The Managing Of The Employment Relationship Commerce Essay


Employment relationship is hot topic now a days and has become quite complex to manage in recent world's business scenario due to globalization and growth in the diversity of workforce in last 20 years. The world has definitely become a global village. Management is no longer constrained by national borders. Therefore managing human resource effectively has become vital for every organization. Managing employment relationship is important for both the employer and the employee because to achieve the targets and goals for organization is crucial for the survival of the organization.

Organizations are the fundamental feature of the world and millions of individuals are affected with the nature and scope of their activities. The decisions and actions of management in organizations have an increasing impact on individuals. Therefore, it is important to understand how organizations function and the pervasive influences which they exercise over the behavior of people. This essay will give the clear understanding of the idea how employment relationship should be managed and the impact of culture, management style, organization structure, motivation, managing change and compensation on the employees lives.

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In managing human resource effectively, the first step is to select the right employee for the right position. In this competitive environment of global business, there is no space for mistake and one mistake in selecting the wrong employee for the organization will suffer the organization till that employee will work with the organization For this right selection of employees, it is necessary to use new innovative techniques for selection of employees. For acquiring human resource organization need to specify the kind of work which will be done by the employees. Job analysis and job design are the process used to determine this

Job Analysis means gathering the pertinent information regarding the nature of the specific job. It is determining the tasks that comprise the job which includes skills, qualification, abilities and experience of the employees. Job analysis serves as foundation of the every human resource functions.

Job Design is the process of structuring work and designing work for the specific job in Toyota. Job design gives the answers to basic questions of how the job is performed, who is to perform. Both job analysis and job design are linked with each other.

After selecting the employees, organization should arrange training activities for its employees. To get this training is compulsory now in different organizations. This training is very helpful for the employees and it takes less time to learn the employee's lots of things than learning on job from own experience. In training some lectures and training classes are arranged for employees or give them on job training with the senior members who are having vast experience and can help the employees in its training. Job rotation is another term which is used for learning and developing new skills of the employees.

Different management styles are used by different organizations to manage its workforce. These styles are dependent on the on various factors e.g. culture of organization, nature of the task, skills, qualification of the employees, nature of the leaders. Style of leader depends on all these factors and after analyzing appropriate style is employed. Sometimes different styles are used at same time to control the situation. Normally there are three management styles which are followed by the different organizations which are Autocratic, Democratic and Lassie Faire.

In Autocratic style employee's involvement is minimal or not taken. No information is shared with the employees. Rules are set and then tell employees to follow them. All the objectives and goals are set by the top management. The communication flow is from up to downward from top level to low level. The advantage of this style is that objectives and goal remain constant. These type of leaders make unilateral decision and always keep an eye on subordinates whether they are doing the right things. In this style subordinates have no control on any thing and they just need to follow leader

In Democratic style, employees input are taken in the planning and decision making process. Employees are motivated and encouraged to participate in the affairs of the business. In this style every issues and problems are solved with the consent of the majority. The communication flow is both way upward to downward and vice versa. Democratic style is more often used when the problem is complex and need everyone input. There are some advantages and disadvantages of this style. Employees are more satisfied with their job and turnover rate is low and productivity is high. Disadvantages may include to get everyone consensus is difficult. This style is time consuming because it takes time to get the input from others.

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In Laissez-faire leadership style, leader gives free hand to employees or a group or team and asked for the end result. Leader role is very nominal in this style. The communication style is horizontal in this style. This style is not very common in the so many organizations but still used when management feels its need. There are also some disadvantages for this style, lack of staff focus, no clear hierarchy, poor company image and higher dissatisfaction of customers

Organizations also adopt different management techniques for keeping its employees competitive, satisfied and to solve all the potential problems related to its HRMS. These different techniques are as follows:

Job rotation is the newly concept and it is effective as well. The process of moving employees among different jobs is job rotation. Job rotation helps employees to improve their skills, Knowledge and competencies. Employees get bored by doing the repetitive task every time so job rotation is a good way to keep them active and fresh every time and if an employee is unavailable due to the any reason other employee can do its work

Organizations know intrinsic factors in a job such as achievement, responsibility and growth need the job enrichment. With job enrichment employees are more likely to be satisfied with the job and motivated to perform it. Combining tasks takes existing and fractionalized tasks and puts them together and form a larger module of work. Forming natural work units' tasks and employee does create an identifiable and meaningful whole. Establishing client relationship increases the direct relationship with the clients. Expanding jobs vertically gives employee more responsibilities and control. Opening feedback channel lets employees knows how well they are performing their jobs whether performance have improved or not or remain constant.

Take input from the employees to increase their commitment is important for the success of the organization. By increasing their autonomy and control over their work lives, employees will become more motivated, more committed to the organization, more productive and more satisfied with their jobs.

Keep informing the employees about the goals and direction of the organization. Communicate all the related issues regarding employee future, job and performance. Each and every matter which organization can share to the employee should communicate them. Every thing which affects the employees itself also communicated to them.

Visit to the offices, factories, workshops, and labs regularly, always asking the employees about their work and work related problems; sort out the problems and giving them feedback etc.  

Organization should collect the key ideas and uses the experiences of most of the employees to create opportunities and new ways for them. It is important to bring incremental changes in culture of business, products, behavior, processes, and in business models that create value for customers, stakeholders and the company.

Due to the best knowledge sharing network organization can gain competitive advantage on other competitors. Knowledge sharing system has made so many organizations effective and capable to do any thing with in no time. This knowledge sharing network includes employees, suppliers, management and all the related stakeholders. This network will made business superior on other businesses. This knowledge sharing network solves so many basic problems

Motivation is a feeling of satisfaction and commitment towards its goals and objectives. This is an internal psychological state which determines the action of the person. Employees are motivated via different ways .It is important for organization to give much attention to the needs of its employees and keep moving in the desire direction. Organizations enhance its employee's motivation through two basic ways:

Financial motivators are connected to the monetary need of the employees which includes salary system, bonuses, and allowances etc. which have usually short term effect on the employees. A person is paid a salary for the job he/she is doing in a specific time. In Toyota, person's basic salary depends upon his knowledge, skills, qualification and competencies of the employee. Basic salary should be compatible with the job. It is required for the Toyota to give the compatible salary to its employees which keep them motivated and committed.

The most important technological changes which are used by organizations to motivate its employees include non-financial motivation techniques. These non- financial motivators are very effective it cost nothing to the business but depend on the willingness of pertinent managers to pay more attention to their staff. These non financial motivators are connected to the work itself and having a longer term effect. Non financial motivators are honors, self respect

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An organizational structure defines how job tasks are formally divided, grouped, and coordinated. Organizing the structure of organization is most challenging tasks of the business. As business grow organizing the work of people becomes more difficult and challenging. Organizational structure differs from one organization to another. Structure of every organization depend on its environment, size of the organization, technology etc. structuring work for 50 employees is different than structuring work for 5000 employees. Every organization needs an organizational structure for achieving its target effectively and efficiently. An organization structure is a mean which helps organization to achieve its target and objective. Objectives are derived from the business overall strategy. So, it is important that strategy and structure should be linked closely. Organizations whose strategies do not link with its structure result in fail of achieving target or performance declines.

Organization culture also affects the employee management relationship. Organization culture refers to a system of shared meanings held by members that distinguishes the organization from other organization. Every organization of the world has its own culture.

There are primary seven characteristics of the culture which tells about the culture of any organization. These seven characteristics exist on a continuum from low to high. Appraising organization on these seven characteristics, then, gives the clear picture of the organization's culture which include Innovation and risk taking, Attention to detail, Outcome orientation, People orientation, Team orientation, Aggressiveness and Stability

Job satisfaction is an employee's general attitude towards the job. A pleasurable emotional state caused by the job to the employee. Generally, it is said, more people are happier with their jobs the more they are satisfied. An employee attitude towards one's job may be positive or negative. Job Satisfaction is influenced by different factors such as management style, culture, employee involvement, empowerment, working environmental conditions and salary etc. job satisfaction is very important factor which should be measured by the organizations

Job satisfaction is the most important variable and organization's success is dependant on its employees. Every organization should always follow the innovative techniques for managing its human resource. Satisfied and committed employees are asset for any organization. It has seen organization with more satisfied employees perform better than those whose employees are not satisfied. Organization whose employees are dissatisfied with their jobs cost too much to the organization. Mostly they will be absent from the work or might quarrel with the co-workers .These employees do not take interest in their job which affects the overall productivity of the organization and ultimately organization will suffer. There are so many reasons for their dissatisfaction; it can be the environmental conditions in which they work, Nature of the work like repetition etc.

Unitary approach

The Unitary approach of managing employees is based on the assumption that the organization is an integrated group of people with a single authoritative structure with a set of common goals values and objectives shared by all employees of the organization.

Through the unitary approach it is assumed that both management and employees can achieve and satisfy their common goals. In the Unitarist theory management basic responsibility is to controll and directs the workforce towards the objectives of the goals in order to accomplish its mission and vision.


Unity of command

Unity of direction


Clear hierarchical structure

Time saving in accomplishment of targets and goals


Dissatisfaction of employees

Higher Absenteeism

Higher Turnovers

Low productivity

Less employee involvement