EMPLOYEE RELATIONSHIP & ITS EFFECT ON ORGANISATIONAL PERFORMANCE

EMPLOYEE RELATIONSHIP & ITS EFFECT ON ORGANISATIONAL PERFORMANCE

ABSTRACT

One of the most pressing issues facing most organizations today is the need to raise employee productivity. There is a widespread belief that productivity improvements can only be achieved through a fundamental reform in the area of employee relations. Changes are thought to be necessary both in the organization and structure of work and in the way in which employees are trained, remunerated and motivated. Moreover, it is argued that these changes cannot be separated from the need to overhaul our system of interest representation and dispute resolution. The activities of trade unions and the operations of arbitration tribunals are often viewed as impediments to management efforts to lift the competitive performance of their organizations. The purpose of this study is to evaluate these arguments, identify ways employee relations affect productivity, and how to improve productivity in organizations. South Akim Rural Bank was used as a case study for this research, as various employees and management of the bank were used as respondents for the study. Responses gotten from the employees and employers were analyzed to bring out findings as well as recommendations for this study. With regards to the research methodology of this study, the casual research design was chosen as the most appropriate research design for the study. Data was gathered form both primary and secondary sources of information. Responses from questionnaires and interviews with management of the bank formed the basis for the primary data, while books, articles and journals on employee relations acted as the secondary data. Findings from this study revealed that employee relations practices affect productivity through employee morale, quality and quantity of output/product. Other findings include various challenges that employees face at workplace and various ways to enhance healthy relationship between employees and their employers in an organization. The most valuable recommendation given is to treat employees with great care.

CHAPTER I

INTRODUCTION

Maintaining healthy employee relations in an organization is a pre-requisite for organizational success. Strong employee relations are required for high productivity and human satisfaction. Employee relations generally deal with avoiding and resolving issues concerning individuals which might arise out of or influence the work scenario. Strong employee relation depends upon healthy and safe work environment, cent percent involvement and commitment of all employees, incentives for employee motivation, and effective communication system in the organization. Healthy employee relations lead to more efficient, motivated and productive employees which further lead to increase in production level. Over 40 percent of the companies listed in the top 100 of Fortune magazine’s “America’s Best Companies to Work For” also appear on the Fortune 500. While it is possible that employees enjoy working at these organizations because they are successful, the Watson Wyatt Worldwide Human Capital Index study suggests that effective human resources practices lead to positive financial outcomes more often than positive financial outcomes lead to good practices.

1.1 BACKGROUND OF THE STUDY AND ORGANIZATIONAL PROFILE

EMPLOYEE RELATIONSHIP & ITS EFFECT ON ORGANISATIONAL PERFORMANCE