Contemporary Human Resource (HR) Challenges - 07

Contemporary Human Resource challenges are arising since entire world is changing and moreover simultaneously challengers are getting higher and higher. But then again it is time to implement better practice and underpinning of the concept of HRM. In fact I discussed high-performance work system in my previous blog and I am now concerned about the employment relationship.

When it comes to the employment relationship, it is established where employers and employees work together and furthermore the positive employment will drive an organization to create trust and Mutuality. Actually this is the state in which management and employees are interdependent and both benefit from this interdependency. In addition such relationship causes to develop a foundation for employment and employee relations policies developing a climate of mutual trust.

The employment relationship definition

In the eyes of law an employee is someone working for an employer who has the ultimate right to tell the worker what to do moreover In the UK, the Employment Rights Act (1996) defines an ‘employee’ as a person who works under a contract of employment meanwhile the tacit assumption being that ‘the employer’ is the other party to the contract. This is sometimes called ‘the pay–work bargain’. In other words the employment relationship can be defined formally by such means as procedure agreements and work rules. But then-again the employment relationship is also an informal and constant process that happens whenever an employer has dealings with an employee, and vice versa. Underpinning the employment relationship is the psychological contract, which expresses certain assumptions and expectations about what managers and employees have to offer and are willing to deliver.

The dimensions of the employment relationship as described by Kessler and Undy (1996) are shown in Figure 15.1.

The basis of the employment relationship

Initially the relationship is founded on a legal contract. This may be a written contract, but the absence of such a contract does not mean that no contractual relationship exists. Employers and employees still have certain implied legal rights and obligations. The employer’s obligations also include the duty to pay Salary or wages, provide a safe workplace, to act in good faith towards the employee and not to act in such a way as to undermine the trust and confidence of the employment relationship

Employment relationship contracts

ü Transactional contracts are formal contracts that have well-described terms of Exchange between employer and employees, who are often, expressed financially. They contain specified performance requirements.

ü Relational contracts are largely informal contracts with more abstract terms and Refer to an open-ended membership of the organization

ü There is also the psychological contract, which is implied rather than stated.

Common law

The common law obligations of employers include the duty to pay wages, provide work, cooperate with the employee, and take reasonable care of the health and safety of the employee. Employees, in turn, are expected to cooperate with the employer, be faithful to the employer and take reasonable care in performing their duties.

Developments in the employment relationship, Gallie et al (1998)

New forms of management often based explicitly or implicitly on HRM principles and emphasizing individual contracts rather than collective bargaining.

REFERENCES;

v   Armstrong M.(2009),Human Resource management practice 11^th ed. UK;Kogan - Pg. 249

v   Kessler, S and Undy, R (1996) The New Employment Relationship: Examining the psychological contract, IPM, London

v   Gallie, D, White, M, Cheng, Y and Tomlinson, M (1998) Restructuring the Employment Relationship, The Clarendon Press, Oxford