Introduction
Human resource management is a very important function in the overall performance of an organization. It is the function tasked with recruitment, management and provision of guidelines to the workers in an organization. They are obligated to ensure the wellness of the employees in terms of compensation, safety, wellness, motivation, benefits and developments. This field is greatly influenced by several employment regulations and laws that are monitored and enforced by the federal states. Most of these employment rules are conventionally agreed all over the world and it is the obligation of every organization to ensure that they are followed to the letter. This is very important for mutual benefit between the employees and the organization.
It is important to understand that there are numerous employment rules and regulations that govern the labor industry and should be respected by every organization. Some of these rules are universal to all organizations while others depend on the number of employees within the organization. It is there of paramount importance to ensure that the rules and regulations mandatory in employer/employee relationship are followed strictly (Harris, 2002). It is therefore advisable for human resource managers to be well informed of the employment rules to ensure harmony in the work place.
This paper will discuss issues that would be very essential in ensuring that the human resource managers in an organization are abiding to employment rules. It is important to instill skills and understanding to managers to sensitize them on the importance of adhering to employment rules. The paper will be a piece of advice to the head of operations in Stratton Finance Pty Ltd on how the employment rules can be followed to the letter. This is after the management having lost a lot in legal battles.
Issue 1 policy to manage improper interpretation of employment contract
For instance, it is the right of every employee to enjoy rightful remuneration in accordance with the service delivered and in accordance with the employment contract (Barrett & Mayson, 2008). Stratton Finance Pty Ltd has suffered immensely as a result of naivety in interpreting employment contracts and this should never happen again. The human resource management team must ensure that there is proper understanding of the employment contracts under which the employees deliver their duty. Such environment cannot be realized if the workers are not properly enumerated as it has always been the case in Stratton Finance Pty Ltd. Lack of proper enumeration has been a major threat to the employees’ morale, peace and wellness in most places of work. Failure by the administration to guarantee such rights can be very detrimental to the organization in terms of productivity and tough legal proceedings which can lead to tough penalties.
In most cases, it has been difficult and challenging to ensure that these employment rules are adhered to. The most challenging aspect in this aspect is the fact that most of the people in the management are more concerned with the priorities and objectives of the organization at the expense of the organizations employees. It is for this reason that some instances of naivety in interpretation of employment contracts and overworking are common in most work places. Apart from the hard legal proceedings, there are other detrimental effects such as high staff turnover and increase in resourcing costs. It is for this reason that it is advisable for the management to strike a balance between the organizational goals and the employees’ rights (Kim & Bae, 2004).
Issue 2 organizational setting
In order to have a setting in an organization that ensures a conducive working environment, it is important to have the best human resource management to have the best recruits. This is because it will ensure that the organization get the right people for the job. The Stratton Finance Pty Ltd must ensure that they get people conversant with right job description. With the right people for the job, it is always easy to avoid conflicts within the working set up. This is because the employees in the organization are conversant with what is expected of them thereby reducing chances of argument. An organization that does its recruiting in a professional way will also have an advantage of optimum productivity. This is because the employees are always aware of the employment contracts thus saving the work of management easier. Achieving an employee friendly environment is very important step towards advancing the interests of the organization as we pursue the rights of the employees (Rowley, 2004).
The head of operations should be in the frontline to ensure that the rights of the employees are upheld at all costs. This can only be realized through sensitizing the human resource management on the shortcomings associated with failure to secure employees right. For instance, the management should know that naivety in interpreting employment contracts in an organization will be detrimental not only to the employees but to the organization as well. It is for this reason that behaviors likely to be against the employment rules should be discouraged at the work place.
For instance, frequent misinterpretation in employment contracts in the place of work can lead to stress, decreased morale, poor health conditions and boredom to the employer. This will be a very negative step towards realization of the organizational goals. Poor health conditions can lead to increased absenteeism in the workplace thus reducing productivity substantially. Lack of these fundamental employees’ rights is also responsible for high employee turnover. High rate of employee turnover can be very expensive to the organization. This is because the organization will incur fresh cost in fresh recruiting exercise to replace the departed employees. Other costs may be incurred in training and other staffing related costs thus delaying service delivery in the organization. In extreme cases, the entire operations in an organization can be halted in cases where the employees decide to go on strike. Increased legal battles should be of concern as it may also prove to be expensive to the organization (Brewster & Mayrhofer, 2012).
In order to escape from such losses, the head of operations needs advice on how to create an environment that is aware of the contractual obligations governing employment in the company. First and foremost, the management should sensitize both the employees and the management on the basic employment rules. This can be achieved through developing a reading culture within the organization. Journals, books and reports on employment rules should be available in such work places. This will ensure that all the responsible people to enforce a healthy working condition are aware of what is expected of them.
Conclusion
After ensuring that both the employees and the management in an organization are well informed in matters pertaining to employment rules, it is important to put in place measures to ensure that this goal is realized. For instance, the employees should be encouraged to form trade unions. These unions and work groups are essential communication tool through which the employees can voice their grievances. For a long time, trade unions have been very effective in voicing the grievances of employees in an organization. This makes it possible for the management to have information on matters pertaining to the welfare of the organization. Trade unions can also serve as legal avenue through which the employees can seek legal redress in cases where they feel their rights are compromised. Top management should also be involved in ensuring that the human resource managers face tough disciplinary actions in case they fail to act within the stipulated employment rules (Aswathappa & Dash, 2008).
Recommendations
After such analysis, it is recommended that the head of operations in the Stratton Finance Pty Ltd to sensitize human resource management on the employment rules as outlined in several Acts. It is also recommendable for the organization to put in place an organizational policy statement that strongly enhances the contractual obligations between the employers and employees.
It is also important to initiate communication and training programs to both the supervisors and the employees to ensure that there is mutual understanding between the employees and the organizations management. These programs will be essential in sensitizing the involved parties of what is expected in a particular work place.
It is also advisable for the organizations head of operations to ensure that fair and impartial investigations in matters where cases of naivety in interpreting employment contracts is deemed to have occurred (Bondarouk, Ruël & Looise, 2011). After such investigations, necessary actions should be taken. Complainants in such cases should also be treated with fairness to ensure that employees are not intimidated by their seniors who could hinder the most anticipated good faith.
References
Gallagher, C., & Underhill, E. (2012). Managing work health and safety: recent development and future directions. Asia Pacific Journal of Human Resources, 50, 227-244.
Harris, H. (2002). International HRM: A European Perspective. New York: Routledge.
.Hutchinson, J. (2012). Rethinking sexual harrasment as an Employment Relations Problem. Journal of Industrial Relations, 54(5), 637-652. doi: 10.1177/0022185612454955
Kim, T., & Bae, J. (2004). Employment Relations and HRM in South Korea. moscow: Ashgate.
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