Impact of Contemporary Competitive Environment (Essay Sample)

Impact of the contemporary competitive environment on the conduct of industrial relations
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Impact of the contemporary competitive environment on the conduct of industrial relations.
Introduction
Industrial relation is a general term used to refer to the relationship between employer and employee. Industrial relations gives an in-depth analysis of this relationship and the impacts on employee performance (Cooke et al., 2019). In this case, employees are represented by the management, and employees get representation from the unions. The government also plays a role in implementing various legislative practices that act in the interest of employees. There are many issues related to industrial relations, and because of these issues, many employees find it challenging to work to their full potential. Employee relations can be based on trust and mutual respect just as well as it can be based on lack of transparency and disrespect if employees do not feel a connection with their employees. Their performance will be negatively affected (GÖRMÜŞ, 2020).
Many factors affect employee relations. These factors are divided into economic, social, political, and technological factors. Industrial ties depend on workers' financial satisfaction and the negotiating power of both the management and the workforce in the organization (Sreerag et al., 2021). It is the primary aim of industrial relations to develop good relationships between employers and their employees. This paper focuses on a specific aspect of the competitive environment and its impact on employee relations (V.A.H.D.A.T.I. et al., 2018).
The competitive environment in industrial relations
Creating a healthy competitive environment can be an effective motivator to both employees and employers in the workplace, but it can have adverse effects if not implemented carefully. Too much competition can create negativity and toxicity between employer-employee relations. Understanding how individuals feel about competition in the workplace can be a huge determining factor in establishing response methods (Dayeh & Morrison, 2020). For instance, employees who feel worried about competition are likely to respond negatively, affecting their general productivity. The opposite is true about employees who feel optimistic about competition. Leaders in a workplace can reframe competition to encourage more employees to be confident about competition. A competitive environment drives employees to strive and excel at what they do. Leaders are also motivated to make decisions that foster growth within an organization (Liu et al., 2018). a competitive environment is initiated from the top and exemplary leadership, and in the case of employees, everyone will want to be on top hence more motivation (Koch &Windsperger, 2017).
Research shows that competition can motivate both employees and employers to achieve results. Competition prepares increases the psychological activation, enabling the mind to be ready for increased effort, resulting in improved performance. However, in a workplace, both employees and employers can achieve competition through innovation. If competition consists of finding new opportunities and improving production, such competition is considered positive (Lin-Hi et al., 2020).
On a global scale, the innovation system In most developed countries has been a source of motivation to many worldwide. Investors measure industrial relations' success based on economic growth and increased productivity through competition (Kelly, 2018). The global competitive environment has enabled many organizations to compete in their ability to enter a new market and establish sustainable industrial relations within the organization in it. The success of the new competition is also based on an organization's ability to achieve economies of scale and obtain knowledge through the flow of the economy (Samad, 2018). By promoting healthy competition, it is possible to encourage continuity in production in the business. A competitive environment means an increase in output and growth within the organization as well. Through creating a competitive environment, all the possible resources are utilized hence maximum possible production. In general, a competitive environment is suitable for industrial relations. The competitive environment motivates employees to improve in their performance and, on the other hand, compels employers to come up with new methods to keep the employee motivated (Eva & Perez-Esparrells, 2017).
An excellent competitive environment is based on both the management and employees' ability to deal with their issues independently and responsibly. Good industrial relations contribute to the competitive advantage of the organization at large by matching f core competencies and the vision and the new competitive advantage (Sinha et al., 2017).
The positive impact of competitive environment on industrial relations.
Not all individuals thrive in a competitive environment. Similarly, employer-employee response to competitive environment varies between individuals. It is essential to draw a fine line between creating positive and negative competition with an organization (Pahuja et al., 2021). There are many advantages associated with a competitive environment in industrial relations. Understanding how employees feel about competition helps to distinguish between competition that unleashes creativity and competition and promotes the creation of unethical behaviors (Liu & Atuahene-Gima, 2018). Through boosting creativity, employees can strive towards increasing productivity and production of high-quality work. To win, people are likely to push for new solutions to problems and experiment with various methods. Competitive advantage also plays a role in distinguishing an organization from its competitors. It is possible to achieve any goals within an organization (Diamantidis and Chatzoglou, 2019).
On both a local and a global scale, a competitive environment yields a better system within the business environment. It also creates the most efficient work ethic where transparency is promoted between employees and employers. In such a case, both employees and employers work towards the same goal and do not want to waste time on activities that do not drive organizational objectives (Kurt, 2019). The management system within an organization should yield freedom to employees to use their instincts and solve problems independently. Such a management system takes advantage of a competitive workplace to maximize employees' production by giving incentives like promotions and bonuses. On a global, a competitive environment pushes for high-quality goods that sell for very high prices in the market. It tries to emphasize the importance of economies of scale to achieve maximum profits. Good industrial relations combined with creating a competitive environment helps create industrial and putting the interests of an organization first (Hayter, 2018).
The negative impact of competitive environment on industrial relations.
The negative impacts of a competitive environment can create fear and anxiety among employees. In this case, employees focus on the fear of being laid off at work due to poor performance (Wong et al., 2021). Anxiety and excitement are two different emotional responses, and they make individuals lee motivated. If employees interpret competition as a source of anxiety, they are less likely to engage in problem-solving and solution creation within an organization. Managers who feel anxious about their employment policies are more likely to sabotage other employers (Supeno, 2020). Some government regulations and policies may make organizations avoid partaking in international business. Such laws include high taxes for the import and export of products and strict rules on global markets. Work on any scale can be stressful; hence an employee or organization that does not stand out in competition can fall into a phase of anxiety. Research shows that such an environment does not attract as many competitors. To avoid creating anxious work environments, leaders and business stakeholders should remind everyone to focus on achieving the organizational goal (Askaripoor Geluyake et al., 2020).
A competitive environment can also kill team morale, especially for a team already struggling with teamwork issues. When an employee or an organization receives more incentives than the rest, others may feel discriminated against. It is essential that the management system and government stakeholders not use competition as a significant fuel for creativity. Teams that have poor bonds may resort to backstabbing hence limited productivity within the organization. A group or organization that loses morale results in a reduction in productivity as well. A competitive environment in any form of business should be fostered with constant communications and workshops that encourage team building (Vaughan-Whitehead, 2018). 
Conclusion
This paper focuses on a specific aspect of the competitive environment and its impact on employee relations. Industrial relations gives an in-depth analysis of this relationship and the effects on employee performance—the paper analyses the competitive environment as a factor that affects industrial relations. Apart from the competitive environment, globalization is also another factor that affects industrial relations. A competitive environment can negatively or positively impact industrial relations. On both a local and a global scale, a competitive environment yields a better system within...