Employee Relations

Employee Relation

Edexcel Level 5 Higher National Diploma in Business – Business – Human  Human Resource Management

 Assignment Employee Relation By Sakina Taher

Human Resources Management Institute, 246, Nawala Rd, Nawala, Colombo - Sri Lanka

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Employee Relation Contents

EXECUTIVE SUMMARY ...................................................................................................... 3 INTRODUC INTRODUCTION TION ................................. .................................................. ................................. ................................. .................................. ............................... .............. 4 LO 1 UNDERSTAND THE CONTEXT OF EMPLOYEE RELATIONS AGAINST A CHANGING BACKGROUND ................................................................................................ 5 1.1. Explain the role of trade union identifying its positive and negative contribution to the furtherance of organizational objectives ................................................................................................ 5 1.2 Assess how changes in trade unionism have affected employee relations ............................ 12 12 1.3 Explain the role of the main players in employee relations

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LO2 UNDERSTAND THE NATURE OF INDUSTRIAL CONFLICT AND ITS RESOLUTION ................................ ................................................ .................................. .................................. ................................. ................................. .................................. ........................ ...... 19 2.1 Explain the procedures an organizations should follow when dealing with different conflict 19 situations .................................................................................................................................................... 19 2.2 Explain the key features of employee relations in a selected conflict situation

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2.3 Evaluate the effectiveness of procedures used in a selected conflict situation ..................... 24

LO3 UNDERSTAND UNDERSTAND COLLECTIVE BARGAINING AND NEGOTIATION PROCESSES ..... 26 3.1 Explain the role of negotiation in collective bargaining .............................................................. 26 3.2 Assess the impact of negotiation strategy for a given situation  ................................................ 32

LO4 UNDERSTAND UNDERSTAND THE CONCEPT OF EMPLOYEE PARTICIPATION AND INVOLVEM INVOLVEMENT ENT ................................ ................................................. .................................. ................................. ................................. ................................ ............... 33 4.1Assess the influence of the EU on industrial democracy in the Sri Lanka ................................ 33 4.2 Compare methods used to gain employee participation and involvement in the decision 34 making process in organizations ........................................................................................................... 34 4.3 Assess the impact of human resource management on employee relations. ......................... 35

CONCLUSIO CONCLUSION N ............................... ................................................ .................................. ................................. .................................. .................................. .................. 39 REFEREN REFERENCE CE.................................. .................................................. ................................. ................................. .................................. .................................. .................. 40

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Employee Relation

Executive Summary The understanding of employer-employee relations in the large enterprise has developed greatly over recent years as research gives a more complex analysis, moving away from earlier one-dimensional approaches. Unilever Sri Lanka demonstrated its commitment to its employees, emerging one of ten Gold Award winners at the recently concluded HRM  Awards organized organized by the Association Association of Human Resource Resource Professionals. Professionals. Unilever Unilever also received the category award for best practices in the Reward and Recognition category. Unilever delighted to be recognized by the Association of HR Professionals as one of the best employers in Sri Lanka with world class HR practices

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Employee Relation

Introduction Unilever has long since known that having people with the right talent, skills and creativity is crucial for the sustained growth of the company. With a wealth of global knowledge on employee relations, training and development, Unilever is proud to be pioneers in the market in terms of people management and administration processes. Udayan Dutt, Human Resources Director at Unilever Sri Lanka stated. Unilever Sri Lanka believes that its employees are at the core of the company‘s success and supports individuals individuals to achieve both personal and professional goals. To attract and retain the best people, Unilever offers employees challenging and diverse careers that include international assignments assignments with regional and global exposure. Unilever promotes gender diversity and offers flexi-working options in a safe and enterprising work environment to facilitate employees to achieve a healthy work-life balance. The success of these efforts was visible as Unilever was ranked ―The Most Preferred Employer in Sri Lanka‖ in a survey conducted by TNS. ―Our ― Our Corporate Purpose and Code of Business Principles commit to treating our employees with dignity and fairness, and in turn expect them to observe high standards of behavior , behavior , reflecting the company‘s values of integrity, respect, responsibility responsibility and pioneering. Unilever is a major producer of food, beverage and consumer goods. It has two parent companies, Unilever NV and Unilever PLC, which operate together as Unilever, with dual stock exchange listings in Amsterdam and London. The company is involved in the production and sale of FMCG: beverages and ice cream, savory and dressings, home care and personal care. Its brands, which include Lipton, Knorr, Bertolli, Hellmans, Persil and Dove, are better known among consumers than t he company name itself. With many of these products Unilever takes a worldwide leading market position.

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Employee Relation

LO 1 Understand the context of employee relations against a changing background 1.1. Explain the role of trade union identifying its positive and negative contribution to the furtherance of organizational objectives The purpose of Human Resource Management (HRM) is to hire, train and develop staff and where necessary to discipline or dismiss them. Through effective training and development, employees at Unilever achieve promotion within the company and reach their full potential. This reduces the need for external recruitment and makes maximum use of existing talent. This is a cost-effective way for a business to manage its people. The HRM function not only manages existing staff, it also plans for changes that will affect its future staffing needs. This is known as workforce planning. For example: The business may grow into new markets. It may use new technology which requires new skills. Staff may retire or be promoted, leaving gaps which need to be filled. There may also be external changes in the labor market, meaning that there will be fewer skills available or too many in a particular area. HRM monitors all of these things in planning recruitment strategy. This places the HRM function in a central role in the business because all managers use this expertise to acquire staff. Unilever has a policy of promoting its managers from within its existing workforce. This means the business must recruit people with t he potential to grow. Definitions Personnel Management Personnel Management is thus basically an administrative recordkeeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc. It is assumed that the outcomes from providing justice and achieving efficiency in the management of personnel activities will result ultimately in achieving organizational success. Human Resource Development Human resource management is concerned with the development and implementation of people strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals. 5

Employee Relation HRM is concerned with carrying out the same functional activities traditionally performed by the personnel function, such as HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development etc. But, the HRM approach performs these functions in a qualitatively distinct way, when compared with Personnel Management.

Difference between Personnel Management and Human Resource Management Human resource management is the new version of personnel management. There is no any watertight difference between human resource management and personnel management. However, there are some differences in the following matters. 1. Personnel management is a traditional approach of managing people in the organization. Human resource management is a modern approach of managing people and their strengths in the organization. 2. Personnel management focuses on personnel administration, employee welfare and labor relation. Human resource management focuses on acquisition, development, motivation and maintenance of human resources in the organization. 3. Personnel management assumes people as an input for achieving desired output. Human resource management assumes people as an important and valuable resource for achieving desired output. 4. Under personnel management, personnel function is undertaken for employee's satisfaction. Under human resource management, administrative function is undertaken for goal achievement. 5. Under personnel management, job design is done on the basis of division of labor. Under human resource management, job design function is done on the basis of group work/team work. 6. Under personnel management, employees are provided with less training and development opportunities. Under human resource management, employees are provided with more training and development opportunities. 7. In personnel management, decisions are made by the top management as per the rules and regulation of the organization. In human resource management, decisions are made collectively after considering employee's participation, authority, decentralization, competitive environment etc. 8. Personnel management focuses on increased production and satisfied employees. Human resource management focuses on effectiveness, culture, productivity and employee's participation. 9. Personnel management is concerned with personnel manager. Human resource management is concerned with all level of managers from top t o bottom. 10. Personnel management is a routine function. Human resource management is a strategic function. 6

Employee Relation Line managers and effective HRM implementation Many researchers assume that the HRM strategy of an organization corresponds with the implementation of this strategy. However, HRM strategies are often implemented without a clear direction, or are not implemented at all. This can lead to significant differences between the developed HRM strategy and the actual implementation. Two aspects which are critical for HRM to be successful are the presence of HRM practices and the success of HRM implementation. Researchers have attempted to prove a linkage between HRM and firm performance by investigating the HRM practices while the success of HRM implementation has received little attention so far. The presence of well-developed HRM practices is important for an organization‘s performance but it is not enough to be competitive; equally important is the way how these HRM practices are implemented. The responsibility for the HRM implementation lies with the line managers of an organization since they have to execute the HRM practices on the work floor. Nevertheless, research has indicated that line managers find implementing HRM practices difficult because of several limitations they experience in implementing HRM. These limitations inhibit the HRM implementation effectiveness of line managers. HRM practices can be developed properly, but if line managers fail to implement them successfully on the work floor they are still not effective

HRM implementation by line managers HR professionals are responsible for the design and development of HRM practices in an organization, while line managers are responsible for the implementation of these practices on the operational work floor. The way that HRM practices, designed by HR professionals, are implemented by line managers, has become an important determinant of success or failure of those practices. The implementation of HRM practices by line managers is more salient for employee behavior, motivation and satisfaction than the design of the HRM practices by HR professionals. Therefore, line managers play a critical role in influencing employee attitudes and behaviors by the way in which they translate the designed HRM practices in to practice, and can be vital in making the difference between low performing and high performing organizations. Unfortunately, research has pointed out that line management involvement in HRM is not without its difficulties. Line managers express reluctance to accept new responsibilities pushed upon them. Several researchers suggest a number of limitations that explain the reluctance of line managers in implementing HRM, which are expected to decrease the effective implementation of HRM practices. Line managers can have a lack of desire or capacity to perform their HR responsibilities. Besides, they sometimes do not have the competences for managing people. Furthermore, line managers can experience difficulties because of a lack of support from the HR department or a lack of procedures and policies on how to perform their HR responsibilities 7

Employee Relation Unilever identifies role of trade union identifying its positive and negative contribution to the organization. This section summarizes the outcomes of the group deliberations on the one hand and the recommendations. Women and youth required special attention In the drive for inclusiveness in the union movement because they are tr aditionally marginalized. While there is increasing labor force participation among women and while women are coming to dominate leadership. As a matter of deliberate policy the Trade Unions should make an effort to ensure that there is a better gender balance in Trade Union leadership. At the same time, trade union strategy had to make a deliberate attempt to attract a higher proportion of young people of both genders There is an alarming lack of information Trade Unions and standard academic curricula tend to ignore them. The gap needs to be filled by Trade Unions. The mission of the Trade Union Movement, which is the protection and empowerment of the worker and the creation of a just and equitable work environment, must remain. However the Unions must focus on new strategies to achieve this mission while supporting broader social and economic objectives of higher productivity and competiveness. There is a need to closely re-examine the relationship between the Trade Unions and the political parties. In particular, the Union Movement needs tore-examine its relationship with the political parties and seek to develop a greater degree of independence. There was ambivalence about intra-union competition. Some people saw this as an advantage while others felt that it detracted from a united voice. There was a consensus that the Unions had made a significant contribution to the promulgation of progressive labor legislation and it was recommended that greater advantage be taken of the laws in their present form. However, a gap was identified in relation to trade union recognition. A strong recommendation was made for legislation that would make it easier for Unions to become recognized or alternatively harder for employers to frustrate union recognition. Trade Unions need to explore the potential of the social networking sites as a means of expanding knowledge about Trade Unions, of attracting young membership and increasing visibility. Trade Unions need to ―re-brand‖ in order escape the ―negative stigma‖ of adversarialism  and to support greater public recognition of the positive role that it played in society. Unions should seek to work more closely with management.

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Employee Relation Strategic Assessment of the Unilever – SWOT SWOT analysis of the Unilever trade union with a view to identifying the strengths, weaknesses opportunities and threats. The Strength of the Trade Union Mobilization of members and their capacity to advocate Providing effective worker representation Team work and a continuity of the core vision Trade Union have produced several visionary leaders Trade Unions have a deep knowledge of industrial relations laws and practices. Unions have a history of effective collective bargaining.

The Weaknesses of the Trade Union The relative lack of visionary leadership in the contemporary setting  A heavy reliance on voluntarism, financial constraints Reduced commitment on the part of membership Gender issue – male dominance Youths‘ disinterest in the Movement Poor communication within Trade Union and across Union The tendency of leadership to compromise on some f undamental issues the low levels of education and training of members and most leaders Close alliance between some unions and political parties Limited financial and human resource capacity, and Limited public relations capacity.

Opportunities present themselves in many ways and the Movement should take advantage of what is available to them such as: Making better use of existing legislation, influencing national decisions in more significant ways Organizing and increasing membership in new sectors of the economy Giving a facelift to Unions that are perceived to be confrontational and combative 9

Employee Relation Strengthening mediation skills and approaches to achieving greater collaboration with management without being co-opted Hosting an annual conference to cement Trade Union unity Establishing ancillary services for membership such as credit unions.

Threats identified included: Declining membership and diminishing financial viability Lack of succession planning weak leadership from Unions in ensuring the enforcement of key labor laws Low interest of young people in the Union The inability of union to effectively counteract union-busting by management The failure of trade unions to develop a body of ideas to effectively cope. Globalization and neo-liberal policies.

Stakeholder Assessment of Short term Priorities in Unilever The priorities identified by stakeholders for the Trade Union 1. Building financial, human resource management and leadership capacity Training Investment strategies Leadership development and succession planning

2. Enhance communication to enable closer and more effective work with The workforce in new and emerging sectors Unemployed Management The marginalized worker Existing membership across the board

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Employee Relation 3. Re-branding – work on changing the adversarial image, ensuring credit for ―good works‖ and diversifying product offerings 4. Leveraging new technologies to advance the cause of working people 5. Building more equitable gender representation at all levels of leadership 6. Improving inter-union and intra-union communication 7. Increasing membership 8. Strengthening the democratic process and re-examining on of links with political parties 9. Merging and creating joint services 10. Developing a think tank.

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1.2 Assess how changes in trade unionism have affected employee relations In order to remain relevant the Trade Unions must continue to reinvent themselves to attract, grow and retain membership from the new workforce and should therefore recognizethat the world and by extension the workplace has changed for both employers and workers. Their demands are vastly different from 20 years ago. For example, there has been significant growth of knowledge workers who have different needs. Trade Unions are therefore required to focus on the following imperatives: education/training, research and communication. Education and training should be used by Trade Unions: For the modification of expectations, attitudes and behaviors through learning experiences to build loyalty and commitment to the organization To provide particular cohorts such as staff, organizers and researchers with the relevantskills to function effectively and efficiently To create an aware, alert and active membership; To provide members with a broad knowledge of labor-management issues; To prepare shop floor employees to be more accountable for performance. To provide training and re-training opportunities for members.

Trade Unions will continue to contribute as a valuable partner in the tripartite by influencing social policy which can strike a balance between efficiency of the markets and equity f or the people. This means that they are seen as spokespersons of the broader concerns of society. They will also need to build the necessary organizational base for influencing outcomes both at the national and international levels.

Social Cohesion Perhaps the most important concern is t he traditional mandate of Unions to maintain social cohesion. It is a lesson from history that social cohesion can be sustained only in an environment which guarantees secured income for all concerned under conditions of freedom and dignity. Unions have strived for that mandate through the development of an agenda based on workers‘ rights, employment creation and social protection.

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Employee Relation The Union initiatives for ensuring income security, safe working conditions, and skill mobility for workers will remain important for many years to come. Strategies for realizing those goals must continue to figure prominently in the agenda of Unions.

Partnership in Development Trade Unions also need to reestablish their credentials as partners in development. Trade Unions, as the largest organized group in civil society can bring a unique contribution to the development community. They are directly involved with economic systems of production and distribution; they can influence the course and content of employment, social and economic policies; they are representative and accountable; they have considerable experience in organizing the more vulnerable sections of society; and, they have the experience and standing required to access national legal systems and public facilities. They can contribute through their long-standing relationships with such development institutions as consumer cooperatives, housing societies, health funds and social security organizations. There is much scope for collaboration in this field with national and international development agencies, including global financial institutions.

Promoting Human Rights and Democracy Thirdly, Trade Unions need to project their role as critical catalysts for the promotion of human rights and democratic institutions. This again is a historically important mandate of labor unions.

Challenges at the Global Level There is considerable scope for action by Unions at the international level. Unions can become influential partners at the global level only when their basic concerns  – the labor standards which they campaigned for right through the 20th Century  – are recognized and accepted universally. Core labor standards are embodied in the 1998 ILO Declaration on Fundamental Principles and Rights at Work. The Declaration represents a mutual commitment, by all ILO member states, to respect, realize and promote freedom of association and collective bargaining, and elimination of forced labor, child labor and discrimination, and by the ILO to support their efforts to ensure such respect. There is work to be done on the promotion of the Declaration as a development tool embraced throughout the international community.

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Employee Relation Partnerships and Alliances The Unions in pursuit of common interests and shared values should engage in partnerships or strategic alliances with other actors in civil society, including: gender groups; cooperatives; community associations; and human rights bodies, consumers and environmental groups. Often they require Trade Unions to transcend the boundaries of the work place and to address concerns embedded in communities, minority groups, religious organizations and neighborhood associations.

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Employee Relation 1.3 Explain the role of the main players in employee relations Employee relations deal with the interactions amongst the parties to the employment relationship. These consist of three groups: employers and employees, the parties who act on their behalf (trade unions and employer associations) and the third-party role played by the state agencies and the EU institutions.

Role of Managers in Employee Relations  A healthy employee relationship is essential for the employees to find their work interesting and perform their level best. It is important for everyone to understand that one goes to his organization to work and conflicts must be avoided as it is nothing but a mere waste of time. Employees must be comfortable with each other and work in unison towards a common goal. An individual cannot remain tight-lipped and work for infinite hours, he needs people around to talk to and discuss his ideas. One must have friends at the workplace that he can trust well and share his secrets without the fear of them getting leaked. This way the employees feel motivated and enjoy going to office daily. They do not take frequent leaves and strive hard to live up to the expectations of the management. For an organization to perform well, it is important that the employees are friendly with each other and avoid criticism, backstabbing at work, a strong reason to spoil the relationship among the employees. The team leader or t he manager plays an important role in promoting healthy relation at workplace: It is essential that the supervisor assigns challenging tasks to his team member as per his specialization and interest. The individual should have interest in the work; otherwise he would treat it as a burden and unnecessarily crib about things. It is important that the team leader understands his team members well. Try to f ind out their interests and what all they expect from the organization. While developing their KRAs it is always better if the team leader calls everyone and invites suggestions from them. Let t hem decide what best they can perform. This way the employees would never blame each other or their superior later as they themselves have decided on the roles and responsibilities. Encourage them to willingly accept the challenge. They would strive hard for a better output without fighting and finding faults in each other. A team leader should be a role model to his team members. He should treat each and every individual as one and avoid partialities at work. Do not give anyone a special treatment just because he drops your son to school every day or says a yes to whatever you say. Appreciate if someone has done exceptionally well but do make sure to correct him if he is wrong somewhere. The team leader should not be rude or harsh to anyone. There is a correct way for everything and one should not insult any team member. It is strictly unethical. Sit with him and make him realize his mistakes. He would definitely look up to you in future. The superior must not act pricy and should always be accessible to his employees. The individuals must have the liberty to walk up to their immediate bosses in case of a doubt and clear things. The hierarchy should not be too complicated as it leads to confusions and disputes among employees. 15

Employee Relation The manager must ensure that all important communication takes place on an open forum for everyone to get a common picture. Problems arise when communication is done on a one to one basis. Call everyone together so that all the members are clear as to what is expected out of them and what their colleagues are up to. Communication should be transparent for an effective employee relation. Any employee should not feel neglected or left out. If the team leader wants to pass on any information to his team members, he must send a mail keeping all the related members in the loop. As a team leader it is one’s prime responsibility to encourage healthy competition at work. Competition is mandatory for an individual‘s growth but it should not turn friends to foes. Motivate them constantly to perform better than the other but make sure there are no useless gossips in your team. If you find any of your team members criticizing or making fun of anyone, stop him immediately. Do not provoke any individual to fight, instead intervene and try to resolve the conflict as soon as possible. Make sure all your team members take their lunch together and you are also a part of it. Don‘t discuss work that time. Let them enjoy. Encourage everyone to talk to each other and participate in discussions. Do take the initiative to ask about their families or personal lives as well. They would feel attached to you. If you f ind any two of your team members not getting along well with each other, make sure both of them work together on the same assignment. They would not be left with any choice than to talk to each other and discuss things. Make them sit together on adjacent workstations so that the comfort level increases. The team leader should be neutral to his team members and make sure they enjoy a healthy relationship with him as well as their fellow team members for a better output. A team leader should try his level best to bring his team members closer and bind them together. Role of Trade Unions in Employee Relations Trade or labor unions have been around since the 1930s to resist through equal bargaining power the domination of employers over employees and to represent workers‘ interests in the employment relationship. It is through union efforts that workers benefit from better pay and working conditions, and that they are treated with dignity and respect at work. The importance of trade unions cannot be overstated even though membership has been on a steady decline. Collective Bargaining Labor unions developed to grant employees equal bargaining power with their employers, who traditionally had the ability to exclusively set the terms and conditions of work and pay. Unions represent workers within a given industry in negotiations with their employers. Since the union comprises a group of workers, it has a greater voice than if employees were dealing with employers individually. For example, unions are credited with abolishing sweatshops and child labor in the United States because they pushed for these practices to end. The National Labor Relat ions Act guarantees employees‘ right to bargain collectively through their chosen labor union representatives. Unions can organize strikes, boycotts, goslows and sit-ins to get employers to consider their proposals. Employee Welfare

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Employee Relation Unions have successfully fought for better terms and conditions for workers. They represent workers‘ interests and have secured a variety of benefits, such as higher wages for unionized employees, work-life balance characterized by reasonable work schedules, job security and protection from arbitrary action by employers. In a September 2012 essay on the CNN website, Democratic strategist Donna Brazile asserted that is also due in part to union activity that discrimination in the workplace was outlawed and that workers have access to health care, safe working conditions and guaranteed Social Security. Unions not only have given workers dignity in the workplace, but they also consistently facilitate enhanced welfare and standards of living for American workers. Unfair Practices Labor unions check the unfair labor practices of employers. The NLRA declares that it is unlawful for employers to dominate a union, discriminate against workers engaged in union activity, victimize workers who file charges against them with t he National Labor Relations Board or interfere with employees engaged in concerted union activity. If the employer does any of these prohibited acts, the union can take it up with the board on behalf of the employees. For example, the union representing Boeing Co. engineers and technical workers filed charges against the company for interfering with employees engaging in concerted union activity. The board investigates charges and may take a variety of actions, including issuance of cease-and-desist or reinstatement orders to remedy unfair treatment against employees. Unions ensure that employers comply with the law and can lodge appeals in federal court if employers do not respect board decisions. Legislation Unions also play a key role in developing labor laws and regulations for effective worker protection. The unions initiate the push for regulation in areas that concern employees in the workplace. They lobby for the creation of laws and regulations and disseminate information to the employees about them. Measures such as the NLRA, the Social Security Act, the Family Medical Leave Act and the Occupational Safety and Health Act exist as a result of union efforts for better terms and conditions for workers. Unions monitor the status of implementation of employee welfare laws and regulations to ensure they are properly enforced. The role of the state in employment relations

State can be difficult to define because it encompasses more than a single actor, and many different institutions and government departments can influence employment relations outcomes in various ways. For example, the army and police have been deployed during particular strikes, and the courts have passed judgments which have changed the day-today relationships between managers, employees and unions. Given the extent of political influence and power/

In broad terms, it is often reasoned that the State‘s objective in intervening in employment relations is to achieve economic and social goals for the nation as a whole. One of the prime 17

Employee Relation tasks of government is to manage the economy so that it is prosperous, and this means it has to try to achieve four broad economic policy objectives, each one of which can easily conflict with the others:

To maintain high levels of employment To ensure price stability To maintain a balance of payment surplus To protect the exchange rate.

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LO2 Understand the nature of industrial conflict and its resolution 2.1 Explain the procedures an organizations should follow when dealing with different conflict situations POSITIVE AND NEGATIVE ASPECTS OF CONFLICT Sometimes conflict is a positive force that can bring about necessary changes. Ongoing conflict also has negative consequences. People who are engaged in disputes are under stress, which takes a physical toll. In addition, people who are busy arguing and trying to persuade others to take their sides are not involved in more productive activities. Finally, depending on the source of the conflict, the people involved may be angry at management or the organization, so they may vent their anger in ways that are destructive to the organization, such as taking extra time off or sabotaging equipment. TYPES OF CONFLICT Intrapersonal Conflict  An intrapersonal conflict arises when a person has trouble selecting from among goals. Interpersonal Conflict Conflict between individuals is called interpersonal conflict. Supervisors may be involved in interpersonal conflicts with their manager, an employee, a peer, or even a customer. Structural Conflict Conflict that results from the way the organization is structured is called structural conflict. Conflict often arises between line and staff personnel, and production and marketing departments are often at odds. Strategic Conflict Most of the conflicts described so far arise unintentionally when people and groups try to work together. However, sometimes management or an individual intentionally will bring about a conflict to achieve an objective.

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SUPERVISION AND DIVERSITY FAITH-FRIENDLY WORKPLACES Just as many companies have helped employees cope with intrapersonal conflicts that involve balancing family and work, some companies have begun thinking about how they can help employees integrate their faith with their work. Faith and work do not necessarily have to be in conflict. Often, all that is needed to prevent conflicts is a combination of sensitivity to individuals‘ needs, some flexibility, and a commitment to ethical behavior. Faith or religion is a topic one does not discuss at work. Even so, holding a religious belief and practicing that faith shape a person‘s values and may affect the demands on a person‘s time. Religions may call for special practices, such as particular clothing, dietary restrictions, or time away from work. Some employees live out their faith by expressing to others what they believe. In a faith-friendly workplace, such expressions would need to be done with mutual respect and without disrupting work.

STRATEGIES Compromising One conflict management strategy is to reach a compromise, which means the parties to the conflict settle on a solution that gives both of them part of what they wanted. No party gets exactly what it wanted, but neither loses entirely either. Both parties presumably experience a degree of frustration—but at a level they are willing to live with.  Avoiding Conflict is unpleasant, so people sometimes try to manage conflict by avoiding it. Forcing Because ignoring or avoiding a problem does not make it go away, a supervisor may want to try a more direct approach to ending a conflict. One possibility is to force a solution. This means that a person or group with power decides what the outcome will be. 20

Employee Relation Resolving The most direct—and sometimes the most difficult—way to manage conflict is to confront the problem and solve it. This is the conflict management strategy called conflict resolution. Confronting the problem requires listening to both sides and attempting to understand rather than to place blame. Next, the parties should identify the areas on which they agree and the ways they can both benefit from possible solutions. Both parties should examine their own feelings and take their time at reaching a solution.

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Employee Relation 2.2 Explain the key features of employee relations in a selected conflict situation To manage conflict effectively you must be a skilled communicator. That includes creating an open communication environment in your unit by encouraging employees to talk about work issues. Listening to employee concerns will foster an open environment. Make sure you really understand what employees are saying by asking questions and focusing on their perception of the problem. Whether you have two employees who are fighting for the desk next to the window or one employee who wants the heat on and another who doesn't, your immediate response to conflict situations is essential.  Acknowledge that a difficult situation exists. Honesty and clear communication play an important role in the resolution process. Acquaint yourself with what's happening and be open about the problem. Let individuals express their feelings. Some feelings of anger and/or hurt usually accompany conflict situations. Before any kind of problem-solving can take place, t hese emotions should be expressed and acknowledged. Define the problem. What is the stated problem? What is the negative impact on the work or relationships? Are differing personality styles parts of the problem? Meet with employees separately at first and question them about the situation. Determine underlying need. The goal of conflict resolution is not to decide which person is right or wrong; the goal is to reach a solution that everyone can live with. Looking first for needs, rather than solutions, is a powerful tool for generating win/win options. To discover needs, you must try to find out why people want the solutions they initially proposed. Once you understand the advantages their solutions have for them, you have discovered their needs. Find common areas of agreement, no matter how small:  Agree on the problem  Agree on the procedure to follow  Agree on worst fears  Agree on some small change to give an experience of success Find solutions to satisfy needs: Problem-solve by generating multiple alternatives Determine which actions will be taken Make sure involved parties buy into actions. (Total silence may be a sign of passive resistance.) Be sure you get real agreement from everyone.

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Employee Relation Determine follow-up you will take to monitor actions. You may want to schedule a follow-up meeting in about two weeks to determine how the parties are doing. Determine what you'll do if the conflict goes unresolved. If the conflict is causing a disruption in the department and it remains unresolved, you may need to explore other campus resources. The Problem Resolution Center, and / or the Faculty and Staff Assistance Program may provide other interventions to resolve the problem. In some cases the conflict becomes a performance issue, and may become a topic for performance appraisals or disciplinary action. Mediation is an option to help resolve and manage conflicts as early as possible. The Campus Mediation Program provides a confidential and neutral setting for individuals to meet to discuss issues and develop mutually acceptable solutions. Mediation at UCSF emphasizes open communication and problem-solving and is facilitated by trained mediators. Individuals who participate in mediation do so voluntarily. Mediation may be considered when a grievance has been filed by a represented employee. Grievances involving "working relationships", interpersonal communication or uncertainty regarding expectations are examples of problems typically considered for mediation. Mediation is not the formal venue for negotiating formal discipline without the involvement of department management and the appropriate Labor and Employee Relations  Analyst. If all parties agree (the manager, employee, Labor and Employee Relations and the bargaining unit), it is possible to "stop the clock" on grievance processing so t hat parties can use mediation to determine whether they can reach a mutually acceptable resolution.

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Employee Relation 2.3 Evaluate the effectiveness of procedures used in a selected conflict situation CONFLICT RESOLUTION IN THE WORKPLACE When a supervisor has a conflict with another person, he or she needs to resolve that conflict constructively. Otherwise, the conflict is unlikely to go away on its own. When initiating conflict resolution, a supervisor should act as soon as he or she is aware of the problem. As the problem continues, a supervisor is likely to get increasingly emotional about it, which only makes resolution more difficult. Prepare for conflict resolution by understanding what the conflict is. Focus on behavior, which people can change, not on personalities, which they cannot change. What is the action that is causing the problem, and how does that action affect you and others?

RESPONDING TO A CONFLICT Sometimes a supervisor is party to a conflict that is bothering someone else. When the other person makes the supervisor aware of the conflict, it is up to the supervisor to respond in a way that makes a solution possible.

Understand the Problem The constructive way to respond to a conflict is first to listen to the other person and try to understand what the problem is really about. If the other person is emotional, let that person vent those feelings, then get down to discussing the problem. Try to interpret the problem in the terms you would use to express the problem yourself. Avoid statements of blame, and find out what specific actions the other person is referring to. 24

Employee Relation Understanding the problem can be complicated if one of the people involved has a ―hidden agenda‖—a central concern that is left unstated. Typically, a person with a hidden agenda is angry or upset about something but directs those feelings toward some other issue.If another person‘s feelings seem to be out of proportion to the problem he or she is describing, look for a hidden agenda. Finding one can save you from trying to resolve the wrong conflict. In addition, when you are upset about something yourself, it is usually more constructive to describe the problem directly than to leave others guessing at your hidden agenda.

Work on a Solution When you understand the problem, build an environment of working together on a solution. To do this, agree with some aspect of what t he other person has said.

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Employee Relation

LO3 Understand collective bargaining and negotiation processes 3.1 Explain the role of negotiation in collective bargaining Motivation in simple words may be understood as the set of forces that cause people to behave in certain ways. It is a process that starts with a physiological deficiency or need that activities behavior or a drive that is aimed at a goal or an incentive. The concept of motivation occupies a central place in the discipline of organizational behavior. It is a concept, which has received the maximum attention from the academicians and researchers alike. Since a motivated employee is highly productive and highly quality oriented, the managers are also interested the concept of motivation.

Money is understood to be powerful motivator for more than one reason. In the first place, money is fundamental for completion of a task. The employee takes pay as the reward for his or her work, and the employer views it as the price f or using the services of the employee. Second, as a medium of exchange. Third, money is one of the hygiene factors, and improving maintenance factors is the first step in efforts directed towards motivation. Fourth, money also performs the function of a score card by which employees assess the value that the organization places on their services and by which employees can compare their values to others. Fifth, reinforcement and expectancy theories attest to the value of money as a motivator. Sixth, money acts as punctuation in one‘s life. It is an attention getting and effect producing mechanism. Money has therefore tremendous importance in influencing employee behavior. Seventh, money is easily vulnerable to manipulation. Finally, money will be a powerful motivator for a person who is tense and anxious about lack of money. But behavioral scientists think otherwise. They downgrade monetary rewards as a motivator. They prefer, instead, other techniques such as challenging jobs, goals, participation in decision-making and other non-monetary rewards for motivating employees.

Types of Reward Systems The financial rewards are basically of three types: 1.Profit sharing 2.Job evaluation 3.Merit rating 1. Profit Sharing

Profit sharing could be on a macro basis or on a micro basis. The former relates to the entire company as a whole and the latter to a particular section or group dealing with a particular activity and/or product. On a macro level, it would be difficult to identify and reward outstanding performance. This is possible on a micro level by treating the particular activity 26

Employee Relation as a cost and profit center by itself. T his is easier said than done, since overheads and other common services have to be charged and this cannot be done completely objectively. The cost allocation in such cases is somewhat arbitrary and the profit will therefore not be a true reflection of the performance of that particular group or activity. 2. Job Evaluation

In case of job evaluation, the various component factors have to be isolated and evaluated for purposes of inter-job comparison. Each factor is assigned a rating on the basis of a scale agreed beforehand by the union and the management joint committee. The t otal rating for each job then forms the basis of wage structure. However, there must be a base level, representing, in effect, the 'minimum wage', depending on the nature of work and the geographical area. In some cases and in some countries these are stipulated by law. A typical, though somewhat broad, list of job factors is as follows: • working environment; • physical characteristics; • mental characteristics; • extent of responsibility; • tr aining and experience. In case of managers, the factors are: • responsibility; • expertise; • human relations. 3. Merit Rating

Merit rating has been used as an indicator of performance. Each employee is rated, typically as excellent, good, average or poor, in respect of the f ollowing abilities: • communication; • human relations, including leadership and motivation; • intelligence; • judgment; • knowledge. The rating, unfortunately, tends to be carried out purely mechanically and it carries a heavy bias of the rater who may be too lenient, may not be objective and may also have favorites or otherwise in the group being rated. Financial Rewards

These rewards in organizations help employees to be more committed and motivated to their  job and working environment:

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• System rewards are automatically given to all employees for merely being members of their organization. System rewards can be defined as being the basic wage rates.

• Individual rewards are given to employees based on the quality and quantity of their performance. Performance related pay (PRP) is seen as an individual reward policy, where pay is rewarded in relation to the volume of output. PRP can cause divisions amongst workers, where employees become more worried about the fact t hat their colleagues are being paid more than them.

• Growth rewards are received by employees for job innovation, learning and improvement. The key to managing performance through rewards is linking the desired performance with the appropriate reward. Non-financial Rewards

In an ever more competitive environment, the aim of organizations must now be to focus on increasing the added value of their employees. This is achieved, by encouraging employees to increase their effort and performance higher than the average standards. This has been carried out using employee appraisals and motivational methods. Employers have become increasingly aware of the rich potential for good constructive ideas that exist from the employees on the job experiences. One method for using this knowledge is through suggestion schemes, these are becoming highly recognized, as they allow for improvements in all areas of work. These schemes are very flexible and can be readily adapted to meet all kinds of working conditions. Suggestion schemes can be seen as a means of increasing profit and worker participation. Suggestion schemes aim to improve employee attitudes by directing their attention to the positive and progressive aspects of their jobs. This helps to boost employee morale and increase job satisfaction. It can be identified that if an employee is unhappy in his/her job it reflects on a negative attitude on his/her performance and also with other people. Experience in many companies has shown low employee morale reflects on low productivity and increasing costly errors. Suggestion schemes play a useful role in increasing and maintaining morale.  Another method which is not related to pay is the performance appraisal system. This method is used as a means of raising individual performance and identifying development needs. Appraisal systems today are becoming part of the management culture, where managers feel it necessary to appraise and be appraised. Self-Rating, this is a form of appraisal where the employee takes a look at themselves, avoiding any negative feedback from traditional appraisals. Self-rating is an effective way of trying to get the employee to look at what their roles are in relation to business needs. 28

Employee Relation

It is fair to state that employees are not motivated by money alone. Paying different wage rates to employees doing the same jobs can cause more problems than benefits. There are other incentives to reward employees, other than f inancial such as appraisals.  Appraisals can prove to be an effective means for looking at human resources, as they allow us to: • Ensure that the abilities and energies of individuals are being used effectively. • Allow employers to identify better uses of individuals talents and experience. • Training needs can also be identified. • Future decision making as data of abilities can be kept on file for future reference. Other examples of incentives/motivators include: • Team briefings - Management tell sub-ordinates what needs to be achieved, this opens up the lines of communication, and makes everyone aware of what needs to be done. • Team buildings - Employees are taken on outings to pursue some systematic group exercises led by a trainer or time spent on social activities. The logic is to enthuse a team working ethic. • Quality circles - Regular meeting sessions where a group of employees discuss quality related issues. In this section we analyze to what extent the study showed workers are able to realize their rights in Unilever‘s operations, in order to signpost approaches to meeting international standards more fully in the future.

Bargaining Importance of the issue for labor rights

Freedom of association and collective bargaining were selected as a focus f or the study because they are enabling rights, making it possible to promote and realize decent conditions at work. The right to freedom of association and collective bargaining are among the fundamental rights of the ILO. Despite the core value of these rights and thereaffirmation time and again by the international community, half the total labour force of ILO member states lives in five countries that have not yet ratified the Convention on Freedom of  Association and Protection of the Right to Organize: Brazil, The People‘s Republic of China, India, Iran and the USA. Oxfam regards participation and empowerment as vital to poverty reduction. When industrial relations are weak, workers have no mechanism through which they can express their concerns in a safe way. Good relations between management and workers benefit both sides: they enable better dispute resolution and reduced conflict; they minimize disruption and enhance productivity; they increase worker satisfaction and cooperation; and allow for mutually agreed mechanisms for introducing and achieving support for changes in the workplace. The most scalable way to assure labour rights is to have

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Employee Relation mature industrial relations in the workplace, through which vulnerable workers can collectively articulate their concerns and interests: Mature industrial relations involve transparent rules, which are consistently applied, effective grievance and disciplinary procedures, the opportunity to join or form a union, and regular discussions about matters of mutual concern.

Principles

Indicators of good practice

FREEDOM OF ASSOCIATION AND Principle 1: Recognition and commitment The company should recognize and commit itself to the international standards on freedom of association and collective bargaining.

COLLECTIVE BARGAINING Recognition and commitment Promote consultation and co-operation between employers and workers and their representatives on matters of mutual concern. Have an open attitude towards the activities of trade unions and their organizational activities. Be careful not to encourage the government to restrict the exercise of the internationally recognized rights offreedom of association and collective bargaining. E.g. Locating a subsidiary or sourcing from companieslocated in specialized industrial zones where freedomof association is restricted or prohibited, even ifnational regulation recognizes that right, and refrain from participating in incentive schemes based on such restrictions. Principle 2: Protection of Protection of workers’ representatives workers’ representatives Prohibit discrimination or adverse actions against worker The company ensures that workers‘ representatives or employees for participating or representatives and employees refraining to participate in lawful trade union activities. participating in lawful trade union activities are adequately protected. Principle 3: Freedom of choice Freedom of choice The company should allow workers The company should allow workers to establish and join to establish and join representative representative organizations of their own choosing organizations of their own without previous authorization. choosing. There should be no acts of interference with the object of placing the organization under control. Principle 4: Collective bargaining Collective bargaining on terms and conditions of Can authorized representative of the employees negotiate employment on collective bargaining or labor-management relations The company should allow the issues workers employed to have trade  Are the parties allowed to consult on matters of mutual unions and representative concern with representatives of management who are organizations of their own choosing authorized to take decisions on these matters for the purpose of collective The company has a committee, with participation of bargaining and engage in employee-elected representatives, which is responsible constructive negotiations, either for hearing, processing, and settling disciplinary cases individually or through employers‘ and employee grievances. associations, with such representatives with a 30

Employee Relation view to reaching agreements on terms and conditions of employment Principle 5: Disputes and grievances There is an agreement on fair hearing in case of disputes and grievances. Principle 6: Risk assessment The company should identify operations and significant suppliers in which the right to exercise freedom of association and collective bargaining may be violated or are at significant risk either in terms of type of operations or geographical areas.

Disputes and grievances Provisions are included in the collective agreement for the settlement of disputes arising over their interpretation and application and for ensuring mutually respected rights and responsibilities. Risk assessment This risk is incorporated into company‘s risk assessment process.

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Employee Relation 3.2 Assess the impact of negotiation strategy for a given situation How Unilever manages freedom of association and collective bargaining

Unilever has shown commitment to the fundamental rights of freedom of association and collective bargaining. In relation to protection of workers‘ representatives, the policy includes a requirement that employees must be treated f airly and equally without unlawful discrimination on the grounds of position in the organization. In relation to the right to join or form a union, the policy states that: ‗All Unilever companies must respect the right of their employees to join or not to join a legally recognized trade union, or any other body representing their collective interests.‘ This means  neither companies nor governments should interfere with the choice of workers‘ representation and that  there may be more than one workers‘ organization per enterprise; so-called ‘closed shops‗, where only one  union is allowed, would violate this principle.

In relation to collective bargaining, Unilever‘s internal policy states that Unilever companies must bargain in good faith on employment conditions, labour management relations and matters of general concern. Corporate policy appears to provide a good overall framework for these rights. The challenges arise when it comes to implementation, since, in Unilever, industrial relations policy may be country-specific and locally determined.

The commitment to effective implementation at global level has been demonstrated by the actions taken to resolve industrial relations disputes, and by Unilever‘s subsequent corporate engagement with the IUF.

Unilever has taken an important step in recognizing the value of a relationship with the IUF, in order to attempt to resolve issues concerning trade union rights. After the OECD process, there was a change in attitude. What can be said is that in some cases Unilever has recognized the need for change at the level of local management in order to resolve disputes. Unilever has recognized the need to strengthen its management capacity on industrial relations. In 2011, Unilever invited the Danish Institute for Human Rights to run a Train the Trainer course for HR managers (reaching 80 per cent of HR staff) and developed an e-learning module for line management and human resources, which has been delivered to 80 people. The company has also worked with the Chartered Institute of Personnel Development to

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Employee Relation

LO4 Understand the concept of employee participation and involvement 4.1Assess the influence of the EU on industrial democracy in the Sri Lanka Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace.  A term generally used to argue that, by analogy with political democracy, workers are entitled to a significant voice in the decisions affecting the companies in which they work. The term is not used in a consistent manner. It is used by some who argue that any system short of full workers' control is a denial of industrial democracy, and this was the standpoint adopted by union activists in the early decades of the century who advocated a form of syndicalism or "guild socialism" as an appropriate form of workers' control. The same t erm, industrial democracy, is also used by those who claim that collective bargaining provides the most effective means of worker influence and hence that collective bargaining is a form of industrial democracy. During the late 1970s the term became specifically associated with the proposals of the Bullock Report , which advocated trade union rights to representation on the boards of directors of large companies. Before and since then it has been loosely used to describe various forms of consultation, employee involvement and participation , but in the United Kingdom it tends to be associated primarily with union-based structures, as opposed to systems that operate independently of trade unions.

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Employee Relation 4.2 Compare methods used to gain employee participation and involvement in the decision making process in organizations Methods used to Gain Employee Participation and Involvement in the Decision Making Process in Organizations: There are many different mechanisms for employee involvement in the decision making process in organizations.  Attitude survey is one of the ways of involving employees by seeking their views on matters that concerns them. It can be used to obtain views about processes such as job evaluation, pay determination and performance management in order to assess their effectiveness and the degree to which employees feel they are fair. It can also be used to elicit views about personnel policies and how they operate in such areas as equal opportunity, employee development, and health and safety. Attitude surveys are conducted through structured questionnaires, interview and focus group discussions. Quality circle or Improvement group is another method that can be used to overcome problems which result from the ‗top-down‘ type of management where management ignores the knowledge that exists at the other levels in the organization. Quality circles are small groups of volunteers who are engaged in related work. It provides opportunity to tap the knowledge of employees, who may know more about work problems which might be hidden from managers. Thirdly, Suggestion scheme is a method that provides a valuable means for employees to participate in improving the efficiency of the company. In this process employees have the opportunity to tell management how they perceive the organization is running. Lastly, through Direct Participation individual employees can be involved in decision making processes that affect their everyday work routines.

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Employee Relation 4.3 Assess the impact of human resource management on employee relations. Unilever’s policies and management processes for employee relations

Impact of Human Resource Management on Employee Relations:Employee involvement in decision making plays an important role in organizations becauseit affects workers overall performance.On the other hand, the spirit of good attitude towards work by employees can be reduced if employee involvement in decision making is not taken into consideration by management.The discussion on human resource management policies and practices focused on hard andsoft versions of human resource management.The hard version of human resource management emphasized on resource and adopted therational approach to managing employees as any other economic factor. While the soft version of human resource management involves treating employees asvalued assets, a source of competitive advantage through their commitment, adaptabilityand high quality of skills, performance and so on.In order to identify the specific impact of human resources management on employeerelation, we must realize that the human resource of an organization consists of management and employees both.When management allows employees to be involved in decision making on matters whichconcerns them and the organization, it increases the commitment of employees.In other words such an approach by management wins the commitment of employeestowards organizational goals.Thus, if the commitment of employees is won by management through employeeinvolvement in decision making, it increases job satisfaction, motivates employees to workhard and reproaches employees to have good attitude towards work.Job satisfaction, good attitude towards work and employees working hard will ultimatelylead to improved employee performance.In turn, improvement in employee performance leads to achievement of majororganizational goals at the end of the day.

Principle 1: Commitment This publicly affirms the company‘s values and its commitment to embedding the policy in the way it does business.In relation to the public expression of commitment, Unilever has three publicly-expressed policies covering its commitments to human and labourrights, in addition to the Unilever Sustainable Living Plan: the CoBP; a Respect, Dignity and Fair Treatment policy; and a Supplier Code, which sets out expectations of suppliers. In addition it has 26 internal code policies providing guidance to staff. The policies are endorsed by senior management. The CoBP and the Respect, Dignity and Fair T reatment policy are owned by the CEO and the Supplier Code is owned by the Chief Procurement Officer. Implementation is overseen by a Global Code and Policy Committee, which reports regularly to the Board‘s Corporate Responsibility and Reputation Committee. This comprises non executive directors whose remit is to oversee the company‘s conduct as a responsible business

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Employee Relation Principles Indicators of good practice

Principles

Indicators of good practice

PRINCIPLE 1: COMMITMENT

 A company should express its commitment torespect human rights, including labour rights, through a public statement.

Indicators of commitment The policy should: a) Be expressed publicly; b) Be endorsed by senior management; c) Be preferably informed by experts; d) Stipulate the expectations of personnel,business partners and other parties directlylinked to the company‘s operations, products or services.

The company‘s values are founded on doing the right thing: ‗achieving appropriate labour standards is not something to boast about; it‘s every company‘s responsibility and duty‘.Employees take pride in Unilever‘s policies and approach to sustainability and a motivated workforce is seen as key to its business success:

People must be the source of the company’s value. Unilever must be best in class as we charge a premium for our brands, so w e must invest in training and working conditions…We compete on operating efficiency, quality,specification of products and responsiveness to customer demand. All this requires an empowered and skilled workforce…All Unilever’s analysis shows that where there are good conditions and empowerment of employees, the factory has the best results. Unilever VP Global Supply Chain in an interview

Unilever also states that:  ‗ A significant portion of our growth will come from innovation, delivering leading edge products into the market-place. We anticipate that around half of this innovation will come from oursupply chain. Innovation in the supply chain will require motivated, capable workers who feel valued by and well disposed towards Unilever. The policy currently lacks a commitment to a Living Wage, but Unilever stated it is open to modifying this once it is clear how a commitment can be implemented. The policies apply to ‗employees‘ rather than to workers. According to Unilever no distinction is intended between sub-contracted workers and employees. The intent of the policies are that if people are employed by a third party, they expect fundamental labour rights to be applied by the third party to their employees. The director of the ILO Better Work programme, when interviewed, noted that the term ‗worker‘ is preferable as it de -links rights from the employment relationship and asserts that they apply whether or not a worker is in 36

Employee Relation an identifiable employment relationship; the term ‗worker‘ is generally used in int ernational conventions for the same reason.78 Guidance for staff was recently developed by Unileveron sub-contracted and temporary work and shared on its public website, though it has not yet been incorporated into the policies. The CoBP and the Respect, Dignity and Fair Treatment policy include responsibilities for staff, while the Supplier Code (and associated guidelines) includes expectations of and commitments to suppliers.

Principle 2: Integration in the business and implementation with Suppliers Effective integration of the policies in the business ensures they are known and widely supported by management, staff, business partners and suppliers,and embeds policy in operations including business incentives and lobbying that could impact on human rights.In relation to embedding and communicating thepolicy, Unilever actively raises the awareness of allemployees about the company‘s business principles.They receive a copy of the policy and are requiredto sign to show they have understood it. Senior managers must t ake a test to demonstrate their knowledge of the policy content. In general Unilever employees are proud of Unilever‘s policies and approach to sustainability and have expectations of the company behaving responsibly.

Principles

Indicators of good practice

PRINCIPLE 2: integration in the business and implementation with suppliers Indicators of integration83 The policy should: a) Be embedded in the business through operational policies and processes; b) Be actively communicated internally and externally; The policy is reflected in operational c) Provide clear lines of accountability, policiesand processes necessary to embed supported by it throughout the business enterprise. training in relevant business functions; d) Communicate an expectation of continuous improvement to suppliers; e) Be supported by training for suppliers. Terms of agreement should not interfere with the ability of the supplier to observe the standard.

Principle 4: Remediation by grievance mechanisms  According to Unilever‘s internal global policies: ‗all Unilever companies must have grievanceprocedures that provide for any employeeto discuss with their line manager or, if notappropriate, an independent manager, anysituation where they believe they have

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Employee Relation beendiscriminated against or treated unfairly orwithout respect or dignity without fear ofvictimization.‘ Unilever has two hotlines to deal with non-compliances with the CoBP: a global hotline (in English) which goes straight to Unilever global headquarters and a country-level hotline (in Vietnamese). The study found no cases where either had been used to report a labor grievance. Interviews with stakeholder informants at IUF, SOMO and ILO Better W ork raised questions about whether hotlines were an effective mechanism:

Principles Indicators of good practice Indicators of integration Principle 4: remediation by grievance mechanisms The company ensures remediation through legitimate processes, such as an effective grievance mechanism to identify impact and to address grievances. The company ensures remediation through legitimate processes, such as an effective grievance mechanism to identify impact and to address grievances.

The policy: Should not undermine the role of trade unions. Should not preclude access to judicial or non-judicial grievance mechanisms; Should be; a) Legitimate; b) Accessible; c) Predictable; d) Equitable; e) Transparent; f) Rights-compatible; g) A source of continuous learning; h) Based on engagement and dialogue.

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Conclusion With regards to the process of employee relations in Unilever, it is clear that employee relations processes in this firm are distinctive and complex and involve the interaction of many variables, both internal and external. Unilever is not conflict-free, however, but rather conflict is more covert or manifests itself at a more personal level, perhaps by the high level of turnover among new recruits or the level of strikes among expatriates. Moreover in the context of a ―new realism‖ in Unilever ‘s industrial relation, the conclusion is that such ―realism‖ is not a new phenomenon this firm‘s employees or owners, as work practices associated with this concept have long been the norm in small companies. This is facilitated by weak/ no union influence and recruitment practices whereby managers/owners will employ only people who ―fit in‖ and accept the  dominant management style and authoritative practices within the firm. Therefore, it cannot be argued that a new system or realism in employee relations is emerging from external changes in the context of the firm, as the much heralded ―new realism‖ would seem to be ―long established realism‖ within the firm

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