1.1 Background of the study
An organization is a structural component that is made up of sub-component such as man, materials and money which work interrelated and interdependently in the achievement of organizational objective. All these sub-component must work together before an organization can increase or improve in its performance. But among them, man which is the employer and the employee must exist in a cordial relationship between themselves and with the organization so as to enable them actualized the objective of the organization, manage the materials and money and also have a satisfactory working environment. Again, the employees in the organizations are the vital elements an organization should always strive hard to satisfy because without the employees, the organization would find it difficult to survive. In that case, the employer in an organization must have a good employee relation which will help the employees feel relaxed and satisfied in their workplace.
However, in context to the prevalent discussion, employee relation is seen as the fairness, trust, and the harmonious relationship that exist among the employers and their employees within organization which has a positive effect on organizational performance (Bingham, 2016). It is also seen in simple terms as the relationship that exists between the employer and the employee. According to Muhammed, Sohail, &Riaz (2013) in their research “impact of employee relation on employee performance in hospitality industry of Pakistan” view employee relation as a set of organizational functions and practices that deals with issues related to people as staffing, compensation and benefit, performance management, organizational development, health and safety, communication and administration. These means that people separated as staff should have connections or relationships among each other which will enable them work together as a team in getting a setting work done. Nevertheless, employees who have worked so hard need to be compensated and grant benefit that will make them satisfied in their workplace. In order to determine the workplace satisfaction of employees, certain variables such as health, safety, employees’ canteen, compensation, benefit, communication and many other variables need to be considered so that the organization can improve in its performance.
Therefore, an organization can only improve in its performance when the employees that work in that organization have developed a sense of belonging, and go extra mile to help the organization prosper. It is against this boundary that this study seems to investigate the effect of employee relations on organizational performance using Michelle Pharmaceutical Company as a case study.
1.2 Statement of the Problem
In recent time, some organizations have been decreasing in its performance due to inadequate management abilities of employee relations by the human resource department which is in charge of the employee’s welfare within the organization. Organizations can only improve in its performance if only a proper employee relation is adopted and maintained. However, relatively little has been written about the everyday management strategies involved in management of the contemporary relationship. Over the years the Chartered Institute of personnel and Development has undertaken a series of interviews with human resource professionals that were designed to establish what significance the term employee relation has for them and their organization.
Nevertheless, the vital determinants of work place performance are employee relationship which has been given little, if any priority. The aspect of employee- employee relations and how it relates to performance has not been given the attention it deserves by management. This is based on the fact that employees in every organization should be regarded as the most valuable assets in that organization. Hence their workplace environment impacts a lot on whether the organization achieves its goals.
1.3 Objectives of the Study
The objectives which this study seems to achieve are as follows:
- To find out the extent employee relations is practice in this organization.
- To determine the components of employee relations the organization gives attention.
- To examine the extent employee relations strategies could be used to improve performance.
1.4 Research Question
In the context of this study, the research asks the following questions:
- What is the extent of these organizational practices of employee relations?
- What are the components of employee relations in this organization?
- How can employee relations strategies improve organizational performance?
1.5 Research Hypotheses
The hypotheses will be testing the significant of the research question base on the following: