What is meant by employee relations and how does it impact workplace productivity?

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 What is employee relations ?

(Source:G2,2021)

Employee relations is the relationship between employers and employees. It is an area of specialist knowledge in our Profession Map and emphasises the importance of making sure the relationship between an organisation and its people is managed through transparent practices and relevant law. Informing and consulting the workforce is a core people management principle and should be a priority for every organisation. Collective channels, such as union and/or non-union representatives, give employees a collective voice that can complement and reinforce individual channels. A positive employee relations climate and high levels of employee engagement have the potential to bring better business outcomes and better health and wellbeing for employees (CIPD,2022).


Importance of employee relations for Organaisation

Maintaining healthy employee relations in an organization is essential for organisational success. Strong employee relations are essential for high productivity and human satisfaction, and depend on a healthy and safe work environment, cent percent involvement and commitment of all employees, incentives for employee motivation, and an effective communication system. Over 40% of Fortune magazine's "America's Best Companies to Work For" also appear on the Fortune 500, and the Watson Wyatt Worldwide Human Capital Index study suggests that effective human resources practices lead to positive financial outcomes more often than positive financial outcomes lead to good practices (Researchclue, 2023)


Relations of employees and how they affect their productivity

This study examines how employee relations affect productivity in organizations. South Akim Rural Bank was used as a case study for the research, as various employees and management of the bank were used as respondents for the study. Responses from questionnaires and interviews with management formed the basis for the primary data, while books, articles and journals on employee relations acted as the secondary data. Results revealed that employee relations practices affect productivity through employee morale, quality and quantity of output/product. Other findings include various challenges that employees face at workplace and various ways to enhance healthy relationship between employees and their employers in an organization. The most valuable recommendation given is to treat employees with great care (Researchclue, 2023)


                                                           ( Source: Greggu,2019)



Literature Review 

According to Sheetal Thapliyal, maintaining harmonious relationships with employees is essential for the survival, prosperity and growth of an organisation. A study found that small organisations are aware of the advantages of maintaining good relationships and correcting corrective actions to minimize relationships with poor employees. Additionally, there is a positive relationship between employee relationships and employee performance and the performance of the organisation (Sheetal, 2019).

One of the factors that affect employee productivity is job satisfaction. If employees are satisfied with their job, they are more likely to be productive (Judge, Thoresen, Bono and Patton, 2001). One study found that employee relations, specifically how managers treat their subordinates, has a significant impact on employee job satisfaction (Wright and Cropanzano, 2007). Another study found that employee participation in decision-making processes also increases job satisfaction (Locke and Schweiger, 1979). Therefore, it is important for employers to create a positive work environment that fosters good employee relations in order to increase job satisfaction and productivity.


Employee relations policies: approaches to employee relations


(Source: slide share, 2017)

  1. Adversarial: In this type of environment, the organization makes all of the decisions and expects staff to follow suit. Employees can only use their power by being uncooperative  (Armstrong,2014).
  2. Traditional: strong daily working relationship, but management makes proposals, and employees respond through elected representatives  (Armstrong,2014).
  3. Partnership: The organization gives employees a voice in the formulation and implementation of company policy while retaining management authority (Armstrong,2014).
  4. Power sharing: employees participate in both daily and strategic decision-making (Armstrong,2014).

Key Employment Relations Policy Considerations: 

  • Tread Union Recognition.
  • Collective Bargaining.
  • Participation and Involvement of Employees.

What is Tread Union Recognition?

A trade union is "recognised" by an employer when it bargains agreements with employers over salary and other terms and conditions of employment on behalf of a group of employees known as the "bargaining unit." "Collective bargaining" is the term used to describe this procedure (International Labour Organisation, 2005).

What is Collective Bargaining ?


Through collective bargaining, employees negotiate contracts with their employers to establish their terms of employment, including compensation, benefits, working conditions, hours, leave, workplace health and safety regulations, methods of juggling work and family obligations, and more. An approach to resolving issues at work is through collective bargaining. It is also the most effective way to increase salaries. Indeed, unionized workers benefit from greater salaries, better benefits, and safer working conditions thanks to collective bargaining (American Federation of Labour ,2023).

(Source: insighttycoon,2020)




What is Participation and Involvement of Employees?

The practice of allowing employees to voice their opinions on choices that have an impact on their jobs is known as employee participation. This might be accomplished through committees, meetings of the firm, etc. When they take part in decision-making, employees have more power over their jobs and working environments. This indicates that workers aren't only performing their regular duties. Additionally, they participate actively in the company's management and decision-making processes (Fabyio, 2020).



As a summary of this blog post, I would like to state that employee relations may significantly affect workplace productivity by promoting a great work environment, creating loyalty and trust among employees, and raising employee motivation and engagement. Organisations should make an investment in developing and sustaining good working relationships among their workforce in order to establish a culture where workers feel appreciated and inspired to give their all, boosting productivity and fostering the growth of the organisation.



REFERENCES

American Federation of Labour (2023) Collective Bargaining. [online] US: AFL-CIO. Available from https://aflcio.org/what-unions-do/empower-workers/collective-bargaining#:~:text=Collective%20bargaining%20is%20the%20process,work%20and%20family%2C%20and%20more.  [Accessed 12 April 2023].

Armstrong, M. (eds) (2014) ARMSTRONG’S HANDBOOK OF HUMAN RESOURCE MANAGEMENT PRACTICE. 13th edition.[online] UK: Kogan Page Limited. Available from file:///C:/Users/dilshanip/Downloads/Armstrongs%20Handbook%20of%20Human%20Resource%20Management%20Practice_1.pdf  [Accessed 12 April 2023].


Chartered Institute of Personnel and Development (2022) Employee relations: an introduction. [online] UK: CIPD. Available from https://www.cipd.co.uk/knowledge/fundamentals/relations/employees/factsheet#15763 [Accessed 12 April 2023].

Fabyio, V. (2020) Employee involvement: What it is & Why it’s important?. [blog entry] 9 June. Available from https://www.questionpro.com/blog/employee-involvement/#:~:text=What%20is%20Employee%20involvement%3F,they%20participate%20in%20decision%2Dmaking.  [Accessed 12 April 2023].


International Labour Organisation, (2005) Ask Acas - Trade Union Recognition.[online] Available from https://www.ilo.org/legacy/english/inwork/cb-policy-guide/acasguidelinesrecognitionagreement.pdf [Accessed 12 April 2023].

Judge, T. A., Thoresen, C. J., Bono, J. E. and Patton, G. K. (2001). The job satisfaction-job performance relationship: A qualitative and quantitative review. Psychological Bulletin, 127(3) 376–407. Available from https://doi.org/10.1037/0033-2909.127.3.376 [Accessed 12 April 2023].

Locke, E. A. and Schweiger, D. M. (1979). Participation in decision-making: One more look. Greenwich: JAI Press.

Researchclue (2023) EMPLOYEE RELATIONS AND IT EFFECTS ON EMPLOYEE PRODUCTIVITY.[online] Nigeria: Nigerian Researchers. Available from https://nairaproject.com/projects/002.html#:~:text=Strong%20employee%20relations%20are%20required,or%20influence%20the%20work%20scenario.  [Accessed 12 April 2023].

Sheetal, T. (2019) Employee Relation and Its Effect on Employee Productivity. Journal of Emerging Technologies and Innovative Research, 6 (5) 4. Available from https://www.jetir.org/papers/JETIR1905B91.pdf [Accessed 12 April 2023].

Wright, T. A. and Cropanzano, R. (2007) The moderating role of employee well being on the relationship between job satisfaction and job performance. Journal of Occupational Health Psychology, 12 (2) 93-104. Available from https://www.researchgate.net/publication/6360061_The_moderating_role_of_employee_well_being_on_the_relationship_between_job_satisfaction_and_job_performance [Accessed 12 April 2023].














Comments

  1. Kasun RenukaApril 12, 2023 at 1:22 AM

    Hi great article. The relationship between employers and employees can be either a positive or negative impact and that can lead to the overall morale of employees. If there's a good relationship between employers and employees, it can lead to higher productivity, lower turnover rates and boosted job satisfaction rates and morale among employees. Same time if there is no any good relationship between employers and employees that can lead to disaster for both employer and employee. what do you think about it?

    ReplyDelete
    Replies
    1. HRM solving the ''productivity Obstacles'' - Chamuda FernandoApril 12, 2023 at 1:55 AM

      Thank you for your comment Kasun! I completely agree with your thoughts on the importance of a positive relationship between employers and employees. Research has shown that a positive work relationship between employers and employees can lead to higher levels of job satisfaction, increased motivation, better performance, and lower turnover rates (Eisenberger et al., 2017). On the other hand, a negative relationship between employers and employees can lead to poor job performance, lower employee morale, and high turnover rates (Grawitch et al., 2015).

      It is essential for organizations to recognize the significance of fostering positive work relationships between employers and employees to achieve success. One way to achieve this is by adopting an employee-centric approach to management that values and invests in employees' development and well-being. By doing so, employers can create a positive work environment that fosters mutual respect, trust, and communication, leading to a productive and thriving workplace.

      Delete
  2. Nilushika Dilhani JayasingheApril 12, 2023 at 5:38 AM

    Very important article in human resource management Chamindu .Employee relations focuses on creating and delivering people practices which develop - and maintain - positive working relationships between an organization and its people. Working closely with unions and employee representatives, you'll need to ensure that people practices are fair and transparent. While HR covers all aspects of managing employees, including hiring, compensation, benefits, training, and development, ER is specifically concerned with managing the relationship between the organization and its employees. People, in general, can't work well together without a positive relationship. Your employees, too. Relationship management in the workplace helps build effective teams where employees respect each other, listen to new ideas, and work seamlessly as a team.

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    Replies
    1. HRM solving the ''productivity Obstacles'' - Chamuda FernandoApril 12, 2023 at 7:37 AM

      Thank you for your comment on the importance of employee relations in human resource management. The relationship between an organization and its employees is critical for ensuring positive employee experiences and creating a productive and engaged workforce.

      Several studies have highlighted the benefits of positive employee relations. For instance, a study by Bryson and Freeman (2017) found that positive employee relations can lead to increased productivity and profitability for organizations. Another study by Akkermans et al. (2018) found that effective employee relations can also reduce employee turnover and absenteeism.

      Furthermore, research has shown that relationship management in the workplace is essential for building effective teams. In a study by Jones and George (2017), it was found that teams with positive relationships were more creative, innovative, and had higher levels of performance.

      To achieve positive employee relations, organizations must focus on fair and transparent people practices. This includes open communication channels, opportunities for employee feedback, and fair compensation and benefits policies. It's also essential to work closely with employee representatives and unions to ensure that employees' needs and concerns are heard and addressed.

      In summary, employee relations is a critical aspect of human resource management that involves creating and maintaining positive working relationships between an organization and its employees. Positive employee relations can lead to increased productivity, profitability, and reduced turnover and absenteeism. Building effective teams also relies heavily on relationship management in the workplace, highlighting the importance of fair and transparent people practices.

      Delete
  3. Pham Hai LongApril 20, 2023 at 3:40 AM

    I agree with your point that employee relations may fundamentally influence working environment efficiency through a cooperative workplace, and raising devotion, inspiration and commitment. Building and maintaining good workplace relationships is essential to establish a culture that is appreciating and inspiring to employees, which would lead to positive growth in performance and the organization as a whole (Bolarinwa, 2016).

    ReplyDelete
    Replies
    1. HRM solving the ''productivity Obstacles'' - Chamuda FernandoApril 20, 2023 at 7:47 AM

      Thank you for your comment on the importance of employee relations in the workplace. Research has shown that positive employee relations can have a significant impact on various aspects of organisational performance.

      For example, a study by Kehoe and Wright (2013) found that positive employee relations were associated with higher levels of organisational commitment and lower levels of absenteeism and turnover. The authors suggest that investing in employee relations can help to create a supportive and engaging workplace culture that fosters employee loyalty and commitment.

      Another study by Jiang and Probst (2016) found that positive employee relations were linked to higher levels of job satisfaction, engagement, and motivation, which in turn were associated with improved job performance. The authors suggest that effective employee relations can enhance employee well-being and promote a positive psychological climate that supports high levels of performance.

      Delete
  4. Gayan ChathurangaApril 20, 2023 at 8:47 AM

    were unhappy and overworked in their jobs. What's more, workers are prepared to demand change, and employers are beginning to realize that it's in their best interests to pay attention.We appreciate you sharing such important information with us. Good success and keep it up.

    ReplyDelete

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