It is important to understand within the organizations around the world how culture can affect the behaviors and social rules within the workforce. We cannot assume that because you are dealing with somebody from a region, as for instance the European Union, you are dealing with the same type of employees. Every country has its own kind of social rules that vary principally by its culture.
Here is where the area of Human Resources, as a part of the organization, has an important role within the organization. The design of strategies of this area could lead to the success or failure of the company. The importance relies on the issue of the significant role that has all workers in the configuration and function daily. Nevertheless is not easy to deal with this issue.
One of the main approaches to understand the role of workers can be seen in unions. This type of association has been used as tool to defend the right of workers, especially for companies in which there are conditions not too well conditioned to work properly affecting the employee main necessities. However, in some countries unions have been utilized improperly. By the means of looking for fulfill some conditions of workers, has done to company lose competitiveness. This kind of unions has taken place especially in undeveloped countries in which some workers try to take advantage of the amounts of investment done by multinationals in the host country.
However, in other countries, workers have the right to take part of decision-making process rather than to see the company as source of resources and to ask more than the company can give. This continuous oppression by unions within the company what creates is a conflict between managers and employees. The necessity of reaching consensus would be an issue forever within the company affecting directly the organizational climate. The conflict in some many cases can stay with no answers.
If the company fights to resolve this issue and get a consensus probably they would have enough competitiveness. By the other hand if unions continue confrontations, multinationals can decide to immigrate to another place or to contract other type of workers. Here is where migrations from all over the world appear. Real necessities make people offer cheaper and without requirements their workforce.
SO WHAT IS CO-DETERMINATION
When unions are used in the way that should be used is where the principles of co-determination appear. To avoid fear conditions imposed by managers of companies is where some type of principles allows workers to have some type of control over decisions affecting directly them.
The best example of this situation can be studied in Germany which has created during time a type of system where the unions can be represented within the organizations. The principles of co-determination give the right to get involved in decision-making process, where managers are force to share power with the unionist, having both power to both important decisions inside organizations. These principles refers to the obligation by law of the participation of workers in decisions, since 1951 with boards, 5 members share-holders, 5 trade unionists and 11 member chosen by the two parties. In 1952 the law was reinforced implying that “companies appoint people who are competent and capable of having discussions with the employers to be in a skilled supervisory board”, starting from one sector was spread to other sectors of the economy. Then with time appeared the work council having the power of signing all agreements in the company(Piette, Jean-Jacques. 2004).
These principles in somehow are an advantage for the company. Even can be considered as a time-wasting and complex to reach an agreement, can be seen as a way of getting consensus. In past year were just the confrontations of the unions against managers and representatives of the company. The principles are an approach of how to get a resolution of conflict over crashing interesting. Besides the power giving to workers, the last word relies in managers and owners, but with adequately and properly selection of representatives and issues these principles allows to avoid wasteful confrontations based on strikes and other mechanisms that make to the company lose its competitiveness.
In countries where applies these principles, all managers and employers should be have awareness to deal with workers, trying to put scenario where decisions are taken considering the interests and consequences of all stakeholders. Consequences from decisions are not just for managers, are for the all organization and that is why co-determination appears as a way of doing more participative representation of workers within the organization.
Sources:
Piette, Jean-Jacques. 2004. “Understanding Management German style”. Les Amis de L’ecole de Paris.
Robledo, Cristina; Organisations and Cultures; Class information; Universidad EAFIT, 2010
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