The Ideology For Managerial Commerce Essay

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In this world employment is generate from this two sector only, one is in public sector and another one is in private sector. This two sector offer job opportunity ,in the UK it is near 22million employees in employment , employed by private companies ranging from British and foreign owned giants to small local firms and corned shops, by central and local government and by stats-owned corporations and industries (Gospel and Palmer 1998 p.5). The objective between private and public sector is difference, private sector objective is profit oriented but public sector objective is to deliver the services to citizen, because of this difference objective working environment also difference. The similarity between these sectors is in term of employment relation. This direct relationship may be mediated by the two other institutions to IR, the trade union and the state. Trade union is a group who represent the workers for bargain with employer and state for employee wages, working practices, term and condition in working environment and many more. While state is influence employment relation directly through law and through its role as the employer in public sector. State also has relationship with union either through laws on union government or through bilateral arrangements (Edwards, 2003 p.10)

In order to running the smooth operation owner of the organization will hire a manager to planning, running, monitor daily operation while first line workers is a employee who execute the daily operation. In the labor market, manager has the ability to hire, fire, pay and promote employee (Bloom and Reenen 2010). Managers have its own style on how to manage the organization. According to Bloom and Reenen (2010) each country and specialize firm have difference style of management. The term management style is design to highlight the possibility that manager as agents of the employing organization, are able to exercise some degree of choice in the fundamental approaches to the way employees are managed Edwards (2003). As for manager their managerial style will lead organization to success or failure. To become a manage the individual need to have the knowledge, skill and experience because if he or she make the error it can reflect to the whole organization. According to Politis (2001) leader do not manage knowledge but they carry out their mission to effectively apply and use knowledge from a variety of traditional positions located throughout the organization. Manager can choose on how they are managing the organization whether more to individualism or collectivism. Individualism and collectivism is referring to relationship one perceives between one's self and the group of which one is members (Noordin and Jusoff 2010). According to Noordin and Jusoff (2010) Individual manager are likely to look out for his/her own interest and try to maximize the gain from any opportunity that might present itself. While collectivism manager is look for the whole group interest compare to his/her self only.

In employment relation it have three types of ideology for managerial. One types of ideology is unitarism ideology. In unitarism, organization is view as unified entities which all party that involve in the organization share the same objective. In term of power management is view as a single source of authority and employment relationship is essentially consensensual reflecting common interests. According to Budd and Bhave (2008) cited in Pfeffer 2005 the unitarist employment relationship is seen as a long-term partnership between employees and employers with common interests. Profitability and other organizational goals go hand-in-hand with fulfilling work, fair treatment, and satisfaction of employees' other intrinsic desires. This model of the employment relationship is focus on creating policies that simultaneously benefit employees and employers. In unitarism perspective conflict is unnatural and unnecessary, and when conflict are exists it is because of trouble makers, misunderstanding or miscommunication, according to Budd and Bhave (2008) unitarist employment relationship assumes away issues of power and conflict because employees and employers are assumed to share unified interests, power is unimportant and conflict is seen as a suboptimal state of affairs. In term of trade union unitarism viewed as unnecessary.

Second types of ideology for managerial is pluralist ideology. In pluralist, organization is view as combination of difference sectional interest and groups. All parties in the organization have shared, diverse of interests and objective. According to Budd and Bhave (2008) the pluralist model of the employment relationship rejects the egoist perspective that employees are simply commodities rather employees are seen as complex economic and psychological agents that, as human beings, are entitled to key rights such as equity and voice. In term of power pluralist view management have the authority but it can be legitimately contested and questioned. Power relation is intangible and relative dominance group can change over a time. In pluralist conflict is view as occur, unavoidable, within limit, legal and healthy. According to Budd and Bhave (2009) the pluralist model sees some conflict as a natural, healthy feature of the employment relationship, as such conflict is to be managed, not eradicated and avoided. Conflict is often managed through bargaining, and power is therefore seen as bargaining power the leverage one has to win economic gains in the employment relationship within some range of market indeterminacy. Pluralist ideology assumes conflict of interest can be resolved through rules, negotiation and collective bargaining. In term of trade union, they are legitimate representatives.

Thirds types of ideology for managerial is radical or Marxist ideology. In radical ideology its view that relationship between employer and employee based on class of conflict like "them" and "us". The employment relation has a deep conflicts of interest and imbalance power. According to Budd and Bhave (2008) in Marxist thought, as employers control the means of production, they are able to extract labor's surplus value which further empowers the capitalists at the expense of workers, not only in the economic arena, but in the socio-political arena, too. This extraction perpetuates the importance of power relations and reinforces the broad-based nature of class conflict. In term of conflict contention can be settle but underlying conflict will remain until the structure of society will change. Trade union is not allowed in this ideology.

Under employment relation there are five types of typology of management style. One of the management styles is traditional style, traditional is more likely unitarism ideology. Power and authority is in employer hand, employee will be exclude from decision making , trade union is not allow in the organization and workers is view as a factors of production and management is using cost minimization for manager the labor. Second types of management style are sophisticated human relations, a according to Purcell and Sisson (1983) under sophisticated human relation workers are regarded as organizational assets and management seeks to maximize employee identification with the aims of the company. Policies are believed to remove any need or justification for opposition by workers and therefore trade union recognition unlikely. Third types of management style are sophisticated constitutional, it is more likely pluralist ideology in this management style trade union is allow and it has clear establish between areas of power and management right. Fourth types of management style are sophisticated consultative. Under this management style trade union is allow in the organization. Union is participating through decision making through recognition, problem solving and two ways communication. The last management style is standard moderns, according to Purcell and Sisson (1983) Management's approach to employee relations swings between unitarism and pluralism contingent and opportunistic management where the adopted approach reflects the prevailing employee relations climate. When union power is perceived as low, management makes decisions, when power is high, a negotiating or consulting approach may be adopted.

As for manager they will try to perform the best in their management because what they do will reflect back to the organization. Manager is free to choose their own management style but there are constrain or limitation in management style. One of the limitations is in term of political, political is refer to the state. In employment relation state is the major actor as a create and enforcement of these laws. When one organization is operating its business whether local or international organization need to follow the employment relation act in that country. For example manager want it's subordinate to work on public holiday but under UK Employment Rights Act 1996 it state that "An employer shall permit an employee of his who is a justice of the peace to take time off during the employee's working hours for the purpose of performing any of the duties of his office". With this act it give limitation to manager what they cannot perform in their managerial style event it is for the sake of the organization. If manager is not complaints to the act employee have right to report to tribunals. Here if manager or organization faults they can be punished and give penalty by state.

Second limitation for manager in their managerial style is in term of economy. Now day most of the business organization involve in globalization, globalization is means world without boundary. Some organization operates its business at home country but open its factory at other foreign country, this activity has contributed to increase the growth of alliances and joint venture activity. More directly foreign companies will bring to the host company their own method ,ideas of production and labor management .The result not only a greater diversity of employee relation practice but also pressure on manager to seek the best practice (Blyton and Turnbull 1998). This diversity will give impact to manager because manager needs to find the best managerial style that can be suite to both parties.

Third limitations for manager in their managerial style are in term of social. Example of social limitation in industry is before this most of the organization don't want to hire women as their subordinate, if they hire women they will pay half of the actual salary compare to men workers. According to Edwards (2003) historically there is evidence that women were deliberately excluded from some areas of work and targeted for other. Now days the legal has change the development of employment practices which the equal pay act was introducing in 1970 and came fully into force in 1975. This provider for equal pay for men and women doing the like work for the same employer or doing job which had been rated equal by a evaluation scheme(Blyton and Turnbull 1998). This same go to race manager need to treat equally black workers as the same with other race workers.

Fourth limitations for manager in their managerial style are workers representative trade union. Trade Union plays the roles in regulating the employment relation through collective bargaining with employer about works environment like salary, working practices, term and condition of employment and many more which is related to employee. Trade Union is a powerful group if they cannot settle the problem they will carry its high level involvement like state. Trade Union can make things become more worth like make the strike activity. For organization who don't have trade union representative they can report to tribunal about the misconduct done by the manager in the work place. As for manager the need to be very careful in their management style so he can avoid the issue or controversy from occur in the organization.

Fifth limitations for manager are ethics. As for manager they can choose their managerial style but the style must not violate the ethics as a manager. For example if manager is close with this subordinate he will recommend the increment compare to other workers here manager has violated the ethics as a manager. In performing it task as a leader to its subordinate manager must follow the ethics of works and as a leader.

One of the case study best practices that take place in UK industry is partnership practice between Tesco and Usdaw. Tesco employs over 470,000 people across 14 countries, including 260,000 people around 1900 UK stores. In the UK, Tesco recognizes the shop workers union Usdaw . Tesco and Usdaw have entered into a partnership agreement which broadened the role of union and to include information, consultation, on-going dialogue on a wide range of issues and involvement staff in training. The agreement was driven inflexible employee relation climate and create the condition for more progressive two-way communication to cover a range of business issues. As for Tesco the keys of their success is they have a good relationship with their workers. They have a positive relationship with union which being honest and they view union as a representative which helps them to see both side of an issue and autonomy for store managers to resolve local issues without referring them up the line and use of working parties that address the important issues. The good relationship between Tecso makes them as one of the successful organization in the world. Manager is free to choose management style and by involve employee together it can create a harmony working environment. (Powered by Google Docs. 2012)

As for organization their employee is the main asset, employee will contribute to the successful organization. Manager is the individual who responsible to monitor, planning all the employee daily operation. Difference organization or country has a difference style of management. As for manager they can choose to manage the organization by individualism or collectivism. Individualism manager is more focus to its self compare to collectivism manager who focus to the whole group in the organization. There are three ideologies in management unitarism, pluralist and radical ideology. In employment relation it have five types typology of management style, the typology is traditional, sophisticated human relations, sophisticated constitutional, sophisticated consultative and standard moderns. As for manager they can have their own management style but there is a limitation of their style in term of political, economy, social, workers representative trade union and ethics. The best practice of management style can contribute to successful organization.