Formative Assessment 3 7MER Relationship between good employee relations and organisational performance


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, it deals with various aspects of the organisation including the reward system, staffing, performance management, communication, health and safety, and administration. This implies that individuals considered as the organisational staff have relationships and connections with one another, which will enable them to work hard and get the organisational activities complete. To promote the firm’s performance, several aspects have to be considered, which include compensation, benefits, communication, safety, and health. This is central in enhancing the organisational performance. For an organisation that effectively manages these aspects, the management and the employees profoundly relate, which is associated with the firm’s performance.

Employee relations are fundamental to steering the organisation towards meeting its objectives through performance management and employee engagement. Performance management according to Brown, Kraimer, and Bratton (2019), entails evaluating the workforce strengths and weaknesses and establishing ways to address one’s challenges. During the performance management process, employee relations is reflected in the engagement between the employer and the employees to establish one’s needs. Further, employee engagement allows the organisation to obtain sufficient feedback from the employees regarding the elements that they would be like addressed to promote the firm’s working environment. Through profound performance management, the company sets specific, measurable, attainable, realistic, and timely (SMART) objectives, for both the individual and the organisation. Attaining these objectives is the foundation of promoting the firm’s performance. At Jones Lang LaSalle, for instance, the performance management process is continuous, which reflects on employees obtaining sufficient information regularly on their performance and the areas of improvement. Without good employee relations, it is challenging to promote remarkable performance.

Employee relations provide the foundation, oversight, and direction for various employment issues. These include the individual’s attendance, performance, absence, formal complaints, and misconduct allegations. Drawing from the pluralist theory on employee relations, conflicts are inevitable to the organisation (Abbott, 2006). However, it is the role of the management to establish ways through which these conflicts and issues challenging the employment relations can be addressed. At Jones Lang LaSalle, among the prerequisites in human resources management is for the individual to demonstrate competence in conflict management. This can be achieved through any of the processes, including mediation (Steenbergen and Visser, 2016). There are several sources of conflicts and fall outs between the management and the employees. These include rewards and performance management, which should be conducted while acknowledging the principles of equity and fairness. Failure to profoundly address these issues is the foundation of poor individual performance, which affects the organisational outcome and achievements.

3.0 Employee Relations and Commitment

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