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

 

Comments

  1. 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.
    A union is an organization formed by workers who join together and use their strength to have a voice in their workplace.

    ReplyDelete
    Replies
    1. Thank your very much your comment .
      positive and negative impacts available but need to streamline with company performance.

      Delete
  2. 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.

    ReplyDelete
    Replies
    1. Thanks you HR Lounge.
      Maintaining healthy union environment is more important for both parties.

      Delete
  3. Article clearly pointed out that objective of the unions is not
    only to increase the bargaining power.
    Strong trade unions can influence a company’s HR practice by adopting softer
    Human Resource practices than hard ones.

    ReplyDelete
    Replies
    1. Thanks Hemal
      Yes Strong trade unions can influence a company’s HR practice .But is should be help to success of the organization

      Delete
  4. 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

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