Application Essay on "Comparison of Three Countries ER System"

Application Essay 6 pages (2994 words) Sources: 0

[EXCERPT] . . . .

Country's ER Systems

The intent of this analysis is to evaluate the differences between China and Germany, Germany and Australia, and China and Australia. Taking the role of an Employee Relations (ER) Manager who is responsible for managing workforces in these areas, each country is compared based on their history, role of stakeholders, bargaining and labor laws.

China vs. Germany

In comparing China and Germany's current Employee Relations practices, a framework including each country's current economic system, their respective histories, role of stakeholders, bargaining practices and labour laws are presented.

Comparative Analysis Chinese vs. German Economic & Employment Systems

The Chinese economic and employment systems today reflect the highly socialistic, centrally planned economy vs. The social market economy of Germany. The Chinese have defined their employment system and the role of employers with a strong focus on central planning as well. The Iron Rice Bowl and the HuKou systems are designed specifically for the purpose of providing citizens with lifetime employment. The Chinese economic and employment models resemble the Soviet Union in that both nations have a centralized office for managing labor grievances, in addition to openly allowing state-financed monopolies to exist. The goal of communist-based egalitarianism has failed to deliver results for the migrant factory workers who keep the manufacturing industries of China working, while the new economic ruling class, located predominantly in coastal cities, looking increasingly capitalist. China's future as a communist-based government is threatened by this widening gulf of migrant workers relative to the newly-minted wealthy class of entrepreneurs who are savvy enough to gain the Communist party's support for their new ventures. Germany has taken a radically different approach than China in terms of their employment systems. They are focused on a more social or collaborative approach between government and labor, looking to provide a foundation for continual economic growth by ensuring the long-term productivity of their workers. The German approach to managing employment is to concentrate on high skill, high trust, high quality wage models that seek to revolutionize industries. The example of this is shown for the vehicle manufacturing industry. The German focus on high skill, high trust and high quality wages has led to the need for collective bargaining and greater coordination with labor unions.

History

China's current economic and employment systems are predicated on Confucian ideologies of seeking social harmony and cohesion of social relationships. These philosophies still permeate the nation's culture, despite the Liberation in 1949 to the Chinese Communist Party (CCP) form of government. In 1978, China adopted a socialist model of state-planned economies both at the regional and state levels. It also created, in 1978, an open door policy for initiating economic transformation. This led to the Chinese economy flourishing in a less restrictive environment. Today China continues to navigate between a communist and capitalist approach to their economic and employment practices with the latter becoming more dominant due to the potential to grow the wealth of the CCP.

Germany was resurged as a global economic power after the devastation the country faced after the Second World War. Germany has emerged as the largest and strong European economy with the high export focus that rivals China. Following the reunification of Eastern and Western Germany, the economic growth of the country has slowed significantly. Between 1994 and 2008, Germany reported only 1.5% economic growth for example. Unemployment rates continue to escalate yet are not as severe as France or the United Kingdom. As of the analysis completed for the course, unemployment is hovering at 8.4%.

Role of Stakeholders- the Government, Unions, Workers,

Both countries carry significant power in terms of negotiating, managing and requiring compliance from their own corporations and those of foreign nations. The costs of operating an enterprise in both can be very high for an Australian firm for example. The role of the state and local government in China is to enforce their laws of employment levels, CCP employment and union requirements and support for the All-China Federation of Trade Unions. Stakeholders in China are subservient to the monopoly model the CCP attempts and often succeeds in creating. In Germany the role of stakeholders is significantly different with the unions have significant power and arbitration rights to the German Trade Union Confederation. Germany also has several laws in place to ensure employees groups have the ability to voice grievances without fear of losing their jobs., Union membership in Germany is 35% and has continually gained over the last ten years due to economic uncertainty. Despite these forces of economic turbulence, Germany still leads all nations with more regulations regarding economic activities (77) compared to Sweden (39) who by many is considered the most unionized country in Europe.

Bargaining

Chinese bargaining includes provisions for Collective Contracts as legislation was passed in 1994 supporting this area of ER. The Chinese system is unique globally in that it also supports tripartite consultation systems and support region-based and industry wide contractual negotiations. All of these factors are elements of the CCP framework of harmonization across the country's economy. China also has a very structured, rigid Resolution System that includes phases for arbitration, mediation, litigation if necessary, and a series of decision points for managing illegal activity and its eradication from the economic system. The German approach to bargaining is also based on a foundation of alliances with labor unions and the use of frameworks based on societal corporatism and co-determination. Bargaining is also managed through unions including the support for German ER practices on the regional and district or community level. Legislation is defined in the Works Constitution, CO-Determination, Collective Agreement and Social Security Acts as well.

Labour Laws

China is very clear on its use of labour laws, with a country-wide precedent set in 1995 with their Labour Law of China. This was the first employment law enacted by the CCP. There is also the Labour Contract Law passed in 20087 that require all employers to provide employees a written contract within a year of employment, and fines employers who do not do this. There are also labor dispatch providers and support for verbal contracts in the Labour Contract Law of 2008. In 1993 China based the Enterprise Minimum Wage Regulation and amended it in 2004 to serve as a framework for the countries' growing economy.

The labour laws in Germany are more specifically oriented to allowing German corporations to pursue their best interests while protecting them from multinational corporations (MNC) encroachment into their prosperous national market. The German Labour Laws are heavily slanted to favoring the worker who is unionized, and also has a series of complex requirements for German-based and internationally-based companies to abide by. How structured and rigid these laws are making operating a business in Germany extremely difficult for undercapitalized MNCs attempting to break into this market. German politicians fear the economic strength of the country will be adversely impacted if there is too much free trade throughout the country.

Germany vs. Australia

Comparative Analysis Chinese vs. German Economic & Employment Systems

The German economic and employment systems are more predicated on societal corporatism and a social market economic to support a more diversified, high quality production-based economy. Germany has also concentrated its economic and employment systems on ensuring its workforce is capable of staffing more intermediate- and high-level skill jobs across the nations' strongest industries. This is specifically done to drive up the Gross Domestic product (GDP) and Gross National product (GNP) over time. The German economic and employment practices also concentrate on co-determination between the management and workers of organizations. The Works Constitution Act defines the wrights of workers as a result.

The Australian economic and employment systems are significantly different in that they are based on a Westminster style of democracy. The Australian government relies on a multiparty system combined with a constitutional monarchy to government at the federal level. This has been advantageous from an ER perspective in that it has shifted responsibility for employment to the state level, where there is greater control for specific market requirements. The one caveat of this from an ER planning perspective is that the dominant political party will determine which balance of ER emphasis the government has, depending on political preference. In recent electrician it has swung back to a more unified, national focus.

History

Germany has emerged as the most successful economy in Europe as a result of their approach to defining education and high value-based industries as a core part of their industrial policy. Germany is considered an "economic miracle" by many who analyze European markets. Following the reunification of Eastern and Western Germany, the economic growth of Germany has slowed significantly however. Between 1994 and 2008, Germany reported only 1.5% economic growth for example. Unemployment rates continue to escalate yet are not as severe as France or the United Kingdom. As of the analysis completed for the course, unemployment is hovering at 8.4%.

Australia has had a history as a commonwealth, with a Westminster style democracy and a continual evolution… READ MORE

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