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EMPLOYEE
RELATIONS AND IT EFFECTS ON ORGANIZATIONAL PERFORMANCE
CHAPTER ONE
INTRODUCTION
Maintaining
healthy employee relations in an organization is a prerequisite 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
relations had its roots in the industrial revolution which created the modern
employment relationship by spawning free labour markets and large-scale
industrial organizations with thousands of wage workers. As society wrestled
with these massive economic and social changes, labour problems arose. Low
wages, long working hours, monotonous and dangerous work, and abusive
supervisory practices led to high employee turnover, violent strikes, and the
threat of social instability. Intellectually, industrial relations was formed
at the end of the 19th century as a middle ground between classical economics
and Marxism, with Sidney Webb and Beatrice Webb’s Industrial Democracy being
the key intellectual work. Industrial relations thus rejected the classical
econ. Institutionally, employee relation was founded by John R. Commons when he
created the first academic industrial relations program at the University of
Wisconsin in 1920. Early financial support for the field came from John D.
Rockefeller, Jr. who supported progressive labour-management relations in the
aftermath of the bloody strike at a Rockefeller-owned coal mine in Colorado. In
Britain, another progressive industrialist, Montague Burton, endowed chairs in
industrial relations at Leeds, Cardiff and Cambridge in 1930, and the
discipline was formalized in the 1950s with the formation of the Oxford School
by Allan Flanders and Hugh Clegg. Industrial relations were formed with a
strong problem-solving orientation that rejected both the classical economists’
laissez faire solutions to labour problems and the Marxist solution of class
revolution. It is this approach that underlies the New Deal legislation in the
United States, such as the National Labour Relations Act and the Fair Labour
Standards Act.
1.2
STATEMENT OF THE PROBLEM
In recent
times, while most workers are on job, they do not produce more simply because
of the unhealthy relationship they have with their fellow colleagues and
employers. A recent study conducted by Blyton (2008) revealed that employees do
not put up their best performances at workplaces when they are unhappy with
management, government, or even their fellow colleagues. Bad employee-employer
relationship results in strike actions and lockouts. All these actions taken by
employees to display their grievances only do the organization harm than good
as productivity will be reduced drastically.
By many
accounts, employee relations today are in crisis. In academia, its traditional
positions are threatened on one side by the dominance of mainstream economics
and organizational behaviour, and on the other by postmodernism. In policy-making
circles, the industrial relations emphasis on institutional intervention is
trumped by a neo-liberal emphasis on the laissez faire promotion of free
markets.
1.3 RESEARCH
OBJECTIVES
The
objectives for this study are:
To identify
various employee relations practices, and its effect on the productivity of an
organization.
To identify
the challenges faced by employees at work places.
To identify
ways of enhancing healthy relationship between employees and employers in an organization.
1.4 RESEARCH
QUESTIONS
The
following questions were used to achieve the above objectives:
What are the
various employee relations practices in your organization, and how do they
affect productivity?
What
challenges do you face in your organization?
In what ways
can healthy relationship be enhanced between employees and employers in an
organization?
1.5
SIGNIFICANCE OF THE STUDY
This study
seeks to bring out the various employee relations practices which South Akim
Rural Bank has undertaken to increase its productivity and contribute its quota
in the economic development of the communities which it operates, and the
country at large. This study will therefore help enlighten management of
various organizations of the various effects of relationship practices between
employers and employees in an organization. The study will also bring out
specifically, the employee relations practices which the bank has been able to
make available to its employees. It also seeks to bring out the level of encouragement
and motivation the bank has given to its employees to work effectively, among
others. The importance of this study is therefore to highlight the various
employee relations practices and how it affects the productivity of an
organization. This study will go a long way to illustrate how organizations
should treat employees’ in-order to increase productivity.
1.6 SCOPE OF
THE STUDY
The scope of
the research will be limited to South Akim Rural Bank at the New Juaben
Municipal Assembly in the Eastern Region of Ghana. The research will rely on
the bank for vital information as well as information from secondary source.
The research will take duration of four months to complete.
1.7
LIMITATION OF THE STUDY
The
researcher encountered a limitation in regards to availability of information.
Thus due to the institutions working ethics, the researcher could not get
access to vital information since it was treated as confidential and the targeted respondent’s number was not
attained since some employees were on leave. Inadequate funds and availability
of time also became a limitation.
1.8 CHAPTER
SCHEME
The project
will be organized around following chapters;Chapter one gives an introduction
to the research work. It gives the basic information about the company and the
research being undertaken. This chapter therefore consists of the background of
the study and organizational profile, statement of the problem, objectives,
research questions, significance of the study, scope of the study, and
limitations encountered by the researcher.Chapter Two consists of the
literature review and the theoretical framework Chapter three gives details of
the research methodology. The research methodology represents the various ways
and methods which the researcher used in order to gain his information.Chapter
Four gives the analysis and interpretation of the information gathered by the
researcher.
Chapter five
gives the findings and conclusion of the researcher. Here, conclusions will be
drawn based on the findings and their implications will also be given.
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