Employee Relations' Effect on Productivity: A Study on H&M

This research report investigates the impact of employee relations on employee productivity, using H&M as a case study. The study examines the importance of employee relations within an organization, explores various strategies employed by H&M to enhance workplace relations, and identifies the effects of these relations on employee productivity. The research encompasses a literature review, a detailed methodology including both qualitative and quantitative research methods, and analysis of the collected data. Findings highlight the significance of positive employee relations, including fair treatment, open communication, and employee involvement, on employee commitment, motivation, and ultimately, productivity. The report provides recommendations for H&M to further improve employee relations and maximize productivity. The research also covers background of research, problem statement, research aim, research objectives, and significance of study.

Research

Contents
Research Proposal............................................................................................................................3
Research Project...............................................................................................................................2
Chapter 1..........................................................................................................................................2
INTRODUCTION...........................................................................................................................2
Background of research..........................................................................................................2
Problem statement..................................................................................................................2
Research Aim.........................................................................................................................3
Research Objectives...............................................................................................................3
Significance of study..............................................................................................................3
Chapter 2..........................................................................................................................................4
What is the importance of employee relation in organisation?..............................................4
What are the various ways used by H&M to make improvement in employee relation at
workplace?..............................................................................................................................4
What is the impact of employee relations on productivity of employees in H&M................5
Chapter 3..........................................................................................................................................7
Research Purpose and Objectives....................................................................................................7
Rationale of study...................................................................................................................7
Research Aim.........................................................................................................................7
Research Objectives...............................................................................................................7
Chapter 4..........................................................................................................................................8
METHODOLOGY..........................................................................................................................8
Chapter 5..........................................................................................................................................1
Findings............................................................................................................................................1
Chapter 6........................................................................................................................................14
Discussion and Conclusion............................................................................................................14
Chapter 7........................................................................................................................................16
Recommendations..........................................................................................................................16
References......................................................................................................................................17

Research Proposal
Research title:
“Employee relations and its effects on employee productivity”. A case study on H&M.
Background to research topic:
Employee relation is referring as the effort of a firm to manage the relationship between
employer and employee that has prominent impact in overall productivity of business firm. An
organisation who have good employment relations program offers equal, fair and consistent
treatment to all employees in order to make them committed towards their jobs and reflects as
loyalty for firm. The aim and main purpose of such kinds of programs is to prevent and resolve
problems arise at workplace based on different situations (Adeinat and Kassim, 2019). It can be
referring as the part of human resource strategy that is developed to ensure the most effective use
of people in order to accomplish the end goal of business. Employee relation programs focus on
the issues such as- pay and benefits, safe working conditions, work life balance. One of the
effective way to ensure better employee relation is to choose a human resource strategy that
places high value on employees as a stakeholder in business firm. Stakeholders are consisting as
the key people of any organisation that are committed with company and are affected with
success & failure of firm. When employees are treated more than just paid labourers but have
power to affect business outcomes, they feel more valuable within firms and works hard in order
to achieve business objectives with full possible potential.
Background to research organisation:
Hennes & Maurtiz (H&M), is a multinational clothing retailing company based on
Sweden famous for its fast fashion clothing for all people including men, women, teenagers and
children. The company founded in 1947 with its headquartering in Stockholm, Sweden. H&M is
operated in 74 countries with over 5,000 stores under several company brands with 126,000 full
time equivalent positions. The firm has 126,376 employees who manage its business effectively.
Company earns $191 billion as off 2016. the firm was listed on the Stockholm Stock Exchange
in 1947. H&M continued its expansion in Europe and began to retail online in 1998.
Aim
“To determine impact of the employee relation on employee’s productivity.” A study on
H&M.
Objectives

 To analyse importance of employee relation in context of organisation.
 To determine different which H&M used to improve employee relations at workplace.
 To identify the impact of employee relations on employee’s productivity in H&M.
Questions
 What is the importance of employee relation in organisation?
 What are various ways used by H&M to make improvement in employee relations at
workplace?
 What is the impact of employee relations on productivity of employees in H&M?
REVIEW LITERATURE
The importance of employee relation in organisation: Employee relation has prominent impact
over productivity and performance of business firm. Effective relation may lead to best outcomes
can be reach from the employees and other stakeholders of firm.
Various ways used by H&M to make improvement in employee relations at workplace: In
order to improve relation of emplo0yees respective organisation uses different ways such as
engaging employees within teams and groups so as to enhance coordination and cooperation
within accomplishment of business objectives. This leads to effectiveness and efficiency within
entire performance and productivity of firm (Akhtar, Bal and Long, 2016). Another important
way to improve employee relation within respective firm is to make e effective relationship
between management and subordinates and engaging employees in decision making process of
firm so that they can learn from their seniors and better their skills and expertise.
The impact of employee relations on productivity of employees in H&M: Due to effective use
of several ways by respective firm in order to improve skills and expertise of employees so that
they can work effectively and efficiently. This can improve H&M' performance and productivity
in effective and successful manner in terms of raising employees relationships with top
management and leads to profit and sales of firm through effectiveness within employees
performance. This will be beneficial for both firm and employees.
METHODOLOGY
Research methodology is considered as the effective process which is used by
investigator in order to gather informations about a specific topic. In research paper research
methodology allows the reader to critically evaluate the overall reliability as well as validity of
study. It refers as the theoretical analysis of the body of methods and principles associated with

bucket of knowledge that can be employed from diverse disciplines vary depending on their
historical background. Research methodology is also referred as the collection of both method or
rules applied to research as well as theories, principles and values that supports research
approach.
Research Philosophy: It refers as the belief within which al the data, information are
collected, executed and analysed in order to accomplish the purpose of research. In context of
present research several information and data collected in a prescribed and systematic way.
Research philosophy can be derived within two parts are explained as follows: Epistemology:It refers as the ways within which knowledge and information can be
obtained effectively. Ontology: On the other hand ontology consist the several ways that helps in clear
existence of understandings.
Type of Investigation: Research methods refers to process that mainly used to gather
information and data for making effective business decisions. It is regarded as search for the
knowledge by systematic and objective methods of searching solution to arisen problems. There
are qualitative and quantitative two different research methods.
Quantitative Research: It is defined as the type of research approach which is
presentation gather informations in numeration and statical manner. Numbers, chars and figures
are used to provide quantitative data. Quantitative research approach is used to make
effectiveness within research. There are various method of using quantitative research for
instance questionnaire, experiments etc. it comes under secondary data information that is easily
available in books & journals, publications.
Qualitative Research: It also an important approach of research based on use of open
ended questions, observations and use of numeric & statical data can be conducted by a firm for
the first time and helps to provide first hand information. Thus, quantitative research approach
based on primary research.
In conducting an investigation, quantitative research method has been used because this
method is helpful in give the valuable insights to ordering of the reality and materialised
discourses. It helps in collect the large scale data within less period of time.
Sampling: This is explained as process through which an investigators choose the
representative subset of total population that could be studied for topic to draw valid conclusion.

There is probabilistic and non- probabilistic two sampling methods. In present research, 30
respondents will be chosen by using the random sampling method and they are managers of
company. The reason behind using random sampling method is that it gives the equal chance to
chosen respondents.
Data collection & Analysis: It is process of collecting the information on particular
variables with objective of examining the outcomes. Data collection is the most important and
primary step for research, irrespective the field of research. It can be differ from filed of study
and depending on the required information. An investigator can examine their hypothesis
according to collected data and information. Data collection methods are of two different types
such as primary and secondary. In conducting present investigation, primary research method
will be used as developing questionnaire regarding the specific research area. The questionnaire
is set of the written questions with choice of the answers that devised for purpose of survey. It
served to record performance of chosen group of the people in specific area.
Timescale

Resources: It can be refers as the source and supply from which a benefit is produced
and that has some utility. Resources are broadly be classified upon their availability. This can be
consisting of the racecourses that has prominent impact over research can be in the form of
finance, technology, physical equipments etc. it helps to enhance the performance, perfection
within the research.

Research Project
Chapter 1
INTRODUCTION
Employee relations is explained as efforts of company to manage the relations among
employees and employers. Company with better employee relation gives fair treatment to staff
members so that they will be loyal to company. Having the better employee relation is necessary
to company as when managers and staff members share positive relationship, productivity,
morale and motivation are high. H&M is multinational clothing company and known for its fast
fashion clothing for women, children, men and teenagers. H&M has open door policy that
granting all the staff members right and opportunities to explain the work related complexities
with management directly. This company support the ability and rights of staff members to be
organise and also decide who should be represent them at workplace.
Background of research
The management of efforts for creation as well as maintenance of affirmative relationship
with their employees is defined as employee relations. The manner in which relations are
developed within the organisation, it leads to creation of affirmative impact on the ways in which
they deliver their liabilities (Andrew, 2017). In case, if opposite happens than organisation have
to pay its cost like turnover rate will become high, decline in the productivity, timeline will not
be maintained and many more aspects are there which will have overall pessimistic impact on
the ways in which organisation offers their services. H&M needs to ensure that there is healthy
relationship as well as environment that prevails within the working premises through which it
will lead them to attain their mission and vision statements within peculiar duration of time.
Problem statement
The term employee relations imply efforts of organisation for managing relationship
among employer as well as employees is defined as employee relation. Organisations that have
maintained this program renders consistent along with fair treatment to all human resources so
that they can furnish their jobs in committed manner (Delmas and Pekovic, 2018). The problem
statement is identification of influence that will be created on the overall productivity of the
H&M. With reference to this, it becomes important to analyse the concept of employee relations,

ways in which this aspect can be improvised along with identification of influence that will be
created on the productivity of organisation. It is essential for firm to make sure that healthy
environment is created by maintenance of affirmative and constructive employee relationship
with intent to have loyal as well as engaged workforce. With reference to H&M, human resource
department is accountable for ensuring this aspect so that employees can be retained for longer
frame of time.
Research Aim
“To determine impact of the employee relation on employee’s productivity.” A study on
H&M.
Research Objectives
 To analyse importance of employee relation in context of organisation.
 To determine different which H&M used to improve employee relations at workplace.
 To identify the impact of employee relations on employees’ productivity in H&M.
Questions
 What is the importance of employee relation in organisation?
 What are various ways used by H&M to make improvement in employee relations at
workplace?
 What is the impact of employee relations on productivity of employees in H&M?
Significance of study
This research is significant as it will provide an in-depth insight into different aspects
associated with employee relation. It will enable researcher within identifying factors impacting
employee relationship and also understand the aspects through which they can be enhanced so
that overall affirmative results can be attained (Jehanzeb and Mohanty, 2018). There are some
affirmative associated with the employee relations through which H&M can have enhanced
functionalities and attain desired levels of productivity along with profitability.

Chapter 2
Literature Review
What is the importance of employee relation in organisation?
As per viewpoint of Sampurna Majumdar, 2015, Employee relation plays very important
role in organisation which takes a long way as far as organisations. Satisfy or happy employee
are effective employee. It is realistic fact that successful enterprises know how to make best
relationship or how to manage that in term of build lasting personnel satisfaction. Employee
relation occur the manner in which administration address and interacts with the employee.
Building good employee relations which help to reduce man power conflicts, boost morale of the
staff, and highlight overall productivity. Workforce or employee is most important part of the
organisation and any other business. Which is not possible enterprise can run easily and
effectively without them. They need to coordination to each other communicate to another in
term to get their jobs completed. Employer must maintain the good relationship between
employee and make good coordination to each other. Ensure that business runs effectively and
efficiently, to avoid the difficulties and come up with the solution. In which employee are
looking forward to give their best outcomes. An excellent employee relation system starts with
clearly terms and conditions. Many organisations have powerful relation department who ensure
that organisation strategies are followed through fairly and consistency which gives the
advantage to the organisation. The employee relation department coordination to each other and
works in collaboration with labours and administration in term of ensure smooth operating of the
company. Communication play very important to make good employee relation. It mandatory to
make personnel busy and responsible. Which is need to inform about company what is going on
how management implement the plans on business. Plan of administration affect their job and so
on. Employee must feel their responsibility are being heard and cared at the same time.
What are the various ways used by H&M to make improvement in employee relation at
workplace?
H&M is known as a fair and equal employer. In which organisation are committed to
giving a safe and attractive workplace. So where all the employees are recognised, feel
appreciated. To make improvement in employee relation, organisation must set the tone from the

first day. First impression is the last impression which matters a lot. Giving positive feedback,
more often than not, focus of judgement are on how a personnel can improve, and what have
they do to more better outcome and give their performance better. Improve the communication
skills because without communication skills , organisation unable to present themselves.
Effective communication makes the attraction towards the employee. Give the training and
development program as well as offer of career development. Help and support them to make
happy and feel like a familiar. If organisation employee are happy, it will be more busy and
passionate along with productive at workplace. Organisation must know about they give the right
job to right person. If employee won't happy or successful in their work. If they are not in
profession that they are well suited for. Give them work according to its capability and
meaningful work, in which they are satisfy and happy with their work. Organisation take an
effective role in offering and encouraging career development for their personnels in which it
find employees end up with more motivated and well equipped manpower. Higher authority and
representative should work closely with personnel regarding ways which can improve on
existing skill and get new program of training. Which gives the highest benefit to the employee
as well as organisation.
What is the impact of employee relations on productivity of employees in H&M
According to viewpoint of Tanya Lesiuk, 2020, Employee relation defines the
relationship between employees and employers that involves the several issues related to pay,
managing conflicts, offering healthy work life balance that helps in maximising productivity of
workers. It helps the organisation to gain profitable results so that company culture is to be
improved. Effective employee relations can positively impact the business enterprise within H
&M. Due to effective employee relation productivity is to be developed as the workers and the
employees of H&M can be able to share knowledge in the company which increases the
efficiency and effectiveness of the company. Employee relations can helps to facilitate
innovation and creativity in the company as the internal communication helps the employees to
work with more creativeness and brain-stilling with each other in the company. As a result
employee relations creates impact in the productivity in the company by focusing on the solution
of the problem. With the help of good communication and work culture the employees develops
the mindset of problem solving mentality which can be beneficial for the good productivity of
the company and the personality development of the employees working in the company.