Comparative Analysis of Employment Relationships: France vs. UK

Executive summary:

There are differences in the national system of the employment relationship in France and the UK. In France the overall employment system in well-regulated and centralised in which sole decision is taken by the government and union, on the other hand, in the UK, there is decentralised employment structure that assists firms operating in this country to take their own business decision in terms of dealing with any market situation, therefore, it can be stated that the country in France there is more interference of government and union into the business operation and decision-making process of companies that operate the business in this county as compared to the UK. On the other hand, as the UK has little interference of government and union into the business decision of companies in this countries there is more financial, social and legal freedom to these companies which makes them able to provide extra facilities and financial advantages to the staffs, although in the UK there are chances discrimination and bias as it has low involvement of government into the employment regulation, here the employees have higher professional advantages in grabbing high economic position as compared to France. On the contrary, the overall payment and labour regulation system is fairer and bias-less in France which will provide psychological satisfaction to the staffs as compared to the UK. This study, focused on HRM dissertation help, is going to highlight the connection between the organization as well as the business of the French MNC with Britain. By discussing contrasts between the coordinated market economy (CME) and liberal market economy (LME), this study is going to highlight that how the connection of employment relation of French MNC and the UK will pose a potential impact on the overall economy of these two countries. With discussing comparative studies of the two-national system of employment relationship in the UK and France this study is going to highlight that, how the connection between the national employment system of these two countries will impact on the overall work culture, workplace interaction and activities of the nation. In this study the overall activities as well as communication process of the labours will be analysed with using proper theories and approaches. The study will discuss that that how the work regulation and compensation process in the UK poses possible impact on the business operation and labour, market of the French MNC operating in the market of Britain.

1.0 introduction:

While comparing the national system of employment relation between France and the UK, many scholars juxtaposed the employment system of these two countries in spite of the fact that there are several similarities as well as differences between the employment structure and labour market regulation in these two countries. One of the most impoRTant differences between the employment relation of these two countries is France has highly regulated employment structure and labor market, while Britain has deregulated labour market. This study is going to highlight the connection between organization as well as business of the French MNC with the Britain. By discussing contrasts between the coordinated market economy (CME) and liberal market economy (LME), this study is going to highlight that how the connection of employment relation of French MNC and the UK will pose potential impact on overall economy of these two countries. With discussing comparative studies of the two-national system of employment relation in the UK and France this study is going to highlight that, how the connection between the national employment system of these two countries will impact on the overall work culture, workplace interaction and activities of the nation. In this study, the overall activities as well as communication process of the labors will be analyzed with using proper theories and approaches. The study will discuss that that how the work regulation and compensation process in the UK poses possible impact on the business operation and labor, market of the French MNC operating in the market of Britain. This, the study will also highlight the banter trade of the human resource management of French MNC as well as the constraints that the MNC faced in the UK market. Finally, the study will also discuss the overall, agreement and business connection between France and UK in terms of maintaining positive trade relation with discussing the comparative study of the remuneration, labor market and the employment protection legislation in both countries.

2.0 discussion

2.1 LME (liberal market economies) and CME (coordinated market economy) and their characteristics:

In the world there are two types of economy such as liberal market economy (LME) and coordinated market economy (CME). The former on based on decentralized employment system and employment regulation which makes the country to have high bargaining power into their business operation and labium market. In case of LME, the labour is highly liberal and flexible, that provides firms to have enough power and control over the employment system and labour market, rather than being forced but h government and union to do things according to their perspectives and regulation (Payne and Lloyd, 2018). The UK has liberal market economic structure which makes the business operating here to have enough power to control the employment system without having interference of the government. On the other hand, France has the coordinated market economy, in which there is more involvement if government and unions, that interfere with business decision and employment regulation set by organization operating here. Through having CME, the France government emphasize on maintaining pooper coordination among the companies operating here through conducting essential coordinated business activities such as stock exchanges and share market, which makes the firms to have long term sustainability of their business. Based on this aspect it can be stated that as compared to UK which has LME, the economic structure in France is highly regulated and centralized which form CME system in this country. In addition to this, while comparing the economic structure of France with that of the UK, it can be stated that due to having the CME, in France the involvement of government in regulation and controlling the labor market is higher as compared to the UK (Brown, 2018). For example, France has a highly regulated economy with strong employment protection acts and regulation which is reformed as well as developed by the government. Therefore, in France the business operating here have very low power to decide any aspects related to the labor market and the employment structure. Therefore, it can be stated that the reason behind the two French MNC facing issues in reverse transfer could be associated with poor access of the company owners and marketers of parent companies in France to set proper regulations and develop highly relevant as well as HRM strategies that will assist eth these parent companies to makes the transfer of these franchises in the UK market.

2.2 RT process and NBS

The NBS is associated with the national institutional system that deals with maintaining and regulating the financial system and monetary framework in a country. Several economists have stated that NBS deals with several institutional activities such as developing the work guidelines, controlling the decision in labor market, prepare the instructive structure and setting cooperative guideline in a country. Reverse transfer or RT is the process in which n the franchise business operating in the other countries will go back to the home country where the parent company are situated. The country in which there is CME or coordinated market economy, it has strong NBS system that poses several obligations and legal restriction on the power of the firm that is operating here while going for reverse transfer of their franchise companies from the other developing and developed countries. For example, when a company decide to reverse transfer of its franchise business operating in developing countries to the home country, it needs to inform the government and union. In addition to this, while it comes to reverse transfer of the business, the parent company needs to follow and accept the labor market guidelines, wage regulation, association acknowledgement and pay assurance structure that is developed by the NBS (Williams and Lee, 2016). As France has highly regulated and centralized labor market as well as employment structure it needs to comply with the NBS regulations regarding eth RT in term of assisting the French MNCs to come back to their home country, France. In addition to this, NBS also set the administrative process that will pose impact on the overall relation between France and the UK in terms of assisting these two countries to assist eth French MNCs operating in the UK, to go back to their home country, France.

2.3 Constraints to reverse transfer (RT) of the HRM in French MNCs:

As France has centralized and highly regulated economic as well as employment structure, parent French MNC face huge difficulties in setting proper HRM policies in terms conducting the reverse transfer of their franchise business operating in the other countries. In the given case study, two French MNCs face severe difficulties legally as well as structurally in terms of transferring their business to France which is their home country. In this context, it can be stated that France government have huge influence on the HRM policies of parent companies that are operating in this country as well as on the French MNCs that are operated in the foreign countries. On the other hand, as France has strong NBS structure that makes it obligatory for the business operating in these countries to inform their business decision in terms of taking the legal appreciation and acceptance of the France government (Khan et al. 2019). On the other hand, the RT of the French MNCs operating in the UK needs to make proper HR rehearses and HRM policies that need to be relevant with the overall economic and employment structure of these two MNCs. France government pose an important impact on HRM policies and HR counselling process of the French MNC in the home country as well as in the foreign countries, in addition to the French MNC in the UK needs to take the permission of administrative bodies in France in going back to this country, in which the France government, union, and the administrative body will look into the legal, social, demographic and economic advantages that need to be associated with the RT of these two MNC. Based on several economists, countries like France and Germany who have the coordinated market economy (CME), the business operating in this country face the constraints and legal restriction posed by the government. As compared to the UK employment system and economic structure, France has highly restricted and regulated employment framework, which makes it obligatory for all the MNCs and the SME to comply with the regulation in terms of operating any business in this country or the foreign countries. France government is unable to get convinced the decision of the two France MNCs for their RT to this country as it will pose legal as well as the financial burden on France. In this context, the France government poses restriction and constraints on the overall HRM policies and strategies that are set by the French MNCs to make their shift to the parent country. Therefore, if the French MNCs need to go back to their home countries they need to improve their HRM strategies and policies in such a manner that will assist these businesses to comply with the legislation as well as regulation set by the France government. [[refers to appendix 1]

2.4 evidence of RT

while it comes to discuss the events of reverse transfer, the overall situation of the reverse transfer that is faced by the OilCo, the oil and gas company can be discussed. This is the Scottish oil and gas company that gain better advantages in reverse transfer due to operating in the UK which has LME and liberal NBS structure. The overall oil and natural gas industry in Scotland is influenced by the voluntary participation of the industry group, liberal neighbourhood condition, the supportive culture of the industry and limited interference of the UK government. Due to having liberal economic condition and employment regulation, this company is able to use the useful HR discussion that will assist the company to take effective decision in terms of conducting the RT of its franchise business operating in the other foreign countries (Hannon, 2016). On the other hand, as the UK has poor interference of government and decentralized employment as well as economic structure, it assists UK based businesses to control the micro and macro environmental condition which assist them to have strong HRM policies in terms of conducing the reverse transfer process easily.

2.5 restriction to RT

There are several restrictions to the reverse transfer for the French business that operate their function in the foreign countries. Firstly, the most important restriction is the legal challenges that the France government consider while permitting any reverse transfer (RT). If the country in which French business operates has poor administrative and legal structure and decentralized employment structure, France government can make legal restriction and constraints on RT of this business as the business will create legal issues in the government decisions and union activities regarding the official matters (Tippmann et al. 2017). In this context, it can be stated the French MNCs that operate their business in the UK which has decentralized employment and regulatory system will face legislative issues in convincing France government to approve the RT process. Secondly, in France, the overall HRM policies, legal decision, marketing approaches and internationalization tactics are highly influenced by the government and the union leaders. Therefore, while France will deal with the country which has decentralized legislation and regulatory system it wants to get rid of any types of reverse transfer if its franchise business operating in these countries, as these businesses are used to with having sole power to regulate and control market environment which will make them impossible to operate in a market which is controlled and operated by the government (Brookes et al. 2017). Third, another restriction on the RT process is financial obligation or challenges that the French government will face after eth RT process of the two MNCs operate in the UK. If the two French MNC go back to France, the government needs to allocate additional financial and administrative support to business which will enhance the overall spending of union and government. Fourth, social and cultural differences in the two countries can pose the restriction on reverse transfer process of the businesses from the foreign countries to their home countries. The French MNCs that operate their business in the UK have accustomed with the social, cultural, demographic and economic aspect of this country. As the overall employment and business framework in the France is completely different from that of the UK, the French MNCs will face severe difficulties in adapting the business into the new environment although it is the country in which the parent company operate their business. In this context, the job family model can be used which can related the reverse transfer process with the administration and the businesses environment in a country. Based on this model it can be stated that, the as the administrative framework and the business environment are completely different in France and the UK it will create restriction or the forced MNC to conduct reverse transfer of their business to France.

2.6 employee paRTicipation in the UK

As compared to the France, the UK has more liberal employment structure, in which there is no definite course of regulation as well as action for delegates to interfere with the labor market and influence their activities in workplace (Tasli, 2018). In this context, it can be stated that, in the UK the participation of labors is more than that of the France. On the contrary in the France, the business operating in the country face severe interference issues of government as well as of the union in terms of taking their own decision and strategies. Even in the France, the employee participation is controlled and regulated mainly by the government rather than by the company itself, which makes it difficult for the employees to negotiate any official issues with their high officials. On the other hand, in the firms have sole controlling and regulation power on taking the employment decision which assists the employees to work freely in the workplace. Based on this aspect it can be stated that, the employee participation and employee engagement in the UK are higher than in h France due to the higher influence of the government as well as of the union. On the other hand, due to centralized employment structure in France, employees have the equal rights and facilities in their workplace which assist overall employment structure to avoid the discrimination and bias. On the contrary as there is little involvement of the government in the business operation and employment regulation of firms operating in this country, the employees frequently face abuse, discrimination and unequal distribution of official facilities to them, in this aspects it can be stated that, although the employment participation in the UK is better than that of the France, in recent years it decreases due to lack of transparency in overall employment system.

2.7 comparative discussion on voice of labours in the France and UK:

voice of employees or labors is based on their satisfaction level in the organization in which they work. While it comes to compare the voice of labors in the France with that is the UKUK, it needs to discussed that in which the labors get more advantages and job satisfaction, though the voice of labors the characteristics of these employees are exposed, which not only express their level of job satisfaction but also their unmet needs in the workplace (Lloyd and Payne, 2018). Based on the employment and regulation structure in the two countries it can be stated that France is more regulated and well-organized county in terms of implementing fair labor laws and transparent legislation country which ensures that the employees will get the equal benefit in their workplace and they will not be discriminated and biased. On the other hand, in the UK, firms have the sole power in developing their own rules for the employees that can sometimes leads to development of unfair and irrelevant job culture for them. On the other hand, unlike the France, as here is little involvement of the government in employees’ structure and regulation, the employees have poor opportunities to raise their voice against the ill-treatment they face in the workplace. In this context, it can be stated that, as compared to the UK, as France has the centralized and well-structured labor system in which government is the sole body take the legal decision, the employees have more rights to raise their voice regarding any official matter. [[refers to appendix 2]

2.8 comparative discussion on job satisfaction in France and the UK:

Job satisfaction in the UK is based on economic structure of organization, the employment regulation, job culture of that organization, work environment in the workplace and the supportiveness in the workplace from higher officials as well as peers. As compared to France, UK has liberal employment and economic framework, in which there is little interference of the government and the labor union, which makes the UK based organization to operate their business operation without facing any legal restriction from the government (Peltokorpi and Yamao, 2017). In this context, UK based businesses are free in setting organization policies for staffs based on their remuneration level, salary structure and protecting their rights. In the UK most of the MNCs and large corporate sector has maintained discrimination-free employment policies that assist the labor to have equal facilities in eth workplace. In addition to this, as majority of the workplace in the UK is privatized the economic turnover of far higher than that of the government affiliated companies in the France. This is the reason, why most of the employees in the UK gets higher salary in the than that that of the employees working the workplace in France in the same designation. Therefore, if discussing the financial satisfaction of the employees it can be stated that in the UK employees are more satisfied than in the France. On the other hand, in France due to centralized and regulated employment structure, the employees are free from any kind of discrimination bias and abuse in their workplace which is higher in the UK based organization, therefore, it can be stated that, in the France employee get the psychological satisfaction. [[refers to appendix 3]

2.9 competitive discussion of employee participation in the France and UK:

In France employee participation is lower than that of the UK, as France have massive governmental interference the business decision and marketing process of the companies that operate in this country (Markey et al. 2018). Therefore, firms are obligated to share the information regarding their business operation and employment structure with the government and the union, which enhance overall employee engagement and annual profit of the company. On the other hand, in the UK as there is decentralized system and lower interference of government in the business operation employees are free to provide innovative approaches and creative decision in the workplace that will improve the scope of transferring to the higher designation. Therefore, in the UK employee get better chances in showing their creativity and intelligence in terms of grabbing the higher job position which is not possible in organization that operated their business in the France, as there are most of the companies in France are government affiliated.

2.10 comparison between France and UK regrading pay management and performance.

while discussing the pay structure and performance standard it can be stated that, as France has well-organized as well as strictly regulated payment structure, which assist the organization to maintain the fair and discrimination remuneration system (Oh and Anchor, 2017). On the other hand, as their equal financial opportunities for all the staffs working the same organization, employees are less competitive to each other which has adverse impact on their performance standard. On the contrary in the UK, firms have the sole power in taking any decision regarding the pay structure. Here the board of directors and the CEO decides the remuneration for each staff which is as per the company norms. Originations that operate their business in the UK, give salary based on the designation and performance standard of the staffs, which makes severe competitive environment in the workplace , that not only improves the knowledge and professional skills of the staffs but also assist them to develop the personal skill to enhance their creativity as well as in intelligence. Therefore, it can be stated that, although France has regulated and centralized payment structure which eliminate chances of any discrimination and bias in the salary of staffs, UK based organization are more efficient in enhancing profession standard of their staffs by motivating and engaging their staffs in their job.

Conclusion:

From the above-mentioned discussion it can be stated that, there are the differences in the national system of the employment relation in the France and UK. In France the overall employment system in well-regulated and centralised in which sole decisions are taken by the government and union, on the other hand, in the UK, there is decentralised employment structure that assists firms operating in this country to take their own business decision in terms of dealing with any market situation, therefore, it can be stated that, the country in France there is more interference of government and union into the business operation and decision making process of companies that operate the business in this county as compared to the UK. On the other hand, as UK has little interference of government and union into the business decision of companies in this countries there is more financial, social and legal freedom to these companies which makes them able to provide extra facilities and financial advantages to the staffs, although in the UK there is chances discrimination and bias as it has low involvement of government into the employment regulation, here the employees have higher professional advantages in grabbing high economic position as compared to France. On the contrary, the overall payment and labour regulation system is fairer and bias-less in France which will provide psychological satisfaction to the staffs as compared to the UK.

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Appendices

Appendix 1: reverse transfer

Appendix 2: employee paRTicipation of the UK

Appendix 3: employee paRTicipation of France