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Employee Relations

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1. The Employment Relationship

According to the International Labour Organization (2015), the employment relationship is defined as the legal link between employers and employees. This exists when a person performs work or services under certain terms and conditions in return for remuneration.

Employee Relations are influenced by a number of internal and external factors, all of which affect the strategic balance between labour and management. It is important that we are aware of the key factors influencing employee relations in order to strike a proper balance within the working environment.

Internal factors

According to the Oxford Dictionary (2015), a trade union is defined as an organized association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests such as pay and working conditions. Trade unions and union organising, significantly affects employee relations. Once a union is established, employees do not bargain on their own behalf. Instead, union representatives bargain for them. Unions can be a source of employee empowerment, as union employees may feel as though they share a common goal. Additionally, unions provide arbitration of labour disputes and grievance procedures.

The Organisation’s Culture is also an internal factor; this is a system of shared assumptions, values and beliefs, which governs how people behave in organisations. The culture of an organisation often dictates to how employees are treated. For instance, an organisations culture that emphasizes punishment over reward usually creates an environment of fear and low morale. An organization’s culture that embraces employees’ unique attributes and emphasizes reward tends to improve relations between management and labour.

External factors

Pay and Reward – According to CIPD (2015), reward generally

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