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CHAPTER TWO . EXTERNAL FACTORS AND THEIR IMPACT ON THE EMPLOYMENT RELATIONSHIP. Objectives of this chapter. Explore how the external environment impacts on employment relations Outline the political impacts that can affect employee relations

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Chapter two

CHAPTER TWO

EXTERNAL FACTORS AND THEIR IMPACT ON THE EMPLOYMENT RELATIONSHIP


Objectives of this chapter
Objectives of this chapter

  • Explore how the external environment impacts on employment relations

  • Outline the political impacts that can affect employee relations

  • Outline the economic impacts that can affect employee relations

  • Outline the social impacts that can affect employee relations

  • Outline the technological impacts that can affect employee relations

  • Outline the legal impacts that can affect employee relations

  • Outline the ethical/environmental impacts that can affect employee relations


The external environment
The external environment

  • Stability

  • Complexity

  • Dispersion


External environment and employee relations
External environment and employee relations

  • Buffer departments

  • Accountability

  • Boundary-spanning roles


Political factors
Political factors

  • Development of legislation

  • Winter of Discontent 1978/79

  • Conservative government 1979–97

  • Social Chapter

  • Labour government 1997–date


Political manifestos
Political manifestos

  • Diversity

  • Productivity

  • Skills


Economic factors
Economic factors

  • Employment

  • Inflation

  • Taxation and spending

  • Interest and exchange rates

  • Price stability

  • Economic growth

  • Balance of payments surplus


Fiscal policies
Fiscal policies

  • Tax and spending

  • 1970 – increase disposable income

  • Or increase spending

  • Or increase social benefits


Monetary policies
Monetary policies

  • Conservative government 1979–97

  • Excessive demand for goods and services led to price inflation

  • Manage demand by financial instruments rather than tax and spending

  • Use of interest rates


Social factors
Social factors

  • Unemployment

  • Immigration

  • Emigration

  • Family-related issues


Women in employment
Women in employment

  • Stereotyped jobs

  • Parents

  • Flexibility

  • Aptitude

  • Discrimination


Technological factors
Technological factors

  • Flexibility to learn how to use new technology

  • Remote working

  • Monitoring of performance

  • Change in methods of communication


Legal factors
Legal factors

  • Growth in employment legislation

  • Impacts on individualism

  • Alters the balance of power between the employer and employee


Ethical environmental factors
Ethical/environmental factors

  • Corporate social responsibility

  • Globalisation

  • Moving operations overseas


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