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Employment relations in the BPO industry

According to Rouse and Corbitt, 2004), BPO can be defined as the “delegation of an IT-intensive business process to an external provider who owns, administers and manages it, according to a defined set of metrics.” Expanding the scope of this definition further, Feeney et al (2003) states that many back office processes such as human resources, finance and accounting, and insurance services can also be outsourced. Peter, Pervan and Wreford (2009) define BPO as “as the outsourcing of any knowledge-intensive business process.” Regions where there is a large population of skilled and qualified professionals available at relatively lower costs are ideal places to set up BPO operations (Levina and Vaast, 2008). I am employed at a leading BPO company in Sri Lanka, and attached to a department that works for a European legal firm. Our job requires us to be well versed in the British Highway Code, the money claims court procedure and the insurance industry of that country. Such BPO operations,...
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Employee Engagement

For many employers, in the modern context, employee engagement has become the main focus when discussing employment relations (Emmot, 2015). Employee engagement is a psychological state of employees where a sense of commitment is felt towards their organizations and their values (CIPD, 2021). Shaufeli and Bakker (2004) state that it is a positive, fulfilled, work related mind-set characterized by the below features. Vigour – High energy level, mental resilience when working, investing in work and persisting even in the face of adversity. Dedication – High levels of involvement. Sense of pride, enthusiasm and worth in the work being done. Absorption – High levels of concentration on work. Difficulties in detaching oneself from work. From the above, we could define engaged employee, in layman’s terms, as one who is very much in love with their job and always willing to go the extra mile for the same. This cannot be dictated in the employment contract, but has to be offered by the employ...
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Employment relations in the modern context

Traditionally, trade unions have played a pivotal role in employee relations. And this was understandable at a time when the interests and the parties involved were working with relatively straightforward frameworks (Musson, 2006). But today, the relationship between the various parties have become much more complex, focussing on many issues. The negotiations are no longer just about wages and working hours. Even the previously underrepresented interest groups (ex: women, immigrants) have now entered the scene, creating the need for a more complex and inclusive approach towards employee relations (CIPD, 2021). Rightfully, this has caused a decline in the popularity of trade unions. They are no-longer the go-to representatives of the workers. If anything, this has led to a more individualised approach towards employee relations. The steady decline in industrial action is also a proof of the above (Nowak and Hodder, 2019). The change from the relatively simplistic and somewhat dichotomou...
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Collective Bargaining and Trade Unions

Employment relations do not happen in a vacuum, but in an organizational setting, where the involved parties act within the constraints created by organizations that are external to the organization in question (Gennard and Judge, 2010). International Labour Union (2021) state that collective bargaining is a right of the workers. Armstrong (2014) describes collective bargaining as a negotiation of terms of employment between employers and groups of workers where the workers are generally represented by the trade unions. Musson (2006) points out that “collective bargaining,” as a recognised term, originated in Britain amidst the industrial revolution and this is because of the rapid expansion of industrialization and the introduction of new technology in the production process. ILO (2021) state that through collective bargaining, trade unions and businesses can reach a consensus on fair wages and working conditions. CIPD (2021) further elaborates that discussions in this regard usually ...
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Pluralist Perspective

Further to the points discussed in the previous post, Armstrong (2014) states that the employer and employees will not necessarily see eye-to-eye on many issues and that the unitary worldview is naive for believing so. Shaw, McPhail and Ressia (2018) further assert this by stating that the pluralist approach views employment as a strategic relationship between two unrelated parties or groups with diverse goals. Johnstone & Ackers, (2015) whilst agreeing that the pluralist approach does assume that employers and employees have diverse viewpoints, also add that this approach allows room for cooperation in the form of representative participation. Farnham and Pimlot (1990) went further and added that the very purpose of employment relations is to resolve the conflicts that could arise among various parties of interest in the industrial context. Johnstone and Wilkinson (2013) summarize that the fundamental idea here is that the management, unions and workers can work together to achiev...
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Unitary Perspective

As discussed in the first article of this series, when assessing employee relations and the goals of the employers and employees, two different perspectives or views are adapted. Namely; unitary perspective and the pluralist perspective (Armstrong, 2014). Here, we will look to understand the unitary perspective. In simple terms, it views an organization as a collective entity where all the involved parties share the same goals (Guest & Peccei, 2001). This view assumes that all parties involved in the organization share similar values, beliefs and interests. It also assumes that all the parties would contribute to the achievement of collectively agreed goals. This view focuses heavily on employee motivation, wellbeing and loyalty to the organization (Johnstone & Ackers, 2015). Key features - It integrates and aligns the interests of employers, employees and other stakeholders, too (Johnstone & Ackers, 2015). - Policies and practices aim at motivating employees (Guest & P...
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Psychological Contract

“The concept of the psychological contract, with its focus on the exchange of perceived promises and commitments, is increasingly used as a framework to study the employment relationship (Guest & Conway, 2002).” Armstrong (2014) describes psychological conract as an unwritten and understood set of mutual expectations that exist between employees and employers. Echoing the same, Herriot & Pemberton (1997) describe it as the attitude of employees and employers towards the reciprocal promises and obligations implied in their relationship. Rousseau & McLean Parks (1993) further add that the reciprocal nature of this relationship is of great importance. Guest and Conway (2002) further state that effective organizational communication can facilitate the creation of a more explicit and effective psychological contract. Robinson & Morrison (2000) also point out how important it is to communicate the particulars of the psychological contract at the...
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