PART 3 – Factors that influence HR decision making Case study – ITV (Approximately 1000 – 1500 words) The company’s approach to employee relations is based on engaging with its employees. It does this by a combination of methods: collective bargaining, consultation with elected employee representatives and direct engagement with individuals. Engagement is regarded as being critical to the success of the company, which is developing a balanced scorecard containing different measures of engagement. ITV uses a wide range of direct communication methods to engage with individuals. ITV’s intranet, known as the Watercooler, provides a daily online update on news affecting ITV and there’s a weekly Watercooler for employees who are not online. Other methods of communication include the 60-Second Update – produced monthly by central communications and setting out what’s going on in the business – individual development reviews, briefing meetings, workshops and using individual relationships with line managers. The effectiveness of the process is monitored through employee opinion surveys. The company also engages in collective consultations through elected representatives because unions represent only 15 per cent of employees and the employer wants feedback from the whole workforce. ITV needs to consult employees frequently because of the scale of change within the organisation. It has 15 communication/consultation groups centred on different businesses/locations. ITV uses collective bargaining as a means of securing employee agreement on new working practices. It believes that collective relationships deliver significant change management benefits to the company and help to reassure employees that their interests are being respected. However, they rarely deliver engagement, which is built on the role of line managers, HR policies and effective employee communications. The distinction between negotiation and consultation can be quite subtle. In practice, the company uses a similar approach in dealing with recognised unions (collective bargaining) and elected employee representatives (consultation): management sets out its proposals, it takes account of the response and it decides what action to take. Task 4 (LO3) Using the case study and with additional research; a) Provide an analysis on the importance for ITV to maintain good employee relations and how it influences their HR decision making as a result. (P5) b) Identify and briefly explain the key elements of employment legislation and how this influences ITV’s HR decision making. You should make reference to equality, data protection, health and safety, along with contractual responsibilities. (P6)
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