An organization's human resources have always been a critical asset, however employee relations is becoming increasingly valuable in the hypercompetitive marketplace of the 21st century. As such, "a firm's internal resources and intangible capabilities are the primary source of value creation for the future, since they offer a more reliable and controllable foundation for strategy making" (Burke & Cooper, 2005, p
To protect freedom to contract, an Independent Contractors Bill will be introduced in 2005. (Utz, 2005) Part Two 1
Role and Function of Managers in Industrial Relations: In a general sense, "beyond leadership skill, one must have the leadership vision to lead properly." (Reh, 2) More specifically, in the context of the United Arab Emirates (UAE), there is a particular imperative for management to understand the unique idiosyncrasies of labor relations in the nation
According to Shaiken (2004), "fierce world-wide competition for jobs threatens to undercut wages and working conditions." (Shaiken, 1) This means that there is a distinct ethical need in the field of industrial relations for the introduction of fair wages, safe working conditions and other basic worker protections
According to the systems theory of industrial relations an industrial relations system is an abstraction comprised of "certain actors, certain contexts, and an ideology" that bind a particular community system together that is defined through an agreed-upon "body of rules that govern the actors in the workplace" and "the work community." (Black, 2006, p
According to classical negotiation theory, in a zero-sum situation, it is impossible for one party to advance its position without the other party suffering a corresponding loss. (Spangler, 2003) In this theory, there is one 'pie,' and both sides want all of the 'pie,' and for every gain of the pie for one side, there must be a loss of the pie for the other side
Micromanagement of staff involves having excessively close supervision and control of the employee's work. It is important to give general instructions regarding smaller tasks through control of larger concerns (Aylott, 2014)
Deep inequalities for the life chances continue limiting the substantive freedoms and render hollow ideas of equality in the presence of the law (Rose, 2008). An underpinning feature of the primary business strategy includes various institutional considerations such as the significance of the detailed discussions for later sections (Daniels, 2006)
There are greater pressures on firms from different sectors to adopt efficient working arrangements as an offset of increments in relative employment costs (Lewin, 2006). Psychologial employment contracts may move from relational to transactional where the emphasis is referenced on employability and portfolio careers (Leat, 2012)
The behavior sets back the supervisory roles employee communication, problem-solving, productivity, creativity, flexibility, openness, feedback, trust, and goal attainment and company growth. Individuals are highly likely to have restrictions in their dealings as the freedom factors have diverse rights of poverty, illness, denial of education and lack capacity to substantiate the immediate happenings (Lewin, 2006)
A meaningful, aspect includes formal qualities that are backed by substantive freedoms and capabilities of choosing favorable ways of life and doing the things that people value. Deep inequalities for the life chances continue limiting the substantive freedoms and render hollow ideas of equality in the presence of the law (Rose, 2008)
A Brief History of Determining Fairness in Pay From the perspective of economics, the concept of fairness is defined as a rational and bias-free value for price. It is obvious to many that executive pay in some firms is unreasonably exorbitant, and beyond justification (Bowers & Whittlesey, 2010)
(Employee 'engagement' is essentially enthusiasm, correlating the relationship between the employee and the organization, such that the employee is pro-active and productive.) Entitlement, situational proximity, and expectations also have an impact upon employee perceptions concerning fairness (Beugre, 1998)
Using ratios to determine salary 'fairness' is a concept that is not novel. Back in 1977, Peter Drucker advocated salary ratios for employee and executive salaries (Drucker, 1977), with internal flexibility such as a 30-1 ratio for large firms vs
Using ratios to determine salary 'fairness' is a concept that is not novel. Back in 1977, Peter Drucker advocated salary ratios for employee and executive salaries (Drucker, 1977), with internal flexibility such as a 30-1 ratio for large firms vs
Factors that are not normally considered are that happy employees are less stressed; lower stress results in an improvement of both physical and psychological health; these result in better employee focus on the job as well as fewer absences from the job (Spector, Dwyer, and Jex 1988; Spector and Jex 1991). If employees are fairly compensated, turnover may be reduced, which lowers replacement (including training) costs (Fitz-enz 1997)
Impact of Pay Fairness on Employees Employee commitment ('engagement') is arguably associated with: valued and meaningful work, workload that is sustainable, justice and fairness, supportive community at work, feelings of control and choice, and appropriate reward and recognition (Saks, 2006). Walker Information recently surveyed employees in thirty-two countries, and determined that employee engagement/commitment was most influenced by trust, concern for employees, fairness, and care (Frank, Finnegan & Taylor, 2004)
When employees felt procedural justice in organizations was fair, their level of engagement was higher (Saks, 2006) including approbation of supervisors (McFarlin & Sweeney, 1992). Being a participant in employment activities also enhances fairness, even if the employees' choice in a decision is not utilized (Greenberg, 2002) When an organization includes employees in the information-sharing with respect to protocols and procedures, that organization is perceived as being more caring
These may be as simple as not being fully informed as to the nature of on-going changes (Beugre, 1998). Among the most important aspects of positive employee perception are trust and good communication, particularly when organizational changes are being made (Kontakos, n
Walker Information recently surveyed employees in thirty-two countries, and determined that employee engagement/commitment was most influenced by trust, concern for employees, fairness, and care (Frank, Finnegan & Taylor, 2004). When employees felt procedural justice in organizations was fair, their level of engagement was higher (Saks, 2006) including approbation of supervisors (McFarlin & Sweeney, 1992)