Question

Discuss the role of trade unions in a business organisation.

Describe the role of trade unions in business concerns.

Answer 1

1. Clear Vision: They take care of the general interests of society and the organisation they work for, in addition to the interests of their members or employees.
2. Improving their credibility: They act as an essential liaison between employees and management. Both management and employees perceive the trade union as a middleman that imposes one party's will and demands on the other.
3. Sharing Responsibility: Unions do not disagree with management. They share managerial decision-making through a participative management style.
4. Educating the workers: Unions teach their members about their role and contribution to achieving company objectives. They raise employee morale and facilitate the alignment of employees' objectives with those of the organisation.
5. Risk-taking: For long-term benefits, short-term sacrifices must be made. Unions encourage employees to view organisations from a longer and wider perspective and give up their immediate interests in favour of the organisation's long-term prosperity.
6. Creating a Network for Support: Workers and unions cannot advance society's prosperity. To create a performance-oriented environment, unions should receive support from all facets of society, including suppliers, customers, the government, and others. Thus, the union contributes to the development of a support network.