6.6 Improving Employer-Employee Relations (AQA A Level Business): Flashcards
Exam code: 7132
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Why do good employer–employee relations matter?
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Why do good employer–employee relations matter?
They bring measurable benefits: higher motivation/productivity, lower turnover, fewer disputes, and a better reputation.
How do good relations affect staff turnover?
Employees who feel respected and heard are less likely to leave, lowering turnover and cutting recruitment/training costs.
How do good relations reduce disputes?
Open communication addresses concerns early, avoiding escalation and keeping the labour cost per unit lower.
How do good relations help change management?
Employees who trust the business are more likely to support new initiatives.
Define employee involvement.
Employee involvement is how much say staff have in how the business is run — from informal feedback to formal representation.
How does leadership style influence employee involvement?
Democratic leaders are more likely to involve staff than autocratic leaders.
How does business size affect employee involvement?
Smaller firms use informal communication; larger firms may need works councils or structured consultation.
How does the presence of trade unions affect involvement?
Involvement becomes formalised through negotiations and collective agreements.
When does UK law require employee consultation?
In key situations such as redundancies or health and safety.
Name two methods to improve workplace communication.
Team briefings and staff surveys (also suggestion schemes, newsletters/intranets, appraisals and works councils).
What is the purpose of a staff survey?
To collect feedback and measure morale, identifying concerns early.
What is a suggestion scheme?
A channel for staff to contribute ideas and improvements.
Democratic leaders are more likely to staff in decisions than autocratic leaders.
Democratic leaders are more likely to involve staff in decisions than autocratic leaders.
True or False?
Good employer–employee relations are only about avoiding conflict.
False.
They also bring measurable benefits — higher productivity, lower turnover and a better reputation.
Define a trade union.
A trade union is an organisation that represents the interests of its workers in negotiations with management or owners.
Name the four types of trade union.
General, industrial, craft and white-collar unions.
What is a general union?
It represents workers across many industries and skill levels — e.g. Unite the Union.
What is a craft union?
It represents workers with a particular trade or skill — e.g. the RMT.
What is a white-collar union?
It represents office-based, professional or administrative staff — e.g. NASUWT.
Define collective bargaining.
Collective bargaining is a union negotiating with employers on wages, working hours and conditions on behalf of its members.
What is the fee paid to join a trade union called?
A subscription.
Define industrial action.
Industrial action is the methods unions use to force employers/governments to keep engaging — e.g. strikes, overtime bans, work to rule and go-slows.
Name the three areas trade unions focus their efforts on.
Collective bargaining on wages/conditions, protecting employment, and influencing government policy.
How does unemployment affect union bargaining power?
Higher unemployment weakens power, as firms can more easily replace existing workers.
How does the state of the economy affect union power?
Bargaining power decreases in a recession and increases in a boom.
How does union size affect bargaining power?
The larger the union, the stronger its bargaining power.
How does high labour productivity affect union power?
Highly productive workers are more valuable to the firm, so the union's bargaining power is stronger.
Define a works council.
A works council is a formal group of employer and employee representatives who meet regularly to discuss workplace issues.
What issues does a works council typically discuss?
Health & safety, working conditions, training needs and technological changes — but not pay.
Does a works council negotiate pay?
No — that is the role of trade unions. A works council is consultative, not confrontational.
When collective bargaining breaks down, unions may take industrial action such as .
When collective bargaining breaks down, unions may take industrial action such as strikes.
True or False?
In the UK, works councils are required by law for all large employers.
False.
They are not legally required in the UK (unlike parts of Europe); some firms adopt them voluntarily.
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