Factors

Introduction
For an organization to succeed, it is fundamentally important to establish and grow

the employee relationship. Aylott (2014) Defined employee relationship as the
relationship covering the social as well as [political aspects in an organization which
employees provide manual and mental labor in exchange for rewards allotted by
employers. In essence the employment relationship is a relationship that is
psychological, legal and economical through which employees make use of their
skills, and knowledge for the employer in return for particular financial rewards. The
relationship differs on many grounds from one organization to another but is clearly
defined by the contract of employment. This contract defines exactly the tasks that the
employer expects to be completed and the re-imbursement that will be given to the
employee for completion of the same. For this reason, the employment relationship
goes beyond the daily and day to day interaction; it becomes a legal contract which
involves two parties. There is strong evidence suggesting that the employee
relationship does not exist in some form of vacuum; it reflects the community and
societal rules within which it operates. There exist some internal factors within the
organization can affect the health of the employee relationship so can external factors.
In the recent past, the employee relationship has come under close scrutiny.
Organizations can no longer deny the importance of employee relations. Whether
psychological, economical or even social; these categories of employee relations latch
together and band to form the essence of the organization itself. There have been
several changes in the world over, but the truth about employee relations remains the
same. Aspects may have changed but the foundations remain strong.
INTERNAL FACTORS AFFECTING EMPLOYEE RELATIONS
Management styles:
Managers are often on the lookout for newer styles of controlling employees while at
the same time increasing income. Of course, the mangers often do not have the
freedom to elect the management style that they will apply towards employee
relationships. There are various strategies that managers can use to influence the
employee relationships and these are:
Traditionalists: these managers are often overtly exploitive of employees, disallowing

and discouraging issues such as trade unions and their roles. They invest little in
improving the employee, pay only the minimum that is required and often give the
employee little if any job security. These kinds of managers are mostly successful in
the hotel industry. This industry is renowned for poorest employee relations and
highest turnover rates.
Sophisticated paternalists: managers often treat employees in some sort of

paternalistic nature. Employees are given generous contracts and job security
although discourages from active trade unions and such. Marks and Spencer company
is a great example of this kind of management. Employee relations are characterized
with good communication and good conditions for employment.
Sophisticated moderns: these managers have the same strategy as the paternalists
except they recognize and acknowledge the importance of trade unions. Many of the
Japanese owned companies such as Nissan and Hitachi employ this style of
management. Unions are part of management and bargaining is thought to profit all
parties. This manager is more focused on fostering commitment.
Employee participation in the organization
Employee participation is defined s the degree of power sharing and regulatory ability
in the organizational decision making structure. In the past, only managers and
executives were involved in the decision making process. The needs of the employees
in the process of decision making took a back seat. Research and long term studies
quickly proved that organizations faced high turnover from these process. Modern
organizations are more focused on involving and addressing the employee needs and
challenges in every aspect of decision making. However, the level of employee
participation varies in every organization. Increased employee participation fosters
loyalty and commitment from employees and thus a more positive and healthy
employee relationship.
Increased employee participation is of course often found to be similar to democracy

in the work place. Rather than dictatorial decision making, democracy fosters growth
of the company as all employees are satisfied and involved even in small decisions.
They influence, control and exercise power in their own small realms and therefore
feel more as part of the organization. Such as organizations faces low turnover and
decreased costs of labor, (Corby and White 2002).
Structure of collective bargaining
Max Weber a famed sociologist in the 1930’s indicated that collective bargaining in
an organization was so vital that indeed the study of industrial relations should be the
study of collective bargaining. Collective bargaining often defines all sort of
negotiations between employers on the one hand and on the other hand all those who
are arguing on behalf of employees. There are organizations that discourage and
indeed have no sort of collective bargaining, (Fitzwater 1999). While such
organizations may pay employees generously and provide some form of job security
this only buys them a strong short term positive employee relationship. Take for
example the famed Marks and Spencer Company, employees are generously
rewarded; however any form of collective bargaining is discouraged and frowned
upon. The result is a high turnover rate with employees seeking out companies that
may pay lower salaries but allow collective bargaining. Collective bargaining gives
employees a sense of belonging and importance where they feel that their voice hold
some sort of strength.
EXTERNAL FACTORS AFFECTING EMPLOYEE RELATIONS
The government:
The government is often found to be at the centre of organizational operations.

Governments define policies and constitutions which govern the relationship between
employers and employees. Governments act as intermediaries protecting the rights
both parties in the contract without neglecting any. For example, in the United
Kingdom the wages council is given power by the government to determine minimum
wages for various industries and sectors of the economy. In addition, taxation
regulations often play a major role in determining the income and benefits that
employees will enjoy. Should the employee relations turn sour, it is common for both
parties to turn to government bodies in an attempt to regulate, build to rectify the
relationship. In some cases, the government may step in and dictate the terms of the
relationship.
Power, justice and culture
Dessler (2000), Indicated that employee relations are characterized by power play and
interactions within organizations. Both parties refer to the concept of power often as
being taken advantage of or taking advantage of. Depending on the interpretation,
power relations often have a connotation of justice. Justice refers to how employees
and employers have felt about fairness in the organization. Whether procedural and
distributive justice, they are all related to the way in which decisions are made. The
treatment given to people during a specific period, affect their perceptions about the
process of fairness and therefore their entire relations of the organization.
Line managers have the duty to ensure that the subordinates’ perceptions of fairness
are positive for stronger employee relations. This involves communicating decisions,
providing reasons for specific actions and consulting about the impact of specific
future decisions with the employees in the area they manage. Blyton and Turnbull
(1998), with the global markets organizations need to take into consideration the
differences in national culture, their influence upon the organization’s culture or sub-
cultures and therefore their implications for the organization’s policies and
procedures. Differences in languages, religions, traditional beliefs, laws and even
education systems will definitely mean that the organization and national cultures will
diverge.
Trade unions
According to Rollinson and Dundoon (2007), the primary function of a union is

protecting the welfare of the members. The membership will have to come together
because they recognize they have a common interest. The union has the responsibility
to identify and give common voice to the common interests. They define the nature of
relationship that employers have with employees. They are often considered as the go
between for both parties. They negotiate payments for the employees, leave days and
even go as far as representing individual employees in disputes with the company.
The underlying purpose of trade unions from times in history is participation in the
job regulation. Through the union, workers can gain more control over their own
careers and working lives. A trade union therefore translates into a continuous
relationship of workers for the purpose of maintaining or improving the conditions of
their own work environment. Trade unions therefore basically dictate the employee
relations which is why many organizations discourage membership to the same. In
Europe for example, trade unions are quickly becoming weaker and their influence is
much more degraded.

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Introduction

For an organization to succeed, it is fundamentally important to establish and grow

INTERNAL FACTORS AFFECTING EMPLOYEE RELATIONS

Traditionalists: these managers are often overtly exploitive of employees, disallowing

Sophisticated paternalists: managers often treat employees in some sort of

Employee participation in the organization

Increased employee participation is of course often found to be similar to democracy

Structure of collective bargaining

EXTERNAL FACTORS AFFECTING EMPLOYEE RELATIONS

The government is often found to be at the centre of organizational operations.

Power, justice and culture

According to Rollinson and Dundoon (2007), the primary function of a union is

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