Introduction
During the early 1990s, most organizations integrated the decentralized bargaining system as a competitive business strategy. This arose from the fact that it was considered to be necessary vehicle through which organizations could implement change so as to remain competitive. The effect was emergence of a new organizational culture whereby a firm was supposed to operate as a family (Consortium Research Program, 2006, p.11).
Australia is one of the countries that experienced a change within its industrial relations system. Additionally, there was a significant transformation in the country’s labor market which affected employment relationships in Australian firms. According to Kaye (1999, p. 577), the decentralized employee relations system by Australian firms has culminated into incorporation of a unitarist approach to management.
Unitarist theory of management postulates that an organization should operate as one single entity. This means that the employees are supposed to have a common interest in order to enhance the organization attain its goals. According to Kirton and Greene (2010, p.232), organizations are increasingly emphasizing on employee commitment. In view of this, management teams are evaluating employee loyalty on the basis of the extent to which they have internalized the firm’s corporate vision even if it is at the expense of their personal interests.
As a result of more Australian employment relations systems becoming unitarists, the degree of inequality has increased significantly. According to Budd (2005, p.19), equity in employment relationships which involves a number of fair employment standards should prevail.
Hindering collective action/bargaining
According to Kirton and Greene (2010, p.233), unitary theory asserts that an employee’s commitment to an organization is individualistic. However, this may have adverse effects on equality issues in the organization in a number of ways. One of the most common effects is that unitarism approach excludes the concept of collective action within an organization. For example, unitary approach to management hinders the existence of trade unions in organizations.
According to Kirton & Greene (2010, p.233), the theory of unitarism approach has been considered as an attack to trade unions. The theory dismisses trade unions by emphasizing that the loyalty created between the employer and the employees is mutual. Therefore an organization cannot have two sides.
Employees who portray conflicting views are considered as rebellious. As a result, the organization may resort into legal actions or even dismissal. This means that employees are not given an opportunity to express their opinions despite the fact that they have a right to do so.
Trade unions are perceived as a potential source of conflict within an organization which is disruptive. However, trade unions play a significant role in ensuring that an organization remains focused towards equality issues within the firm. For example, over the past decades, trade unions have been known to be very vocal in advocating for implementation of a National Minimum Wage (NMW) (Konrad, Prasad & Pringle, 2006, p.499).
Decentralization of the Australian employment relations system has significantly marginalized the role of trade unions in the country. Bray, Waring & Cooper (2009) are of the opinion that unitarism narrows the collective bargaining agenda which is evident in trade unions.
Adoption of unitarism approach culminates into a shift in regulation of employment conditions from joint to being a managerial prerogative. According to Kaye (1999, p.584), a firm which adopts a managerial prerogative style of management in an effort to attain its organizational goals does so at the expense of other factors which are important in developing an organizational culture. Unitary approach to management hinders the existence of any employee representative body in an organization which makes the employee to be isolated.
Unitarists consider opposition from various interest groups such as the trade unions to emanate from lack of understanding the management’s motives (Price, 2000, p.292). In order to resolve this, unitarists, believe that the best approach is ensuring effective communication within the firm (Sheldrake, 2003, p. 71).
However, this may have the effect of worsening the conflict as the employees develop a better understanding of the existing difference of interest between them and the management team. For example, the trade union may be advocating for a rise in the minimum wage while the management team wants to maintain it at a low level (Buchanan, O’Keefe & Bretherton, 1999, p. 107).
Failure to appreciate differences in personal interests
In their operation, organizations are affected by existence of conflicts between various interest groups. In order for an organization to succeed it must formulate an effective strategy to enhance relationships despite the existing differences in interests, views, rewards and values (Levy & Merry, p.223).
According to Price (2000, p.292), unitary approach to management does not appreciate the existence of diversity amongst the employees with regard to their interests. Managers are considered to know best and hence they will act in the best interest of the employees (Kirton & Greene, 2010, p.34).
In addition, this approach asserts that the employees and the management have a common interest. This has significantly contributed to creation of inequality within the organizations with regard to the employees needs.
For example, restructuring the management systems have culminated into the management teams disregarding employee training and development. By not appreciating the existence of personal differences, organizations have not been able to establish a balance between conflicting interests which has enhanced the existence of inequality (Budd, Gomez & Meltz, 2004, p.3).
Unfair treatment
In an effort to enhance equity in employment relationships, firms’ management teams are required to adopt a management approaches which enhances employee liberty and respects their dignity. In addition, the management approach should ensure fair treatment to the employees (Budd, 2005, p.20).
In order for equality to prevail within an organization, a firm’s management team must ensure that the employees are treated fairly. One of the ways through which this can be achieved is by giving the employees the treatment which they deserve. Managers should create an environment conducive for working.
For example, equitable minimum working standards in terms of a minimum wage, safety and health and maximum working hours should be instituted (Edwards, p.5). Other conditions which should be considered relate to provision for retirement, work leave and protection against unjust dismissal (Budd, 2005, p.20).
As a result of restructuring the country’s industrial employee relations systems, Australian workforce has been adversely affected (Kaye, 1999, p. 584).Currently; employees in Australia are increasingly being perceived as commodities which should be managed. Adoption of unitary approach has made organizations to disregard employment conditions.
For example, employees are required to work for long hours of which they receive inadequate remuneration thus making them to be stressed. In addition, job security in Australian firms is not guaranteed. This has led to a decline in the level of motivation amongst the employees.
Conclusion
From the analysis above, it is evident that adoption of unitary approach to management has adversely affected equality within Australian firms. For example, the approach has hindered Australian employees from engaging in collective bargaining. This is due to the fact that unitary approach restricts employees from forming trade unions.
This arises from the fact t that managers are considered to act in the best interest of the employees. In addition, the approach asserts that the employees and the management are guided by a common purpose. Trade unions are perceived to be a potential source of conflict.
The approach has also culminated into a rise in the level of inequality as a result of unfair treatment. Unitary management approach has affected working environment by disregarding minimum working standards. For example, employees are subjected to long working hours in addition to receiving inadequate remuneration. This is further made worse by lack of trade unions whose role is to advocate for the employee’s rights.
The approach does not appreciate existence of different personal interests amongst the employees. This has led to a significant decline in the firms’ commitment towards employee training. The resultant effect is that employee development has been adversely hindered. In order to create a good employee relationship, it is important for Australian firms to consider adjusting their employee relations systems. In addition, they should evaluate other sources of conflicts other than emphasizing on creating a corporate culture to eliminate conflicts.
Reference List
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