A Critical Evaluation of the Quality of Employee Relations

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Using this theory it is possible to provide an account of the many different parts and link them together using the functions each play in keeping the whole system running (Nicholls 2003, pg. 18-19). This report critically asses the quality of employee relations that exist at Coca Cola Company. It will look at the internal arrangement of the company and specifically its Human Resource Management structure and how the company uses levels of relations to improve its productivity and reputation (Budd, 2012). The report will also look at the ethic and culture of the company and the impact of employer-employee relationship in Human Resource Management in the company. Coca Cola was invented on May 8th 1886 in Atlanta USA by Dr John Stitch Pemberton. The formula was patented by Asa Candler when he bought the formula from the inventor. In 1893, it was registered as a trade mark and shortly thereafter could be found in practically all the states in America (Hyman, 1975, pg. 25). Due to Asa Candler’s aggressive marketing techniques by the late 1890s it was one of the most popular drinks in America. At present Coca Cola is present in more than 200 countries and has over 500 brands and 300 beverages. It has an associate employment population of over 92,000 worldwide and net operating revenue of over $31.9 billion (December 31st 2008) Coca Cola is the most recognizable brand in the world today. The use of systems theory in analyzing employee relations has its shortcomings. The concept implies that the subject matter is capable of description while suggesting that the realm of employment is a definite system that exhibits common values that hold it together, hence giving it the appearance of a system (Hyman, 1989, pg 25). It is also argued that to define employee relations strictly in terms of rules and regulations is a very narrow and restrictive. Nevertheless systems theory gives an important framework for describing the context of employee relations. It has created terms that have been accepted in the subject of employee relations. This approach was adopted in United Kingdom by a number of scholars. Clegg (1979) took this concept, contextualized it in the British understanding and came out with a definition. He defines it as the study of rules governing employment and the way rules are formulated, changed and administered (Clegg 1979, pg.1). Therefore. employee relations are the methods of formulating rules and regulations which governs the work place. Employee relationship is the process of managing diversity and change which necessitates maintaining employer-employer relationships that contribute to adequate productivity and motivation. The systems theory avers that there are three main broad areas that constitute employee relations. These are (i) inputs, (ii) processes and (iii) outputs. The inputs have three elements in it. The first being the actors. The actors are represented by the trade unions, management, employee associations and the public bodies mandated to regulate employment (Clegg 1979, pg. 1). The second factor is the context or environment, which is usually complex and dynamic. The workplace is not only affected by the policies and procedures in place there, the internal environment, but also by economic, political and social developments beyond it, the external environment. The last factor is ideology. Industrial relations create a common body of ideas and beliefs regarding the role of the players which in turn helps the system to operate. The outputs are the rules and regulations which are in two parts, substantive and procedural. Substantive part deals with matters like pay, overtime, holidays and the way in which a job should be accomplished.