hr case qustion and anser.docx - Questions 1 What are the advantages and disadvantages of works council and client council involvement at an early stage

hr case qustion and anser.docx - Questions 1 What are the...

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Questions 1 What are the advantages and disadvantages of works council and client council involvement at an early stage of a private equity intervention from the top management perspective and from the individual employee perspective? Works councils improve information flows between management and workers. Works councils lead to a higher investment in firm-specific human capital. Workers have more influence and control over management decisions and policies of the firm. More trust is generated between employees and employers and greater job satisfaction developed. Costs are incurred by the firm for the paid release of council members from employment. Works councils can lead to increased regulation and lagged decisions. Works councils can lead to conflicts between the works council and management. There is less investment in physical capital Works councils can have positive productivity effects. A positive impact on productivity is more likely to be the case under certain conditions, specifically when: (i) there is a process of collective bargaining; (ii) there are no conflicts of interest between management and works councils; and (iii) Co-determination is based primarily on voluntary agreements rather than on legal requirements. Policymakers should provide the necessary resources and appropriate, non- discriminatory incentives in order to encourage this Works councils can exert a “collective voice” role and communicate worker discontent and preferences to management. If the option of an employee “voice” rather than “exit” determines the relationship between employers and employees, this can lead to a better work ethic and less absenteeism, higher work satisfaction, and higher productivity. However, employees may also refuse to cooperate and withhold effort if an employer does not commit to taking their interests into account. The works council must stand up for the interests of all personnel. The works council is legally obliged to operate in the interest of the firm at large. The works council has the right to be sufficiently informed on all relevant matters so as to perform its tasks optimally. This includes all information
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