Unit 20 Employee Relations Assignment - Puma

Unit 20 Employee Relations Assignment - Puma

Unit 20 Employee Relations Assignment - Puma


Diploma in Business

Unit Number and Title

Unit 20 Employee Relations

QFC Level

Level 5


Employee relation

The organization which has been elected for the purpose of this essay is Puma, leading company having head office in German that design and manufactures athletic and casual footwear apparel and other required sport stuff at large. With the deep history of this organization it is found that in 1924, Rudolf  and his brother Adolf Dazzler formed the company Genbruder Dassler on joint basis and then later on with the increasing complexity in their business they decided to form two separate entities Adidas and Puma.  Rudolf Dassler was the key founder of the Puma which is operated with the assistance of its CEO Bjorn Gulden.  With the adamantine study of Puma organization it is seen that company has been on its growth stage and having a turnover of more than 400 Billion in given span of time. Large number of employee is engaged in manufacturing of shoes and making their vigorous efforts for the betterment of the company. Therefore employees are the key pillars of the organization and establishment of nexus between employees’ growth and organization’s welfare is the key concern of the top management (Ntaliani, et. Al., . 2015).

Employee’s relation is very much required factors to maintain in the process system of the organization in order to make effective use of resources in context with accomplishment of set goals and objectives. It is the adamantine study on the bylaws of relation between employers and employees at large for the determination of influence factors issues and other concern at workplace.

1.1 Unitary frame of references

It is the frameworks which are based on the assumption and values to determine that all the problems and issues that come arise between employer and employees are not emerged due to the employer and employees relegations. Problems and issues arise due to the collective working system or human behavior. Therefore conflicts start from two’s behaved or occurrence. In context with Puma which has been maintain effective relation with the employees with the concern of values, belief, attitudes, and other required intents of the employees. This values and personal views have been set in organization with the competed understanding of employees behavior and their reciprocate behavior in order to achieve set goals and objectives. The unitary frame in Puma has been engaged in observing several facts and employees behaviors within the several circumstances and that has results into very much help in achieving set of goals and objectives.

Pluralistic Frame of references: This is concerned with the separate effects and issues which covers all the individual concerns and objective of the employability skills in different process system. With the ramification of work load and increasing demand of efficiency from the employees it is observed that industrial organization is comprised of plural society in which various set of employees with different values and belief works. These possible factors of the employees must be maintained by the organization in order to establish a positive set of work environment (Demirbas  & Yukhanaev, 2011). In Pluralistic Frame of references Puma has   developed different set of work environment in different process system. Pluralistic Frame is comprised of several set of groups of employees and resulted into powerful and subgroups. Each group has their own intent and lawful loyalty and respect to their assigned works and leaders decisions at large. Adoption of Pluralistic Frame by Puma in maintains employees are very effective and divide the working system in teams and set of people as per the caliber of the employees.

1.2 Effects on employees’ relation with changes in trade union

Trade union is   a group of employees which is created for the betterment of the employees and their working system. In several organizations Trade union is developed with a view to understand employees’ concern and their choice of actions. In the working of Puma there are number of acts performed by the trade union so that smooth level of functioning could be maintained in manufacturing process.

Role of trade union

  • Communicating employees concern with top business event management.
  • Establishment of positive working environment.
  • Maintain all the works legally and ethically with a view to achieve organizations goals and objectives.
  • Resolution of conflicts and organization’s concerned.
  • Contributing to motive employees.
  • Separate body to encounter employee’s problems and hurdles at large (Tansel & Gazîoglu, 2014).

A drastic change that has been noticed in the working of the Trade union is that trade union of the Puma has started to work only in the interest of organizations and employees concern are left behind without any consideration. This has resulted into employees concern and in the near future that will surely affect Puma’s productivity and employee’s relation in negative way. In addition to this workers are forced to work beyond their working hours without any payment so that company could meet the production requirement often economy.  It is also observed that trade union not only creating this harsh working environment but as well making strict rules for the employees at large. Hence considering these issues it could be said that Puma employee’s relation is going to be damaged in near future if this working procedure is being adopted on consistent basis. Furthermore Puma has faced high level of turnover in which has also resulted into high cost in the production of shoes. This level of changes in Trade union will surely damage the employee’s relation and demoralize the employee, damage the brand image and would result into high production cost to the organization (Bose & Mudgal,. 2013).

With the increment of such problems and consistent work load in Puma Process system has resulted into high employee’s turnover and put negative impacts on other employees at large. In addition to this if this negative culture will be providing very big loss in its social policies and will be detrimental in establishment of proper corporate governance. Decision making proper consideration of these issues PUMA needs to make imperative changes in trade union policies and frameworks (Mathew  & Jones, 2012). As per the outcome of working of Trade union now Puma needs to develop effective working mechanism such as setting up benchmark, arrangement of extra wages, setting up of separate body to resolve employee’s grievances.

1.3 Role played by the main player

Employee’s relation is very critical to maintain in positive manner. As several employees and employers are accompanied with separate human behaviors and due to this there is obvious of emergence of conflicts in working of the organization (Demirbas  & Yukhanaev,  2011).

Employees and employers: Employees are the key pillars of the organization that makes consistent efforts for the development of the company. An effective and health and social care is required for understanding a better working environment as per the employee’s cultures. Puma has been developing its all the policies and frameworks as per employees concern. There are number of roles that is being played by the employers in puma e.g. making policies and framework, developing effective work environment, showcasing path to employees, handing all the strategically decisions and further more (Griffin & Koerber, 2015).

Employees and trade union: Trade union is an association of employees who play significant role in the sustainable future of the organization. Puma has been making consistent changes in its policies in order to establish effective trade union. It maintains all required relation with employees and their concern in according manner.

Government agencies: Government is the key body who makes all the laws and regulation for the better industrial environment. There are various employment laws have been passed throughout the time such as equal pay act, workmen compensation act, employment act and further more. Governments are the bias body which plays its role without having any interest. In addition to this Puma has been making high level of corporate governance.

Tribunals: These are the separate bodies which are established in order to take all the legal matters of employees and employers. It is accompanied with lawful judiciary authority and will pass their judgment only in their area of jurisdiction.


Introduction: Organization is comprised of several parties such as employees, employers, trade union and government agencies at large. In order to make effective use of resources organization has to establish a positive level of equilibrium between all the factors. In this case study of conflicts between employer’s Trade union and government decision has provided much of help in understanding different parties with different choice of actions.

Case study: In this case study negotiation between British Medical association, NHS employers and government has been running over the appointment of new junior doctors. Employers and government bodies have agreed to the fact this contract should be passed but the part of conflicts arise due to the different view point of the Trade union BMA about the appointment of doctors and also using strike off power against such decision (Bonoli, 2010).

Nature of industrial conflicts and its resolution

2.1 Procedures to resolve the different conflicts

Conflicts are the problems which are normal to emerge in the different process system of the organization. The main reason of emergence of conflicts is different human nature of employee in given circumstances. The conflict that could be seen in the case study is that BMD was not ready to give his consent for the contract. But gradually with the guidance of government BDM agreed to the Contract to appoint new junior doctors. This is the case of emergence of conflicts of employees who are member of BDM association and that problem has been come into notice as employees were given less pay rate and asked to perform more. This problems have force employees to not to give their consent for passing the resolution. Gradually in this case employees end up with having strike, lockout and creating nuisance in the working system of the organization if they are having conflict with decision of the employers. In addition to this all the interest parties has been agreed to the contract except members of BDM. Therefore in order to overcome this type of problems NHS employers needs to follow an effective procedure in determined manner.

Indentify the problems- NHS employer’s needs to identify the possible problems that must have emerged between employees for accepting the contact. Ideal Conflicts that could be identified during this process of resolving problems by NHS employers are

  • Fear of employees losing their own dignity in the working system
  • Disturbance of new working environment
  • Loss of value of collective decisions
  • Unfair treatment
  • Leadership and guidance problems

Finding ways to resolve conflicts- This step is covered with preparing strategic decisions by the employers. It is better to recognize the possible conflicts which have been aroused between employees and this could be resolved by following these process system .e.g.

  • Communicating with employees
  • Leading them with the positive outcomes that could be better for their own future
  • Making them familiar with the future prospective of the organization in context with the sustainable future

In the given case study it is clearly found that members of BMA have been observing low with the NHS organization activities. Therefore in order to make changes or undermine the conflicts NHS employers needs to establish an effective working system and liberal the employee’s policies and framework in orderly manner.

Implementation of decision- In these step NHS employers has to implement their plans in order to manage conflicts between members of BMA. Avoidance, manage, force are the following intents which are used by employers to make the equilibrium between employees and NHS employers decisions. Other steps that could be used in order to maintain conflicts in organization are working such as follow up program and consistent overview on the employees concern and further more.

2.2 key Intents of employee’s relations

Employee’s relation means body of concern with several factors which determine the relation between employees and employers. The key intent that would be required to maintain an effective employee’s relation would be as given (Claveria & Verge, 2015).

Proper level of communication- This defines changes in information between employees. In the given case study it is observed that members of BMA has problem with the proposed resolution. Therefore NHS needs to establish a proper level of communication between its employees and employer department for managing conflicts and possible problems. NHS has to establish a proper data transfer process system in order to mitigate the problems and developing an effective mechanism in the working environment (Claveria .& Verge, 2015).

Establishment of portal- There should b proper portal for the employees to raise possible grievance in orderly manner. NHS has been facing conflict of employees for the newly passed contract for appointment of new doctors. NHS needs to consult with members under the guidance of an effective leader so that they could be pursued for the betterment of the company.

Trade union assistance-It is the representative body of employees and members which represent members’ grievance before employer.  There is requirement to understand the employees’ demand and need and provide them proper guidance about the new contract so that a better relation could be maintained.

NHS needs to establish an effective relation with its employees if it wants to maintain the sustainable future in the future. In addition to this there should be proper discussion over the matter of appointment of new doctors in the organization and possible benefits of this contract should also be shared with members of NHS in orderly manner. A positive level of employees’ relation is the core of motivation and enthusiasm for the employees in their working process. Therefore NHS needs to take care of all the relevant concern of the employees in determined manner.

2.3 Effectiveness of the procedure

NHS has been facing several employees’ conflicts in passing resolution of appointment of new doctors. There are different types of conflicts which have been taken into consideration by NHS such as Interpersonal behavior, structural, non effective policies, strategies which are not oriented with employees concern and further more. Therefore in order to establish the effectiveness of procedure employers or line manager needs to make effective foot path for its employees. Emergence of conflicts at work place arises when there is not proper effective path system between employers and employees. In the given case study employees were given less pay rate for the more overloaded work which has resulted to creation of negative environment. In addition to this they have also not passed resolution for accepting the contract of hiring new doctors. NHS employers have to include following steps in order to make effective procedure to mitigate conflicts (Sayce,  & Gold,  2011).

  • Regularly review the employee’s grievances portals and make consistent reply to avoid problems.
  • Developing a line manger who will record all the problems of the employees at large.
  • Providing proper level of motivation to employees either offering monitory reward or incentives.
  • Remove the harsh policies or framework in order to increase the effectiveness of employee relation.

With the increment of problems of employees with the working style of NHS it has been observed that NHS needs to make effective communication channel. Employees are the key pillars therefore NHS needs to establish an open and free environment In order to grab employee’s valuable concern.

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3.1 Negotiation in collective bargaining

Negotiation is the process or set of activities in which two or more parties interact with each other on certain matter and gradually end up with the mutual acceptance. This is process of argument, consideration, facts, persuasion and compromise and mutual understating.

Collective bargaining- it is the process of negotiation of wages and salary by the employees in determined approach. NHS has been paying less amount of salary to its employees and getting more work done therefore it is required to apply collective bargaining approach by all the employees for increment of their wages rate. Collective bargaining is the collective efforts of all the employees for getting the desired wages and salary for their determined work.  In simple worlds it is also known as a collective agreement in which terms of Employment and Company’s working styles are taken into consideration. In this collective barging the interest of employees is represented by the trade union or other appointed authority.

Trade union is the representative body of employees which showcase all the collective concern of the employees at large and make valuable interest by taking into consideration of all the possible interest of employees.  Trade union is the mutually appointed body by the employees by passing resolution. Therefore it takes care of all the administrative as well employees’ concern in determined approach. In addition to this it also measure the organization’s need and establish and effective communication portal. In this case BMA has been acting as a Trade union for NHS organization and needs to make collective bargaining efforts before the NHS employers so that employees pay rate could be increased and also needs to divulge the possible ways of motivation of employees. There are various motivational theories have been given such as Tyler, Maslow and father more. Reward system has been understood to be the best effective motivational tools for the employees.

3.2 Impact of Negotiation Strategy

Negotiation strategy-This is referred to be an effective strategy to overcome the possible problems and hurdles that is utilized by the parties in order to negotiate or achievement of set goals and objectives. In this case employees have been suffering with less salary or wages payment which could be mitigated by the proper development of negotiation with the higher authority. Trade union needs to develop an effective strategy. This sort of strategy helps organizations to understand employee’s actual needs and demand from the organization. In addition to this line manager also use this strategy with a view to develop motivational tools for the employees.  In this case trade union needs to develop a negotiation strategy for the employee in context with their pay scale and their work load in determined manner (Sayce  & Gold,  2011).

Task- 4

Employee Relation Presentation Slide 1

Employee Relation Presentation Slide 2

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Employee Relation Presentation Slide 11


In this report we have understood several aspects of contract relation and how important is to maintain an effective employee relation for the betterment of the organization at large. Organization is comprised of complex set of activities and managed by  Key player such as promoters, directors and mangers who formulate all the strategic policies and framework. In addition to this trade union is being set up with a view to represent the employees concern before top magnet department.

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