Human Resource management is an important aspect of an organization. The reason is because employees are the most important assets in an organization because they are responsible for planning, organizing and executing all the activities from production, distribution, marketing and selling of commodities (Snow & Snell, 2012). Having skilled and qualified human resource is also a more advantage because they ensure that all the business activities are done efficiently and in a professional manner. This paper discusses the benefits of retaining qualified employees to the organization and the effects of layoff to an organization. On the same note, the paper looks at the benefits of unionizing in an organization and how labor relations foster a relationship between the employer, the employees and the union leaders. Strategic Human Resource Management
Benefits of Retaining Qualified Employees
Employees are the most important assets in an organization because they are responsible for planning, organizing, and executing all the activities from production, distribution, and marketing to selling of commodities (Snow & Snell, 2012). Having skilled and qualified human resource is also an added advantage because they ensure that all the business activities are done efficiently and in a professional manner.
Finding qualified employees in the job market is difficult. Therefore, an employee who is loyal to the company with the requisite qualification and great work ethics would be of much interest to the organization. Retaining such workers will ensure that the organization is run efficiently because employees who have been working in the firm and have the required standards will run it according to its culture, professional ethics and in the required manner (Storey, 2014).
Retaining qualified employees will also ensure that efficiency of operations within the organization is retained or improved. Qualified workers who have been working with the organization for a given period understand the different processes within the organization (Armstrong & Taylor, 2014). They are also in a position to work more efficiently as compared to new employees because of their day to day experience working with the company.
Retaining qualified employees ensures that the organization’s productivity is retained or improved. Besides, it ensures that the firm is in a position to retain the drivers of the organization. Therefore, production levels will be maintained or improved because of having qualified employees who have been working with the organization for some time and know what is required of them.
Maintaining qualified employees also ensures that an organization can minimize the cost incurred in recruiting and training human capital (Storey, 2014). The recruitment process is often rigorous and requires a lot of time and resources to ensure that the company has recruited the best-suited employees. Therefore, retaining qualified staff will enable the organization to avoid costs involved in hiring and training employees, thus reducing its expenses.
Trust and accountability: retaining qualified employees is critical in the corporate world because of the mutual trust and accountability that would have been built between the workers and management (Armstrong & Taylor, 2014). Management tends to desire individuals who can help run the organization in their absence. Therefore, reliable and trustworthy employees are the best for such duties, and this can be gained only by retaining such qualified and trustworthy staff.
Benefits of Unionizing
Trade unions provide benefits to the employees and the organization if it is well organized and efficient in their work. Labor unions unite workers and create a vehicle for collective bargaining with the management. Some of the key benefits of unionizing to the management include the following.
Simpler Negotiations: Labor unions help to simplify the negotiation process between the management and the employees. Labor unions negotiate issues as a block rather than individual employees, thus simplifying the negotiation process and make it more efficient because the management would not have to worry about negotiating with different employees.
Less Employee Turnover: Workers working in a unionized workplace will not leave their jobs frequently because their needs and rights are constantly fought for through the labor unions. Employees tend to contribute some amount to be part of the union and would; therefore, want to remain in their position to avoid inconveniences. Employees working in a unionized environment tend to benefit from the safety, security, and good compensation from the union and would; thus, not desire to lose their position in the organization. By reducing the level of employee turnover, the firm is saved from investing money in training many new workers from time to time.
Employee Satisfaction: Labor unions provide benefits to the organizations as they can help in improving employee satisfactions. Workers in a unionized environment tend to be satisfied because they have a channel to which they can air their grievances to the management (Armstrong & Taylor, 2014). Unionized employees tend to get higher wages and benefits packages as compared to the non-unionized workers. Meeting such requirements makes employees more satisfied and dedicated to work for the organization leading to increased productivity and production of goods or services of better quality.
Facilitate change process: Management can partner with the labor union to facilitate the change process (Storey, 2014). For instance, management can provide information to the leaders of the labor unions that in turn disseminate the information to the employees. This improves the chances of an organization to adapt rapidly to changes within the environment.
Labor Relations and the Relationship between Employees, Union Leaders, and the Management
Labor relation is the system in which different stakeholders within the organization such as the management, employees, and their representative, as well as the government interacts to come up with the set standards for governing work relationships. Labor relations also assist in examining the established work relations to ensure smooth operation of business activities in a good work environment where each stakeholder is satisfied.
Labor laws are used to govern the rights and obligations of employees, employers, and the unions. These laws are used to establish a good relationship between the management and employees, as well as the union. Labor laws provide a manner in which the trade unions can represent the workers to the management (Storey, 2014). Most of the time, the labor union is in charge of coming up with the informal ground rules for establishing the framework for individual employment relationship between the employer and employee, and the nature of collective industrial relations. Labor contractors, employment agencies, and job contractors may also have the responsibilities towards the workers with little or no control of the work environment in which employees work. Therefore, labor relations assist in unifying the different stakeholders to establish efficient relationships between the various stakeholders.
Labor relations also assist the human resource management to manage employees working in a unionized workplace. Labor relations are used to establish a good relationship between the management and labor union leaders (Armstrong & Taylor, 2014). The leaders in turn help cement the relationship between the management and employees by relaying the management opinions and those of workers as stipulated by the labor relations law.
Human resource management also encapsulates the policies and practices formulated by the management that perceives employees as the business resource that can be utilized to enhance productivity, competitiveness, and assist the organization to attain its overall strategy (Purce, 2014). Therefore, employers use labor relations to administer its personnel through employment involvement to motivate employees and enhance their productivity.
Effect of Layoff on the Organization
Employee layoff often results in a lot of effects in the organization where employees work as a team to attain the firm’s goals. Therefore, a layoff results in missing links in teams affecting the operation of the organization in different ways.
The layoff may result in direct costs: Organizations often use layoff strategy as one of the methods of saving money (Snow & Snell, 2012). However, this is not the case as the organization may end up incurring a cost because of layoff. For instance, the organization will be required to provide retirement package, use placement services for the time being or pay overtime wages to the remaining employees to maintain production.
Emotional Distress: Layoff results in distress to the affected person; on the same note, the remaining employees will also suffer emotionally. Because layoff distorts the status quo, the remaining workers will be required to do more jobs and develop new working relationship that cause stress (Purce, 2014). The productivity of employees who work in fear of losing their job tends to reduce. The situation is made worse if the individual who lost his job remains within the organization until his contract is terminated.
Increased Turnover: Organizations that lay off employees tend to see more workers resign from their positions (Armstrong & Taylor, 2014). Seeing other colleagues leave the organization because of layoff may make other employees consider other job opportunities and leave the organization.
Decreased Customer Loyalty: Layoff may also result in decreased customer loyalty because clients will perceive the organization negatively; for instance, when the management layoff an employee, the customers of the organization might perceive that the organization is in some crisis. Similarly, reduction of employees may imply that there will be delays in production and delivery of goods and services; hence, resulting in decreased employee turnover.
Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Purce, J. (2014). The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.
Snow, C. C., & Snell, S. A. (2012). Strategic human resource management. In The Oxford Handbook of Organizational Psychology, Volume 2.
Storey, J. (2014). New Perspectives on Human Resource Management (Routledge Revivals). Routledge.