EMPLOYEE RELATIONS

Managing Employee Relations in Contemporary Organisations

Table of Contents

Introduction1

PEST Analysis1

Political Context1

Economic Context2

Social Context2

Technological Context2

Impact of the Factors3

Employers and Management3

Motivation3

Communication and Transparency4

Compensation and Rewards5

Training Initiatives5

Health and Safety5

Trade unions and Employees6

Gender Dimensions of Ageism6

Discrimination towards Older Workers6

The State7

Performance Appraisal8

Other Laws9

Strategic Choice9

Conclusion12

References13

Executive Summary

With regards to employee relations, there are major changes that have taken place in the United Kingdom. PEST Analysis shows a radical change that has been experienced in terms of political context in the UK since the minimum wage rate was defined. However, the government is stable and no barrier to entry exists for the new companies. In the economical context, it can be said that UK is the sixth largest economy in the world, and growth has been experienced by 0.5%. Companies in the UK are following ethics but distribution of wealth is not equal and changes in lifestyles and trends have occurred. New methods and techniques have been adopted by the companies to improve productivity. There are several factors that have an impact on the companies in the UK, which includes employers and management, motivation, communication and transparency, compensation and rewards, training initiatives and health and safety. Besides these, trade unions in the companies play a major role in protecting the employees in terms of discrimination against ageism and older workers. In order to avoid any kind of unethical activities, the state has formulated Equal Pay Act, Maternity Leaves & Pay Regulations, Flexible Working Regulations, Health & Safety at Work Act 1974 and Provision and Use of the Work Equipment Regulations 1992. Changes with regards to the strategic choice have also been seen because the managements identify goals, which are communicated to the employees which result in enhanced productivity in the future.

Managing Employee Relations in Contemporary Organisations

Introduction

There have been major changes that have taken place in the United Kingdom in the last thirty years with regards to employee relations. These changes have not just been made in the organisation, but changes in terms of political, economic, social and technological context have also taken place (Northouse 2009, pp. 100).

PEST Analysis

Political Context

The organisations existing in the UK, in the modern world have seen a radical change from what they were before the past thirty years. A royal assent was received by the Local Democracy, Economic Development and Construction Act 2009 in November 2009 after which amendments were made with regards to posts that are restricted politically . This was done by removing the duty to maintain the posts that are earning more than the amount of salary which has been nominated (Ivancevich, et.al 2007, pp. 100). Besides this, care is also being taken for the employees and especially for the workers since the minimum wage rate has been defined that does not create problems for people who work at low paying jobs. However, the government is stable, trade regulations and tax policies are favourable, and there is no barrier to entry for new companies (Ackers 2002, pp. 33).

Economic Context

With regards to the economy, there have also been changes in the ...