Contrast and compare what the literature has to say on why, despite Essay

Contrast and compare what the literature has to say on why, despite the advance of globalization, business systems in the main i - Essay Example It is argued by him that all decisions about the route to be followed are not made within an organization rather state plays a potentially important role in deciding the character of any business system in addition to determining how the employers should behave and what strategic choices should they make in response to rising globalization when the need arises to not let their businesses grow in isolation from the global business trends. There is greater state involvement in determining a business’s character and the path it would follow. By developing a framework of analysis to examine business systems, Whitley explained at length â€Å"certain components of business systems and their interaction with institutions† (Tempel, 2001, p. 43). Whitley’s concept of national business systems has however been criticized often due to its weaknesses like portraying organizations as â€Å"passive pawns† which have little option but to comply (Scott, cited in Tempel, 2001, p. 42). Employment systems– national systems of training: With the help of extensive research and discussion regarding why it is that business systems in many developed nations continue to diverge, many factors are unveiled. While a market driven approach lays the foundation of employment systems in UK, fully developed vocational educational systems in France ensure high skill development and strict on-the-job training. Such pattern of allocating highly skilled workers even for the lowest jobs is not observed in UK. Germany, in contrast, practices the best system of economy wide vocational educational training. The rate of formal consultation is highest in European countries like Germany, Italy, and Sweden where employees are highly valued (Brewster and Larsen, 2000) in contrast to US or UK. As a result, there exists convergence of skills in contrast to polarization of skills as has been reported in UK business leading to â€Å"dead-end and low-skilled employment† (Crouch, 1997, p. 372). German business has advantaged hugely from VET system which demands continuous retraining and up-skilling (Crouch, 1997, p. 372). Clear difference exists in employment systems and HRM policies between CMEs (Germany, Italy, France etc.) and LMEs (US, UK etc.) (Boyer, 2005) which explains why business systems continue to diverge despite increase in globalization. Reportedly, there is greater polarization in US business systems â€Å"with the bottom 10% of the working population now being absolutely poorer than they were at the end of 1970s† (OECD, cited in Crouch, 1997, p. 370), but they also emphasize more on diversity management (Egan and Bendick, 2003). Japan, however, practices a blend of general education system of a US kind and VET system of a German kind and believes in ensuring diversity of opportunities â€Å"but within a more German context† (Crouch, 1997, p. 373). HRM: In contrast to LMEs (Liberal market economies) like US, UK, and Au stralia, business systems in German, Netherlands, and Swedish market economies show different approach to dealing with HRM. Germany and Scandinavia are CMEs (Coordinated market economies) where legislation value is maximized. CMEs emphasize more on employment regulation in which state plays a greater role than the stock market. All business systems in CME countries have stronger systems of employee voice and there is higher consultation between firms and employees (Farndale, Brewster, and Poutsma, 2008, p. 2008). Now in HRM terms, business systems operating under CMEs are

Regulating the Employment Relation Case Study Example | Topics and Well Written Essays - 1000 words

Regulating the Employment Relation - Case Study Example According to Working Time Regulation 1998, there is also the question of the total number of hours to be worked. If normal hours are35-40 and all the on-call hours were counted as working hours, the total would be 55-60, so there would need to be an exercise of the opt-out on the part of each employee. However, according to SIMAP, when the worker is in call work tasks will count as working hours. The Working Time Regulations state that working time is "any period during which a worker is working, at his or her employer's disposal and carrying out his or her activity or duties". However to opt-out Joshua few thinks need to consider such as according to statute law in the UK "an employee has the right not to be unfairly dismissed by his employer". But in this case the term of the contract itself unfair. According to Polkey v AE Dayton Services Ltd1, Polkey approach to procedure has however been superseded by the Employment Act 2002. The Act will introduce a new s.98A concerned with statutory dismissal. Before addressing the issue of fairness it will help to put the reasons for dismissal in context. Here there is a dual test; firstly did the employers' decision to dismiss fall with a "band of reasonable responses". Now the test is objective to determine fairness. It is essential to first consider the reason for dismissal before moving on to the concept of fairness. Different considerations apply to these different reasons. If an employer fails to make his reasons clear he will lose his case in the Employment Tribunal as he is unlikely to be able to show that it was potentially fair. Under s98 (1) (b) and s98 (2) Employment Rights Act 1996 the employer must prove that an employee was dismissed for a potentially fair reason. Here there is a dual test; firstly did the employers decision to dismiss fall with a 'band of reasonable responses Post Office v Foly; HSBC Bank v Madden2. Joshua will be given the right to unpaid paternity leave after one year 'subject to the requirements of the business, in the case of British Home Stores v Burchell3, it was held that if an employer held a belief of guilt of an employee, this must be based on reasonable grounds and subject to the employer having carried out as reasonable and practicable investigation into the matter as was possible in the circumstances. Again perhaps amore subjective test would be difficult to find. In Whitbread v Thomas, 4 it was held that the reasonableness of the employers conduct in the dismissal process required compliance with both a pre-dismissal procedure and the appeals process. In Hollister v NFU 5 which viewed procedural matters as merely one of a number of background factors, in the judicial stance towards procedural fairness by adopting what became known as the 'no difference rule. ' In W Devis & Sons v Atkins6 had sought to avoid with regard the reasonableness of the employers conduct and its effect upon the compensation payable. He added that "the British Labour Pump principle appears to have become established in practice without it being appreciated that it represented a fundamental departure from both basic principle and the earlier decisionsit is wrong in principle and undesirable in its practical effect", and that the only test of fairness of a dismissal is the reasonablenes