Employee Relations Impact on Organisational Performance: Analysis

This report examines the critical relationship between employee relations and organizational performance, focusing on H&M as a case study. It begins with an introduction to employee relations and its significance, followed by a review of relevant theoretical background and research objectives. The report aims to analyze the impact of employee relations on organizational performance, specifically within H&M. Objectives include understanding the importance of employee relations, assessing their impact on performance, and identifying strategies for fostering healthy employee relations within the company. The methodology section outlines the research approach, including the use of a positivism paradigm and a deductive approach. The research employs a quantitative method, utilizing questionnaires for primary data collection and secondary sources like books and journals. A sample size of 30 will be used, employing probabilistic sampling. Thematic Data Analysis Tool will be used for data analysis, with the goal of drawing clear conclusions on the relationship between employee relations and organizational performance. The report concludes with a discussion of the findings, limitations, and recommendations for H&M and similar organizations.

BUSINESS AND MANAGEMENT
TITLE: To analyse the impact of employee relations on organisational performance

Table of Contents
A) INTRODUCTION..................................................................................................................................3
B) THEORETICAL BACKGROUND AND RESEARCH FOCUS...........................................................3
C) JUSTIFICATION AND CONTEXTUALIZATION..............................................................................6
D) METHODOLOGY.................................................................................................................................7
REFERENCES............................................................................................................................................9

A) INTRODUCTION
Employee relation is explained as efforts of an organisation to manage the relationships
among employees and employers. A company with better employee relation programs gives fair
treatment to all the staff members so that they will committed to jobs and also to be loyal for an
organisation. The main role of HR department in an organisation to conduct employee relation
programs for developing the positive working environment. H&M is multinational clothing firm
and well known for the fast fashion clothing for women, teenagers, men and children. In context
to employee relation, H&M Company has open door policy that granting all staff member’s right
opportunity to consult any work related problems with management directly. In the present
research, there will be discussing about the impact of employee relation on organisational
performance (Alfalla-Luque, Marin-Garcia and Medina-Lopez, 2015). The employee relation
develops the negative and positive impact on performance level of an organisation. Maintaining
the healthy employee relations in company is pre-requisite for success of company. A good
employee relation helps in motivated as well as productive staff members that can maximise
production level. There will be aim and objectives developed on the basis of specific subject
area. The objectives will be reviewed on the basis of set objectives in a detailed manner. The
research methodology part will be conducted for examining the tools and technique for
collecting as well as analysing the data for conducting the present investigation.
B) THEORETICAL BACKGROUND AND RESEARCH FOCUS
Aim
To analyse the impact of employee relations on organisational performance. A study on
H&M.
Objectives
 To understand employee relations and its importance to organization.
 To analyze impact of employee relations on organisational performance.
 To determine the different ways for developing healthy employee relations in H&M.
Questions
 What is employee relations and its importance to organization?
 What is the impact of employee relations on organisational performance?
 What are different ways for developing healthy employee relations in H&M?
Review key publications
Employee relations and its importance to organization

On the basis of Paul O'Brien (2014) in an organization employees are the most necessary
resources and also valuable asset. Amount and nature of the work that mainly performs with
them have direct impact on organizational productivity. Better employee relation is explain as
relationship among the management organizational justice Framework including management
style and organizational culture and also sequence for handling the conflict objective of the
employee relation is to be attained and also reduce the conflict unemployment. It is mainly
dealing with neglecting and resolving the problems regarding people which arise at workplace.
The strong employee relation is based on the safe and healthy working environment commitment
of staff members, positive communication system and incentive for staff member’s motivation in
an organization. The complexities of employer-employee relationships need to be kept in mind.
This includes all of the workplace relationships among employers and employees. Employee
relationships may include providing opportunities for participation employees in management
decisions, policies to enhance collaboration, communications and grievance resolution and
dispute minimization. The healthy employee relation helps in motivate and make the employees
productive that to enhance the production level. It is necessary for Human Resource Department
for developing the healthy employee relation in a company for attain the organization growth.
H&M company is committed towards the constructive workplace in order to promoting
understanding and knowledge about the labor relations. Aim of this company policy is to assure
healthy relationship among Employees, managers and external stakeholders. To maintain the
long term success this company develops proactive as well as continuous communication
improvement, respect interest. Employee relationship is important for company to enhancing
employee motivation, organizational productivity etc. Communication and employee relation are
main factors which influence the employee satisfaction and engagement. The main goal of
employee relation is to make improvement in collaboration as relationship at workplace. To
satisfied employees are more productive for an organization. This is proven fact that the H&M
business knows about maintain relationship to develop the employee satisfaction (Anitha, 2014).
This company operates through employee relationship programs, give fair treatment to the entire
staff member so that they can give their best to attaining the specific objectives within given time
period.
Impact of employee relations on organisational performance
As per opinion of Kristina Martic (2020) Employee relation is set of organisation
practices in which deals with complexities concerned to people is learning, performance
management, compensation, health and safety, communication and many other. Organisation
performance is function of the employee performance. Employer and employee should have a
good relationship between themselves and the company in order to allow them to understand the
organization's mission, manage necessary resources and money, and have a comfortable working
atmosphere. The workers of the companies are the basic elements that a company will always
work hard to fulfil because without the staff members, it is complex for firm to survive. In
context to this, manager should have better employee relation that aids the staff members to feel

satisfied t workplace and enhance organisational performance. The effectiveness of organisation
is based on improving employee’s performance and maintaining potential that serves as
backbone of company. The companies’ aims at growth to come up with employee motivation
that ends at improving performance and job situations. At H&M, it should induce their staff
members to work hard for attending the set objectives. The success of companies mainly linked
with employees performance and maintaining strong employee relationship that will benefit to
company for motivate employees regarding their best efforts. Managing the relationship becomes
necessary for organisation success as this helps in make strong relationship that can leads to
employee happiness and increasing organisation performance.
Different ways for developing healthy employee relations in H&M
According to viewpoint of Annemaria Duran (2020), a good employee relationship helps
in encourage the staff members so that that can focus on attaining goals. Better employee relation
helps in promote the loyalty as well as enhance growth of company. There are some ways H &M
adopt for developing the healthy employee relation:
Promote communication- The positive communication aids in neglect the confusion of
staff members and also unnecessary stress. This can reduce the friction among staff members and
management. This helps to set the clear expectations and objectives. It is necessary to H&M
management to give a better way for staff members to express the grievances and resolve
conflict in a better manner. They require having way to express openly without any retaliation
fear. The staff members should able to ask the questions and also clarify the ideas. New
procedures, expectations and policies should be communicated in written format and verbally.
Inspire and reward- Considering to developing staff members objectives instead
handling them down. Encourage the staff members to attend the set objectives of HRM company
permit its staff members to set the goals on quarterly basis. These goals are mainly written
through staff members that result it in training with in a specific period of time. This company
gives report to employees so that they can motivated it make sure that incentives aligned with
business values (Bakotić, 2016).
Use software to eliminate mistakes- Implementing the software and Systems can make a
difference in the employee relations. It is because this helps in automation and makes
improvement in communication for list of project management application make this easy for the
managers as well as team members to see what is needed on project and who is responsible for it.
Messaging the application can make communication better and neglect any stress from work in
the discussion that mainly occur face to face. Executing right software, company can reduce the
redundant task from the staff members and tap in creativity instead.
Offer career development- H& M organization take an important role in providing their
employees career development and encouraging them so they will find that they end up with a

more motivated and most well-equipped workforce. H&M managers and HR executives will
work closely with staff on ways of improving their current skills and providing new training.
D) METHODOLOGY
Research methodology is the most critical aspect of study that will help a researcher
when gathering reliable and appropriate data on relationship in between brand identity and
customer retention. Research methodology acknowledges an essential process of collecting,
analyzing and assessing knowledge that allows the investigator at the end of the research to draw
a clear conclusion. One of the key objectives of the research methodology undertaken is to make
clear and accurate conclusion which also helps to make whole research more efficient and
successful (Bal and Dorenbosch, 2015).
Research paradigm- This is an approach to conducting an investigation that has been
verified through an investigation. It is regarded as how the researcher can gather, interpret and
use reliable knowledge about the subject or idea. There are interpretivism and positivism to
different research paradigm. In present investigation, positivism paradigm will be used because it
helps in exploring the idea that can help in gain the better understanding about perception of
researchers.
Research Approach- It is essential in research as it provides an efficient way of
collecting and analyzing data. This presents as a useful way to complete reliable and step-by-step
analyzes of the subject. Through this investigator, an effective research is being established
which helps to improve the possibilities of achieving positive results. There are two different
types of research approaches for an instance inductive and deductive. In conducting this
research, there will be deductive approach used because this provides the necessary and authentic
articles or information regarding specific subject area (Fu and et. al., 2015).
Research methods- This is explained as the processes, techniques and strategies which
mainly use in data collection in context to uncover information for better understanding about
topic. There are two different research methods such as quantitative and qualitative. In
conducting the present research, there will be quantitative method used because this allows
reaching at the high sample size and possible to give the positive outcomes.
Data collection techniques- Data collection refers to process about collecting
information on the interest variables that help in give the answers of stated research questions.
Two valuable techniques of data collection are introduced as primary and secondary to be used
for this project. Questionnaire will be used for gathering the primary information. While this
primary research instrument can help a researcher in gathering accurate data on impact of
employee relation on organisational productivity. In addition, to collect secondary information,
there will be books, journals, websites and many other sources used. The information has already

been mentioned to collect the secondary information in a better manner (Ibrahim and Al Falasi,
2014).
Sample size- It refers to the effective strategies used through researchers to choose
sample sizes from a large number of the populations in order to obtain valid data and
information. It introduces as most necessary part for selecting the sample size from whole
population. Probabilistic and non- probabilistic are two different sampling methods. There will
be probabilistic sampling used and chosen 30 sample size because this method is not biased and
gives equal chance to the chosen respondents without any biasness.
Data analysis- This is explained as procedure of inspecting, transforming and also modelling
data with aim of searching the useful information, support the decision making and informing
conclusion. Through the use of the Thematic Data Analysis Tool, quantitative analysis can be
done and the investigator will have detailed knowledge about the research subject. Through
formulating different themes related to the subject of study, the investigator was able to better
interpret the data appropriately. This can also be used by other scholars and by investigator in
completing research in significant manner (Katou, 2015).

REFERENCES
Books & Journals
Alfalla-Luque, R., Marin-Garcia, J. A. and Medina-Lopez, C., 2015. An analysis of the direct
and mediated effects of employee commitment and supply chain integration on
organisational performance. International Journal of Production Economics. 162.
pp.242-257.
Anitha, J., 2014. Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management.
Bakotić, D., 2016. Relationship between job satisfaction and organisational performance.
Economic research-Ekonomska istraživanja. 29(1). pp.118-130.
Bal, P. M. and Dorenbosch, L., 2015. Age‐related differences in the relations between
individualised HRM and organisational performance: A large‐scale employer survey.
Human Resource Management Journal. 25(1). pp.41-61.
Fu, N. and et. al., 2015. How do high performance work systems influence organizational
innovation in professional service firms?. Employee Relations.
Ibrahim, M. and Al Falasi, S., 2014. Employee loyalty and engagement in UAE public sector.
Employee Relations.
Katou, A. A., 2015. Transformational leadership and organisational performance. Employee
Relations.
Molineux, J., Mirshekary, S. and Scarparo, S., 2015. Developing individual and organisational
work-life balance strategies to improve employee health and wellbeing. Employee
Relations. 37(3). pp.354-379.
Nazir, S. and 2016. Influence of organizational rewards on organizational commitment and
turnover intentions. Employee Relations.
Zhang, B. and Morris, J. L., 2014. High-performance work systems and organizational
performance: testing the mediation role of employee outcomes using evidence from PR
China. The International Journal of Human Resource Management. 25(1). pp.68-90.
Online
Duran, A., 2020. 7 Strategies to Improve Employee Relations. [Online]. Available through:
<https://www3.swipeclock.com/blog/7-strategies-to-improve-employee-relations-for-a-
phenomenal-workplace/>.

Martic, K., 2020. What Are Employee Relations and Why Are They Important. [Online].
Available through: < https://blog.smarp.com/what-are-employee-relations-and-why-are-they-
important>.
O'Brien, P., 2014. Why Strong Employee/Employer Relationship is Important and How to
Achieve This?. [Online]. Available through:
<https://www.business2community.com/strategy/strong-employeeemployer-relationship-
important-achieve-0876781>.