Employment relation in the in United states of America
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Employment relation in the in United states of America Compare and contrast the employment relation in the small and large firm sectors In United states 2528915 International Employment Relations London South Bank University Faculty of Business, Computing and information System Introduction This report gives an overview of employment relation in United States and also to It also makes comparisons between the employment practices of Small firms and those of larger firms. The use of the term employee relations makes it easier to encompass change in the employment relationship, its environment and in the make up of the labour force and also encompass union and non-union relations. Leat (2001:6).Farnham (1993: 4) cited in Leat (2001:7), suggests that employee relations are concerned with the interactions between the primary parties who pay for work and those who provide it in the labour market (employers and employees), those acting as secondary parties on their behalf ( management or management organizations and trade unions) and those providing a third party role on employment matters (state agencies and EC institutions).The employment relationship is a legal notion widely used in different countries to refer to the relationship between a person called an employee and an employer for whom the employee performs work under certain conditions in return for remuneration. ILO (2005). It is the key point of reference for determining the nature and extent of employers rights and obligations towards their workers. ILO (2005). United States has long been noted for high degree of diversity in conditions of under which employees work. Bamber et al (2004). Diversity was also apparent in collective bargaining outcomes, although some workers and unions lost devastating strikes or were forced into severe concessions. With the rise of industrialization, US workers organize national labour unions as a response to managerial control over employment. Unions are more attractive means of conducting labour market transactions and they play central role in setting terms of employment.
Compensation and individual performance evaluation systems is common. Employment relations in US Small and Large Firms Introduction There is no single, uniformly acceptable, definition of a small and large firms. A small firm in other states or industry in USA is likely to have much higher levels of capitalization sales and possible employment that any other. According to Storey (1994 : 8) Definitions, therefore relate to objective measures of size such as number of employees, sales turnover, when examined at the sectoral level, mean that in some sectors all firms may be regard as small, while in other sectors there are possibly no firms which are small. Large firms are classified as having more employees compare to small firms. The Small Business Administration defines large establishments as those employing more than 100 workers, and large firms are those employing more than 500 workers. Small business represents an important part of the United States economy. Many firms in the United States are small businesses Brown, Hamilton, and Medoff (1990) Firms wishing to be designated small businesses for government programs such as contracting must meet size standards specified by the U.S. Small Business Administration (SBA). Data available suggest more than half of all Americans work for these firms. Small firms generate 60 to 80 percent of net new jobs annually over the last decade. European Foundation (2006) describe small firms have wide array of different situations regarding working environment and employment relations from one firm to the other. A different set of factors such as sector, age of enterprise, business culture of the enterprise, geographical location, explain these differences. It also characterized employment relations in the US small firms by a number of traits Small firms are known for their informal communication and flexibility as well as for their need to become more structured in their approach to human resources as they grow. Managers of small business managers/owners express the desire to implement more formal human resource management procedures without losing the benefits of the more flexible, informal cultures that characterize smaller firms.
Pay is generally determined in one-on-one negotiations between employers and employees. Employers organizations representing small firm fiercely defend the right to and the need for "flexibility" in these matters. Not usually for small firms (Curran et al, 1993), pay determination is largely an individualistic affair that was rarely pursued in a systematic manner.(Ram and Edwards, 2003). In small firms there are no formal pay structures or review, individuals have to bargain. Wages in small firms are consistently lower than in larger firms. Jobs in small firms may be less desirable than those in large firms. Workers in small firms generally receive less training than do workers in large firms. large firms pay higher wages in order to attract productive workers as well as to compensate them for the mechanical and impersonal work atmosphere that is brought about by the division of labor in large firms. According to (Foundation :2006) , working and employment conditions amongst US small business can be characterized as extensive and complete. The existing working and employment conditions within the US small firms can be labeled as worse than within large ones. There are important differences by firm size in terms of hours worked and full-time/part-time status, which by turn reflects the seasonal nature of some small businesses. Thus, there is a greater proportion of employees in large establishments working full-year/full-time than in small firm, and a greater proportion of employees in small firm working other combinations of time. Smaller firms are criticized for their lack of use of best practices, lack of sophistication, and lack of attention to the documented relationships that have been demonstrated between HRM practices and organizational outcomes in larger firms. At the same time, there is evidence that US small firms vary widely in their practice of human resources management and that size of firm is not necessarily the best predictor of human resource management.
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