Introduction to Employment Relations
In simple terms, employee relations occur wherever work is exchanged between an employer and an employee in an environment conducive for open market operations. Hence, it can be defined as the paid employment or the pay-work bargaining between the employer and the employee (Farnham, 2000). Rose (2004) states that it is the practice of regulating, collectively and individually, the relations between the two parties: employee and employer. Employee relations are concerned with managing and maintaining the employment relationship, taking into account the implications of the notion of the psychological contract (Armstrong, 2014).
Psychological Contract is the set of mutual expectations that exists between employees and employers. These are not written but understood expectations (Armstrong, 2014). Psychological contracts can be further categorized into transactional contracts and relational contracts. Transactional contracts are implications that are time-bound and monetary in nature such as wages and performance based rewards. Relational contracts are long-term implications that may or may not be monetary in nature. Such contracts also tend to be not less specific. Examples of these could be career development, job security and upskilling opportunities (Robinson, Kraatz & Rousseau, 1994). The reciprocity of this arrangement is quite important. In other words, employees respond favourably to positive behaviour from their employers (Rousseau & McLean Parks, 1993).
Employee relations is basically a study of what can be done to make the coexistence of management and employees a fruitful one (Armstrong, 2014). The relationship between the goals of the employer’s and employees can be approached from two different perspectives: unitary and pluralist. The unitary view holds the belief that the management and the employees can share the same goals and work for the collective good of the organization. But the pluralist view finds this belief to be naive and unrealistic. Here, the argument is that a multitude of views exist amongst the parties involved and expecting these views to completely reconcile is futile. Hence, more personalised and appropriate techniques need to be employed (Walton, 1985).
Marchington (1990) points out that trade unions, by spearheading collective bargaining, have historically been a key element and driving force of employment relations, whilst pointing out that they have been declining over the recent years. Echoing this, Emmott (2015) also states that trade union memberships and power have declined after the 1980s, causing trade union influence on public policy to decline correspondingly. The modern definition of employee relations focuses on individual as well as collective workplace relationships. The growing individualised approach towards employment relationship following the rise of individual workplace rights and the continuous decline of trade union reach and influence has caused this change (CIPD, 2021).
References
1. Armstrong, M. (2014). Armstrong’s handbook of human resource management practice. 13th ed. London: Kogan Page, p.403.
2. Chartered Institute of Personnel and Development 2021, 09 June 2021, London: Employee relations: an introduction [Online], Available at:https://www.cipd.co.uk/knowledge/fundamentals/relations/employees/factsheet#6053 [Accessed on 27 October 2021].
3. Emmott, Mike (2015). Employment relations over the last 50 years: confrontation, consensus or neglect?. Employee Relations, 37(6), 658–669
4. Marchington, M. (1990), “Unions on the Margin?”, Employee Relations, Vol. 12 No. 5, pp. 2-24.
5. Robinson, S.L., Kraatz, M.S., & Rousseau, D.M. (1994). Changing obligations and the psychological contract: A longitudinal study. Academy of Management Journal, 37(1), p137-152
6. Rose, E. (2004). Employment relations. 2nd ed. London: Pearson Education, p.8.
7. Rousseau, D. M., & McLean Parks, J. (1993) The Contracts of Individual Organizations, 15, p.2-10
8. Walton,R.E., "From Control to Commitment in the Workplace”, Harvard Business Review, March-April 1985 (b),77-84.
Adding more to the post, the employment relationship is the connection between employees and employers through which individuals sell their labor (Bacon and Nick, 2003). An employer can be considered as a purchaser of labor. Further, an employer is comprised of the owners of a public, non-profit or private sector organization. Also, executive, managerial and supervisory workers are also often considered as a part of an ‘employer’ as they frequently act as an agent of their employer in managing other workers (Burawoy andWright, 2002).
ReplyDeleteHi Dileep, thank you for the detailed definition. Interestingly, though, Armstrong (2014) simply swaps the term "employer" with the term "management" in his definition of employment relations, and I believe that even though it's a very simple choice of words, it effectively covers all the aspects of the definition you have added here.
DeleteEmployee relations reflect the positive interactions between employees in organizations (Riech & Hershcovis, 2011). With the increase in various forms of remote working (telework from home, mobile telework) (Felstead & Henseke, 2017) and the occupational stress resulting from the current global pandemic of Covid 19 , employee relations have also been transformed. According to Bulińska-Stangrecka & Bagie (2021) , by increasing interpersonal trust, the potential of social relationships in remote working conditions is strengthened. Furthermore, both trust in managers and colleagues, demonstrating the mechanisms that facilitate the mental well-being of employees in remote working situations, can define as the foundation for achieving effective employee relations which leads to better organizational performance.
ReplyDeleteHi Gihan, valid observations. But increasing interpersonal trust could always be a challenge, since the employers and employees work with different interests, and this will always lead to a conflict of sorts (Kochan and Katz, 1988)
DeleteHi Divaker, Agree with the points, Employee relation is the set of beliefs that is assumed to state of commitment to the organization in the employee is are willing to accept work roles and tasks offered by the organization, also it carry them out in accordance with certain standards(Roe, 2007).
ReplyDeleteHi Dineth, completely agree with you. In other words, Farnham (2000) states that it is a negotiation between the employees and employers about a paid work arrangement.
DeleteHi, Divakar. I do agree with your discussion. According to Armstrong (2009), to further elaborate on the topic, the way of dealing with employers and employees individually or through their trade unions is defined as employee relations. HR Policies, code of ethics, Employee rights & policy documents, Union agreements are implemented to maintain this relationship. The employer-employee relationship is vital, and it is essential to the company’s growth, not only for retaining staff. That is why Companies do not hesitate to invest in developing this connection for any value of cost (Bahreini, 2017).
ReplyDeleteHi Nirmika, completely agree with your points. Gennard and Judge (2010) state that employee relations do not occur in a vacuum, but involve many parties.
DeleteHi Divakar. Adding to the article employee relation is managing the relationship with employees with the organization and with each other. Well managed employee relationship influences Organization productivity. According to Schine,(2014) basic series of expectations are Fairness treatment of employees, Proper and effective communication and Recognition and appreciation on employees action.
ReplyDeleteHi Amila, no arguments here. In fact, Rousseau & McLean Parks (1993) point out that employees are prepared to do their part if they feel that they are being treated fairly.
DeleteDivakaran, you are correct. Employee relations refers to a company's efforts to build and maintain a positive working connection with its employees, according to Aylott (2018). By building pleasant, constructive employee relations, companies hope to keep their employees loyal and engaged in their work. Employee relations activities are frequently overseen by a company's human resources department; however, some companies have a separate employee relations manager role.
ReplyDeleteHi Isuru, I am in agreement. These new developments in relation to HR and employee relations are a result of a shift towards a more individualised approach towards employee relations (CIPD, 2021).
DeleteHi Divakar, well written article and adding to that according to Armstrong & Taylor(2014), Employee relations cover a wider spectrum of the employment relationship than industrial relations, which are essentially about what goes on between management and trade union representatives and officials, involving collective agreements, collective bargaining and disputes resolution.
ReplyDeleteHi Lakshan, agreed. According to Musson (2006), though trade unions have been a very powerful and popular entity in the employee relations scene, their popularity has been steadily declining over the past few decades.
DeleteWell said Divakar. The improvement of employees' performance is essential for helping companies to grow year on year. employee relations teams are responsible for monitoring each colleague's performance and offering ways to help where possible (Shonna Waters,2021).
ReplyDeleteThis comment has been removed by the author.
DeleteHi Upeksha, interesting points. Echoing the same, Armstrong (2014) also has pointed out that employee relations simply focuses on the facilitation of smooth cooperation between employees and employers. Hence, mutual assistance is always appreciated.
DeleteAdding more to your points, The concept of employee relations is dynamic and developing. The human relations approach in management can be traced to managers' attention to employees and their relationships (Arimie and Oronsaye, 2020). According to Akrani (2011), the human relations approach views the organization as a social system of interpersonal and inter group relationships, demonstrating that having a work environment that fosters healthy and long-term relationships among employees is critical to improving the organization's efficiency and effectiveness.
ReplyDeleteHi Janakan, completely agree with your points. Farnham and Pimlot (1990) state that the purpose of employee relations is the resolution of conflicts that may arise between various parties involved in said relationship.
DeleteOrganisations can help employees develop skills; knowledge by creating an environment that enables them to use this new knowledge and skills in their professional role to perform better (Turner, 2019) which can improve employee relations.
ReplyDeleteTurner, P 2019, Employee engagement in contemporary organizations: Maintaining high productivity and sustained competitiveness, Springer.
Hi Ravi, completely agree with your comments. Waters (2021) points out that companies have been focussing more on the improvement of performance through employee relations.
DeleteHi Divakar, concerning physical, emotional, contractual and practical efforts with related to relationships can be further define as employee relationship. However recognition, communication, equality, training and development will improve the employee relations as well. It is important for an organization to develop and growth the business to achieve the goal (Khalid and Nawab, 2018).
ReplyDeleteHi, I am in complete agreement. Robinson, Kraatz & Rousseau (1994) have also pointed out that things such as training and development are some of the key expectations that employees have towards their employers.
DeleteAgreed with your points Divakar , further would like to add Employee relations cover a wider spectrum of the employment relationship than industrial relations, which are essentially about what goes on between management and trade union representatives and officials(Armstrong,2010)
ReplyDeleteHi Manoj, I'm in agreement as well. CIPD (2021) also points out that ER in the present day, is more about direct communication, motivation, managing change, involvement and work life balance.
DeleteWell explained article, No employment relationship occurs in a vacuum and it is important to realise that there is a range of contexts within which it occurs and which, to varying
ReplyDeletedegrees, impinge upon the relationship ( Leat ,2014)
Hi Surangi, agreed. Emmott (2015) also points out the same and elaborates that in the last five decades massive, yet gradual changes have happened in the field of employment relations in terms of the parties involved and the interest and power they hold.
DeleteAgreed with you, Employee relationships can use most effectively to improve organization productivity (Michael A. 2006).
ReplyDeleteHi... Agreed. Armstrong (2014) also says that employment relations is basically a study into what can be done to make the employee-employer relationship a productive one.
DeleteHi Divakar, adding to that To maintain positive employee relations, an organization must first view employees as stakeholders and contributors in the company rather than simply as paid laborers. This perspective encourages those in management and executive roles to seek employee feedback, to value their input more highly, and to consider the employee experience when making decisions that affect the entire company. Rousseau & McLean Parks (1993)
ReplyDeleteHi Ijaz, agreed. Budd (2004) also states that even though the interests of these parties differ, a productivity coalition can be formed between them, because they both want the relationship to continue.
Delete