Management - Human Resources: Employee Relation

Student Name
INSTITUTIONAL AFFILIATION(S)
MANGEMENT- HUMAN
RESOURCES

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Employee relation and its effect on organizational performance
Introduction
Employees relation effect on organizational performance has been documented in
various business research papers and books where authors find employee relations to be a
very critical factor for organizational success. Employee relations usually involve those work
which concerns maintenance and management of employee relationship such as handling of
payment, work negotiations, contracts related to employment terms and conditions, providing
employees with empowerment and conflict resolution techniques (Muthoka, 2016). Since
employee relations contributes immensely towards making a satisfactory organizational
performance, it helps management in resolving and avoiding issues that may arise due to
work situations. In this light, every organization are thus stimulated to develop a cordial and
effective relationship with their employees so that significant asset i.e. human capital is
utilised efficiently ( Duah & Danso, 2017). Good relations make organizations reach
expected results besides making employees work to enhance organizational performance.
This report intends to discuss why employee relations is significant for increased
productivity, theories associated with employees’ relations and how organizations can
enhance employee relations to bring positive effect in people performance.
Methodology
The aim of this report is the explore the effect employee relations have on
organizational performance and at the same time analyse various employee relation practices
adopted by organizations. A content analysis methodology is undertaken by acquiring
secondary data from the university library, books, company websites and Google scholar.

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More emphasis is given on peer-reviewed articles and white papers that are directly or
indirectly related to employee relations effect on organizational performance. To analyse the
literature review, a few examples have been used that demonstrate the research findings
appropriately. Relationship between employer-employee and organizational performance
finds that employees having a high satisfaction level within their organizations tends to
perform more productively as compared to those who are less satisfied. Literature reveals that
by improving employee relations practices, organizations can enhance their performance and
overall productivity.
Critical Discussions
Organizations having bad relations with their employees usually fails to achieve
expected results and outcomes and therefore, it becomes important for human resource
management to maintain and develop an effective relationship with the employees. Effective
employee relations prove to be crucial to the workplace especially during the times of
recruitment or when employee work tenure is completed or getting separated from the
organization. According to Samwel (2018), “Good employer-employee relations is essential
to the organization because it inspires employees to work better and produce more results" (p.
31). Organizations seek employees who can work together with management peacefully so
that organizational goals are met effectively. This can be achieved only when employee
relations are kept as the primary objective of human resource management along with
minimising employment conflict practices. A similar viewpoint is shown presented by
Sequeira & Dhriti (2015) where the authors posit that employee relations today is a wider
concept which includes maintaining a satisfactory work environment to fulfil employee and
management needs. By improving employee's morale and developing good organizational

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culture, management expectations can be conveyed easily to the workforce. It can be noted
that a motivated workforce along with enhanced employer-employee relation may involve
giving employees empowerment to participate in managerial decisions, policies and
communications to improve control of grievances and minimise conflicts to improve overall
organizational performance.
To show how employee relations are significant for organizational performance,
IKEA's performance management techniques and employer-employee relations can be used
here which reveals how people constitute as an important part in the company's mission and
vision. IKEA believes that to achieve enhanced organizational outcomes, not only customers
but every people involved with its business must be taken good care. According to Qureshi &
Hassan (2013), performance management is one approach adopted by contemporary
organizations which helps them in achieving targeted goals through effective organizational
performance. Current human resource management considers performance management
essential as it makes employees aware of their work responsibilities and what the company
expect from them. This further motivates them to put efforts in the correct direction and help
management to accomplish predefined objectives. Similarly, performance management in
IKEA is based more on individual performance evaluation by considering individual efforts
rather than looking upon employee perspective only. According to Dahie, Jim’ale, & Ali
(2015), people must be motivated from within and the human resources must focus more on
what they can do to foster a workplace environment where employees try to give their best
performance. Since motivated employees show higher work engagement, better work
performance and reduced turnover, IKEA company links its success directly to the strong
employee relations to motivate its employees to put best efforts. To maintain employee
relations, the company takes into account any formal or informal difficulties faced by the
employees while evaluating performance (Cirillo, Poensgen, Sheerbahadursing, & Vo,