IOP3704 Updated Revision

IOP3704 Updated Revision QUESTION 1 1.1 Provide an integral definition of labour relations. (10) Labour relations is an interdisciplinary field of study which concern itself with the continuous process of control over the dynamic individual and collective relationship between workers and management in organisation, function within the wider environment, with an view to determining the conditions under which work is done so that the needs of both parties are addressed  labour relations concern itself over the continuous process of control over the employment relationship.  The employment relationship is dynamic and of an individual and collective nature  Labour relations occur within all organisations  Labour relations influence the environment the environment in which the organisation function  The objective of labour relations is to determine the conditions under which work is done so that the needs of both managers and workers are addressed  It is an interdisciplinary field of study. 1.2 Identify the macro-external variables shaping the business environment; pay specific attention to their effect on labour relations. (15) [25] SA socio- economic and socio – political situation is undergoing drastic changes currently. Many of these changes spill over to the workplace and may have an influence on the quality of employment relations to an extent that the success of the organisation may be at stake. Factors in the macro external environment could have consequences for the quality of employment relations within the organisation and vice versa, so that the decisions made can be aligned with the environmental forces impacting on the success of the organisation and ultimately the country. Socio- economic factors. Factors like country's economic growth rate, inflation, taxation and interest may have an effect on labour relations. if the economy is sluggish it may cause an drop in the product and service demands that lead to increased unemployment. Unemployed people have no money and are desperate to obtain resources to enable them to make an living. this may lead to envy, conflict and ultimately violence in the community. This may lead that workers lives may sometimes be threatened and may cause that employees feel uncertain, anxious and stressed and develop health problems. these problems may lead to absenteeism and other negative behaviour that have an negative influence on performance and outputs of the rest of the workforce, which have a detrimental effect on productivity and the manner in which employees are managed at work. These dynamics have an negative impact on performance and competitiveness of the organisation and may lead to restructuring of business processes to cut cost and even downsize or dismissal of employees. Economic growth may be adversely affected if such circumstance prevail among various organisations and sectors. poor economic growth lead to poor wage increases if any that may result again in industrial strikes that have an negative serious effect on attracting potential foreign investors that hamper again the creation of jobs. Industrial actions, intimidation and violence aimed at reached economic goals are a social process that may have negative influence on the economy.