This study discusses the challenges faced in managing employee relations and identifies the research area more specifically. It investigates the job satisfaction in terms of managing the appropriate relationships with the employees from different levels. The article also provides the preferable recommendations for increasing the job satisfaction rate among the employees by maintaining the effective employee relationships. The findings indicate that the employees from larger firms are more likely dissatisfied due to the ineffective employee relations. The article formulates the conceptual ideas about the inter-relationships between the employees in terms of race and gender. The discrimination in terms of race, ethnicity, and gender damages the employee relations.