According to the International Labor Organization, ILO (2011), Human resource management is both, the science and practice dealing with the nature of employment, decisions, actions, and issues of relationships at a workplace. Labor relations are a construct under which laborers, employers, and workers’ representatives through the direct or indirect intervention of the government interact to set regulations to govern work-related matters. Matters of counseling, disciplinary actions, and investigations form the basis of the relationship between an employee and labor relations’ principles defined under human resources. The labor relations function of the HR is a bridge between management and staff. The HR labor relations come in through intervention roles of the HR, such as mediation, training, and problem-solving. It offers balance advocacy to individual employees and management. As HR management is a comprehensive and chronological perspective to employee development, according to Armstrong (2012), labor relations, therefore, forms a part of strategic human resource management. With regards to labor relations, the human resource management features four main characteristics evident among industrial managers; traditionalists, sophisticated paternalists, sophisticated moderns as well as standard moderns (Armstrong, 2012). The main reason why the Human resource labor relation exists relies on the functionality of labor unions and HR managers. However, they are in constant disagreement from time to time on matters of employment and working environment. Trade unions represent workers for better pay, standardized working conditions, and better terms of employment. HRM, on the other hand, is interested in effective employee performance for better returns of the company. This research finds out that the only time HRM functions to bridge a gap between the company and the labor unions, the HR labor relations being a functional unit of the wider HRM come into consideration. In this capacity, it mediates the grievances of the company relative to the welfare of the laborers to answer the issues raised by the unions. The relevance of human resource labor relations is evident as employees in most cases experience discrepancies between what their employer requires and the employees’ needs (Ehrenberg& Smith, 2016). In such situations, the labor relations management is a subfield of human resource management tasked with managing labor relations in a workplace. It informs the relevance of human resource labor relations as an area that requires exploring within the roles of human resource management. As some large companies tend to manage without the unions, they have to adopt specific substitution policies that attract employees or at least appear as a better alternative offer as opposed to working under trade unions. In this case, the companies give priority to communication as well as the sharing of information as they deal with individuals rather than collectively, as in the case with trade unions. In the same context, other small businesses offer no alternatives at all as far as strategic HR function of labor relations is concerned (Bercu & Vodă, 2017). This paper assesses the essential characteristics of labor relations and relates various management theories to emerging trends in principles of trade unions relative to the role of HRM.
Concepts and Processes of Employee Relations
The industrial management that abides by the principles of traditionalists has fundamental beliefs against unions. They sometimes have a dynamic type of management of human resources. Under traditionalists view, the HR considers employee relations as better option in the non-union environment. Armstrong (2012) maintains that there are minimal or no strikes at all within the scope of traditionalists HR principles, high labor turnover, and higher dispersion of employee pay. In general terms, no alternative employee representation exists. The sophisticated paternalists do not take for granted labor relations in place as much as they are unitary. They only need employees to accept the management decisions. The HRM role, in this case, is to dedicate as many resources as possible to ensure employees adopt the right approach. HRM labor relations as strategic management relates to sophisticated moderns who can be constitutionalists or consultors. They either codify the limits of a collective bargaining agreement or accept such CBA without coding. Lastly, standard moderns are pragmatic or opportunistic. Even as they recognize trade unions, their role is assumed as not problematic enough, except when events prove contrary (Armstrong, 2012). As long as it is inevitable to have trade unions and management disagreement under any concept, the role of an HRM labor relations is to resolve issues prevailing from time to time before they turn into disputes. Labor relationships get into the mix to offer strategies to adopt a more positive partnership perspective. Here, parties make collective agreements that enhance a perspective of mutual management-employee interdependence.
Through employee relations procedures, research by Bacon & Storey (2000) reveals that underpinning the HR labor relations and the trade unions is procedure that regulates how employers tackle issues, processes of employment as well as industrial relations. Such procedures feature dispute resolution strategies of conciliation, arbitration, and mediation. Strategic human resource management concerning labor relations would mean focusing on the best strategies of the three procedures that in the end offers the best work environment for mutual benefit and understanding between conflicting parties. The principles bring to focus the role of collective bargaining as a means to reach a compromise that focuses on the satisfaction of both parties. While conciliation means an HR labor relations function as a go-between, in an attempt to ensure the firm and the labor unions agree on terms, arbitration requires seeking a third party.
However, the role of HR labor relations is stronger when it takes a mediation role as it is a concept of arbitration but with the stronger perspective of conciliation. The role of a mediator is to offer recommendations to the union representatives and the firm, which the two parties are not bound to obey. It is the option that offers the cheapest and most straightforward type of employee relations process which offers a quick solution also. In a specific case, the University of California, MERCED, has its labor relations office mediates resolutions of complaints, represent management in employee dispute proceedings as well as respond to union information’s requests on behalf of the institution (UNIVERSITY OF CALIFORNIA, MERCED, 2018).
Relating HR Labor Relations to Specific HRM Theories
HR exists to ensure that the employer-employee relationship is harmonious and efficient through its role of managing human capital for the entity in question as well as arising issues. Whatever the size of the company, managing human resources is key to ensure improved employee productivity and their well-being (Farnham, 2015). With the introduction of the 1980 Harvard Analytics Framework, the human resource management theories came to the forefront of Principles of managing labor and human capitals in general, even as changes occurred later on in the early nineties (Weerasooriya, 2008). Organizations’ management over the years relies on the fact that leadership as well as leadership development are crucial success factors for firms rather than management. As a result, the focus shifts towards leadership. HRM theories examine the role of the HR as a leader rather than a manager (The Da Vinci Institute for Technology Management, 2013). The fundamental views of leadership as a concept consider the HR as a creative role as well as a force that appeal to morals. It is a process through which a leader induces a junior to act in a manner desirable by organizational culture and objectives. It is based on directing and coordinating of the duties of group members. It also maintains that human resource management relates to an interpersonal interaction whereby people comply willingly as opposed to their compliance being a requirement. It is ultimately a process that influences organized parties to accomplish a common goal and action that direct resources to creating a desirable organizational opportunity (The Da Vinci Institute for Technology Management, 2013).
Motivation as a HRM theory underpins its roles and applicability as far as labor relations are concerned. One of the leading theorists of this principle is Abraham Maslow and his Hierarchy of needs theory. He maintains that HRM’s essential role is to understand what keeps employees motivated. For this theorist, five needs of workers determine motivational factor; psychological, safety, love or affection, esteem, and self-actualization needs. With different difficulty to satisfy the hierarchical categories of these needs, Maslow’s theory helps Human resource managers understand the best ways to motivate employees for the benefit of the employer. As labor relations are about the environment that satisfies the regulators, labor representatives and offers the best deal regarding the worker’s needs, through Maslow’s Hierarchy of needs theory the HR would determine the best combination of needs that benefit the employees and keep labor unions and the regulators in harmony. The balance is expected to offer a peaceful environment for the business to operate (Jerome, 2013). In so doing, the HR not only manages a significant portion of the external business environment, but also finds a balance for both, the firm and the other parties, which, as research indicates elsewhere in this article, will always be in conflicts. Jerome (2013) further concludes that the application of the theory is paramount for achieving the right working environment, organizational excellence, and better job conditions.
The human resource decision-making theory also underpins the operational environment in which workers, employers, government regulators, HR managers, and labor representatives coexist. Perhaps, the relevant theory here was a Participative decision-making concept by Rensis Likert, PDM. The Likert’s theory maintains that supervisors that influence strong job productivity have their focus reliant on human perspectives of junior staff problems when coming up with teams that focused on achieving the highest. In simple terms, the human resources have to treat workers as humans and not as a means of production or capital for the organization. In the perspective of productive and unproductive team leaders, Likert features four basic HRM styles with relevance to labor relations as an environment and HR labor relations as a subset of the broader perspective HRM. He defined these categories under systems from 1 to 4. System one relates to exploitative authoritative HR leadership that begins with trust. No trust is given to junior staff. Neither confidence is given to subordinate’s prowess in making decisions. Because motivation is accompanied by threats, the labor relations have limited applicability as they give voice to the employees. This aspect of HR role closely relates to traditionalists HR relations which limit the role of labor unions (Bercu & Vodă, 2017). In this case, it is the government agencies and labor regulations that come in to seek the employee welfare as opposed to the demands of strategic HRM and employee motivation.
Benevolent Authoritative is at the system two where the responsibility lies with management, however, not at the lowest levels of the firm’s leadership positions. It depicts a master-servant relationship. Also, subordinate management communication is limited as motivation relies on a reward system. Regarding labor relations and employee involvement in trade unions, the management ignores the fact as insignificant. Under system 3, the theory focuses on reasonably improved consultative aspects of the HR worker relationship. A widely spread responsibility characterizes the organizational hierarchy. There is significant yet not full confidence in the subordinate’s decision-making ability. It is at the system four under the Likert decision-making theory that all the relevant stakeholders encompassed by the Human resource labor relations find a balance (Likert, 1969). Here, the work environment and HR roles are defined by a system of interlocking job categories. The members show a high level of group loyalty. There are trust and favorable attitude among junior staff and the management. There is also sensitivity to others as the group works to cultivate a high level of personal interaction skills, which, in turn, work to favor decision making in the problems affecting the group. In particular, there is a definite willingness to come up with organizational goals that enhance satisfactory merging of desires and wants of all organizational members. Under the circumstances, the HR functions as a link between employees, organizations, and any other external player whose operations influence negatively or positively the welfare of workers.
Moreover, there is escalated reciprocal and coordinated influence within the organization as fronted by HR strategies. Research indicates that the Human Resource functions that rely on system four of the Likert management theory achieve some of the highest earnings and productivity, incur little costs in production, less wastage of company resources, fewer employee absence, and ultimately better trade relations. It means that the company invested in functioning operating procedures, such as communication, compensations, supervision, or decision making among others (Likert, 1969). While system one relates to a scientific management viewpoint, the last system, as principled by Likert (1969) in his original work, relates to human relations criteria. Ultimately, Likert believed that performance of business relies on structures already in place for workers, where entities incorporate aspects from human resources, relations approach, and other concepts of scientific management to reap the maximum out of organizations. Labor relations only come into play in defining the best interest of employees for optimum employee performance.
Emerging Trends in Human Resources Labor Relations
In the current technological business place, digital trends define labor relations (Terranova, 2000). For the progressive human resource managers, the steps of successful management in the present day operations involve improving employee relations since it is the employees that do the work that keeps the company on a competitive edge. Improving digital presence is vital in ensuring better relations in the international arena. Mostly, the HRM strives to determine how their presence online can achieve a voice for the employees, attract new talent for recruitment, and invoke company pride. Working for a famous company such as Amazon is prestigious for individual employee relations as it evokes a sense of pride. Employees who become a part of a global movement in a reputable company through content and presence online earn respect. One becomes a trending topic based on the content they generate that covers a broader market. Allowing employee voice means a company or the HR strategy that allows employees to join international labor unions where global matters of a workplace form a part of the conversation. As company employees connect with others, they improve their relations and give the face of the company a digital presence which is a win-win situation for the organization and the employees (Terranova, 2000).
Conclusion
A thin line of relationship exists between human resource labor relations and management theories, especially those offered by Likert, 1969 and Abraham Maslow. The two theorists define a guiding principle for the operations of human resource managers as a leader rather than a manager. Since the welfare of the team or subordinate is the fundamental criteria to determine the success of HR roles, effective management views HR managers as those who integrate the operational environment of the company in a way that workers’ interest, labor unions’ goals, and the objectives of the company can move together in harmony. Should there be a conflict, processes of labor relations apply and as a combined effort define the boundaries and capacity for the HRM to act in offering a compromise or at least a recommendation that works for the benefit of all the parties. It is to say that the role of HR does not end with managing human capital for the general profitability of the company, but spreads to bring a balance in the operational environment of the company. Ultimately, the human resource management must find a working formula where the interests of the company, the labor laws, and employees’ interests are not only respected but implemented. The government role in the mix is to regulate the operational environment. The company, through its representative, must align its objectives with the vision of its employees as far as the labor relations are concerned.
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