Supporting good practice in managing employment relations

Home Supporting good practice in managing employment relations

Employment Relationship

An Employment relationship is built when the employer and employees work together. Every organization requires a positive relationship in their business. The positive relationship is maintained with thrust and mutuality in the organization. It is the state that exists when employees and management are interdependent and both employees and employer are benefited from this interdependency. A good employment relationship is the foundation of an effective policy between the employee and employer relationship including the development of mutual trust. The employment relationship is a constant and informal process that is created when there is any meeting of employee and the employer. The employment relationship is also considered as a Psychological contract under which various expectations and assumptions of employers and employees are considered effective.

Good practices for managing good employment relations
While commencing a new organization, there are many internal and external factors that the members of the organization need to keep in mind. These factors have a major impact on the employment relationship.

Internal Factors
Various Internal factors that impact the employment relations of the organization are –

a)Plans, policies and procedures – Plans, policies, and procedures affect the employment relationships of the company. Let’s take an example of the company that makes certain arrangements to carry out the work flexibly in their work place. This flexible work arrangement enhances the work-life balance among the employees for them to spend their time with their families and friends along with their work. The flexible arrangement in the organization increases the motivation and satisfaction of the employees.   
b)Effective Management Style – There are many activities that can be carried out with an effective management style. It is very important for the management to consider the interest of the employees while making any decision. By considering their interest, the employees feel valued and they become more focused towards their work.
c)Employee Motivation – Motivation of the employees is another factor for managing good employee relationships in the organization. The employees can be motivated by providing incentives and bonus and not punishing them for poor performance. The style of management can be improved by introducing effective strategies and improving them timely. To retain valuable employees in the organization, an innovative management style must be adopted.
d)Pay and rewards – Pay and rewards in the organization attracts, retains and motivates the staff efficiently.  The recent research shows that only monetary rewards can be beneficial for the company but don’t forget the non – monetary rewards.
e)Employee participation – It is an important factor in an organization. Employee involvement is essential for the success of the company. The participation of the employees in the organization is a good idea to ask the employees to get feedback of the company. Through this idea, the company gets to know what the employees feel about the company and how the company can improve its working. If the company offers the employees to set up a representative committee for considering the ideas of the employees.
f)Effective cultural values – Various common values, beliefs, and norms must be developed in the organization when there are many workers working in the same organization. By following the code of ethics, ideals and good moral values, a better cultural atmosphere can be developed in an organization. For the success of the organization, dedication, punctuality, and hard work are the important factors. Therefore, it is essential to build a culture where the staff works happily and freely and where there are coordination and cooperation among the management team effectively.     
g)Managing the Performance of the employees – It is also an important internal factor in the organization. In the process of appraisal, controlling the performance of the employees helps in motivating the staff for achieving the individual goals which also contribute to the organizational goals.         

External Factors
Various External factors that impact the employment relationship of the organization are:  

a)Availability of Labor market – More availability of labor market has a positive impact on the company. Example: In recent years, the age of retirement has increased that results in an increased number of older workforce. With the increasing age of retirement, there are chances for the more specialized and experienced people to stay in the organization.  
b)Current economic climate – Apart from the various positive impacts, the downturn in the economy negatively affects the company. Example: During the recession, many businesses tend to face a loss that impacts the rationalizing of the companies. Thus, the period of downturn and various cutbacks affect the performance of the company.

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