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NAME: Meghna Shrivastava STUDENT ID: c7080738 COURSE: B.

A (HONS) International Business MODULE: Strategic Human Recourse Management MODULE TUTOR: Dr Ruchi Sharma

The proposal is brought up by The Triple-Crown Consultant, with an aim to develop the HR Management style and the current quality management of the Aerospace Components limited. The company has employed 450 employees at the UK site, of whom 300 are at shop floor work, out of which 75% are over 50 years and rests 25% are over 60. The company has been surfing from a loss since seven year. Its no. of employees has declined from 600 to 450 due to retirement and staff leaving. The parent company decided to open its site in China, which entered into space age bringing boost in the company. Therefore, the senior managers were given incentives to improve their performance for the growth of the company. But this could result in extension of output, possibly increasing the production levels. Although, according to the workers they give their 100% to the high quality production, but after inspection the rejected rate of the material has constantly been high.

SCENARIO 1: MANAGEMENT STYLE ENVIROMENTAL FACTORS: y y y While the workers at the shop floor have 90% of membership in union, it resulted into non-integrated behavior between management and shop floor staff. Due to the reduction in employee through natural wastage, it guided to the mismanagement because the established staff was lacking. Company motivated manager for the improvements, as it was entering China which expected to have high industrial growth leading to increase of production level.

CONTEXTUAL FACTORS: y The lack of trust and superior thinking of managers: "Trust means confidence," writes Stephen M.R. Covey in The Speed of Trust. The lack of trust and superior behavior disturbed the morale of staff over its managers, which was leading to the undermined presentation of the company. As everyone need motivation and encouragement for doing work given. According to the scenario, the employees complaint that the managers were acting like dictators that was leading to the lack of motivation and a feeling of need of performance amongst the employees, impacting in slow- management and slow working in the company. Misunderstanding and grudges between the management and worker: The reason for the grudges between workers and managers was, according to the works the managers were not taking any responsibilities and were passing it to the workers to

manage the work themselves without much information. Resulting in the improper completion of the work as worker had little knowledge about the program and thus leading to the disturbance in the employee and employer relation. Poor behavior of workers: The poor performance is a matter of concern as it affects the firm efficiency. The workers of the company complaint about the other workers poor performances like; steeling of company tools or playing football in factory at work. This behavior of the workers in the firm guides to negligence and misconduct of the work which can affect the reputation and customer relation of the company.

SCENARIO 3: THE CURRENT QUALITY MANAGEMENT INITIATIVE ENVIROMENTAL FACTORS: y y y Being a member of union the shop floor workers have a big majority and due to which the decisions of the union mostly affect the company politically as well as socially. According to the employees they were producing high quality product whereas, the rejected rate of product was more leading to disturbing company economically. Due to the lack of teamwork and disciplinary, it created short of technological development.

CONTEXTUAL FACTORS:  Union opposing the changes in the practice of working: It is important for every firm success that its workers agree to do a job given, but due to the lack of negotiation between the managers and the workers, the workers union denied to accept any changes and demanded for bonus for any change in business practices, it affected the companys account, being a barrier in its development and growth.  Lack of awareness and enthusiasm in workers: For good performance and production of business its necessary to have knowledge and enthusiasm amongst workers. However due to the inadequacy of awareness and enthusiasm in the worker it resulted in absence of motivation and knowledge amongst them, which impacted in the slow development and decision making of the firm.  Opposition of workers for training and development: Training and awareness is important in workers for the firm development. Although, ACL planned for providing workers and managers with training programs, it was opposed by the workers which guided to the negligence of companys disciplinary actions that encouraged other workers to oppose as well.

In this task HR department of ACL is been consulted on the bases of three specific theories that can be applied for improving workers and managers relation, behavior and knowledge. Increasing their motivation for adopting these theories would help the organization in mounting employee dedication towards the company.  HR COMMITEMENT THEORY:

For Management Style and The Current Quality Management Initiative:

Bateman and Strasser stated that organizational commitment has been operationally defined as multidimensional in nature, involving an employees loyalty to the organization, willingness to exert effort on behalf of the organization, degree of goal and value congruency with the organization, and desire to maintain membership. Seeing the deficiencies of both the scenario, theres a need of developing trust, employee involvement, specific goal setting, team working, motivation and harmonization amongst workers and managers, it is foremost important for the HR Department of ACL to construct a commitment between them. There are list of HR Best Practice drawn by Pfeffer (1998) that could help in success of the organization.  Selective hiring and sophisticated selection: Recruiting and retaining outstanding people and capturing a stock of exceptional human talent are seen as an effective way to achieve sustained competitive advantage. (Boxall 1996, p6667). Considering the behavior of the workers and their Union, it can be predicted that possibly the recruitment of managers and workers was not done by the appropriate selection methods. Therefore, by recruiting high quality and committed staff with integrated and systematic method by using various psychometric tests, structured interviews and work sampling or getting administered by the trained individual, could boost the force of selection decision and could provide socially skilled and committed works with technical abilities.  Security and Internal Labor Market: Pfeffer (1998) has explained that its impractical to imagine that a worker or manager would work or offer its idea and commitments without any security and future career concern. Employees should be treated as assets for the long-term validity and triumph of company. As the employees were insecure about employment security caused due to the loss of the company for past seven years. It was important to develop feeling of safety of jobs and trust of internal promotion amongst the workers, so that they can coordinate with the managers with confidence. Providing security and internal labor market builds a positive psychological and social contract of trust and opening in employment relation.

 Employee involvement (EI), information sharing and worker voice: High involvement management is a term coined by Ed Lawler for a management approach centered on employee involvement. It entails providing employees with opportunities to make decisions concerning the conduct of their jobs and to participate in the business as a whole. (Professor s. wood, 2002) As its known that the workers and union in scenario 1 and 3, were opposing mangers may be because they were feeling ignored, since they were burdening them with engagement program and changing practices of the company, without getting engaged or involving themselves, guiding employees and union to feel that their opportunity for opening up independently is been hindered. Therefore, the HR Manager should work for the involvement of the workers union and employees by applying different programs (see appendix 2). Employee involvement is important because it indicate that the company resources are been trusted and treated in open and positive environment where, their ideas and knowledge are been accepted.  Extensive Training, Learning and Development: Wright and Gardner (2003, p312) note this is one of the most widely quoted and important elements of high commitment HRM. The use of the word learning is crucial as it demonstrates employer willingness to encourage and facilitate employee development rather than just providing specic training to cover short-term crises. In scenario 1 the behavior of the workers was not appropriate for the success of the company and in scenario 3 there was a need of developing awareness and training in workers which was opposed by the Union due to the lack of enthusiasm amongst them. So, for copping up with these problems, foremost thing that is required is the formation of HR/training department for training and development. HR department should follow different techniques for training like training on the basis of skills and interest, internet and e-learning, on spot learning etc. (see appendix 3). There are bundles of other HR practices for developing coordination and understanding in the company: 1. Self-managed teams/team working 2. High compensation contingent on performance 3. Reduction of status differentials/harmonization (appendix 1 for details)

 Motivational Theory:

For Management Style and The Current Quality Management Initiative:

The motivation can be explained as The process that accounts for an individuals intensity, direction and persistence of effort toward attaining a goal. Committing to employees, managers and union cannot make them work until they are been motivated and encouraged. So, for getting continues and effective work performance by them HR department should also work on Motivating and encouraging methods.  Theory X and Theory Y and Maslow Hierarchy Theory: As the thinking of one negative work could affect the thinking of others positive workers. This type of environment could be seen in scenario 3 where union of workers was affecting the enthusiasm of other staff and managers. Therefore, HR Department is suggested to adopt this theory to differ the negative employee X from positive employee Y and motivated them accordingly. As per Douglas McGregor observation managers have two different type views for the employees: y Theory of X: Employees which consider security of job most important factor possessing little ability. The needs that are foremost for them are Maslows physiological needs, safety needs and social needs. y Theory of Y: Employees that have the capability of innovation and working spirit requires Maslows esteem need and self- actualization for motivation.  Goal setting theory: This theory was initiated by Edwin Locke, as he believes that goal setting is essential for task performance. According to case study there were no clear and specific goals for the workers and managers directing them to performance low. There are no realistic or challenging task and no proper department to look after the task given, resulting into low enthusiasm and poor behavior of the workers and managers. So its advised to the HR of ACL to have specific, clear, realistic and challenging goals in order to encourage them to recover performances. Edwin Locke reflects that possibility associated with goal setting can be self- efficiency and goal commitment, which could aid in increasing self-confidence and goal completion commitment by an individual.  Expectancy theory: The Expectancy theory states that employees motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). (Victor Vroom, 1964) This theory can be applied on both scenario (1 and 3) as, both were facing the problem of being de motivated on the basis of rewards and incentives. In 1st scenario workers were been dominated and in 3nd scenario they were not paid on the basis of changes and performances. Therefore, mangers and HR can motivate the workers by using: Valence: Motivating employees by providing them with the expectation of getting rewards and incentives.

Expectancy: It is a confidence that great efforts will bring performance. And the same is expected from the workers. Instrumentality: The confidence that the valid outcome will be rewarded. Resulting into providing, great outcomes and performances. There are many other theories that can be applied for motivating employees and managers such as equity theory and reinforcement theory.  Employee Relation Theory: Employee Relations involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals who arise out of or affect work situations. (NASA government, 2005). As there were complaints and conflicts between the managers, workers and union it was important for the HR Department to develop the theory of employee relation. Basically, employee relation theory is essentially linked with commitment and motivation, when a manager commit for employee involvement, credits and promises the employee feels motivated, resulting into great performance of the workers and managers, all together guiding to companys success. Company can adopt the great explanation of employee relation theory clarified by ACAS (The Advisory, Conciliation and Arbitration Service), which was set up to create harmonizing and communication amongst employees and employers. According to the ACAS the disputes between employers and employees can lead to High Labor Turnover, poor working, intentionally wasting time etc. ACAS further explains that for facing the competition in the market it is important to develop employee and employer relation which could lead to effective productivity and victory of the company. Few methods that ACSA explains to its organizations for building relationship are: 1. Developing staff relation: Respect for the staff and people in the organization are of foremost importance for developing employee and employer relation. 2. Following model of ACSA showing the ways in which organization can work effectively. (Appendix 4) 3. Communication and consultation with the employees and employers is important so that they feel the involvement and engaged in any decision. ACSA also provides that how an effective communication and consultation can can help the company. (Appendix 5)

As the theories and practices suggested for overcoming the problems faced by employee and employers relation, were same in both the scenario (1 and 3), therefore, limitation of these implication are applicable for both as well. LIMITATIONS AND BARRIERS: FOR MANAGEMENT STYLE AND THE CURRECT QUALITY MANAGEMENT INITIAVTIVE LIMITATION OF HR COMMITMENT THOERY: Selective hiring and sophisticated selection: 1. Large no. of applicants for particular job can show poor recruitment, as it shows that the job define was not done properly. 2. Focusing on new recruits fitting in a prevailing organization culture could guide to underrepresentation group being debarred. 3. In psychometric test due to the absence of rules and regulation could lead to misguiding the candidates. Employment security and internal labor markets: 1. Possibility of the employee that he/she could leave the company later, as its not necessarily possible that employee would stay lifelong in the company. 2. A major disintegration of the organization due to any market product crashing down or recession could lead to cutting down of jobs. 3. Its not always possible to do internal labor promotions as recruiting new talent is sometimes more important. Extensive training, learning and development: 1. It is difficult to evaluate and measure the focus of training like, whether the employees training for finance certain projects, marketing etc. 2. Its sometimes difficult to predict that whether the whole workforce is been trained or not. 3. In various studies the author have emphasized on the financial part of training, were money is invested for training workers but the training and learning provided id is not relevant. 4. Sometimes workers employed are over qualified for training and learning, this could lead to lower the skills and performance for organization.

Employee involvement (EI), information sharing and worker voice: 1. Over employee involvement at lower level of company should be restricted as there is a threat of information disclosure. (Patterson et al 1997) 2. This could also lead to attitude problem amongst the workers, guiding to low performance of the workers. 3. Sometimes the right for workers voice could take right in wrong way of opposing company that lead to bad goodwill in market and amongst customers. There are more limitations to commitment theory as mostly the workers and employees themselves do not accept the security, involvement and training. For coping up these limitations ACL needs to follow other method. (See appendix 1) LIMITATIONS OF MOTIVATIONAL THEORY: Goal Setting Theory 1. Sometimes there could be harmful effect on the performance of workers, when there are conflicts between the goal of the organization and manager. 2. Uncertain and unpredicted goals can guide to bid risk I future. 3. Many times due to the lack of skills of employees, the action for the goals fails leading demoralizing performance of company. Expectancy Theory: 1. The expectancy theory can sometimes be nonrealistic as, there are only few employees who work on the basis of reward and performance. 2. Expectancy theory is not applied on all the organization; sometimes organization gives reward on the basis of efforts, position, education and responsibility etc. For overcoming the barriers of these theory it is necessary that manager are encouraged for proper goal setting looking at the interest of the workers and the risk involved in goal setting. In Expectancy Theory, HR department should look for reward and appraisal theories so those different workers get different type of rewards according to its capabilities.

LIMITATION OF EMPLOYEE RELATION: 1. Sometimes it is hard to have employees working in same environment with different sex. 2. Everyone expectations are different and it is hard to fulfill everyone expectation. 3. It is hard to notice the feeling of the employees. Basically, the problems in employee relation are due to the misunderstanding and non opening up behavior of the employees to their managers. For solving this problem, proper and understanding environment should be constructed by the HR.

Anna. (2009) A lack of trust in senior management [Internet]. Available from : <http://strongerunions.org/2009/08/10/a-lack-of-trust-in-senior-management/> [Accessed on 28th December. 20112] http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1473&context=cahrswp&seiredir=1&referer=http%3A%2F%2Fwww.google.co.in%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3Dbest%2Bpr actices%2Bcommitment%2Btheory%26source%3Dweb%26cd%3D6%26ved%3D0CEAQFjAF%26url%3Dht tp%253A%252F%252Fdigitalcommons.ilr.cornell.edu%252Fcgi%252Fviewcontent.cgi%253Farticle%253D 1473%2526context%253Dcahrswp%26ei%3D1WQIT7X7JcLqrAeC5HXDw%26usg%3DAFQjCNE4kG4kon8yZZ7iHgMqs3wXJnK6wA%26sig2%3DMAUUq51rcKhVTltwXE1OZw #search=%22best%20practices%20commitment%20theory%22 Hannon, K. (2006) Trust, or its lack, has big impact [Internet]. Available from:<http://www.usatoday.com/money/books/reviews/2006-11-13-covey_x.htm> [Accessed on 30th December 2011] http://www.cipd.co.uk/NR/rdonlyres/7FE8ADEB-EA96-4836-83DD-2E95FD309B15/0/samplech3.pdf

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7KH 7LPHV . (2012) people theory [Internet]. Available from:http://businesscasestudies.co.uk/business-theory/people/employeremployee-relations.htm [Accessed on 2nd January 2012] Robert L. Mathis, John Harold Jackson (2012) need driven approach [internet]. Available from:<http://books.google.co.in/books?id=_yCe7fiQbokC&pg=PA30&lpg=PA30&dq=need+driven+appr oach+hr&source=bl&ots=vrP4BSfGDe&sig=6S25IQ4FO1mIhybw8ZAuAfjZ8cc&hl=en&sa=X&ei=_vUKT8K wMMvirAeqpkk&ved=0CDgQ6AEwAw#v=onepage&q=need%20driven%20approach%20hr&f=false> [Accessed on 29th December 2011]

BIBLIOGRAHPHY: http://www.cipd.co.uk/hr-resources/factsheets/employee-voice.aspx Anon.(n.d) motivation and its theory[internet]. Available from:< http://managementconsultingcourses.com/Lesson20Motivation&ItsTheories.pdf> [Accessed on 1st January 2012] Pfeffer, J. and Velga, J. (1999): Putting people first for organizational success,Academy of Management Executive, 13 (2), p. 37-48 J. Evelyn Orr, Craig Sneltjes, and Dai, J. (2010) best practice in developing and implementing competency problem [Internet]. Available from:<http://www.kornferryinstitute.com/files/pdf1/Competency_Modeling1.pdf> [Accessed on 1st January 2012] Strategy and Human resource development according to Dr Ruchi Sharma (lecture 4 October 2011) Strategy and Human resource development according to Dr Ruchi Sharma (lecture 6 October 2011) Strategy and Human resource development according to Dr Ruchi Sharma (lecture 3 October 2011) Beardwell.J and Claydon.T (2010) Human Resource Management- A Contemporary Approach 5th ed. Leicester

In the month of November, we were asked to give a task to write draft of around 500 words regarding the formal introduction about the ACL case study, in which a brief information about what Ill be doing in the final assignment was given. In this reflection it has been asked to write how the feedback of the draft helped us with our final submission. For completing my SHRM assignment I used various steps which can be reflected by Gibbs reflective cycle.

DESCRIPTION: I went to Dr Ruchi Sharmas for the feed back of my SHRM draft, she told me about how I have written it and what can I do more for my final submissions. She told that my environmental and contextual factors were not written in proper manner. Then she suggested me that I can apply others theories as well for concerning them on HR department of ACL case study. FEELING: After the feedback I felt that I have gain much knowledge about how I could write my final SHRM assignment. And I started with my assignment right away. EVALUATION: The good experience I felt while completing this assignment was that I had gained much knowledge about the HR and its management. And the bad experience was that we had more assignment to submit which made us concise to read limited articles and book. ANALYSIS: during the task 2 I was confused about how to write theories for both the scenarios, therefore, I again went to our module tutor Dr Ruchi Sharma for her consult and she suggested

that I can take both the scenarios together for the theories. This helped me in making my assignment different and with proper understanding. CONCLUSION: In the end, I could say that I have given my best in this assignment, but I feel I could have written my task 3 in much better form, with proper models and understanding. ACTION PLAN: As through this assignment I have gain interest for developing my SHRM abilities following is the action plan for future: Objectives My objective is to increase my knowledge of HR. Measures By reading book, lectures, articles, journals and various case studies of company having successful HR. Sources HR books, internet, HR friends and newspapers etc Time Plan I have planned to develop knowledge by the end of the May.

Skills for Learning (2012) Reflection [Internet], Skills for Learning. Available from: <http://skillsforlearning.leedsmet.ac.uk/local/reflection/models/index.shtml> [Accessed on 11 January 2012].

APPENDIX 1: http://www.cipd.co.uk/NR/rdonlyres/7FE8ADEB-EA96-4836-83DD2E95FD309B15/0/samplech3.pdf APPENDIX 2: The Issue: Maintaining Employee Engagement For CEO Gamal Aziz, the challenge is maintaining the MGM Grand's remarkable employee engagement during tough times for the hotel and for Las Vegas. When Gamal Aziz became president of MGM Grand Hotel & Casino in 2001, Las Vegas was on a rolland so was the MGM Grand. The 5,000-room hotel was ringing up $175 million a year. The challenge for Aziz: to take something good and make it even better. Under Aziz, revenue zoomed, and the MGM Grand became the second most profitable hotel on the strip after the Bellagio. Some credit goes, of course, to a $400 million spruce-up of the hotel in which 36 restaurants were opened or remodeled and Cirque du Soleil was brought in as a headlining act. But ask Aziz what was the single most important factor in the jump, and he won't talk about twirling acrobats or signature dishes such as free-range quail stuffed with foie gras. His answer is: the employees. Now with times getting tougher in Las Vegas as tourism drops and gambling revenues fall, Aziz says his people have become even more critical to the company's success. COST-CUTTING MOVES "Employee engagement in times of difficulties and severe economic climate is far more profoundly important now," says Aziz. "Employees are willing to give their all when they are well-treated, appreciated. And the ability to unlock that potential is a competitive distinctionIt's their decisions, their actions, their attitude that really make the difference. Imagine taking 10,000 employees, and each and every one of them wanting to give more. That's really the difference between [us and] a company that has its employees just punching the clock and trying to get through the day." But Aziz, like all managers, is under pressure to justify every cost. Although his hotel is still running 96% occupied, groups are canceling, and those that do come are spending much less per visit. That's forced Aziz to economize on some of these successful programs. He still does regular employee appreciation dinners for top performers, but he's spending about half as much

this year as last. He's started recruiting managers from sister properties to attend his MGM Grand University as a way to defray the costs of training his own top managers. And he's put on hold one program training next-generation line managers. RANK-AND-FILE INSIGHT Aziz shares with employees the challenges he's facing. Employees, the CEO says, were what got the hotel to the next level, and they are the key to pulling through hard times. "We will get through this, we will survive," says Aziz. "Once we get through this, the employees will be the ones who have gotten us through." When Aziz arrived in 2001, he quickly sought out rank-and-file insight into the hotel and how it could improve. A survey of the hotel's 10,000 employees made clear that very little was being communicated to the staff about the events going on in the hotel on a daily basis, including such basics as who was staying there, and what the hotel had to offer those particular guests. Employees sometimes didn't even know what conventions were at the hotel. That made it difficult for staff to give the level of service that would affect customer loyalty, return visits, and spending in the hotel. Aziz came up with a simple fix. There is a short meeting now at the start of every shift in which every employee is given the rundown of what's happening in the hotel that day. It's a simple concept based on meetings restaurants have long held to get waiters up on the daily specials. But rolled out across 10,000 employees a day, it's a major undertaking. MGM PROGRAMS The MGM Grand made other moves to help employees grow. In his recent book Closing the Engagement Gap, co-author and Towers Perrin Managing Director Don Lowman highlights many MGM programs, including the MGM Grand University that offers dozens of classes on an invitation-only basis for high achievers. The MGM Grand Leadership Institute is a 24-week program for executives. And REACH! is the hotel's six-month course on basic supervisory skills for ambitious hourly workers. All this investment in the staff, along with recognition dinners and other rewards, have led to more than 90% of MGM Grand employees saying they are satisfied with their jobs, and 89% saying their work has special meaning. According to the book, 91% report they are proud to tell others where they work. "One of the ways we'll get through this dire economic circumstance we find ourselves in is if leaders set this tone that we're all in this together," says Lowman, who interviewed Aziz for his book but hasn't done consulting work at the company. (His firm, however, has in the past). Lowman worked with a multitude of companies as a consultant at Towers Perrin and ranks

MGM Grand among the best at connecting with employees. "It's very easy to say 'let's just whack 15% of the company.' You can immediately take a lot of costs off your books. But that has a big cost both on the people doing the whacking [and on the company] in the long term, when you'll need those people [you let go] again." In the book, Lowman sites a finding from the firm's survey of tens of thousands of employees in six countries including the U.S., China, and India: that the No. 1 thing that engages employees is senior management's interest in their well-being. That trumped career advancement, relationship with one's direct supervisor, and even pay. Visiting the MGM Grand, Lowman says he found evidence of that connection in spades. Aziz was impressive, Lowman says, for his tendency to ask questions and listen to the answers. Engagement that starts at the top. APPENDIX 3: TRAINING AND DEVELOPMENT OF THE SEATTLE TIMES COMPANY

Opportunity Challenge Growth We strive to create an environment that supports continuous learning through training and development. We recognize that our present and future success depends on the contributions and skills of our employees. This means creating training and development opportunities that are engaging and relevant. Corporate training programs include self-leadership, communication, problem-solving, priorities management and interviewing training. In addition, each department offers technical training specific to the software and skills needed within those work areas. For example, Advertising training specialists offer a wide range of classes on Selling Custom Products, Research, Software Training, working with Advertising Systems and basic presentation skills. APPENDIX 4 (1): Page 2: Working towards effective workplaces

y y y y y y y y y y y

Acas believes that effective workplaces are determined by the right behavior, supported by policies and procedures. As part of its aim to improve workplaces, it has recently published a clear description of its view of an effective workplace - The Acas Model Workplace. Acas is working with organizations to move towards the Model. Acas believes the key features of an effective workplace are: Formal procedures for dealing with disciplinary matters, grievances and disputes that managers and employees know about and use fairly. Ambitions, goals and plans that employees know about and understand. Managers who genuinely listen to and consider their employees' views so everyone is actively involved in making important decisions. A pay and reward system that is clear, fair and consistent. A safe and healthy place to work. People who feel valued so they can talk confidently about their work and learn from both successes and mistakes. A good working relationship between management and employee representatives that in turn helps build trust throughout the business. Fair treatment for everyone including being valued for their differences as part of everyday life. Work organized so that it encourages initiative, innovation and people to work together. An understanding that people have responsibilities outside work so they can openly discuss ways of working that suit personal needs and the needs of the business. A culture where everyone is encouraged to learn new skills so they can look forward to further employment either in the business or elsewhere.

APPENDIX 5: Page 3: Communication and consultation

A company's performance is determined by that of its employees. They will be most effective if they know where they stand (e.g. their duties, obligations and rights) and feel involved in the company's future by taking part in decisions and being well informed. This is particularly important when dealing with change. Communication and consultation are essential to an effective workplace (as described) and:

improve organisational performance - time spent communicating at the outset can avoid any misunderstanding later improve management performance and decision making - allowing employees to express their views can help managers arrive at decisions which can more readily be accepted by employees as a whole improve employees' performance and commitment - employees will perform better if they are given regular, accurate information about their jobs help develop greater trust increase job satisfaction - employees are more likely to be motivated if they have a good understanding of their job and how it fits into the organisation as a whole. These are two-way processes. Channels can include joint groups, team meetings, electronic, written, one-to-one, displays, etc. Alternative Dispute Resolution Even the best-run companies can have problems with employment relations and Acas is developing its services to help organisations resolve these at an early stage - the 'prevention is better than cure' approach that

y y

Acas is keen to spread. Disputes can be costly - especially in staff time, disruption to the business and the effect they can have on other employees. Tribunal hearings might also result in an award if the case is won by the employee. Acas, therefore, increasingly works to prevent employment issues turning into disputes - in other words helping businesses get their employment relationship right. Its work in this area includes:

providing mediation services to help resolve conflict between individuals - both employer/employee and employee/employer Training company staff to provide their own mediation service.