International Business

Assignment-3

SUBMITTED TO
Miss. Anam Fahim

SUBMITTED BY

Muhammad Ali
2332-BC-2018

International Business

Bcom(B)
Semester VIII

Department Of Commerce And Finance

Government College University, Lahore Dated
12th-April- 2022
EMPLOYEE RELATIONS:

“An organization's efforts to create and maintain a positive relationship with its employees. By
maintaining positive, constructive employee relations, organizations hope to keep employees loyal and
more engaged in their work.”

Employment relations is the study of the regulation of the employment relationship between employer and
employee, both collectively and individually, and the determination of substantive and procedural issues at
industrial, organizational and workplace levels.

Three Approaches to Employment Relations.

Unitary approach:
Alan Fox is credited with developing the unitary frame of reference (1966). According to the unitary
viewpoint, the organization points to a single or unified authority and allegiance structure. The unitary
approach emphasizes shared values, interests, and goals, objectives. Those who hold this viewpoint regard
all organizational participants as a team or group.

As a result, the term "family" implies shared beliefs, shared aspirations, and a common destiny. In
essence, unitary denotes the lack of factionalism inside the company.

Conflict is regarded as unreasonable, and the dismissal of striking employees is preferable. Consultation or
bargaining Conflict is viewed as sick, nasty, or negative. Trade Unionism is illegal and controlled because
it is considered as an unlawful incursion or threat.

Pluralistic approach:

According to the pluralistic view, there are several sources of power in the interaction between employees
and company executives. Unions are frequently an integral part of the pluralistic approach that seeks a
balance of power between leadership and employees. This viewpoint emphasizes that conflict is
unavoidable, yet it is an essential component of innovation and corporate progress. Mediation attempts to
strike a balance between what the labor desires and what management believes it requires. Understanding
the workers' point of view can assist reduce long-term conflict. As a result, management that climbs
through the ranks is frequently accepted by unions and employees. These leaders have firsthand
knowledge of working circumstances.

Marxist theory:

Karl Marx founded Marxism, a social, political, and economic ideology that focuses on the battle between
capitalists and the working class.

Marx argued that the power dynamics between capitalists and labor were fundamentally exploitative,
resulting in class warfare.

He predicted that the conflict would eventually culminate to a revolution in which the working class will
topple the capitalist class and gain control of the economy.
COLLECTIVE BARGAINING:

“Collective bargaining is the procedure through which a group of employees negotiates with their
employer "collectively." In general, this is to negotiate wages, working conditions, benefits, and other
aspects of the employee's compensation package and rights”

Collective bargaining is generally conducted through a trade union. Employees will pay the trade union a
relatively small fee each month to be a member.

Types of Collective Bargaining

When examining the many forms of collective bargaining, it is critical to distinguish between a collective
agreement and a collective bargaining agreement. There are also several forms of collective agreements,
but they are the results of collective bargaining.

There are, for example, single union agreements, procedural agreements, substantive agreements, and
partnership agreements. All of these terms relate to the agreement reached as a consequence of the
collective bargaining process.

Conjugative and distributive bargaining:

Distributive bargaining is a negotiating procedure in which one side benefits at the expense of the other.
This generally refers to income redistribution in the form of greater wages, bonuses, or financial perks.
Simply, everything pertaining to the transfer of funds.

In this style of negotiating, the trade union must have sufficient market strength to prevail. The employer
will want to pay as little as possible in wages. However, in order to persuade them to pay more, trade
unions must have a large enough membership to give a meaningful incentive.

Co-operative or integrative bargaining:

Integrative negotiation occurs when both parties seek to profit from what is known as 'win-win'
negotiating. Both sides may put up a list of requests in order to achieve an agreement that benefits both
parties. To put it another way, integrative bargaining entails both parties taking into account the other
party's point of view, needs, goals, fears, and worries. As a result, no party gains nor loses by the same
amount.

Unions, for example, may demand for increased levels of worker training. This will cost the company
more money in the short term, but it will gain from higher levels of productivity in the long run.

Productivity bargaining:

Productivity bargaining entails both sides haggling about productivity and remuneration. As a result,
unions may argue that greater wages would increase productivity. However, the company is unaware of
this. As a result, target-oriented bonuses or innovative strategies to improve the process may be proposed.
Composite bargaining:

The term "composite bargaining" refers to a negotiation that focuses on a variety of non-pay-related
factors. They are typically concerned with employee well-being and job stability. It addresses issues like
as working conditions, policy, recruiting, and disciplinary procedures, among others.

The goal is to establish a long-term mutually beneficial connection between the company and the
employee. It accomplishes this by identifying concerns that workers may be experiencing that may have
an influence on their long-term future at the organization.