38171762 Employee Relation Assignment

Palmar Group Of Companies

1. INTRODUCTION

The understanding of employer-employee relations in the small enterprise has developed

greatly over recent years as research gives a more complex analysis, moving away from

earlier one-dimensional approaches. At Palmar Limitee, a company which has been

established in the 1974, such an understanding is essential and needs to be developed

even further, given the growing interest in the small firm sector as a source of economic

prosperity. However, the area of employee relations in small firms is a particularly under

researched area where the afore-mentioned interest has not been matched by a similar

growth in evaluative research. Therefore, this is the result of a study, which set out to

investigate continuity and change in industrial relations and seek evidence of a “new

realism”. Within this remit we identified factors which impacted on resultant employee

relations outcomes in Palmar Limitee. Ultimately, it has also been noted that the worker’s

council is presently being updated, in order to maintain the competitive edge of the

organization. (Certification DIN ISO 9002)

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2. COMPANY PROFILEHistory of Palmar group of Companies

Palmar Group of Companies is a textile industry which has been established in the year

1974 and holds different branches around the island. It comprises the production of both

T-shirts and Jeans. Its main head-office is located at Mon-Loisir, Industrial zone, Riviere

Du Rempart. The group is composed of five garment manufacturing companies, all of

them being established in Mauritius. Out of these 5 companies, 3 of them are specialized

in woven items such as Denim Jeans and cotton Chinos whilst the other 2 offer knitted

products such as T-shirts, polo-shirts, etc. These 5 companies were operating under

different names which were Tee-sun ltd, Palmar ltd, Sweat-Sun ltd and Palmar Trading

ltd respectively. Further in the year 2008, after the amalgamation process has take place

these 5 branches now operate under the brand name “Palmar limitée”.

About the Garment Product in Focus Clothing by Fashion

Beach Wear, Bridal Wear, Casual Wear, Evening Wear, Formal Wear, Sports Wear.

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Clothing by Fabric

Denim Jeans, Thermal clothing, Woven clothing, knitted clothing, Fur clothing, Feather clothing.

Men Clothing

Jackets, Pants, Shirts, Shorts, Trousers, T-shirts.

Women Clothing

Ladies Tops, Blouses, Capris, Skirts, Swimsuits, T-shirts.

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Mission Statement of the Company

Palmar Group is committed to realizing its client’s demands. We achieve this by

producing innovative, quality wise products manufactured by devoted, committed, highly

trained, vibrant people: our Key Asset. In doing so, we always strive to create and sustain

outstanding returns and to honor our social and environmental responsibilities.

Vision Statement

We are currently working on a new vision statement, which will give the group its main

strategic thrust for the coming five years.

Core Values

Clients

We put our clients at the forefront of everything with a view to always being their first

choice and making their demands, desire our philosophy.

Employees

We commit ourselves to ensure that our employees grow within the business. We believe

in their loyalty, team spirit and legitimate aspirations for always being successful.

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Leadership

We demonstrate decisive leadership and fast management reaction to secure maximum

advantages of changes.

Excellence

We compete on quality, service and value. We build our competitive edge on superior

innovation and customer responsiveness. We have a passion for excellence and our

intention is to simply be the best.

About the Owners of the Company. (The Chairman, Director, Production Manager)

The Chairman

Thierry Lagesse, born in 1953, holds a ‘Maîtrise des Sciences de Gestion’ from the

University of Paris Dauphine. He is the founder and executive Chairman of the Palmar

group of companies, a textile and garment manufacturing group. He is also the promoter

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of Companhia de Sena, a sugar processing and refining factory in Mozambique and

Parabole Reunion SA, a Direct to Home Satellite TV Company in the media and

communication fields across the islands of the Indian Ocean. He is the Chairman of the

following listed companies: - Phoenix Beverages Limited, the United Basalt Products Ltd

and Flacq United Estates Limited and chairs Compagnie d’Investissement et de

Développement Limitée, the latter being the ultimate holding company of AfrAsia Bank

Limited. Thierry Lagesse is a member of the Mauritius Chamber of Agriculture and was

in 1995, Chairman of the Mauritius Export Processing Zone Association.

The Managing Director

Stéphane Lagesse, born in 1959, he studied in Gestion des Entreprises Parix IX Dauphine

and joined the Palmar Group in 1983 where he currently holds the position of Managing

Director. He participated in the setting up of two garment manufacturing companies in

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Mauritius. He was appointed as Director in March 1999 and as a member of the Audit

Committee in October 2003.

The Production Manager

Amaury Lagesse, born in 1961, he has studied Management in South Africa and started

working in a clothing company in Durban. He then specialized in textile management in

England and Scotland before joining in 1987, the Palmar Group, where he currently holds

the position of Production Manager. He has also participated in the setting up of textile

factories in Mozambique. He was appointed as Alternate Director to Stéphane Lagesse in

December 2003.

2. LITERATURE REVIEW

3.1 Introduction

The literature review helps to broaden knowledge about concepts and emphasis. In

advanced market economies, employee relations are largely institutionalised. It refers to

as the primary parties to employment relationship are bound together by a network of

formally agreed rules, agreements and procedures, such as contracts of employment,

employment handbooks, grievance, disciplinary and promotion procedures and by

informal customs and practices.

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According to the WERS 1998, the broad picture in the late 1990s was one of relatively

well-developed structures for the management of employees in organisation, control

being largely retained by centralised personnel departments.

3.2 From Industrial relations to Employment

Relations

Formally, IR was concerned with the relationship between management and workers and

the role of regulatory mechanism resolving any industrial dispute. A formal definition is

…concerned with the systems rules and procedures used by unions and employers

to determine the reward for effort and other conditions of employment, to protect the

interests of the employed and their employers, and to regulate the ways in which

employers treat their employees.”(K.Aswathappa, 1999).

Then much industrial relations research in the 1970s was seen to be much in need of

reform. Many theoretical concerns, and developments in industry and labour markets,

served to shift the focus of academic industrial relations from bargaining relationships to

the nature of the underlying employment relationship, and broadened the scope of

empirical enquiry. The changing economic, political and legal context served to

accelerate this shift. According to K. Aswathappa, 1999, some authors delineated the

study of industrial relations as the study of the “processes of control over the employment

relationship, the organization of work and relations between employers and employees.

The change to Employment relations was often to emphasise the subject’s broad concern

with all types of employment relationship and with non-unionised as well as unionized

workplaces. Used in the first sense, employee relations denote much the same field of

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enquiry as ‘contemporary’ industrial relations. Used in the second sense, it suggests a

narrower and more managerialist set of concerns.

Employee Relations is a relatively young field of study which stated in earnest after the

Second World War and became a mainstream academic discipline in Anglo-American

countries in the 1950s and 1960s.

This shift in name is partly fashion and popularity of, for example, concepts of industrial

relations or labour relations have coincided with the changing names of legislation in

New Zealand (Deeks and Rasmussen,2002).

Moreover Employee Relation is concerned with:

Employment, unemployment and self-employment.

How individuals, groups, organizations or state have their interests represented.

What these interests are

How individuals manage and promotes their interest within an organization

The way conflict is managed and regulated (Rasmussen and Lamm, 20

3.3 The meaning of Employee Relations?

Employee relations has a more lasting value since work, or the lack of it, is of great

importance for most individuals: working conditions, job status, rewards and work

relationships have a considerable impact on how people live their lives and how they feel

about themselves. Employee Relations involves the body of work concerned with

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maintaining employer-employee relationships that contribute to satisfactory productivity,

motivation, and morale. Essentially, Employee Relations is concerned with preventing

and resolving problems involving individuals who arise out of or affect work situations.

Government policy promotes employee participation as a means of improving company

performance, particularly by changing employees' attitudes and improving the work

environment. While there is some evidence from the literature that participation can have

a positive effect on companies' financial performance and the working environment, a

significant body of work also questions these links.

Advice is provided to supervisors on how to correct poor performance and employee

misconduct. In such instances, progressive discipline and regulatory and other

requirements must be considered in effecting disciplinary actions and in resolving

employee grievances and appeals. Information is provided to employees to promote a

better understanding of management's goals and policies. Information is also provided to

employees to assist them in correcting poor performance, on or off duty misconduct, and

to address personal issues that affect them in the workplace. Employees are advised

about applicable regulations, legislation, and bargaining agreements. Employees are also

advised about their grievance and appeal rights and discrimination and whistleblower

protections (Deeks and Rasmussen, 2002).

Beyond the individual level of employment relationships, Employee relations is

connected to wider social aspects and issues: economic prosperity and relative living

standards, social welfare, employment and unemployment levels, regional development

and local job opportunities. The shifts in academic debates, in language and concepts are

associated with these wider societal aspect as well as the adjustments in underlying

norms and aspirations (Deeks and Rasmussen, 2002).

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“The definition of employment relations has broadened over time and is evolving. The

subject of employment relations has developed an interdisciplinary approach using

concepts and ideas derived from sociology, economics, psychology, history and political

science. Our current definition incorporates conceptual elements from both United

Kingdom’s industrial relatruios and USA labour relations as well as from human

resource management theory” (Rasmussen and Lamm, 2002).

It is examined the different rationales for participation from economic, social justice and

political perspectives. Through these perspectives, it identifies different approaches to the

subject, with employers and non -liberal interests broadly supporting individual and low

influence approaches while employee bodies, such as trade unions and the European

Union collective, favor more regulatory influences. The impact of new forms of

participation, including high-involvement work systems and partnership, is also

considered. Links between participation and equality at work, an element which is often

overlooked in accounts of the subject, are also considered from perspectives of gender,

work-life balance, age and disability. It considers the policy implications and limitations

of different approaches and suggests areas where policy developments could be

undertaken.

It also suggests, however, that trade unions continue to have an important role in

protecting and advancing the interests of employees and, in so doing, can contribute

positively to organisational effectiveness.

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3.4 Employee Relations’ Framework and

employment relationship

Employee relations is a complex phenomenon which may be the driving force for an

organisation’s success, whilst in situation of industrial turmoil may generate far reaching

effects at the extent of jeopardising the existence of the organisation in some instances.

As employee relations take place on many different levels, such as the "shop-floor", the

regional level, and the national level. The distribution of power amongst these levels is

crucial as it can greatly shape the way an economy functions. An important aspect of

employee relations is their ability to adapt to change as change is inevitable. Changes can

be technological, economical or political, each of which raises the important questions of

how an entity should respond. The framework for employee relations is set by the

Government through legislative and regulatory means. These laws dealing with

employment range from issues such as minimum wage to wrongful dismissal.

The employment relationship is a legal notion widely used in countries around the world

to refer to the relationship between a person called an employee and an employer for

whom the employee performs work under certain conditions in return for remuneration. It

is through the employment relationship, however defined, that reciprocal rights and

obligations are created between the employee and the employer. The employment

relationship has been, and continues to be, the main vehicle through which workers gain

access to the rights and benefits associated with employment in the areas of labour law

and social security. It is the key point of reference for determining the nature and extent

of employer’s rights and obligations towards their workers. An exposure will be given to

the following four perspectives, namely

i) Unitarism

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ii) Pluralism

iii) Marxism

iv) Individualism and collectivism

3.4.1 Unitarism

In unitarism, the organization is perceived as an integrated and harmonious system,

viewed as one happy family. A core assumption of unitary approach is that management

and staff, and all members of the organization share the same objectives, interests and

purposes; thus working together, hand-in-hand, towards the shared mutual goals.

Furthermore, unitarism has a paternalistic approach where it demands loyalty of all

employees. Trade unions are deemed as unnecessary and conflict is perceived as

disruptive.

“Fox (1966:2) defined unitarism as a team unified by a common purpose” which

represents a driving force for success.

From employee point of view, unitary approach means that:

• Working practices should be flexible. Individuals should be business process

improvement oriented, multi-skilled and ready to tackle with efficiency whatever

tasks are required.

• If a union is recognized, its role is that of a further means of communication

between groups of staff and the company.

• The emphasis is on good relationships and sound terms and conditions of

employment.

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• Employee participation in workplace decisions is enabled. This helps in

empowering individuals in their roles and emphasizes team work, innovation,

creativity, discretion in problem-solving, quality and improvement groups etc.

• Employees should feel that the skills and expertise of managers supports their

endeavours.

From employer point of view, unitary approach means that:

• Staffing policies should try to unify effort, inspire and motivate employees.

• The organization's wider objectives should be properly communicated and

discussed with staff.

• Reward systems should be so designed as to foster to secure loyalty and

commitment.

• Line managers should take ownership of their team responsibilities.

• Staff-management conflicts - from the perspective of the unitary framework - are

seen as arising from lack of information, inadequate presentation of management's

policies.

• The personal objectives of every individual employed in the business should be

discussed with them and integrated with the organisation’s needs.

The unitarist can de used as means that enables management to be accepted as the single

source of authority in the firm, hence the concept of management prerogative, implying

management’s freedom to make decisions without interference from outsiders. However

Rose (2001) observes that the unitarist ideology permits the projection of the image that

management’s decision correct and rational and that those opposing or challenging are

either misguided or subversive. Similarly “Lewis (2003 ) emphasises that the needs of the

organisation predominates over those of the individual members” also by conducting the

organisation culture into consideration.

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3.4.2 Pluralism

Fox (1962:2) defined pluralism as the organisation being a “miniature democratic state

composed of sectional groups with divergent interest over which government tries to

maintain some kind of dynamic equilibrium”. An example where divergent interests can

be when the employees and their managers have responsibility and are accountable for

ensuring the management of the organisation and the predetermine goals are achieved.

The employees, though also working towards the achievement of organisational goals,

they are however driven by the satisfaction of personal goalslike

better terms and conditions of employment, which have values for them. Thus the

divergent interest is a source of conflict at the work place.

Fortunately mechanisms are put in place to mitigate conflicts, as mentioned by Lewis

(2003), which otherwise would have a negative impact upon the organisational

effectiveness. These mechanisms which Fox (1996) referred to as “dynamic equilibrium”

convert conflict into a kind of “creative tension”. Good communication enables

compromising solutions to be agreed upon by the parties.

Furthermore Trade Unions are deeply embedded in the notion of pluralism said Lewis

(2003). Fox (1966) push the idea that trade union “simply provide a highly organised

and continuous form of expression for sectional interest which would exist anyway”.

Therefore, contrast with the unitarist view, which considers the emergence of conflict as

irrational and thus, offers no civility to “intrusive” trade unions. Pluralism, however,

opens a window through which both trade unions and management attempt to reconcile

divergence of interest by way of collective bargaining.

Fox (1966) lay emphasis on the truth that the differences between the parties are not

as“fundamental or wide as to be unbridgeable”.

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3.4.3 Marxism

Marxism is also a world view, a way of looking at and explaining the world. Marxism is

not just politics and economics. Marxism is also a world view, as such, it encompasses

philosophy and religion, while paradoxically and vigorously asserting its atheism and

contempt for philosophy

“Marxism, which provides remarkable evidence of the power of dominant key ideas to

inspire and direct man, is undoubtedly one of the greatest challenges to traditional

religious belief ... Furthermore, like a religion, it has provided themes of fulfilment and

hope – a revolution interpreted as the initiation of a Communist world society that would

be a final consummation. There are many logical similarities between the doctrine of the

Marxist millennium and the Christian doctrine of Christ's Second Coming (Encyclopedia

Britannica III, Macropaedia, "Philosophy of Religion," Chicago, IL: William Benton,

Publisher, 1978, vol. 15, p. 598) ’’

The Marxist view of employee relations differ with the pluralist ones, Marxist view

argue that employee relations processes, namely collective bargaining, do not

substantially modify the wealth distribution pattern within society. They would assert

that the collective bargaining mechanism adds credit to the legitimacy of management in

creating a forum for giving satisfaction to the needs of employees as suitable to

management. Furthermore Trade unionists see employers/managers always inventing

and devising ways and means to exploit workers, where their drive to continuously

struggling for their rights.

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3.4.4 Individualism and collectivism

Lewis (2003) describes individualism as “individualism refers to the will of the body to

do for her”. It is normally for the union –free organisations where work related dealings

occur directly between managers and employees. The distinctive feature of individualism

is the absence of interference from either trade unions or government in the employment

relationship. However, Lewis (2003) argues that “in assuming that there has been a

dramatic and irrevocable shift to individualism from collectivism”.

In private sector it has been noted that the tendency is to favour individualism with regard

to the form of employment relationship, yet in many organisations collectivism remains

the norm. Patil(1993) has clearly indicated that collective bargaining is adynamic and

universal phenomenon in industrial market economies.

3.5 The History and Evolution of Employee

Relations in Mauritius

Employee relations has been analysed above from conceptual framework and it is of

much importance to see how it has evolved in Mauritius. Being a sovereign and

democratic state, Mauritius is an island where the ‘role of law as well as the legislation

regulates most of the living of the citizens, and the industrial relation and employee

relation form inevitably part of them. Recently the employee act 2008 has been

introduced and nowadays companies are abiding the new act.

The Employment Relations Bill is meant to replace the Industrial Relations Act of 1973.

Its object is “to amend and consolidate the law relating to trade unions, fundamental

rights of workers and employers, collective bargaining, labour disputes and related

matters”. Its object is “to revise and consolidate the law relating to employment,

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http://www.gov.mu/portal/goc/labour/file/employmentrelationsbill.pdf

http://www.gov.mu/portal/site/laboursite/menuitem.435d40cd7b0846bb93347524e2b521ca/


contracts of employment or service, minimum age for employment, hours of work,

payment of remuneration and other basic terms and conditions of employment with a

view to ensuring appropriate protection of workers”.

3.6 Conclusion

Employee Relations is a leading international academic journal focusing on the

importance of understanding and merging corporate, management and employee needs to

achieve optimum performance, commitment and effectiveness, addresses research,

practice and ideas about relationships between employments. Today's turbulent business

environment makes increasing demands on managers and workforces, as competitive

standards rise and expectations of individuals increase. Managers must respond positively

to changes in contemporary workforce attitudes if they are to get the performance levels

they need.

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3. BACKGROUND TO THE

STUDY

In the global context, the area of employee relations has always been one of great

concern. And now, due to globalization and the new trends, employee relations have

become even more important. In the field of human resources , people are believe to be

valuable assets rather than costs or even liabilities as such; the belief which were

prevalent years ago. Thus, considering people as assets, has laid even more emphasis on

building relationships at the workplace, be it between employers and employees or

among employees themselves.

4.1 The research problem:

Employee involvement and employee participation are believed to be the key areas of

employee relations. If organizations want to make maximum use of their resources,

especially their human resources, then employee involvement and employee participation

pave the way forward. At the same time, we should not forget that the employees’ goals

and objectives have to be in line with those of their organizations. It is indeed difficult to

create the “ideal” atmosphere and environment where people with different mindset,

values and beliefs are concerned. But in the true sense, that only is the challenge.

Due to these differences, conflicts and even “miscommunication” are bound to happen, if

not inevitable. Therefore, it is imperative to create just the right climate by developing the

appropriate relationships thus overcoming the diverse values, beliefs and language

barriers.

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Hence the purpose of the study is to analyze and differentiate between the past and

current situation of employee relations at Palmar Limitee with respect to the employment

legislation of 2008 and to further determine whether it needs to change some of its “best

practice” that Palmar Limitee is making use of the performance which will be somewhat

linked to the employees’ level of satisfaction. On the overall, the outcomes will be to

evaluate whether the Worker’s council is doing justice to both the employer and

employees.

4.1.1 Objective of the research:

• Compare and differentiate between the past and the current/existing employment

relations at Palmar Limitee.

• Explain how effective communication plays a vital part in empowering

employees.

• Describe how a workforce, even through highly diversified, can become

committed through employee empowerment.

4.2 Data collection methods

Palmar Limitee, being a culturally diverse workplace, it is the survey method which will

yield more significant and valuable results. The survey method will be the most

appropriate method as data will be collected from the various skilled of employees from

the different ethnic groups working at Palmar Limitee. This data will prove to be

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indicative of the adoption of a particular approach of how employee relations are actually

managed at Palmar Limitee.

Survey research is the most common method of collecting primary data for management

decisions. Survey research is the systematic gathering of information from respondents

for the purpose of understanding and/ or predicting some aspect of the behavior of the

population of interest. Survey research is a cheaper method of collecting data. It is

concerned with the administration of questionnaires.

However, the major weakness in this approach is the reliance on respondents. Their

willingness to respond and their ability to answer the questions is crucial. The researcher

should be aware of the possibility of respondents taking knowledge or opinion,

respondents’ misinterpretation of questions and being deliberately misled.

The questionnaires to be administered to the staffs should be well designed in order to

prevent these types of errors to be happening.

4.2.1 Target population

As the basis of this study relies on the relationship between employer and employees as

well as among employees themselves, therefore there will be two target population; that

of management and that of employees. Some difficulties are bound to occur in such an

empirical study. Given that, there are a great number of employees, a whole population

will not be practical as it will be too time consuming as well as costly. Thus, the survey

will be to conduct a sample method instead of targeting the whole population.

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On the other hand, as it is a diverse workforce, some communication problem might

occur as the employees differ in educational as well as occupational level. Therefore, in

order to get a representative population, emphasis was laid upon the employees who have

come from other countries.

Simple random sampling method has been used with due respect to the employees. Some

difficulties might occur as the Mauritian employees outnumber the Indian as well as the

Sri Lankan workers; but still the sample has been carried out in such a way to grasp the

maximum number of foreign workers.

4.2.2 Choice of research methodology

The research instrument that will be used to collect primary data for this research is the

questionnaire that will be self-administered to the staffs. As far as the employers are

concerned an interview was held so as to get more accurate answers.

The questionnaire is the most common instrument for collection of primary data. It

consists of a set of questions presented to respondents for answers. The questionnaire is

very flexible in the sense that there are a number of ways to ask questions.

• Objective of the questionnaire

The main objective of the questionnaire is to assess the variables which have a great

emphasis on the employment relationship:

Employee participation

Employee empowerment and involvement

Communication

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Trust

Conflict

The worker’s council

The climate within which they work

Teamwork

The cultural diversification of workers

• Questionnaire design

The design of the questionnaire is undoubtedly not an easy task; high attention has been

paid to the questions, their wordings, their contents, their sequences and the types of

questions to be used. The questions have been designed to satisfy specific criteria such as

vocabulary and clarity. The objective is to prevent any misunderstanding of words and

also making the question simple, avoiding ambiguous words so as there are no

assumptions and biased wordings which may lead to biased responses.

• Drafting the questionnaire

The questionnaire consists of four sections as far as employees are concerned. The first

section deals with the employee’s personal characteristics; the second section deals with

the various variables such as commitment, trust and communication, employee

empowerment, involvement and participation; the third section deals with the conflict

variable and finally the fourth section deals with the worker’s council.

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4.3 Pilot testing

The employee’s questionnaire was pilot tested with an individual employee and some

changes were brought about. Therefore the changes were implemented by replacing some

terms and questions as well. Amendments were done specially in the area, where close

ended questions were replaced by open ended questions.

EMPLOYMENT ACT 2008

Palmar limitée adheres to the following changes made in the employment act which are as follows:

Section 14: Normal Working Hours Section 16: Overtime Section 17: Public Holidays Section 18: Meal & Tea Breaks Section 19: Meal Allowances Section 24: Payment of Remuneration in Special Circumstances Section 26: Transport of Workers Section 27: Annual Leave Section 28: Sick Leave

Written Particulars of Work Agreement Every employer of more than 10 workers who employs a worker for more than one month must issue to the worker a written statement of particulars pertaining to the work agreement within two weeks of entering into the agreement.

Worker

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A Worker is defined as a person whose basic wage or salary does not exceed 360,000 rupees per annum.

Normal Working Hours The normal day’s work of a worker other than a part-time worker or a watch person consists of 90 hours per fortnight or 8 hours per day and may begin on any day of the week, whether or not a public holiday.

Overtime and Notice to perform Overtime Overtime is payable after completion of 90 hours in a fortnight. Overtime rate per hour for work in excess of 90 hours per fortnight is 1.5 normal rate. For work done on Sundays and public holidays the overtime rate is twice the hourly rate for every hour of overtime performed. The day on which a worker is on annual leave is deemed to be a day’s work in the computation of overtime. An agreement may provide for remuneration to include payment of overtime. As far as practicable, 24 hours notice should be given prior to work on overtime.

Rest Day The Act provides for one rest day in every period of 7 consecutive days and the rest day shall at least twice a month be a Sunday or any other day as agreed by the worker.

Resumption of Work A worker shall not be required to resume work before a lapse of 11 consecutive hours after he has ceased work.

Shift Work A shift worker may work in excess of the stipulated hours, without added remuneration under the following conditions: (a) the worker and the employer agree on the number of hours of work to be performed in the shift and (b) the average number of hours covered in a fortnight does not exceed 90 hours or any lesser number of hours agreed by the worker and the employer.

Meal Allowance The Act provides for a meal of Rs50 when a worker works: (a) for less than 2 hours but up to 7.00 p.m on any day or (b) for at least 2 hours and up to 6.00 p.m on any day

after having completed a normal day’s work. Transport of Workers

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The Act provides for refund of bus fares when the distance between the worker’s place of residence and place of work exceeds 3 km.

Annual Leave The number of annual leaves is 20 days after 12 months continuous service. Furthermore the worker will be entitled to two additional days of leave.

Sick Leave The number of sick leaves has been changed from 21 to 15 days. However, an employee may accumulate up to a maximum of 90 days sick leave.

Paternity Leave A Paternity Leave of 5 continuous working days on full pay has been introduced and shall begin within one week from the birth of the child.

Maternity Benefits and Allowance A female employee is entitled to a maternity leave of 12 weeks and time off of 6 months for nursing an unweaned child at a time, convenient to the worker. In case of miscarriage, 2 weeks full pay should be granted and a maximum of 12 weeks leave in case of birth of a still born child. A maternity allowance of Rs2000 is payable.

Death Grant A death grant of Rs3500 is payable to the spouse of an employee who dies and who

reckons twelve continuous months of service.

4. ANALYSIS OF DATA

Data analysis is a process of gathering, modeling, and transforming data with the goal of

highlighting useful information, suggesting conclusions, and supporting decision making.

After gathering all the data for the researched project, they will be processed, analysed

and interpreted.

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Through the research project, it can be argued that due to high responses, the reliability

of the analysis remains in question. However utmost care has been taken in doing the

analysis. It can be concluded from the research project that Palmar limitee is still under

traditional practices and that it has not yet the system where employees are consulted

before implementing changes. Management has been quite restricted in their responses

while on the other hand employees seem to have been more honest in their responses.

The level of authority from management is quite striking and there is quite an inflexible

control over employees. According to the research Palmar Limitee is still operating

under the hierarchical structure and there is more one-way communication, from top

management down to employees. As far as Workers' Council is concern it is still

operational as it has been found out that Workers' Council helps employees in obtaining

loan facilities, the Workers' Council provides counseling, that the Workers'

Council is the voice of the employees.

Employee Relations at Palmar Limitée:

From the study, certain factors emerged as very significant in differentiating between employee relations practices at Palmar Limitée.

Managerial Influence:

Managerial influence emerged as a particular important factor in shaping the company’s

employee relations, much more than in larger firms due to the type of organizational

structure. Decision-making is very centralized even for the relatively minor issues.

Trade Union presence:

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Trade union presence is relatively low in small firms and low levels of unionization in

these firms have mostly been attributed to tough opposition on the part of

owner/managers. However at Palmar Limitée there is no such association of workers

(trade union) that exist, but rather a worker’s council which is presently being updated.

The Lay-Off effects after the amalgamation:

Palmar Limitée, a textile industry, which had 5 branches, is now operating under one

name. This process is known as amalgamation, which took place in the year 2008.

However this process, resulted in the lay-off of many hard-working employees, whereby

leading to instability and affecting the job security of the employees. There was increased

emphasis on cost reduction, whereby this lead to deterioration of working conditions. The

Job tenure was affected in terms of lay-offs (as stated above) and introduction of

temporary employment as well.

It should also be noted that we should keep unfair dismissals Act very much in mind

when recruiting, in relation to the type of the person. Unfair dismissal legislation is

undoubtedly a factor on the debit side of the equation when an employer is considering

whether or not to hire and additional worker or workers.

Meal Allowance: Disputes (strike among the expatriates):

The Act concerning the meal allowance provides for a meal of Rs50 when a worker

works:

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a) For less than 2 hours but up to 7.00 p.m on a day or

b) For at least 2 hours and up to 6.00 p.m on any day

after having completed a normal day’s work.

The meal allowance shifted from Rs25 to Rs50, which is a plus point for the employees,

but this resulted to disputes between the expatriates at Palmar Limitée and the

management. The former went on a strike recently, concerning the meal allowance, and

this was for period of 8 days whereby the Indian expatriates refused to work, since they

wanted both the meal allowance and the meal to be provided to them at work. This will

certainly lead to increased costs to the management, thus leading to major loss.

Moreover, there was an adverse effect on employee relations due o this strike.

6. RECOMMENDATIONS

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The recommendations, following the analysis has been prepared at two levels:

employee’s level and management level so as to meet the organizational goals and

objectives and create a better workplace.

6.1 At Employees’ level:

First of all, Palmar Limitee is highly dynamic and ever changing and therefore, it has to

always be on the competitive edge. Given that, there is workforce diversity, the ‘melting

pot’ approach is adopted to overcome the differences and become united. The Sri

Lankan, especially, do not seem to have set aside their cultural beliefs and values while

having joined Palmar Limitee to work. Therefore, it is recommended that they assimilate

the culture of the organization together with the Mauritian and Indian employees without

forgetting their own lifestyles and work styles.

As we seen above, some degree of conflict is present but it has to be managed to be

functional before it becomes dysfunctional conflict. There seemed to be some tension

between the Sri Lankan and the other employees. This may be due to adaptation

problems. Therefore, it is recommended that the employees take conflict in a good light

which can help them consider and tackle the problems. Although overt “collective”

conflict does appear to be low, there are indications that conflict exists in a more covert

form, and manifests itself at a more individual level, as found by Scott et al. (1989) and

by Gunnigle (1989).

Considering another aspect, that of communication, it can be said that there is more of a

downward flow of communication at Palmar Limitee. Suggestions boxes and superior-

subordinate discussion are recommended in which employees can have the opportunity to

identify and discuss their problems with management. But communication problems do

exist among employees as well. Given that the workforce is diversified at Palmar

Limitee, it is recommended that the employees should assume that others are different,

eventually avoiding misinterpretations. However, as Scott et al. (1989) argue, this lack of

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“personal distance” between employer and employee can result in both sides taking

issues much more personally when they do arise and with longer-lasting effects on

relations within the company.

Trust is also considered as an important aspect in employment relations. It is only

through trust that relations can be built. The employees at Palmar Limitee do not seem to

have any problem concerning trust; therefore it is only recommended that they nurture

the trust as well as showing their trust in management.

Finally, the crucial aspect of employment relations lies in participation, involvement and

empowerment which can be attained through training or seminars. It is recommended that

training is provided to both management and employees on this issue .This will in turn

help the employees to feel more committed to their jobs by creating awareness.

Lastly, as far as the situation employees are concerned, it has seemed to remain stagnant

without any change, positive or negative. It is recommended that management take the

matter into consideration and thus devise a strategy which can benefit the company as a

whole.

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6.2 At management level:

At management level, it is recommended to bring more changes especially as far as

employee involvement and empowerment are concerned. As discussed in the literature

review, Total Quality management can bring changes as it lays emphasis on the

importance on employee involvement as well as joint consultation. It is recommended

that management consider the introduction of TQM and TQM initiatives can empower

management in the sense that they become more flexible and let go of the autocratic

structure by adopting flatter structures.

Given that, majority of management have that the needs and interests of employees are

important, management have to devise a strategy to benefit both management and the

employees; as the results show that the employees’ situation has not improved since the

last two years. It is recommended that management provide incentives, rise in wages and

if possible fringe benefits to the employees which will motivate the employees.

Given that the conflict level seems to be optimal, neither too low nor too high; is it

recommended that management continue managing the conflict and maintain it to where

it is.

6.3 The role of the Worker’s council:

The worker’s council at Palmar Limitee really needs to undergo changes. It is

recommended that the Worker’s Council become operational if it is not. For the simple

that it prevents exploitation of employees as it is a safety net for the latter. And with the

help of the Worker’s Council, Palmar Limitee can shift from an autocratic and controlled

structure to a flexible and flatter one. But as management seem to prefer individualism at

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the workplace; it seems difficult to implement the changes. Because in order to form a

Worker’s Council, the need for a certain degree of collectivism is required.

The Worker’s Council also helps management in the sense that they do not have to deal

with the mass of employees, rather they only meet the representatives and the work will

be done. Furthermore it should also be noted that Palmar Limitee is, at present updating

its worker’s council team, whereby an effort is being put forward to make the employees

feel important.

Conclusion:With regards to the process of employee relations in Palmar Limitée, it is clear that

employee relations processes in this firm are distinctive and complex and involve the

interaction of many variables, both internal and external. Palmar limitée is not conflict-

free, however, but rather conflict is more covert or manifests itself at a more personal

level, perhaps by the high level of turnover among new recruits or the level of strikes

among expatriates. Moreover in the context of a “new realism” in Palmar’s industrial

relation, the conclusion is that such “realism” is not a new phenomenon o this firm’s

employees or owners, as work practices associated with this concept have long been the

norm in small companies. This is facilitated by weak/ no union influence and recruitment

practices whereby managers/owners will employ only people who “fit in” and accept the

dominant management style and authoritative practices within the firm. Therefore, it

cannot be argued that a new system or realism in employee relations is emerging from

external changes in the context of the firm, as the much heralded “new realism” would

seem to be “long established realism” within the firm.

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EMPLOYEE QUESTIONNAIRE

Interviewee information sheet

APPENDIX

QUESTIONNAIRE TO EMPLOYEES

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Questionnaire No Date: Verbal Consent √ x

Dear Sir/Madam,

I am a student of BSc (Hons) Management Year II at the University of Mauritius. It will be

of great help if you could kindly fill this questionnaire on “ANALYSIING THE

EMPLOYEE RELATIONSHIP AT PALMAR LTD”, which is a survey I am doing for my

Managing employee relationship Assignment.

There is no right or wrong answer, please tell me your exact views on each of the questions.

You have the exclusive right not to participate in the survey as participation is completely

voluntary. Consequently you do not have to give any justification in case you decide not to

take part in the survey.

The interview will not be long as it will take you only 5 – 10 minutes to fill it. Please be

assured that your views and identity will remain strictly confidential.

In case you have any queries about the interview, feel free to contact me at any time on

7712342 or by mail: [email protected].

Thank you in advance for your valuable cooperation in this survey.

Yours sincerely

MARDAY Manjula

University Of Mauritius

Dear Sir/Madam,

I am a student of BSc (Hons) Management Year II at the University of Mauritius. It will be

of great help if you could kindly fill this questionnaire on “ANALYSIING THE

EMPLOYEE RELATIONSHIP AT PALMAR LTD”, which is a survey I am doing for my

Managing employee relationship Assignment.

There is no right or wrong answer, please tell me your exact views on each of the questions.

You have the exclusive right not to participate in the survey as participation is completely

voluntary. Consequently you do not have to give any justification in case you decide not to

take part in the survey.

The interview will not be long as it will take you only 5 – 10 minutes to fill it. Please be

assured that your views and identity will remain strictly confidential.

In case you have any queries about the interview, feel free to contact me at any time on

7712342 or by mail: [email protected].

Thank you in advance for your valuable cooperation in this survey.

Yours sincerely

MARDAY Manjula

University Of Mauritius

mailto:[email protected]

mailto:[email protected]


SECTION A: PERSONAL CHARACTERISTICS

Please tick the appropriate box and answer questions where required.

1. Sex:

Male Female

2. Marital status:

Single Married Other (please specify)

………

3. Ethnic groups:

Mauritian

Sri Lankan

Indian

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4. Position/ Title……………………….

5. Section/ Department……………………………………….

6. Length of service in the present organization:

0-4 years 5-9 years 10-14

years

15-19 years 20 years and above

7. Do you work in a team or alone ?

SECTION B:

Below are some statements. Please rate the extent to which you agree or disagree

according to the following scale and encircle or tick the appropriate number.

Strongly Agree……………...1

Agree ……………………….2

Neither Agree/nor Disagree…3

Disagree …………………….4

Strongly Disagree ….……….5

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1. The climate within which I work is relaxed and easy going.

1 2 3 4 5

2. The belief of management is such that conflict between individuals and between units

is healthy.

1 2 3 4 5

3. Management-employee relations are cordial.

1 2 3 4 5

4. Employees are allowed to take the responsibility for their job.

1 2 3 4 5

5. Those who can achieve productivity are highly trusted.

1 2 3 4 5

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6. The principal emphasis of management is human factors (how people feel….)

1 2 3 4 5

7. The management has spelt out firm set of rules and norms which we, as employees, are

supposed to abide by strictly.

1 2 3 4 5

8. When management provides information, it specifies the goals in terms of outputs and

methods.

1 2 3 4 5

9. Management is ready to build a bond of trust with the employees.

1 2 3 4 5

10. Employees are keen to help each other in the organization in the way that they work.

1 2 3 4 5

11. Every suggestion made by an employee is taken into consideration and then the

decision is fed back to him within a short time.

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1 2 3 4 5

12. Employees believe in team-working rather than individuals teams.

1 2 3 4 5

13. Employees are demotivated when they feel that they are not being informed and

consulted.

1 2 3 4 5

SECTION C: CONFLICT

Please tick the appropriate box and answer the questions where required.

1. The extent to which conflict arises among colleagues in your department?

Always Very Often Often Rarely Never

2. Is there any conflict present between you and your director/manager?

Yes No

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3. Is there any conflict between members of your department/section and other

departments/sections?

Yes No

If Yes, which department and why?

………………………………............................................................................................

………………………………...............................................................................................

.......................................................................................................................................

4. What kind of effects does conflict have on your performance?

Positive Negative

Why?

………………………………...............................................................................................

...............................................................................................................................................

..................................................................................................................................

SECTION D: WORK COUNCIL

Please answer the following questions.

1. Do you think that the worker’s council is helping in empowering employees?

Yes No

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How?

………………………………...............................................................................................

...............................................................................................................................................

..................................................................................................................................

2. Do you think that the employee’s situation is better off than how it was some two years

ago?

Yes No

In what way?

………………………………...............................................................................................

...............................................................................................................................................

..................................................................................................................................

3. How do you think that the worker’s council has helped in creating the “ideal” climate

for the employees to work?

………………………………...............................................................................................

...............................................................................................................................................

..................................................................................................................................

4. Are you satisfied with what the Worker’s Council is doing for the employees?

Yes No

Why?

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………………………………...............................................................................................

...............................................................................................................................................

..................................................................................................................................

5. Do you feel confident and safe about having a Worker’s Council?

Yes No

Why?

………………………………...............................................................................................

...............................................................................................................................................

..............................................................

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Thank You

The End

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- 44 -

Documents

38171762 Employee Relation Assignment