Union Effects on Employee Performance and HRM
Introduction
Trade unions are an important part of industry as they facilitate the smooth running of business entities that both employees and employers are satisfied with work environment, culminating in productive and profitable businesses.
Trade union in the context of a certain commonality within the trade of members, which is to say that the trade union comprises members of the same or similar trade who come to gather as a single unit with the objective of fighting for a common purpose (Buchmueller and DiNardo, 2002)
According to the analysis of dipesh (2000) main types of unions are as follows,
- · Craft union
- · Industrial Union
- · General Union
- · Federation
Global context union presence
Trade union presence available most of the countries in world. Among them COSATU (South Africa), The All-China Federation (China), Confederation General du Travail (France), IG Metall (Germany), Civil Servants Confederation (Greece), Egyptian Trade Union Fed. (Egypt), Conf. of Mexican Workers (Mexico) are very powerful unions in world.
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Source ; You Tube
Union effects on the management practice
Union has influence on various human resource practices like recruitment, placement, training, retaining. Similarly, it also has effect on various functions of human resource management like staffing, organizing, planning etc.
Union also places a significant impact on the promotion and performance evaluation system of the organization. Unions are known for formalizing promotion procedure, by writing the policy in paper, as compared to nonunion firms.
Benefits of working with a recognized trade union
Build trust among the workforce
Ensure workplaces are safe
Audit non-compliance with labor codes
Improve staff retention
Make better business decisions
Promote equality
Provide access to learning and skills
Union landmark in Sri Lankan environment
According to the ILO report In Sri Lanka, there are 2,074 registered trade unions, of which 54.5 per cent are in the public sector, 27.5 per cent in public corporations and 18 per cent in the private sector. The number of members covered by the trade unions amount to 9.5 per cent of the total workforce of Sri Lanka.
Sri Lanka Telecom as a company maintains social dialogue with trade unions since its privatization. An open-door policy with trade unions; any trade union can meet with the Chief Human Resources Officer at any time and positive solutions are approached together for all issue
Formal discussion are conducted with all trade unions every three months. 18 active trade unions are recognized by the Company and almost all employees belong to at least one trade union. Finally union impact for the ABC telecommunication company is positive sign towards archive goals.
Conclusion
The union’s reactions is one of the main point towards organizational performance. Positive reaction will help to employees to work with friendly environment. Depend on the organization culture, union power may be vary. Finally maintain open door environment will be healthy for employer and employees.
References
T. Buchmueller and J. DiNardo, “Did Community Rating Induce an Adverse Selection Death Spiral? Evidence from New York, Pennsylvania and Connecticut.” The American Economic Review, vol. 92, no. 1, 2002.
dipesh, R., 2020. Types of Trade Unions. [Online]
Available at: https://www.businessmanagementideas.com/trade-unions/types-of-trade/20341
[Accessed 29 04 2021].
Anon., n.d. Workers and Employers Organizations in Sri
Lanka and the Maldives. [Online]
Available at: https://www.ilo.org/colombo/areasofwork/workers-and-employers-organizations/lang--en/index.htm
[Accessed 29 04 2021].
https://www.youtube.com/watch?v=A2zHbxPd0YI

There are both positive and negative impacts on having union within the organization. However, since it has allowed by the law, employers should accept it in positive manner.
ReplyDeleteA union is an organization formed by workers who join together and use their strength to have a voice in their workplace.
Thank your very much your comment .
Deletepositive and negative impacts available but need to streamline with company performance.
Activities of trade unions within an organization impact on employee performance as well as organizational performance. Author has elaborated how it affect on employee performance with local and global examples.
ReplyDeleteThanks you HR Lounge.
DeleteMaintaining healthy union environment is more important for both parties.
Article clearly pointed out that objective of the unions is not
ReplyDeleteonly to increase the bargaining power.
Strong trade unions can influence a company’s HR practice by adopting softer
Human Resource practices than hard ones.
Thanks Hemal
DeleteYes Strong trade unions can influence a company’s HR practice .But is should be help to success of the organization
Performance management should, in the union’s view, be restricted to identifying what members need to carry out their duties effectively. This can range from training to the details of work organization
ReplyDelete