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CHAPTER TWO

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

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  1. CHAPTER TWO EXTERNAL FACTORS AND THEIR IMPACT ON THE EMPLOYMENT RELATIONSHIP

  2. 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

  3. The external environment • Stability • Complexity • Dispersion

  4. External environment and employee relations • Buffer departments • Accountability • Boundary-spanning roles

  5. Political factors • Development of legislation • Winter of Discontent 1978/79 • Conservative government 1979–97 • Social Chapter • Labour government 1997–date

  6. Political manifestos • Diversity • Productivity • Skills

  7. Economic factors • Employment • Inflation • Taxation and spending • Interest and exchange rates • Price stability • Economic growth • Balance of payments surplus

  8. Fiscal policies • Tax and spending • 1970 – increase disposable income • Or increase spending • Or increase social benefits

  9. 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

  10. Social factors • Unemployment • Immigration • Emigration • Family-related issues

  11. Women in employment • Stereotyped jobs • Parents • Flexibility • Aptitude • Discrimination

  12. Technological factors • Flexibility to learn how to use new technology • Remote working • Monitoring of performance • Change in methods of communication

  13. Legal factors • Growth in employment legislation • Impacts on individualism • Alters the balance of power between the employer and employee

  14. Ethical/environmental factors • Corporate social responsibility • Globalisation • Moving operations overseas

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