Effective labour management refers to the various techniques and procedures that are adopted by the enterprises in order to business plan a better work place that would result in an effective output. As it is known that the human resources are the assets of the organisations, therefore it is vital to manage them properly. A sound human resource management deals with overseeing the several aspects of the employment that are compliance with the various labour laws and employee standards (Brewster, Chung & Sparrow, 2016). Effective labour management deals with the federal law that governs the relationship between the labour unions and the employers. As per the case which is provided in the question, GMFC is under the threat of strike and lockdown as the management of the business has not ratified the terms of the new contract which will be replacing the earlier contract. The terms of the new contract are not appropriate as per the employees and labour unions and they are demanding a hike of 10 per cent per hour and also are against the idea of co-payments for medical care of the employees.
The vice president for human resources of the company, needs to find appropriate solution to the problem. In order to resolve the conflicts observed between the employer and the employee, the senior management of the corporation can first acknowledge the fact that there exists a difficult situation. In this regard, honesty along with transparent communication can necessarily plays an important role in the process of resolution. The management might also consider meeting with the employees individually face to face initially and put forward their questions regarding the specific situation.
The proposal of the new contract in the company of GMFC, after the expiry of the prior contract the week before has led to an issue. Out of all the proposals there are two issues that have been unresolved. On top of that there has been no actions has been made on these for more than 10 days. The issue is such that the union of the company is wanting for 10 cents an hour more than the company is ready to offer, and management of the company still continues to demand co-payments for few employee for the purpose of medical care. This is the first negotiation in 15 years in which a new contract has not been ratified before the old one expired. In the senior management meeting that was held at present, the CFO of the company has briefed to the other members indicating that the company can only agree to give a labour cost rise of 5 cents an hour more. However, this only has to be the is a firm figure that should not be subjected to increase over the contract term. However, the union turned out to be adamant that it will not agree to any health care co-payment. Although the labourers have voted for strike authorizations that have been taking place for a month, the leaders of the company have not indicated any solution. The Production managers of the company are lobbying for a lockout in order to avoid the Material loses that would take place for the conflict. Additionally the Marketing managers also wanted to meet the production orders that were scheduled for the purpose of shipment.
Since the organisations aim in achieving the goal of providing ultimate satisfaction to its customers, they are often encountered with challenges. In the present case there has been a disagreement between the employer and employee regarding the structure of payments that has led to a conflict. In a company a conflict may lead to negative consequences like lock out, strikes and other material losses. The management of the business needs to take immediate action and understand exactly what the employees of the business wants from the management of the business. The case shows that the labourer of the business is dissatisfied with the terms which are stated in the new contract and also there is an issue which is related to inappropriate hike in payments of the business. Since the labours of an organisations are the one who are responsible for the operation an agitation within tem may lead to a great loss of productivity in the organisation (Carmody-Bubb, Duncan & Ree, 2015). The conflict in an organisation may lead to frustration within the members. On top of that there can a loss of dedicated employees who at a point of time gave the highest productivity for the company. In addition to that a conflict leads to violence and miscommunication that may spoil the inter-organisational relationships and the company reputation. A sound human resource management deals with overseeing the several aspects of the employment that are compliance with the various labour laws and employee standards. Effective labour management deals with the federal law that governs the relationship between the labour unions and the employers. The company of GMFC has come up with an issue (Marchington, Wilkinson, Donnelly & Kynighou, 2016). The proposal of the new contract, after the expiry of the prior contract the week before has led to the issue. This is because the union have failed to agree on the same. Being the vice president for human resources for the company of GMFC, it is the duty to find the solution to the problem.
In the given case, it has been pointed out that a conflict took place due to disagreement of the new proposal. As a human resource manager it can be said that in a business organisation conflict is inevitable. The conflict between the employee and labour in the present case of GMFC may lead to bringing down of the morale or may impact productivity of the business (Singer, 2018). The following strategic steps can be applied by the vice president of Human resources of the business for the purpose of resolving the conflicts and also satisfying the work force of the business.
In order to resolve the conflicts observed between the employer and the employee, the senior management of the corporation can first acknowledge the fact that there exists a difficult situation. In this regard, honesty along with transparent communication can necessarily play a significant role in the process of resolution (Nicholas & Steyn, 2017). The management needs to conduct a meeting with the union leaders and negotiate the terms of the new contract with the leaders. The management needs to apply the best negotiation, bargaining or even apply moral persuasion in order to convince the leaders. Also, it is also important to acquaint one with different things undertaken and is also crucial to stay open about the specific problem.
The problem which is faced by both the parties need to be defined and detail discussion on the topic needs to be conducted (Bolman & Deal, 2017). There is also need to recognize reasons of conflict arising out of disagreement over the contract. Analysis of the problem can be done by statement of problem and studying negative influence of the problem on overall work/workplace relationships. The meeting should aim at getting at some decision and if the same is not achievable through negotiation, an alternative solution needs to be provided or suggested by either parties which can satisfy both the parties for now. The primary objective of the conflict resolution is not necessarily to arrive at a decision regarding which individual is right/wrong (Doz, 2017). In this case, the main objective is to arrive at a solution that one and all can live with. Initially, identifying the needs in place of solutions can be considered to be a powerful tool that can be used for generation of specific win-win circumstances. In a bid to find out needs, the there is need to find out the reason behind why different individuals desire the solution they at the outset proposed. Once individuals understand the benefits their resolutions have for them.
There is also need to find out ordinary areas of agreement and formulate solutions to satisfy the identified needs. In order to solve the problem, the management can think of formulating multiple alternatives, ascertain the actions that needs to be taken and ensure that the involved parties can purchase into different actions (Armstrong & Taylor, 2014). Also, there is need to schedule on a daily basis a follow up meeting in order to ascertain conditions (agreement/disagreement) of parties. In the end it can be said that as per the current case, the management of the firm can go for cooperative problem solving that can enable all the employees and management of the firm to work together. Both the parties in conflict can be convinced to compromise and differences can be split. Both the parties can be convinced by saying that “something is always better than nothing” and figure between 5 cents and 10 cents can be found (Rahim, 2017). This compromising factor of conflict management style if adopted by the senior management might possibly aid in getting to a definite solution and can prove to be good for overcoming deadlocks and impasses.
Conclusion:
As it is known that the human resources are the assets of the organisations, therefore it is vital to manage them properly. A sound human resource management deals with overseeing the several aspects of the employment that are compliance with the various labour laws and employee standards. Effective labour management deals with the federal law that governs the relationship between the labour unions and the employers. The company of GMFC has come up with an issue. The proposal of the new contract, after the expiry of the prior contract the week before has led to the issue. This is because the union have failed to agree on the same. Being the vice president for human resources for the company of GMFC, it is the duty to find the solution to the problem. In order to resolve the conflicts observed between the employer and the employee, the senior management of the corporation can first acknowledge the fact that there exists a difficult situation. In this regard, honesty along with transparent communication can necessarily play a significant role in the process of resolution. The management might also consider meeting with the employees individually face to face initially and put forward their questions regarding the specific situation.
References:
Armstrong, M., & Taylor, S. (2014). Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management. Routledge.
Carmody-Bubb, M. A., Duncan, P. A., & Ree, M. J. (2015). Emotional intelligence and personality predict conflict management style: examining relationships and factor structures. Journal of Behavioral Studies in Business Volume.
Chelladurai, P., & Kerwin, S. (2017). Human resource management in sport and recreation. Human Kinetics.
Doz, Y. L. (2017). Strategic management in multinational companies. In International Business (pp. 229-248). Routledge.
Einarsen, S., Skogstad, A., Rørvik, E., Lande, Å. B., & Nielsen, M. B. (2018). Climate for conflict management, exposure to workplace bullying and work engagement: a moderated mediation analysis. The International Journal of Human Resource Management, 29(3), 549-570.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource management at work. Kogan Page Publishers.
Nicholas, J. M., & Steyn, H. (2017). Project management for engineering, business and technology. Routledge.
Rahim, M. A. (2017). Managing conflict in organizations. Routledge.
Singer, L. (2018). Settling disputes: Conflict resolution in business, families, and the legal system. Routledge.
Wilton, N. (2016). An introduction to human resource management. Sage.
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