Factory Systems for Growth of Productivity

The gradual progress made by the economies is based on the systems undertaken by the entrepreneurs. The most relevant changes that are being undertaken by the companies are based on the increased requirement of retaining the workforce for making their progress. On the other hand, democracy in the workplace is yet another factor that promotes the smooth functioning of the workforce for bringing in the changes. The evolution of the factory system has helped in the development of the large-scale productivity of the organizations since the 18^th century (Wolff 2012).  There are certain examples of the improvements that are being brought about by the factory systems. It helps in the thorough understanding of the different aspects of the growth of the companies in the market through the smooth functioning of the workforce. In the year 1998, Argentina faced a recession in the market resulting to which many industrialists sold off their valuable assets and stopped their functioning accordingly. It resulted to unemployment and other social issues in the nation (Corbett  2013).

The Recovered Factory Movement has enforced different acts of the comeback of the labor force based on their need of improving the social structure and their livelihood, which is based on the smooth functioning of the factories (Cumbers  2012). The factory system has helped in improving the job retention. In addition, it created new positions in the system, which have helped in the undertaking of the large-scale functioning of the organizations resulting to its growth.  

On the other hand, the reforms undertaken by Britain in improving the conditions of employment has helped in enhancing the productivity of the nation. The women empowerment and the equity in the recruitment have changed the face of developments brought about by the organizations (May 2017). The processes taken by the authority has decreased the rate of unequal payments done to the labor force therefore promoting equality and unity among the members of the labor union. The conservative approach undertaken by the Conservative party has helped in bringing in important changes in the structure of the National Living Wage. It enabled the hike in the payment of the lowest earners procuring the enhancement of their lifestyle and retention. It has also helped in maintaining a proficient conservative force for the development in the working conditions.

In England, the co-operative movement has brought about significant changes in the professional life of the labors. The changes in the conditions of the workforce are being brought about by the efforts of Robert Owen who promoted the co-operative movement in Britain. Through the reduction in the hours of work, better remunerations and through the housing colonies that were provided to the workers, brought about the change. The changes has helped in enhancing the productivity of the factories and thereby brought in progression.

Recovered Factory Movement: Enhancing Job Retention

The growth of trade unionism and collective bargaining has helped the workers in assembling to raise their voice in support of their needs. The rise of the unions has helped in enhancing the strength of the employees as the unions seek to negotiate on terms of the interests of the employee with the employers. It has helped in retaining the proper value of the human resource. Collective bargaining is a mutual understanding that the employee and the employer undertakes for the smooth functioning and the mutual growth. The process of collective bargaining includes the understanding of the demands of the employees, justifying the cause of their demand and negotiates on the same with the employers.  The introduction of Whitleyism has helped in undertaking ways to bring together the labor forces and management and negotiate on terms for improving the work conditions and the credibility of enhanced production. The Whitley councils have helped in taking care of the interest of the workforce without compromising the interests of the organization or the management. It has helped in the mutual growth of the people and bring in improvements in their lifestyle. On the other hand, it has helped in bringing in improvements in the market situation of the organization through smooth functioning.  The concept however did not work well because of the weak organizational structure and the labor unions of the organizations.

Alternatively, the European Union (EU) has influenced the mutual understanding between the workers union and the management of the organization through proper negotiations. It has helped in the maintenance of a collaborative function that helps in the undertaking of the smooth functioning of the organization resulting to its growth (Bryson et al. 2012). The EU also promoted the importance of the determining the interests of the workers while taking a management decision. It has helped in the consultant functions that are being undertaken by the management of the organizations, which has helped in understanding the varied requirements of the workforce of the organizations.

An enquiry was set up by the Labor government of Harold Wilson in order to monitor over the labor conditions in the year 1975. The report was signed by Bullock, which stated that the board of directors and the management of the organization must include a representative of the workforce in order to convey the needs and requirements of the workforce (Fisk 2016). It was aimed at establishing a good communication channel between the management and the labor force and thereby negotiates on their terms of conditions of employment. The report has brought about considerable changes in the structure of the organization through the inclusion of the representative thereby addressing the requirements of the EU. The report has helped in bringing in different considerations for improving the working conditions of the workforce (Fenton 2012). Contradicting to the view of Taylorism, which emphasizes more on the economic growth of the organizations without regarding the interests of the labor force, the report has helped in unifying the management with the workforce through their common links of the labor unions. It has helped in undertaking the smooth functioning of the organization in the market and thereby result to its progress.  

A. Contemporary Scene

Reforms Undertaken by Britain for Improving the Conditions of Employment

Productivity of the organizations helps in improving the social and the financial conditions of the nation. Therefore, steps are to be undertaken by the organizations for improving their financial conditions and thereby create potential employment for its growth in the international markets. The total output fell short by 18% and the productivity of the organizations were the main reason for the fall in the productivity. The deteriorating productivity of the organizations is based on the dissatisfaction among the workforce (Elliott 2018). It has decreased the productivity of the organizations resulting in the organization’s fall in the market. There are certain evidences of the fall of the productivity of the organizations in Britain, which have affected the GDP of the country and the lifestyle of the people in the nation (Petrini  2013). The issues that are being faced by the economy is based on the increased hours of the work, which did not support the interests and the concerns of the workforce of the organizations. The smooth functioning of the workforce helps in undertaking the progress made by the organizations in their specific fields. Therefore, the fall in the productivity of the organizations is based on the miscommunication and the failure of the organization to establish a proper contact with the employees (Anderson 2015). The creation of quality jobs and adhering to the requirements of the workforce is the major considerations that must be undertaken in order to bring about changes in the productivity of the organizations.

B: Reasons for the poor performance of UK

The neo-classical economists have argued on the theory of the profit that was proposed by Ricardo. According to Ricardo, profit is the residual element that is left over after the undertaking of the considerable functions of the organizations. Alternatively, the neo-classical economists stated that the profit is not the residual element and thereby is determined by the marginal productivity of the capital and the marginal productivity of the Labor relating to their wages (Doellgast 2012). It helps in determining the different aspects of the change that the organization incorporates in the structure to undertake proper negotiations.

The collaboration between the unions and the management has helped in enumerating the disputes in the structure and thereby helps in resolving the issues resulting to the smooth functioning of the organizational systems. UK has taken steps to improve the collaboration between the labor unions and the management of the organizations in order to bring in improvements in the productivity (Malin 2012). The modern theory helps in the better understanding of the interdependence of the management and the workforce on one another for making the progress in the organizations.  The rise in the working hours and the lower wages that were paid to the workforce affected the smooth functioning of the organizations in UK and thereby resulted to a fall in their productivity. On the other hand, the group work is again an important function that cannot be negated. Properly coordinated and integrated workforce is required for undertaking the measures for making the improvements in the organizational structure. The teamwork is based on the morale and the skills of the employees (Voos 2014). It also helps in determining the various aspects of the smooth functioning of the organization.

Co-operative Movement for Changes in Workforce

The rise of the unionism has helped in determining the value of the workforce. The efforts of the union members help in undertaking steps to safeguard the employment of the workers. In addition, it helps in safeguarding the interests of the employees and conveys the message of the needs and requirements of the employees to the management. It helps in undertaking the efficient functioning of the organization. The proper functioning of the unions helps in determining the effectiveness of the decisions taken by the management for the progress of the organization in the market (Alves, Burdín and Dean 2016). The fall of the productivity of UK based organizations were based on the work conditions and the increased working hours which affected the effectiveness of their work and the smooth functioning of the organization. It has also affected the productivity of the organization through the inefficiency of the workforce.

The proper understanding of the issues faced by the labor force during work can bring about the modifications in the working conditions of the people (Barrows 2017). The understanding of the issues will be helping the management in taking steps to enhance and empower the workforce. However, there are limitations of improving the conditions of work and empowering the employees through letting a representative of the workforce in the management of the organization (Kaswan 2013). One sided negotiations and the illegal demands of the workforce can affect the smooth functioning of the organization in undertaking the core activities of the organization. Employee empowerment undertaken by the organization is aimed at enhancing the productivity of the organization in the market, whereas the steps taken by the organization for improving the empowerment of the employees can turn out to be fatal in certain cases. The unjustified demands and the remuneration that the employees might expect through the smooth functioning of their unions might affect the structure of the organization.

Other factors like the secrecy of the company’s undertakings and the trade secrets of the organization might be compromised through the inclusion of the labor union representative in the management. On the other hand, it might also affect the smooth decision making functions of the organization. According to González-Ricoy (2014), the labor union has got both its pros and cons. It helps in the smooth functioning of the organization through the proper integrated functioning of the workforce. Alternatively, it also affects the decision-making system of the organization through the consideration of the varied interests of the labor force of the organization (Gollan and Patmore 2013). On the other hand, unitarism has helped in the understanding of the group functioning that is undertaken by the workforce for the enhanced functioning. The collective functioning of the workforce, the teamwork, and the collaborative activities helps in determining the different aspects of the organizational success (Bova 2013). It also helps in reducing the workload resulting to enhance functioning of the workforce and helps in ensuring quality.  It also helps in enhancing the productivity of the organization in the market. Yeoman (2014) believes that the proper functioning of the workforce is being backed by the theory of unitarism as it helps in making the collaborative functions of the organization. Pluralism, on the other other hand, helps in maintaining the diversity in the workforce. It helps in the partnership that is being created by the management and the representative of the labor unions for ensuring the smooth functioning of the organization in achieving the common objective.

Trade Unionism and Collective Bargaining for a Unified Workforce

The ‘voice effect’ has also helped in bringing forth improvements in the systems of the organizations. It has helped the management in understanding the issues faced by the workforce while performing their respective duties (Azzellini 2015). Justification of the requirements and the negotiations that are being undertaken by the labor unions and the management has helped in understanding the various needs of the employees and thereby promote the smooth functioning of the organizations (Landemore  and Ferreras  2016). The strategies that the companies might take for maximizing the profit margins are based on the low income provided to the workforce, the long hours of work and the reduction in the investments on machinery and employment that creates a havoc impact on the working conditions of the workforce. The steps affect the smooth functioning of the workforce and results to a lag in the productivity of the organizations. Therefore, the organizations must take steps in order to ensure the smooth functioning through negotiating on the needs of the employees with the unions. It is aimed at scaling up the productivity of the organization and bring in improvements in the market situation (Azzellini 2013). However, the empowerment of the workforce also affects the malfunctioning of the workforce as for their support of their consecutive unions. The collective bargaining and the negotiations undertaken by the management and the unions have helped in bringing in the necessary improvements in the structure of the organization. Alternatively, the employee empowerment has also resulted to the poor performance of the employees, which affects the growth of the organizations in their respective markets. Kokkinidis (2012) believes that the empowerment is a necessary step that the company must take while considering its progress. However, the company must take steps in order to prohibit excess power to flow into the hands of the unions as that might affect the productivity of the organization.

Part 4: Conclusion 

Therefore, from the above discussion it can be understood that the workforce democracy has developed ever since the increasing need of empowering the employees is felt. The rise of the factory systems have helped in the improvement of the productivity in the initial stages. However, the rise of the labor unions has helped in safeguarding the interests of the employees and the management mutually.  The steps taken by the management has helped in improving the conditions of work in accordance to the requirements of the employees. The improved working conditions have helped the organizations in enhancing the productivity. Throughout the discussion, the importance of the unions and their important contributions towards safeguarding the interests of the employees is being emphasized. The voice effect that is being discussed in this context has helped in the proper decision making of the organizations. On the other hand, the representation of the labor union in the management of the organization has created probable issues in the management. The basic consideration undertaken by the organization is based on the partnership functions of the labor union and the management with the view of mutual sustenance and to ensure the smooth functioning of the business concern. The rise of the unions have helped in resolving the issues faced by the workforce relating to the wages and the long working hours. It has not only helped in safeguarding the interests of the employees but also determine the enhancement of the productivity of the organization. The discussion also aims at studying a case of low productivity of an UK based company and thereby enumerate the reasons for its lag. It helps in the clear understanding of the issues faced by the organization and the workforce based on the remuneration and the hefty working schedule. The negotiations undertaken by the unions have helped in safeguarding the employment and the interests of the workforce. It helps in maintaining the balance of the management and the workers and their joint participation towards achieving the objective of the organizations.

Management-Employee Collaboration for Smooth Functioning of the Organizations

References 

Alves, G., Burdín, G. and Dean, A., 2016. Workplace democracy and job flows. Journal of Comparative Economics, 44(2), pp.258-271.

Anderson, E., 2015. Equality and freedom in the workplace: recovering republican insights. Social Philosophy & Policy, 31(2), p.48.

Azzellini, D. ed., 2015. An Alternative Labour History: Worker Control and Workplace Democracy. Zed Books Ltd..

Azzellini, D., 2013. The communal state: Communal councils, communes, and workplace democracy. NACLA Report on the Americas, 46(2), pp.25-30.

Barrows, T.S., 2017. What do unions do?: a twenty-year perspective. Routledge.

Bova, F., 2013. Labor unions and management’s incentive to signal a negative outlook. Contemporary Accounting Research, 30(1), pp.14-41.

Bryson, A., Gomez, R., Kretschmer, T. and Willman, P., 2012. Workplace voice and civic engagement: what theory and data tell us about unions and their relationship to the democratic process. Osgoode Hall LJ, 50, p.965.

Corbett, S., 2013. The social quality of participatory democracy: Social empowerment in the workplace and local community (Doctoral dissertation, University of Sheffield).

Cumbers, A., 2012. Reclaiming public ownership: Making space for economic democracy. Zed Books Ltd..

Doellgast, V., 2012. Disintegrating democracy at work: labor unions and the future of good jobs in the service economy. Cornell University Press.

Elliott, L. (2018). UK productivity gap widens to worst level since records began. [online] the Guardian. Available at: https://www.theguardian.com/business/2016/feb/18/uk-productivity-gap-widens-to-worst-level-since-records-began [Accessed 1 Jan. 2018].

Fenton, T.L., 2012. Inspiring democracy in the workplace: From fear?based to freedom?centered organizations. Leader to Leader, 2012(64), pp.57-63.

Fisk, C.L., 2016. Workplace Democracy and Democratic Worker Organizations: Notes on Worker Centers. Theoretical Inquiries in Law, 17(1), pp.101-130.

Gollan, P.J. and Patmore, G., 2013. Perspectives of legal regulation and employment relations at the workplace: Limits and challenges for employee voice. Journal of Industrial Relations, 55(4), pp.488-506.

González-Ricoy, I., 2014. The republican case for workplace democracy. Social theory and practice, pp.232-254.

Kaswan, M.J., 2013. Democratic differences: how type of ownership affects workplace democracy and its broader social effects. In Sharing ownership, profits, and decision-making in the 21st century (pp. 261-294). Emerald Group Publishing Limited.

Kokkinidis, G., 2012. In search of workplace democracy. International Journal of Sociology and Social Policy, 32(3/4), pp.233-256.

Landemore, H. and Ferreras, I., 2016. In Defense of Workplace Democracy: Towards a Justification of the Firm–State Analogy. Political Theory, 44(1), pp.53-81.

Malin, M.H., 2012. Does Public Employee Collective Bargaining Distort Democracy: A Perspective from the United States. Comp. Lab. L. & Pol’y J., 34, p.277.

May, T. (2017). Theresa May’s Conservative conference speech, full text | Coffee House. [online] Coffee House. Available at: https://blogs.spectator.co.uk/2017/10/theresa-mays-conservative-conference-speech-full-text/ [Accessed 30 Dec. 2017].

Petrini, F., 2013. Demanding Democracy in the Workplace: The European Trade Union Confederation and the Struggle to Regulate Multinationals. In Societal Actors in European Integration (pp. 151-172). Palgrave Macmillan UK.

Voos, P.B., 2014. Democracy and industrial relations. LERA For Libraries.

Wolff, R.D., 2012. Democracy at work: A cure for capitalism. Haymarket books.

Yeoman, R., 2014. Meaningful work and workplace democracy: A philosophy of work and a politics of meaningfulness. Springer.