Formative Assessment 3 (40572/23) 7MER Managing Employment Relations


In your recent online class, a fellow student suggested that there is a strong relationship between good employee relations and organisational performance. The student, Sarah, also hinted, it could lead to greater staff engagement and commitment too. What are your thoughts on this and what research exists which may support this argument?


Executive Summary

This report examines the relationship between employee relations and organisational performance. Also, the impacts of employee relations on staff engagement and commitment are explored. Drawing from the analysis, it is apparent that employee relations, which entail the relationship between the employee and employer, transcend the simple link to include other factors such as performance management and employee engagement. These factors are crucial in establishing a supportive working environment and enhancing the individual’s skills and competencies. Commitment and engagement are achieved through the formal and psychological contracts which outline the individual’s responsibility to one another and the organisation.




Table of Contents

Executive Summary. 2

1.0 Introduction. 4

2.0 Employee Relations and Organisational Performance. 4

3.0 Employee Relations and Commitment 5

4.0 Conclusion. 6

References. 7






1.0 Introduction

The success of an organisation is centred on profound human resources management (HRM). Employee relations are among the core tenets in effective HRM, which entails the relationship between the employees and employer. In contemporary organisations, employee relations is an essential asset in promoting the individual’s and organisational performance. According to Samwel (2018), employee relations are central to the firm’s sustainability, prosperity, and performance. The results of good employee relations are reflected in employee motivation and satisfaction. This formative assessment entails an evaluation of the relationship between good employee relations and organisational performance.

2.0 Employee Relations and Organisational Performance

Companies are described as structural, which comprise of several components, including human capital and financial resources. Drawing from the systems theory, these elements function collaboratively to achieve the organisational objectives (Shin and Konrad, 2016). Human resources in this regard involve the employers or employees who must co-exist cordially with the organisation and among themselves to actualise the firm’s goals. Employees are essential assets to the organisations, and they should be satisfied to ensure their inputs and efforts to the organisation. Without the workforce, the company cannot function. One of the core ways of promoting the employee’s satisfaction is to ensure a profound relationship with the employer. This makes them relaxed and motivated to continue to work at the organisation.

Employee relations are perceived as the harmonious, trust, and fairness relationship existing between employees and employers in the firm, which have a positive impact on the performance of the company (CIPD, 2020). In employee relations,

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