Employee relations consist of all those areas

of human resource management that involve

relationships with employees-directly or
through collective agreements where trade
unions are recognised
 Relationship will be concerned with the agreement of terms and
conditions of employment and with issues arising from
employment.

Employee relations practices include formal processes,

procedures and channels of communication
i. Industrial Relation is that part of management
which is concerned with the manpower of the
enterprise whether machine operator, skilled
worker or manager. BETHEL, SMITH & GROUP

ii. Industrial Relation is a relation between

employer and employees, employees and employees
and employees and trade unions. - Industrial
dispute Act 1947
Employee Relation is a much broad concept. It is one of
the most important function of the management that is
take care by HR department. ER department takes care of
employee grievances, employee recognition, and
boosting the morale of employees to make the working
environment more healthy, live and at the same time
fulfills the managements expectations and maintain the
work culture and ethics.
 Employer
&
Employee
Relationship

Relations within
organization

Employee
& Employee
Employer Relations among
Relationship themselves
 Institutional factor
Economic factors
Technological factors
Psychological factors
Political and legal factors
Global factors
 HR policies and practices
Organizational climate and culture
and value systems
Adaptability to change
Codes of conduct
Collective bargaining agreements
Labour unions
Employers organizations/
federations
 Type of ownership: public or private
limited, Whether domestic or MNC,
Govt. or private sector
Nature and composition of the
workforce
The source of labour
Labour market status
Disparity of wages between groups
Level of unemployment
 Work methods
Type of technology
Rate of technology change
Ability of organizations and people to cope with
change

Since these factors have a direct influence on

employment status, wage level, collective
bargaining process in an organisation.
 Owners attitude
Perception of the workforce
Workers attitude towards work
Their motivation, interest,
dissatisfaction and boredom
leading from man-machine
interface.

These have a great impact on

job and personal life factors and
hence indirectly impact IR
 Prevalent Political philosophy
Attitude of government
The ruling party/ ies ideology
Labour laws and The legal framework
for IR
Changes in the above framework
Role of political factions in TUs
 Role of ILO

International relations

Newer formats of business

 History of industrial relation
Economic satisfaction of workers
Social and psychological satisfaction
Off-the-job conditions
Enlightened trade unions
Negotiating skills and attitude of management
and workers
Public policy and legislation
 Better education
Nature of industry
Monetary benefits
Safety & security
Grievance handling
Recognition & appreciation
Scope for advancement
Style of management
Participation in decision making
So a well planned Employee
Relations is a key to success for
healthy environment, balanced
relation where employer &
employee both are completely
satisfied and finally to avoid all
the conflicts at work place to get
desired results to reached the
organizational goals.