Employment relations characterize the dynamic relationship between employers, employees and their representative and impact on the policies on workplace, the mechanisms for resolving workplace disputes and generally the employment climate (Noh and Hebdon, 2022). There are three dominant approaches to employment relations including unitarism, pluralism, and the radicalism. An organization’s perspective affects how people professionals resolve conflicts, employee engagement and policy development (Cranston, 2021).
Unitarist perspective believes that the organization is one cohesive entity with a common goal with supervision and subordinates having joint interest and working together to achieve the success of the organization (Patil, 2023). It assumes that workplace conflict is rare and most often arises from misunderstandings and bad communication, rather than basic issues of interest. It argues that trade unions are not necessary; employees’ needs can be met by communicating directly with employers. According to unitarist perspective, Human resource professionals cooperate in creating a strong organizational culture and encourage employee engagement, loyalty and accordance with the company’s goals (Cullinane, 2021). Although it pays great attention to organizational cohesion, critics of the unitarist view characterise it as an approach that ultimately reduces employee voice especially when disagreements occur. Neglecting collective bargaining and external representation can lead to the organization inadvertently suppression dissent and lead to dissatisfaction, high turnover, and areas for reputational risk (Bukar, Suleiman and Mohammed, 2022).
The pluralist perspective views work place relations as inherently made of a combination of interests among various interest groups such as between employer and employee (Patil, 2023). According to the pluralist perspective, trade unions and collective bargaining serve as a bridge between employer and employee interests. When an organization adopts a pluralist framework, it puts in place formal dispute resolution mechanisms like grievance procedures and joint consultation committees, thereby making it possible to allow employee voices to be heard and considered when decision making is being taken (Harvard Law School, 2024). However, pluralism has its challenges. The presence of many stakeholders with different interests may cause long negotiations as they delay decision-making processes. Such adversarial relationships between management and trade union can also cause industrial action and disrupt organizational operations (Noh and Hebdon, 2022b). To counter these challenges, effective people management strategies are essential to minimize these challenges and continue to have constructive dialogue and compromise as major facets of organizational policies.
The radical or Marxist or critical perspective considers that employment relations, more generally, are essentially determined by power imbalances and class struggles (Themba Mzangwa, 2020). It contends that capitalist structures are in certain manner inherently exploring and subordinating workers. Under this perspective, workplace conflict is not only inevitable but also a sign of broader socio-economic inequalities (Mwogereze, 2023). From a radical perspective, trade unions, worker movements and regulatory frameworks are necessary to counter employer’s dominance and work towards fair working conditions. However, while this perspective is important regarding issues of power dynamics and social justice, but it adopts an adversarial approach, with high risk of an adversarial environment, prolonged disputes and operational disruption (Kaufman et al., 2020).
My organization primarily operates in a unitarist employment relations model with greater emphasis on teamwork, organisational loyalty and open communication between management and employees. This is also reflected in open door policy, employee engagement initiatives and performance driven reward systems. It creates a corporate culture that encourages employees to align with the mission and the values of the company (Kaufman et al., 2020).
The unitarist approach plays a major role on the role of people professionals in the organization. HR practitioners provide leaders, context, and direction to their teams offering leadership-training skills, organizing recognition programs, and promoting employee well-being (Okolie, Omole and Yakubu, 2021). Mediation and coaching are favoured in addressing conflict resolution mechanisms because conflicts are resolved through collaborative problem solving instead of adversarial negotiation. It also allows the organization to quickly adapt of changing markets, as well as to implement policies without resistance, as trade union influence is not present.
However, there are challenges associated with this approach. In some instances missing a formal collective representation to represent employees, employees may feel disenfranchised, especially after major organization changes (Hubbart, 2023). Management creates and allows feedback through surveys and one on one meetings, but employees may perceive these as incomplete in comparison to formal collective bargaining structural systems. In addition, conflicts that result from expectations or perceived unfair treatment may not be resolved as well and will result in employee dissatisfaction and turnover (Yean et al., 2022).
The adoption of a unitarist approach has several implications for people professionals within the organization. On the one hand, it facilitates HR to concentrate on strategic association and corporate culture, while at the same time requiring a proactive attitude to employee relations to avoid disengagement (Kaufman et al., 2020). HR function has to play the role of a bridge between management and the employees to ensure that the concerns are addressed, and that the organization provides an environment that is safe, fair and inclusive for the employees.
Besides, due to the absence of trade unions, HR professionals must establish very strong internal dispute resolution mechanisms. effective employment relations entails investing in training programs through which managers acquire skills in handling conflict, implementing anonymous feedback channels, and you establish a culture of transparency (Fatma Bramly, 2024).
Finally, while the unitarist approach is efficient and cohesive, pluralism would need to be balanced in the realms of diverse employee interests and they need to be provided a truly inclusive environment. If the organization recognizes the value they place on an employee voice and put proper representation mechanisms, the organization will be able to increase an employee’s job satisfaction, will reduce turnover, and overall will improve the employment relations framework.
Employment relations theories provide critical insights into how organizations manage workforce dynamics. The unitarist, pluralist and radical perspectives have different approaches to how employment relations should be handled and imply different approaches for how conflicts should be resolved, how employee represent should be organised and who has power to take organisational decisions. Although my organization generally adopts the unitarist approach, some elements of pluralism could be used to increase employee engagement and satisfaction. In defining the perception of working life in the organization, people professionals have a crucial role in defining the shape of employment relations policies, so that the environment is fair, transparent and supportive. An organization can create a productive and harmonious workplace by setting up balance between managerial priorities and employee needs.
Learning Outcome 2 Understand how external institutions can shape employment relations at organisational level.
Question 2
AC 2.2 Employment relations strategies are shaped by competitive pressures; review how the current labour market and organisational strategy impacts the management of employment relations within the organisation.
Impact of the Labour Market and Organisational Strategy on Employment Relations
External labour market conditions and internal organisational strategies respectively influence employment relations strategies (Pahuja, Chowdary and Mittal, 2021). The business approach to workforce management is influenced by factors such as employee engagement and conflict resolution, competitive pressures, evolving workforce expectations and economic fluctuations. This paper explores how the current labour market and the organisation’s strategy affect employment relations, reviewing key issues, and HR responses to them.
The Influence of the Labour Market on Employment Relations
As a key player in the creation of employment relations the labour market decides as to whether there are talents available or not for employment, wage requirements and restrictive hiring practices (Carrillo-Tudela, Gartner and Kaas, 2023). Several labour market factors strongly influence and impact on how organisations run their workforce with the employment relations strategies.
Labour market tightness, when demand for skilled workers is greater than supply of workers in these skills, is one of the main factors affecting employment relations (Duval et al., 2022). When there are skill shortages in industries, employees have more bargaining power and hence higher wages, better working conditions and stronger mechanisms of employee voice. Finally, this approach to employment relations shifts the employment relations towards a more pluralist approach in which organisations must negotiate with employees and trade unions to attract and retain talent (CIPD, 2023). In contrast, the existence of high unemployment rates in labour markets may promote the adoption of a more unitarist approach by the organisations, given the weak bargaining power of workers.
Another consideration is the demographics and expectations of the workforce. Millennials and Generation Z, especially, put emphasis on work-life balance, flexible working arrangements and demand an inclusive workplace culture (Evi Christy Waworuntu, Kainde and Mandagi, 2022). Firms that do not adjust their employment relation strategies to these expectations are likely to lose engagement, higher turnover, and reputational damage. Because employers are aligning with employee trends, policies including such as hybrid working, mental health support and career development opportunities (CIPD, 2024).
Moreover, technological advancement and automation have changed the job role, thereby raising concerns about security of job and the restructuring of the workplace (Ghani et al., 2022). Changes in the organisation that introduce automation without substantial communication and employee involvement may be resisted, leading to lost trust and employee engagement. To mitigate the negative effects of workforce morale on employment relations strategies, effective strategies should include transparent communication and reskilling programs, and an involvement of employees in decision-making (Aleke, 2024).
The Role of Organisational Strategy in Employment Relations
Employment relations are heavily influenced by the organisational strategy that establishes various HR policies and leadership approaches (Ludwikowska, 2022). In order for businesses to achieve growth, efficiency or innovation, employment relations strategies need to be aligned to other business goals. The organisation’s business model is one of the strategic factors that influence the employment relations. To attain this, companies pursuing a cost leadership strategy might focus on efficiency, lean workforce structure, and employment relations based on performance (Fatma Bramly, 2024). Such measures used in cost cutting can lead to work intensification and employee dissatisfaction if the job security or well-being is affected. In contrast, organisations with a differentiation strategy may concentrate on employee engagement, skill development and retention, which leads to an environment that is more inclusive and participatory with employment relations (Itam and Bagali , 2019).
Corporate culture also plays a key role. Organisations with a unitarist culture have high loyalty, shared values and authority, making use of direct communication channels rather than collective bargaining(Tarver, 2024). On one hand, this approach is effective in its ability to expedite decision-making; however, if employees are not included in the meaningful decision-making, there is a risk of employee discontent. Companies that are pluralist tend to achieve better alignment of the workforce and lower conflict than following the opposite method of structured dialogue with employees and representative (Kaufman et al., 2020).
Challenges and HR Strategies in Managing Employment Relations
Due to the competitive pressures arising from labour market conditions and organisational strategy, the HR professionals must adopt adaptive employment relations strategies to maintain workforce stability, engagement and productivity (AlAbri et al., 2022).
One key challenge is employee retention. Labour market competition, particularly in sectors with talent shortages, increases the risk of high turnover (Suraihi et al., 2021). To this end, the organisations could invest in career development programs, employee recognition programs, and flexible work arrangements to job satisfaction and commitment. HR plays an important role in organising and implementing the retention strategies that are the best trade-off between organisational needs and employees’ ambitions.
Another critical issue is industrial relations and conflict management. Sectors with high influence of trade unions cannot afford to not have collective bargaining, grievances and the danger of being subject to industrial action (OECD, 2019). Proactive engagement with employee representatives, transparent and negotiation process and dispute resolution mechanisms that foster cooperation rather than confrontation, are considered an effective HR strategies (Bhakuni, Rana and Bhanot, 2024).
Another major priority is workforce adaptability. Organisations need to develop a resilient and skilled workforce to function in face of rapid technological advancement and changing economic conditions (WEforum, 2025). To ensure that employees are agile and adaptive to changing business demands, continuous learning initiatives, cross functional training and change management programs must form part of the employment relations strategies.
Conclusion
Employment relations result from interaction between labour market and organisational strategy in matters such as HR policies, workforce engagement, and conflict resolution approaches. The current state of the labour market demands employment relationship strategies that seeks to promote job involvement and well being, shaped by labour market’s own dynamic characteristics such as skill shortage, people’s labour expectation, and the onset of automation. Organisations can maximise productivity, engagement and resilience in the workforce by aligning their employment relations practices with external labour market conditions as well as internal strategic objectives.
Question 3
AC 3.4 Propose two distinct strategies to improve levels of engagement within the organisation and evaluate how their impact on organisational performance can be measured. Justify your recommendations.
Introduction
Employee engagement has important implications for both an organisation’s success and individual employee outcomes in the form of productivity, creativity and retention (Deepalakshmi et al., 2024). Employees who are engaged tend to be more committed to their roles, align with the organisation’s values and produce positive business outcomes. The report proposes two strategies for improvement of employee engagement: Structured recognition and rewards programme and culture of continuous learning and development. In addition, it examines how the influence of these strategies on organisational performance can be measured in order to rationalize why they are selected based on evidence and best practices.
Structured Recognition and Rewards Programme
An effective way to improve employee engagement is through implementing a structured recognition and rewards programme (Rusin and Szandała, 2024). The recognition, whether monetary or non-monetary, encourages good behaviour, improves satisfaction in the position and increases motivation. Such a programme is designed in such a manner that employees feel that they matter to the company because of their contribution and engagement in the organisation becomes higher.
The forms that a recognition and rewards program may take are performance based bonuses, peer-to-peer recognition and service awards (Young, 2023). When employees know that their work is appreciated, they tend to be dedicated to their jobs and support the organisation’s purposes. This creates the feeling of belonging and loyalty, which in turn cuts turnover rates and increases the company atmosphere overall.
As a way to measure the effectiveness of this strategy on achieving organisational performance, there are several metrics which can be used (Young, 2023). Employee engagement surveys can tell you if employees believe that they are appreciated and motivated. As well, tracking retention rates and absenteeism level can assist to point out improvements in job satisfaction. In addition, the performance data such as productivity levels or customer satisfaction scores can indicate whether the programme has fulfilled its objectives (Twin, 2025). When employees get proper recognition, they will work harder so that the business will have positive outcomes, such as increased profitability and higher service quality.
Furthermore, psychological impact of this strategy on employees has been the justification for it. According to Herzberg’s Two-Factor Theory, recognition and achievement are among the most motivating factors that help improve one’s job satisfaction (Nickerson, 2023). Additionally, research has found that you gain improved business performance and employee engagement in companies with strong recognition culture (Wickham, 2023). As a result, such an approach of structuring recognition and reward programme is justified to drive some organizational success and engagement.
Culture of Continuous Learning and Development
Another strategy improve employee engagement by promoting a culture of continuous learning and development (Jacob, 2024). Personal and professional growth give employees opportunities for engagement. Providing learning and development initiatives such as mentorship programmes, training workshops, career progression plan allows employees to feel empowered and valued.
However, a strong learning culture encourages employees to strengthen their learning skills, adjust to the changes in industry and take on difficult tasks (Skillscaravan, 2024). In turn, this also boosts employee’s confidence, increases their job satisfaction and strengthens their commitment to the organization. If the employer invests in the development of the employees, the latter are more likely to be loyal and dedicated.
The impact of learning and development on organisational performance can be measured through various key performance indicators. Employee progression rates, internal promotions and tracking of skills enhancement are tangible proof of development initiative success (Arulsamy et al., 2023). In addition, engagement surveys centred on career growth opportunities base should yield qualitative data about employees’ in relation to development possibilities. Along with performance metrics such as productivity levels and innovation rates, learning initiatives can also help contribute business outcomes.
Based on the Job Demands Resources (JD-R) Model, employees with access to with job resources like training and career development tend to experience heightened motivation and concurrently reduced burnout (Scholze and Hecker, 2024). Another benefit of prioritising learning is that organisations have higher retention rates, improve performances, and even have a competitive edge in the industry. Based on these benefits, it is prudent to promote a continuous learning and development culture to boost engagement.
Conclusion
The improvement of employee engagement is imperative in achieving organisational success, and structured recognition and rewards and a culture of continuous learning are two good strategies for that purpose. With both strategies, there is an increase in motivation, job satisfaction and organisational commitment. A deeper understanding of their impact both can be measured through engagement surveys, retention rates, performance and career progression metrics. These strategies are justified by psychological theories and empirical research as sustainable ways they can engage and drive performance in organisations. Organisations, which prioritise employee recognition and development, create a motivated workforce that contributes towards run business success.
Learning Outcome 4 Understand how people professionals work with employees and trade unions to mitigate organisational risks.
Question 4
AC 4.1 Identify two different forms of collective bargaining, one in a unionised and one in a non-unionised environment, critically analysing their role in determining pay and resolving differences. Explain to what extent either applies to your own organisation.
Introduction
Collective bargaining is the process of employer and employee bargaining together with regard to employment terms, such as wages, working conditions and dispute resolution (Takupiwa and Christian Shelfa, 2019). Its function is as the means for balancing power imbalance in the workplace within fair and equitable arrangement of treatment to employees and protection of organizational interests. Collective bargaining may take different forms depending upon whether the environment is unionized or not (Kenton, 2024). This examines the impact that two separate forms of collective bargaining – one occurring under an unionised setting and another in a non-unionised environment.
Unionized Collective Bargaining: Traditional Bargaining
Definition and Characteristics
Collective bargaining is normally between an employer and a trade union representing employees in a unionized environment (Kenton, 2024). Negotiations over wages, benefits, working conditions and job security define this form of bargaining, and it is known sometimes as traditional or distributive bargaining. Legally binding agreements formalize the process and are most often based on labor laws and regulations (Morris, 2022).
Role in Determining Pay
Establishment of pay structures in unionized workplaces may be made through collective bargaining (Kenton, 2024). The union represents the employees and negotiates with the employer for salary; attempting to get higher wages and better benefits. Often, wage increase is based on the industry standard, cost of living adjustment and company’s performance. Collective power of the unions forces wages adjustment, which they believe should reflect prevailing economies, ensuring that there is no unfair compensation of the employees (Banerjee et al., 2021).
For instance, in the UK, the Trades Union Congress (TUC) has played a significant role in obtaining better pay from workers in different sectors through negotiation with employers (TUC, 2024). The influence of unions in collective bargaining has led to structured pay scales and job classifications that provide transparency and consistency in remuneration.
Role in Resolving Differences
The first advantage of collective bargaining through a union is that it has a structured way to solve conflicts (Kenton, 2024). Unions that helps employees to raise the issues of unfair treatment, wage disputes or unsafe working conditions provide formalized grievance process. Employment contracts are party to a collective bargaining agreement (CBA) and some of the resulting CBAs embed dispute resolution mechanisms such as mediation and arbitration so that strikes are less likely to occur (Thomson Reuters, 2025).
However, traditional bargaining can cause antagonistic relations between unions and employers. If negotiations stall, strikes or work stoppages (lockouts) are possible, thereby disrupting normal business operations. The case of 2019 British Airways strike by pilots over unresolved wage disputes is an example how a collective bargaining can escalate into industrial action (Al Jazeera, 2019).
Non-Unionized Collective Bargaining: Direct Bargaining
Definition and Characteristics
In non-unionised workplaces, bargaining occurs through direct bargaining or individual negotiations (ACAS, 2021). It is referred to as an approach of direct talks between employees (or their representatives) and the employers outside the context of the trade unions. Negotiations on employment terms are therefore conducted through employee forums, works councils or human resource departments.
Role in Determining Pay
On the other hand, market conditions, employer policies and individual performance determine the pay in the absence of unions. The flexibility of direct bargaining in compensating the component of salaries is higher because employers can be flexible in negotiating salaries and to attract and retain talent (Reizer, 2022). In non-unionized bargaining, performance based pay, profit sharing schemes and individual contracts are common.
For example, companies in the technology sector such as Google and Microsoft adopt direct bargaining strategies to conduct contract negotiations with the employees regarding the salary and benefits (Shonk, 2019). Stock options, bonuses, and personalized incentives are some of the compensation that these organizations deliver. Although this is flexible to tailor to our needs, it could create pay discrepancies from employees, as bargaining power differ amongst the individual.
Role in Resolving Differences
Dispute resolution mechanisms on the other hand, tend to be embedded within the human resource policies in non-unionized settings (Hietanen-Kunwald and Haapio, 2021). Through internal grievance procedures, employee relations programs and third party mediation services employees can raise issues. On the other hand, direct bargaining promotes a collaborative workplace by fostering an atmosphere of open discussion between employees and in relation to management in the process of conflict resolution (Gahan &Pekarek, 2018).
However, employees who lack a formal representation, weaken their negotiating position without the power to demand fair treatment or a fair wage change. Without collective support, employer dominance in negotiations is also more likely to lead to lower wages and less secure jobs than unionized employer bargaining (Garnero, 2020).
Application to My Organization
My organization is non-unionized and relies on direct bargaining and conflict resolution.
Wage Determination
Pay structures in my organization are based upon industry benchmarks, company performance and individual employee contribution. Salary adjustments are usually decided after performing employees appraisal annually and employees negotiate for increases in salary in light of their progress (Hayes, 2024). In accordance with direct bargaining principles, the organization gives performance-based bonuses and incentive schemes to motivate the employees.
This however has its advantages and disadvantages. The disparities between employees doing similar work may arise without having a standardized pay scale (Yonder, 2024). However, unlike unionized bargaining where managers decide pay increases are collectively agreed upon, salary adjustment in my organization, sometimes too interconnected, which creates feelings of unfairness.
Conflict Resolution
Conflict resolutions within my organization, it are resolved using internal HR policies and employee engagement initiatives (Bramly, 2024a). Open door policies are used to allow employees to bring up grievances with managers or HR representatives. Formal grievance procedures also give employees a way to elevate an issue, if need be.
Direct bargaining gives a collaborative work culture but lack the formal protection of unionized collective bargaining (Amankwaah, 2023). Since employees with limited negotiating power may be less able to tout better wages or working conditions, there is a higher risk of them being dissatisfied and leaving the organization. More fairness and inclusivity into workplace negotiations can be brought in by implementing employee consultation forums or increasing alternative dispute resolution mechanisms.
Conclusion
Collective bargaining is important to define employment terms, ensure fair compensation and settle of conflict in the workplace. Unlike in competitive environments, unionized bargaining provides structured pay negotiations and formalized means of alien dispute resolution, which bestow employees of the collective strength in negotiations. On the contrary, non-unionized settings encourage flexible wage determination through direct bargaining, but it may also result in inconsistency and a weak negotiating power of employees.
However, direct bargaining also means that my organization is less exposed to pay equity and enjoys significant customisation and agility; but we face pay equity and handling conflict issues. The first thing that can bridge these gaps is strengthening employee representation mechanisms and more transparency in the salary negotiations. No matter the bargaining approach, it is crucial for the development of a just, high fair, collaborative workplace culture which promotes employee satisfaction and organizational success.
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