6.5a Employer-Employee relations

Question 1

Businesses communicate with employees to

Answer 1

• Ensure smooth change
• Motivate
• Agree objectives

Question 2

Barriers to communication

Answer 2

• Attitudes and trust
• Layers of hierarchy
• Communication overload

Question 3

Trade union definition

Answer 3

A pressure group that represents the interests of workers

Question 4

Roles of trade unions

Answer 4

• To negotiate
• To represent
• To provide advice, information and member services

Question 5

Reasons union membership has fallen

Answer 5

1. Falling employment in the secondary sector
2. Privatisation
3. The rise of the more flexible workforce

Question 6

Main methods of industrial action

Answer 6

• Work-to-rule
• Overtime ban
• Go-slow
• Strike

Question 7

How does work-to-rule work?

Answer 7

Employees follow strict conditions of their employment contract (no voluntary overtime)

Question 8

How does overtime ban work?

Answer 8

Employees refuse to work overtime, can have a significant effect on production capacity during period of peak demand

Question 9

How does go-slow work?

Answer 9

Employees work at the slowest or least-productive pace that is allowable under their contracts

Question 10

Ways employers can respond to industrial action

Answer 10

• Lock-outs
• Changing employment terms
• Dismissing workers

Question 11

What can you do if collective bargaining with an employer fails

Answer 11

Call in The Advisory, Conciliation and Arbitration Service (ACAS)

Question 12

Works councils definition

Answer 12

Committees of management and workforce representatives

Question 13

Advantages of employee participation

Answer 13

• It can motivate
• It can ease change by ensuring targets are SMART
• More informed decision

Question 14

Disadvantages of employee participation

Answer 14

• More consultation will slow things down
• Managers may feel de-motivated as they are not being allowed to manage
• It will involve cost

Question 15

Ways to overcome barriers to communication:

Answer 15

• Democratic management
• Recognise each others needs and objectives
• Delayering

Question 16

Why do many unions donate money to the Labour Party?

Answer 16

Their policies represent their interests

Question 17

Advantages of trade unions:

Answer 17

• Strengthens bargaining power
• Allows employees and workers to communicate
• Trade unions give advice and assistance

Question 18

Examples of trade union work:

Answer 18

• Pushed the Government to make redundancy payments compulsory
• Minimum wage
• Pension Protection Fund

Question 19

What does the Pension Protection Fund do?

Answer 19

Protects the pensions of employees in private company pension schemes if their employer goes bust

Question 20

Ways trade unions can influence decisions of a business:

Answer 20

• Help staff with resistance e.g. strikes
• Negotiate to make fewer redundancies
• Convince employers to take on more staff if employees are overworked

Question 21

Advantages of employee representation:

Answer 21

• More effective as a group
• Help achieve long term aims - employers may sign contracts
• Senior management get a direct insight into concerns of workforce

Question 22

Disadvantages of employee representation:

Answer 22

• Lead to industrial action which can get out of hand
• Lost profits
• Majority vote within trade union may overrule demands of individual

Question 23

Advantages to employer of a good relationship:

Answer 23

• Good reputation so will attract more candidates in recruitment
• Increased productivity
• Objectives of employees more aligned with those of the business

Question 24

Advantages to employee of a good relationship:

Answer 24

• Employees feel involved and valued
• Job satisfaction
• More productive so make more profit which can be fed back through bonuses