all the disputes can be settled down between the employees and employers. The negotiation strategy can be assessed by IHG Hotel in order to improve their performance in the market as compare to other competitors. There are many negotiation strategy that can be used by the business organisation such as compromising, resolving, forcing and avoiding. In the compromise strategy both the parties have to compromise with their objectives then only conflicts can be resolved. Through this, motivation level of the employees is get decreased and they will not perform well in the firm. If workers will not perform well then they will not be able to achieve their goals. Another strategy is forcing, in that manager directly provide the solution to the employees. But this can create a negative environment in the enterprise so IHG Hotel will not be able to retain its existing members and attract new workers in the industry (Employee Relations.2017). Another strategy is resolving that resolved the issues among all the disputing parties. Through this, smooth functioning can be ensured in the firm and negativity can reduced among all the members.

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Task 4

4.1 Assess the influence of the EU on industrial democracy in the UK

Industrial democracy is related to the involvement of workers in the decision making process within the business organization (Amstad and et. al., 2011). European union can directly influence the industrial democracy in the United Kingdom. When EU passes any law in the country then every organization have to follow that law and if it is related to the staff members then then it will affect the decision making of the employees. It is necessary for IHG Hotel to adopt these laws. if they will not follow these legislative laws then the firm have to face some adverse affects such as strikes, lockouts and so on. Sometimes cultural differences can also affect the industrial democracy like when any industry offer its services at global level then they will not involve their workers in decision making process. EU influence the industry democracy so on the basis of that IHG develop a partnership based relationship concept. Through this concept employees decision making process can be ensured along with their authority. Business organizations have to follow all the guidelines so that they can improve their performance and achieve all the objectives (Ayyagari, Grover and Purvis, 2011).

4.2 Compare methods to be used to gain employee participation and involvement in the decision making process in organisations

There are many methods that are used by IHG Hotel in order to gain employee participation and involvement in the decision making process (Edwards, 2011). Some of the techniques that are used by the business organization are consultation, attitude survey, suggestion scheme etc. In the consultation method manager encourage the employees to take participate in the decision making process. He also provide opportunities to the workers so that they can put their ideas in front of the higher authority. Through this overall performance can be improved and the firm will be able to achieve its objectives like to provide the quality services to their customers, to make the customers happy and so on. HR Manager can follow this strategy in order to increase the motivation level of the people. In the next method that is attitude survey, manager provide an opportunity to its staff members to provide their view on affairs of the firm. Through suggestion scheme motivation can be increased among all the people who are working in IHG Hotel (Edmans, 2011). These all strategies help the industry in order to improve their performance in an efficient manner.

4.3 Assess the impact of human resource management on employee relations

Human resource management play a important role in motivating and maintaining the relations among all the employees (Guest, 2011). The HR manager of IHG has the responsibility to develop the policies and laws within the firm so that healthy environment can be created within the business organization. The manager can help the staff members in order to improve their relations with their superior. If this relations get improved then the firm will be able to achieve its overall objectives.

Further, the firm can use pluralistic frame of references in order to build a relationship between all the members of organization (Ferner, Edwards and Tempel, 2012). If its overall performance can be improved then growth can be achieved in an effective and efficient manner. The HR manager also provide some compensation and extra benefits in order to motivate the staff members.

Conclusion

From the above mentioned report it has been concluded that employee relations is important within the business organization. It is necessary to improve the relationship among all the employees and employer so that overall performance can be improved of the firm. In order to reduce all conflicts the enterprise can use collective bargaining. IHG Hotel can use some strategies in order to increase the motivation level of the staff members. Through this the firm will be able to achieve its objectives and increase its profitability as compare to other competitors.

References

Books and Journal

  • Amstad, F.T and et. al., 2011. A meta-analysis of work–family conflict and various outcomes with a special emphasis on cross-domain versus matching-domain relations. Journal of occupational health psychology.16(2). p.151.
  • Ayyagari, R., Grover, V and Purvis, R., 2011. Technostress: technological antecedents and implications. MIS quarterly.35(4). pp.831-858.
  • Baccaro, L and Howell, C., 2011. A common neoliberal trajectory the transformation of industrial relations in advanced capitalism. Politics & Society.39(4). pp.521-563.
  • Bach, S and Bordogna, L., 2011. Varieties of new public management or alternative models? The reform of public service employment relations in industrialized democracies. The International Journal of Human Resource Management.22(11). pp.2281-2294.
  • Batt, R and Colvin, A.J., 2011. An employment systems approach to turnover: Human resources practices, quits, dismissals, and performance. Academy of management Journal.54(4). pp.695-717.
  • Daymon, C and Holloway, I., 2010. Qualitative research methods in public relations and marketing communications. Routledge.
  • Edmans, A., 2011. Does the stock market fully value intangibles? Employee satisfaction and equity prices. Journal of Financial Economics.101(3). pp.621-640.
  • Edwards, R., 2011. Rights at work: Employment relations in the post-union era. Brookings Institution Press.
  • Ferner, A., Edwards, T and Tempel, A., 2012. Power, institutions and the cross-national transfer of employment practices in multinationals. Human Relations.65(2). pp.163-187.
  • Guest, D.E., 2011. Human resource management and performance: still searching for some answers. Human Resource Management Journal.21(1). pp.3-13.
  • Kalleberg, A.L., 2013. Book review symposium: Response to Reviews of Arne L Kalleberg, Good Jobs, Bad Jobs: The Rise of Polarized and Precarious Employment Systems in the United States, 1970s to 2000s. Work, Employment & Society.27(5). pp.896-898.
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