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Employment Relationships in Upcoming Countries: A Case Study of Indian Business Organizations

TABLE OF CONTENTS

Ser Subject Page No.
1. Executive Summary 2
2. Introduction 3
3. Literature Review 7
4. Research Methodology 29
5. Discussion and Analysis 35
6. Conclusion 40
5. References 43

EXECUTIVE SUMMARY
As the companies are expanding their operations from local country to international countries, the management is encountering numerous thoughtful challenges regarding employee management and employment relationships. Since employees belong different nations, Employment Relationships in Upcoming Countries different cultures, possess different values and beliefs, developing good working relations with them become challengeable.

This has been confirmed through various surveys that multinational organizations and particularly the organizations operating in developing countries tend to experience countless disputes of employees and labour laws. Considering the importance of building relationship between employee and employer, this report has undertaken this subject and brought the matter of employment relationship in emerging countries into limelight.

To analyse the trend of developing market, researcher has taken two major companies of India into account, named Maruti Suzuki and TATA Group. The methodology used to conduct an entire research is descriptive and exploratory. With this methodology, researcher has done in-depth analysis of book reviews and journals articles related to employment relationship. However, researcher has only focused on secondary research, Employment Relationships in Upcoming Countries which means researcher has opted to gather existing information due to time constraints. To analyse the trend in Maruti Suzuki and TATA Group, analyst has gone through the detailed case studies of the companies which depicted the information about employee engagement and relationships of employees with employers within an organization.

The structure of the report is formal and starts with the introduction of the study. The second chapter includes a literature review with an in-depth analysis of case studies of Maruti Suzuki and TATA Group, Employment Relationships in Upcoming Countries while portraying a trend of all international organizations. The research methodology is presented in third chapter followed by discussion and analysis in the next chapter. Conclusion is the last part of the report that summarizes all the key findings of the report.

The research study has concluded that employment relationship is the major concern for every company in order to retain skilled and qualified employees. Relationship builds up the environment of workplace and thus directly relates to the performance and productivity of employees. TATA Group and Maruti Suzuki face numerous conflicts regarding employee relations due to poor recruitment process, unfair labour policies and discrimination between permanent employees and contractual labours. Also, issues have arisen due to lack of proper communication system,

Employee reward system and employee recognition. The companies are recommended to embrace communication system that foster interaction between employees and employers, change their recruitment process from third party to direct hiring and reward employees for their performance.

CHAPTER 1: INTRODUCTION
Background:
In this era of globalization, the efforts are being made to eliminate or reduce barriers between employee and employer in order to develop good relationships in organizations. Employment relationship refers to a communication or behaviour between a supervisor and an employee. This typically relates to satisfaction and rights of employees. As described by ILO (2006), employment relationship deals with the legal connection or link between employees and employers. ILO has emphasized upon the two major actors of employment relationship that are, the employee and the employer.

Generally, employment relationship is functioned at two levels, which include representative or individualized. At an individual level, there is a direct link between employer and individual employee without any interference of trade unions. Whereas, a trade union usually serves as an intermediary between employer and employee at a representative level and forms a formal relationship (Yan, Zhu & Hall, 2002).

Today, most organizations are struggling to create good employment relationship by embracing effective communication systems, empowering employees and enhancing their participation rate. Successful and good employment relationships are important to build so as to create a sound business environment. It has been seen that organizations are likely to be successful if they support good employment relationships (Guest, 2004). This report will focus on detailed research study on the subject of employment relationships in business organizations in emerging countries, while keeping a wide spotlight on the case studies of two Indian companies, Tata Group and Maruti Suzuki.
Research Statement:

This research paper deals studies of employment relationships in developing countries, particularly in India. This report will intensely focus on emerging trends of employment relationships in business organizations at a global level as well as in emerging countries, while centering limelight on the case studies of the Tata Group and Maruti Suzuki. Moreover, the report will also discuss the quality of employment relationships and its effects on employee’s performance.
Research Objectives:

The research objectives set the direction for researchers to gain the required outcomes. Objectives are designed in such a detailed way that helps out researchers to achieve the research aim (Saunders, Thornhill, & Lewis, 2011). For the research regarding employment relationships in business organizations, the research objectives are designed as follows:
• To determine the concept of employment relationships interpreted and treated by contemporary business organizations.
• To identify the emerging trends and quality standards associated with employment relationships.
• To evaluate the weaknesses and strengths of employment relationships in contemporary business organizations from India like Tata Group and Maruti Suzuki.

• To propose the recommendations for improvement of employment relationships in contemporary business organizations from India like Tata Group and Maruti Suzuki.
Research Questions:
The research questions are prepared to keep the research objectives aligned with the aim of research study. These questions help the researcher to focus on each and every objective separately and support the findings with reference to research aim (Alvesson and Sandberg, 2011). The following are the research questions for the underlying study:
• How is the concept of employment relationships interpreted and treated by contemporary business organizations?
• What are the emerging trends and quality standards associated with employment relationships?
• What are the weaknesses and strengths of employment relationships in contemporary business organizations from India like Tata Group and Maruti Suzuki?

• What are the recommendations for improvement of employment relationships in contemporary business organizations from India like Tata Group and Maruti Suzuki?
Significance of Research:
In order to lead a competitive drive, it is essential to improve and establish healthy employment relationships in organizations. Since this trend is extremely lower in emerging economies, which is the reason to undertake the study particularly for emerging country such as India. At an international platform, employees are given self-assurance by maintaining strong communication between employee and employer which subsequently leads to low turnover rate and thus higher productivity.

This research work will help to identify the significance of employment relationships in business organizations of emerging countries where mostly employees are reluctant to communicate frankly with employers. This research will signify the emerging trends that are associated with employment relationships at a global level while taking into consideration the quality standards at employee as well as organizational level. Since this research report aims to target the two major Indian organizations named, Tata Group and Maruti Suzuki,

The researcher will emphasize on the weaknesses and strengths of employment relationships in respective companies by analyzing the organization-wide trends and surveying their employees. Also, the research will come up with the measures and processes that are needed to increase the effectiveness of employment relationships in organizations. It will also be highlighted that good employment relationships actually save up the cost of company by means of increasing retention rate of skilled and valuable employees in organization. Hence, the research holds great significance as it is not only expected to benefit employees but also organizations on the whole.

CHAPTER 2: LITERATURE REVIEW
Concept of Employment Relationships Interpreted and Treated by Contemporary Business Organizations

Employment Relationship:
It has been claimed by many entrepreneurs and major leaders of the world that employees are the company’s valuable asset, and keeping them satisfied is the responsibility of employers. Since satisfying employees is the major concern, now organizations make real efforts to build good employment relationships and create a strong bonding between employees and employers.
The employment relationship refers to the connection between employees and employers of an organization. The relationship creates when a person work for his/her employer against agreed remuneration under definite conditions. Roehling, Cavanaugh, Moynihan & Boswell (1998) has defined the employment relationship as the communication between an employee and employer or management of the company. The communication can be about anything regarding work such as participation in decision making, problem solving, grievances, sharing ideas, conflict resolution,

issue concerning collective bargaining and unions, etc. Shore & Barksdale (1998) has argued that the intensity of good employment relationship is identified from the variety and severity of issues an employee can discuss with his/her employer. Tsui, Pearce, Porter & Tripoli (1997) has discussed in the research study that many employees are reluctant to discuss their workplace problems or share their ideas with their employers due to lack of communication. Osterman (1995) has stated in his argument that employment relationship does not only concern to communication between employees and employers, but poor relationship leads to numerous detrimental effects on work and thus organization.

Here is the model to understand the employment relationship, which suggests that characteristics of employees and labour market context make up the employment relationship by developing trust, effective communication, commitment to organization, etc. Also the model below depicts that employment relationship directly relates to organizational performance as well as individual productivity.
(Lowe & Schellenberg, 2001)
Moreover, Guest (2004) has also described employment relationship