Final HRM Project1

8/3/2019 Final HRM Project1

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LITERATURE REVIEW

An Overview of the Employee Relations (ER) Function

A simple explanation of the employee relations function is that it is dedicated to the policies/practices

that are concerned with the management and regulation all relationships in a positive working environment;

these programs/policies contribute to satisfactory productivity, motivation and morale (University of Cape

Town [UCT], 2007). The term employee relations was conceived as a replacement for the term

industrial relations, but its precise meaning needs some clarification in todays workplace (Chartered

Institute of Personnel and Development, 2005). Nevertheless, employee relations policies are now seen

primarily as a philosophy which involves ideas such as employee voice and psychological contract.

Moreover, the ER function is of critical importance because:

It helps to foster a safe and efficient work environment, which is created and maintained by

anticipating and defusing conflict wherever possible, instead of waiting for these problems to

escalate which would lead to a decrease in productivity. This can be done by encouraging staff to

articulate concerns and conflicts to seek resolution of underlying issues (UCT, 2007).

It helps to promote effective productivity within organisations. This can be achieved within

organisations, by providing equitable programs which focus on recognising and rewarding

employees for their outstanding contributions. Moreover, it is imperative that managemen

communicates openly to all employees, the specifics of how and why they would be rewarded for

particular actions. This also assists with increasing effective productivity (UCT, 2007).

It seeks engagement from each member of an organisation via commitment and employee

citizenship. This strengthens communication and participation since it entails team work. It is here

that individuals learn to deal with and prevent conflicts before they affect productivity. Management


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can even further endorse this by identifying and expanding common areas of interest between all

staff paving the path for commitment and motivation (UCT, 2007).

It is essential to organisations operating in competitive industries, since employment based

programs/policies have a considerable influence on a companys ability to attract highly sought after

employees. An example of these programs is a work-life balance. This is a management support

program that:

Is about people having a measure of control over when, where and how they work. It is

achieved when an individual's right to a fulfilled life inside and outside paid work is acceptedand respected as the norm, to the mutual benefit of the individual, business and society (The

Work Foundation, 2005).

According to the literature provided on employee relations, a strategic approach to employee

relations is characterized by the integration of employee relations policies or considerations into the

organizations plan to facilitate and maintain a competitive advantage. The management approach also

has a considerable impact on employee relations. The informal managementapproachis advantageous

to good relationships in the workplace. Employers using this style tend to be friendly and caring, which

leads to relaxed work environments without formalities. This improves work communications crucial to

smooth and effective work. On the other hand, mixed managementis less flexible but has been proven to

be strategically more practical in growth-oriented firms. The major downside to this approach is that it

causes some degree of polarization in the workplace which results in some amount of hostility, as well

as loss of communication.

As stated earlier, employee relations policies include ideas such as psychological contract and employee

voice. Recent research has found that high performance derives from a relational psychological contract and

that transactional contracts impact negatively on performance. Furthermore, key issues for development are

the internal dynamics of the employment relationship and their impact on outcomes, such as performance.

To ensure mutuality between both parties in the psychological contract, its content and perception should be


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considered to make sure all implied obligations are fulfilled. Guest and Conway (1998) suggests that the

extent to which these obligations are fulfilled will determine employee outcomes such as individual

performance.

According to Rousseau (1995), there are 2 types of contracts transactional contracts focus on providing

monetary remuneration e.g. compensation, while relational contracts focus on emotional involvement and

financial reward. A failure to fulfill both types leads to decreased performance. Businesses using informal

management use relational contracts, while those using mixed management use transactional. As stated in

the journal article The new covenant of employability:

The written and psychological contracts between employer and employer have become more

transactional and less relational, and loyalty is no longer a guarantee of ongoing employment

Individuals are thus expected to take primary responsibility for their own employability rather than

relying on the organization to direct and maintain their careers. (Therefore) employers can assist their

employees by clarifying changes to the psychological contract, highlighting the benefits of career self-

management, and providing training and development in generic employability skills.

Programs/policies and their contribution to the effectiveness of the ER function

Programs/policies are important to the ER function because they are the managerial tool, which is

used to facilitate this function. In other words, the various types of employment based programs are the

managerial tools, which help to sustain satisfactory productivity, motivation and morale which are al

elements/aspects of the ER function. In light of this realization, it necessary to consider exactly how do

these programs contribute to the effective facilitation of this function. In order to achieve this one must

consider the various types of programs/policies, and the role each type of program/policy plays in the

fulfillment of the aspects of the ER function.
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Examples of various types of employment based programs/policies include: workplace flexibility

programs, such as flex-time, part-time-schedules, telecommuting, phased retirement, job sharing, and

compressed work week; paid and unpaid time off programs such as paid vacation off, sabbaticals, and paid

maternity leave; caring for dependents programs such as onsite child care programs. Other types of

programs include pension policies, health insurance policies, retirement policies and employee assistance

plans. In general, these programs are referred to as work life programs/policies or employee benefi

programs/policies.

These programs contribute to the effectiveness of the ER function and they also encompass work-

family policies. In particular, work family policies refer to part-timework, career break schemes, parental

leave, flexible hours arrangements and compressed work weeks (Ministerial Task Force on Work and

Family 2002cited in McDonald et al2005). These policies help employees to simultaneously fulfill their

responsibilities at work and at home (McDonald et al2005) because they have a positive influence on

employees perceptions of their level of control over work and family matters (Thiede and Ganster 1995

cited in McDonald et al2005). According to Mc Donald et al(2005), the provision of work-family policies

contribute to an increase in employees organizational commitment, morale and job satisfaction. In light of

this understanding, it can be inferred that because these programs increase employee morale, which is an

aspect of the ER function, they contribute to the effectiveness of the function as a whole.

Additionally, it is understood that there is a relationship between organizational commitment and job

satisfaction (which as stated earlier, are brought about through work life policies); satisfactory productivity

and motivation (aspects of the ER function). In particular reference to the link between job satisfaction

motivation and satisfactory productivity, it is important to consider the following example: According to

Herzbergs two factor theory (motivation and hygiene), if an individual is satisfied with their job, that is, if

all the necessary elements which would lead to satisfaction are present, they would be motivated to increase
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work output/ individual productivity. This increase in individual productivity would lead to an increase in

organizational productivity. Thus, it may be possible for organizations to achieve their goal of satisfactory

productivity in part, by providing work-family policies through the ER function. It is therefore understood

that because these programs influence job satisfaction and by extension motivation, they contribute to the

effective execution of the ER function.

In relation to organizational commitment, it is understood that it is linked to motivation and

satisfactory productivity. According to Mayer (1992, p.672) organizational commitment entails the

willingness to exert considerable effort on behalf of the organization and belief in and acceptance of the

goals of and values of the organization and is directly linked to an individuals motivational drive to

produce effort. Once again, we see that the provision of work family policies contribute to the effectiveness

of the ER function because they influence organizational commitment and motivation, which in turn

influences productivity. As stated earlier, satisfactory productivity, motivation and morale are aspects of the

ER function, which can be effectively achieved through the provision of work family policies.

However, while work and family policies impact positively on both employees and organizations,

there are several disadvantages that are associated with the usage of work and family policies. These

disadvantages have been evidenced by the occurrence of actual organizational events where these policies

exist. For instance, some employees fear that they will be marginalized, if they take advantage of these

policies. In particular, Tam (1997, p.480) cited in McDonald et al(2005) found that:

part-time workers (both men and women) were more likely to be subordinates rather than

supervisors as compared to their full-time counterparts, with those working fewer hours being worse

off in terms of promotion prospects and other entitlements, than those who worked more hours perweek.

This therefore shows that it is possible for employees, who participate in these programs, to be put at a

disadvantage. Thus, it is ironic that although these programs exist to benefit employees, there are instances


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where they are skeptical about participating in work and family programs/policies, due to fear of

marginalization. Several other studies have also supported this occurrence.

To bring further evidence to the notion that employment based programs/policies contribute to the

effectiveness of the ER function, a study done by Hong et al (1995) on the impact of employee benefits on

work motivation and productivity, found that employee benefits programs impact on motivation and

productivity (aspects of the ER function). This study was based on data collected from eighty-nin

corporations and covered an extensive range of benefits. In particular, it was found that employee benefits

programs have a greater impact on work-motivation than on productivity (Hong et al1995, p.14).

In light of the research information to which reference has been made, it has been clearly shown that

these programs have a positive impact on the aspects of the ER function (employee motivation, morale and

productivity), and hence, they contribute to the fulfillment of the purpose for which the function was created

and by extension, the effectiveness of the function in itself.

The ER function, programs/policies and their link to individual and organizational productivity

Employee Relations relates to employee participation in management decisions, conflict, grievance

resolutions and communications, among other things. This function, therefore, is exceptionally important to

individual performance as it speaks to the level of involvement in daily activities; the extent to which

employees are receptive to communicated expectations of them; and the structure of decision making within

the organization.

It is relevant that an organization conceptualizes and quickly, yet efficiently, implements programs

which not only encourage employee involvement but also boost employee morale because when

employees believe that their ideas matter, they are much happier and more productive (Marshall et a

2006).


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It is also stated that not only must the employees be involved but they must be recognized or

rewarded for their contribution and subsequently empowered by management. This can be simply done

through programs/policies which clearly outline the responsibilities of the workforce and relinquish

previously centralized management decisions.

Employee Relations also seeks to assure the workers within the organization that management has

considered the value of its employees, and thereby seeks to remedy any of their concerns before they even

arise (e.g. safety and health issues).

The health issue of an organizations workforce is a major concern for an organization as it links

directly to the individual performance of any given employee in the workplace. Therefore, the rationale

behind providing employee wellness programs is highly justified. Organizations expect several benefit

when establishing employee wellness programs: reduction of the costs associated with employee health

plans, increased employee retention by providing an additional benefit, and enhanced employe

productivity which can add to the organizations productivity (Howard et al 1979).

Although some emphasis is placed on the productivity of the organization further on in the literature,

it is taken into account that the well being of the employees do play an important role because their

performance accounts for much within the organization, hence it is vital that they participate in th

established strategic programs/ policies made available to them.

According to the Department of Human Resource Studies, Cornell University (2001), the outcomes

of an organization would differ from the outcomes of the employees within that same organization. It is

believed that employee outcomes depend on particular aspects such as absenteeism and employee turnover

whereas organizational outcomes would more depend on the operations within the company such as

productivity, customer satisfaction and output quality. It is important to understand that in order for the


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organizations performance to be a positive one, the individual performance of employees must first be

positive.

People Management (2006) suggests that there is a clear need to distinguish those companies that

introduce policies and practices in response to a clear and unequivocal business case from those that have

drawn on a more intangible business case. This is emphasizing the point that organizations which have

implemented employee programs and policies display more positive performances.

The black box issue refers to the questions and variables to be considered when attempting to guide

HRM into successful organizational performance (Paauwe & Farndale 2005 cited in School of Management

University of Bath 2005). While some may consider the employee relations function to be only one critica

ingredient in the HR black box, according to People Management (2006) the employee relations practice is

itself the black box. They suggest that high-performing and highly successful organizations are those

which utilize HR practices effectively with as little conflict as possible. The crucial element in maintaining

a harmonious balance between creating a high-performing organization and improving work-life balance is

the work done by HR practitioners linking the two with successful employee relations strategies. This

basically states that HR managers are responsible for implementing effective ER programs and policies

which would result in high employee performance, thereby creating high organizational performance.

A critical analysis of the ER function and its programs/policies

The ER function and its programs/policies impact on and are impacted by the Human resource

planning (HRP) function of Human Resource Management. The HRP function, may be defined as the

process for identifying an organizations current and future human resource requirements, developing and

implementing plans to meet these requirements and monitoring their overall effectiveness (Beardwell et a

2004, p. 159). The stages of Human resource planning (HRP), according to the Braham Model, are

investigation and analysis, forecasting, planning, implementation and control. The analysis between The ER


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function and its employment based programs, and the HRP function lies in part, in the Planning stage of

HRP because this stage impacts on the type of employment based programs that organizations implement.

The planning stage relies on the results of the investigation and analysis stage and the forecasting stage. The

investigation and analysis stage sets the ground work for the succeeding stages. It is at this stage that

organizations assess the current business environmental situation in terms of the internal and external labor

market, corporate capability and corporate strategy. Based on this assessment, predicting the supply and

demand for human resources is done at the next stage, which is the forecasting stage. The planning stage is

then based on these predictions, so that if demand exceeds supply a specific plan of action is devised, and if

supply exceeds demand a specific plan of action is also devised.

According to Rothwell (1995) cited in Beardwell (2004) if future demand exceeds supply a number

of options can be utilized to bring equilibrium to this condition. In particular reference to the one of the

options associated with increasing external supply, terms and conditions can be changed by providing more

flexible working arrangements. Similarly, one way in which internal supply can be increased is through

improving retention, by providing more flexible working patterns. It is clear therefore that at this stage plans

may be crafted, which are geared towards providing more flexible working arrangements, through the use of

workplace flexibility programs. Examples of workplace flexibility programs include part-time schedules,

compressed work week, job sharing, and telecommuting programs. These programs are work-life/benefi

programs and as indicated earlier, they are the tools that are used to execute the ER function. In light of this

realization, it is understood that the HRP function impacts on the ER function in the sense that it determines

the type of employment based programs, which organizations will use as part of their corporate strategy.

Additionally, if the future supply exceeds the future demand for human resources, a number of

options can also be considered as a means of equilibrating the imbalance between supply and demand. In

particular reference to decreasing supply, work-life/benefit programs such as sabbaticals, career breaks and


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early retirements can be utilized. Once again, we see that the HRP function influences the type of

employment based programs, which organizations use as part of their corporate strategy.

Furthermore, the Employee Relations (ER) function also affects and is affected by the Industrial

Relations (IR) function. ER is said to be dedicated to creating a positive work environment through

programs/policies. These special programs demonstrate that management values the contribution of its

employees and is willing to resolve any work- related issues. On the other hand, IR is defined as the

dealings that exist between unions and management to discuss and decide what is best for the employees.

The ER function is linked to the IR function since they both are driven towards the satisfaction of workers,

consequently reducing labor turnover within organizations.

It is understood that poor employee relations leads to poor industrial relations, which in turn causes

organizational productivity to suffer. Furthermore, Jenh (1995) suggests that Conflict is a significant cause

of damaged work relationships causing both loss of productivity and loss of employee satisfaction. It is

said that industrial relations come about as a result of unsatisfied and frustrated workers who need some

form of rescue and who lack harmonious relations with management. This therefore implies that

organizations should fear the strong presence of unionization within their firm, as it may be an indicator

of a relationship breakdown within it. Although this may be true, good, fair and conscientious employee

relations can either prevent employees from feeling the need to be protected by a union or result in smooth

and cooperative relations between the union and the business, since there would be few issues on which

employees feel mistrusted (Fisher et al, 1999).

Moreover, healthy employee relations can be used to measure the extent to which industrial relations

would have cause to intervene and disturb managements existing operations; yet industrial relations acts

as a means of displaying the need for a more participative system that encourages employee participation

through the use of programs/policies. Increased participation gives management the insight as to what


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employees want and whats the best way to give it to them, if possible (Webb, 1965). As a result, industrial

relations can be quite costly because the unions push for job security, higher wages and better benefits(e.g.

better health and insurance plans); highlighting the need to secure good employee relations. This is not

necessarily meant to mitigate the need for industrial relations, but to show that programs/policies are

essential for the development of corporate industrial relations (Hong et al 1995).

Furthermore, there is a correlation between the (ER) function and that of Continuous Environmental

Scanning and Analysis. The latter speaks to managements duty to keep abreast with activities taking place

in the external environment that affect the organization, thereby demanding an internal assessment. It is vital

that this is done if the business desires to be competitive, profitable and equipped for the ever-changing

business environment. Management therefore, must be motivated to address possible changes to employee

expectations and needs (job satisfaction, training, development and selection).

In short, managers face the task of creating a balance between the stability necessary to allow

development of strategic planning and decision processes, and the instability that results from continuous

change and adaptation to a dynamic work environment. Also, management must develop a culture that

promotes loyalty, commitment and cohesion (Hitt et al, 1998). It is therefore understood that employee

relations is very vital in this aspect, not only because it provides significant feedback relative to decision

making, but because the employee-employer relationship must be one that encourages employees to be

receptive to any form of changes expected of them in the future. Poor employee relations could result in a

giant hurdle to success for the organization (i.e. employee resistance). Whilst some employees welcome

change, by far, the greater number may be highly resistant (Windsor, 2007), thus creating a hindrance for

management.

Finally, the ER function and its work and family programs/policies, also impact on recruitment

hiring and re-training costs and retention. Specifically, the utilization of these programs/policies improve


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retention (National Council of Jewish Women [NCJW] 1993 cited in McDonald et al 2005), reduce

absenteeism (Russell 1993 cited in McDonald et al2005), reduce hiring and retraining costs (Labich 1991

cited in McDonald et al2005) and provide for easier recruitment (Hunt and Russell 1993 cited in McDonald

et al 2005).

In relation to retention, organizations provide part-time and flexible programs/policies in order to

reduce the turn over costs which are associated with poor retention (McDonald et al2005). Several studies

have found that these programs are especially helpful where increasing the probability of mothers returning

to work after childbirth is concerned. In particular, Solihull and McRae (1994) cited in McDonald et a

(2005), found that the absence of part time programs influences mothers decisions to go to different

employers. These studies therefore show that work and family programs/policies assist in improving

employee retention within organizations.

As indicated earlier, work and family programs/policies facilitate easier recruitment. This is because

these types of programs/policies can be used to attract job candidates to organizations (World at Work,

2007). Furthermore, an organizations ability to attract prospective employees is an important factor that

influences the success of the recruitment process; it also offers a competitive advantage to organizations.


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PRESENTATION OF FINDINGS

The findings of this research project are based on a semi-structured interview, which was conducted

with Mr. Pedro Welch, Human Resource Officer of the Cable and Wireless branch located in Windsor

Lodge, St. Michael.

On conducting the interview with Mr. Welch, it was discovered that there are a number of

employment based programs which are actively functioning within the Cable and Wireless company.

Firstly, the branch has a defined benefit contribution plan which was started in December, 2004. This

defined benefit contribution plan replaced a defined benefit plan, which was once active within in the

branch. In the defined benefit plan, benefits were not specified/defined, but in the defined benefit

contribution plan benefits are specified/defined and employees have a greater say regarding the benefits that

are outlined in the plan. The company also has a pension plan and a dental, medical and vision plan which

both commenced in the early eighties (80s). All employees are required to participate in the dental, medical

and vision plan. This plan provides full coverage for employees and allows for a portion of the insurance

cost to be subsidized for employees immediate family members. There is also a discount program within

the company. This program was started in the year 1999, and allows employees to receive discounts on all

services that are provided to Barbadian nationals. These services include: telephone services, handsets and

ADSL (internet services). In particular, a fifty percent discount is offered to employees on rental services. In

addition, subsidized rates are also offered on international services such as broad band, fixed lined and

mobile services. The company also has an online learning system, called My-Learning system. Employees

are able to access this online learning system freely, and are able to take any courses which are offered.

When they have completed the course, they are granted with certificates by the company. Moreover, there is

also a sports club which is partly subsidized by the companys HR department. The company also organizes

departmental games at the end of each year for their employees. Lastly, the company has also established an


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annual cook-off competition. In preparation for the competition, participants are trained by a professional

chef. For the competition, they are judged in the following categories: the starter, the full course meal and

the desert category. It was also reported that the annual cook-off competition encourages team work,

friendly rivalry and boosts the companys internal spirit. Lastly, the company has created an annual

Christmas decorating competition, for which employees are required to choose a telecommunications theme

The judging panel for the competition is selected from members across the organization. Employees are

then rewarded at the companys annual Christmas party. However, only permanent staff members are

allowed to participate in the companys Dental, Medical and Vision plan, Discount plan and on-line learning

system.

Additionally, Mr. Welch reported that these programs were implemented by the organization in

order to benefit their employees. He also stated that every organization should implement such programs for

the benefit of their employees and that the company was a market leader in terms of the provision of benefit

policies.

In relation to retention, it was reported that that the companys programs assist in employee

retention. This statement was evidenced by the fact that in the year 2007, a less than one percent turn over

rate was recorded. This less than percent turn over rate was mainly attributed to the movement of temporary

staff. It is interesting to note that Mr. Welch stated that the companys low turn over rate could be regarded

as a positive on the one hand, and on the other, it could be deemed as a negative. The positivity associated

with this low turn over rate was attributed to the fact that it signifies that the company is retaining talent, and

by extension is saving money where hiring and training new staff is concerned. The negativity associated

with this low turnover rate was ascribed to the fact that employees with a level of thinking that is unsuited

for the competitive environment, within which the company now operates, are being retained. Mr. Welch

described these employees as having a monopolistic mindset. (One must consider the fact that in the past,


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the company operated as a monopoly). Moreover, the second reason that was given for the disadvantages of

a having a low turn over rate was that it signifies that employees who are under performing are being

retained. He also indicated that Cable and Wireless was a market leader in terms of the provision of benefit

policies.

Furthermore, it was discovered that the companys programs are used to attract prospective

employees to the organization. Mr. Welch reported that in his efforts to attract prospective employees, he

sells their online learning system, their dental, medical and vision plan as well as their discount policy. He

stated that selling the companys programs not only demonstrates to employees the potential quality of the

experience they can gain, but also adds value to the companys image. It was also stated that selling the

companys discount policy makes prospective employees aware of how they could save money.

Finally, it was reported that in spite of recent industrial action, the companys ER programs

contributes to the sustainment of a harmonious working environment and thus, good employee relations

within the organization. Mr. Welch also stated that good employee relationships lead to good industrial

relationships, and that the companys Vice President is pressing for a manger of employee relations to be

brought on board next year (2009).


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ANALYSIS OF FINDINGS

The analysis of the findings of this research project is based on the research information compiled in

the literature review. The findings have been analyzed as follows.

The Cable and Wireless Company has a number of employee relations programs, namely: a defined

benefit contribution plan, a pension plan, a dental, medical and vision plan, a discount program, an online

learning system called My-Learning system a sports club, an annual cook-off program and an annual

Christmas decorating competition. Based on the programs that exist within the company, it can be

confidently asserted that these programs are contributing, to some extent, to the sustainment of a positive

work environment within the company. This assertion is based on the fact that programs/policies help to

maintain a positive work environment (UCT, 2007), as indicated in the literature review. Evidence of a

positive environment within Cable and Wireless is indicated in the findings by the team work, friendly

rivalry and high internal spirit created by the annual cook off program.

However, in order to determine whether or not these programs/policies contribute to satisfactory

productivity and motivation within the Cable and Wireless Company, one has to consider the type of

programs which impact motivation and productivity in organizations. According to a study by Hong et al

(1995) to which reference has been made in the literature review, employee benefits programs impact on

employee motivation and productivity (in the study these were collectively termed as performance). Further

more, this study shows that the type of employee benefits within organizations have different degrees of

impact on motivation and productivity. In particular, employee benefit programs such as year end bonuses,

national holidays, individual and annual vacations, and paid leave have the greatest impact on motivation

and productivity. In the study these were classified as physical-demand benefits based on Maslows

Hierarchy theory. (See Appendix 1). The study also shows that programs such as insurance, pension,

discounted goods supply, and daycare services have the second greatest impact on motivation and


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productivity. These programs were classified as security-demand benefits. The results of the findings of this

research project show that the Cable and Wireless Company has a dental, medical and vision plan, a pension

plan and a discount program, which are both security-demand benefits. It is implied therefore, based on

research by Hong et al (1995) that Cable and Wireless pension plan and discount program maybe

contributing, to some extent, to increased motivation and productivity with in their organization. In addition,

the study by Hong et al(2005) categorized flexibility programs, and programs which offer opportunities for

further education and training as self-actualization-demand programs. Within the Cable and Wireless

Company there is an online learning system called My Learning system, which falls into the category of

self-actualization-demand programs. The study by Hong et al(2005) therefore, implies that this program

may not be impacting on motivation and productivity, to the degree that the pension and discount programs

may be. Additionally, Hong et al (1995) suggest that social-demand benefits which include entertainment

equipment and activities (such as clubs and foreign travel), have the least impact on motivation and

productivity. Thus, Cable and Wireless annual cook-off program, annual Christmas decorating competition

and sports club may not be impacting on motivation and productivity, to such a large extent. Whether these

inferences are substantial are not, the fact remains that the companys programs do contribute to morale in

the organization. This is so, because literature suggests that the presence of programs/policies within

organizations contribute to morale (McDonald et al2005), which defined as the spirit of a group that makes

the members want to succeed/a state of individual psychological well-being based upon a sense of

confidence, usefulness and purpose (Wordnet, 2006). It is therefore reasonable to assert that the absence of

these programs/policies would negatively affect morale within the company, an occurrence that

organizations do not wish for. Thus, it is imperative that organizations implement these programs/policies

because morale clearly affects work attitude.


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In relation to employee retention, the findings indicate that the companys turn-over rate was less

than one percent in the year 2007. According to the literature review, studies have shown that ER

programs/policies improve retention within organizations (NCJW 1993 cited in McDonald et al2005). It

can be stated therefore, that the companys low turn-over rate may be due, in part, to the provision of

programs/policies. (Others factors may also have played a role in the low retention rate). Furthermore, the

findings show that the low turn-over rate was due to the movement of temporary staff. Thus, it is reasonable

to infer that the movement of temporary staff may be due to the fact that they are not allowed to participate

in the companys most beneficial programs. (See presentation of findings).

In terms of the attraction of prospective employees, the findings show that the company uses its

programs to attract prospective employees by selling these programs in the recruitment and selection stages.

They also show that the company is market leader in terms of benefit policies. Moreover, the literature

states that programs/policies provide a competitive advantage because they have a considerable influence on

a companys ability to attract highly sought after employees (WK, 2005), thereby facilitating easier

recruitment(Hunt and Russell 1993 cited in McDonald et al2005). It is therefore reasonable to assume,

based on the literature that the companys programs/policies provide for easier recruitment; bearing in mind

that it is has a competitive edge where the attraction of employees is concerned, since it is a market leader in

terms of the provision of benefit programs/policies.

Finally, the findings indicate that there was industrial action earlier in the current year (2008).

According to the literature, industrial relations acts as a means of displaying the need for a more

participative system that encourages employee participation through the use of programs and policies. In

this way, management is able to have an insight into what employees want and whats the best way to give

it to them, if possible (Web, 1965). The Cable and Wireless Company does not have participation programs

and so, it is assumed that if these programs existed within the company, the recent industrial action could


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have been possibly avoided. In addition, as indicated earlier, due to a lack of these type of programs the

company would not be able to have an insight into what employees want, and what is the best way possible

to give it to them (Web, 1965).


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RECOMMENDATIONS/CONCLUSION

In light of the findings of this research paper, the following recommendations have been made.

It is recommended that the company should go ahead with employing an ER manager as suggested by the

Vice President of the company. Having an ER expert on board would definitely help the company with

the strategic integration of programs/policies into their organizational plans. Additionally, this would help to

further increase the competitive advantage, which they already have.

It is also recommended that the company should consider implementing participation programs in

order to stem the likelihood of the occurrence of industrial action. In this way, management would have a

continuous insight into employees needs and would be able to make an attempt to deal with them before

industrial action arises.

Furthermore it is also recommended that the company should consider implementing paid leave

programs, since these programs are classified (according to research) as physical-demand programs, which

have the greatest impact on motivation and productivity. It is uncertain whether or not the company has year

end bonuses. However, in the event that they do not have this policy, they should consider implementing it

because it is also classified as a program that has the greatest impact on motivation and productivity.

It is also recommended that the company should conduct a research study to determine employee

perceptions, in relation to the type of programs that they consider beneficial to them. In this way, the Human

Resource Department would be better able to provide programs/policies that would be best suited for both

employers and employees.

Moreover, the company should also consider the implementation of work life benefit

programs/policies such as flexible work programs, and sabbaticals. This would help employees in terms of

achieving a work life balance.


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Finally, the company should consider the extent to which any new programs/policies would fit into

their strategy plan. In this way they would be able implement the ones that would best help to achieve

organizational goals.

In conclusion, the research objectives of this paper have been successfully met. This statement is

asserted with confidence because relevant responses to all of the research questions were obtained, as is

evidenced in the findings. This allowed a satisfactory analysis to be completed and useful recommendations

for improvement to be made to the company. We therefore thank Mr. Pedro Welch for his contribution to

the completion of this research paper, the members of the group for their team work, and the course

facilitator, who helped to guide the scope of this research paper.


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APPENDIX 1

Figure 1. Relationship between the type of employee benefit and impact on job performance (motivation

and productivity). (The points above the bars are the average impact points of each type of benefit on

performance)


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(Hong et al 1995, p.13)

SUPPORTING DOCUMENTS

Final HRM Project1

Documents

Transcript of Final HRM Project1