The Value of Effective Management & Workforce Relations
- Workplace relations refers to the interactions between managers and workers in a business including
- How change is communicated and implemented
- How grievances and disciplinary action are pursued
- The level of consultation on key decisions
- Fairness and effectiveness of business processes
- Positive workplace relations between management and workers brings a range of benefits
Diagram: Benefits of Positive Workplace Relations
Good relationships between managers and workers leads to benefits including increased productivity, low levels of staff turnover, improved cooperation and fewer days lost due to industrial action
Low Staff Turnover
- When workers have a positive relationship with their managers, they are less likely to seek work elsewhere
- Workers are also less likely to face dismissal if they have built a strong, trusting relationship with their employers
Few days lost to Industrial Action
- Industrial action is where trade union members, in dispute with management, protest or take action, such as strikes, to achieve their aims
- Effective workplace relations and good communication between managers and workers mean that disruption as a result of industrial action is unlikely
Employee Cooperation is Likely
- Employees may be more willing to 'go the extra mile' for the business if they feel valued and are well looked-after by managers
- Support from employees for key decisions means that business strategies have a greater chance of success and objectives are more likely to be met
High Productivity
- Good working relationships often mean workers are less likely to be absent from work and are more likely to be focused on their output
- Workers are more likely to contribute ideas on improvements to efficiency, which can lead to better business performance
Good Reputation as an Employer
- Businesses with good employer/employee relationships may receive recognition from the media and professional organisations and avoid negative publicity
- Highly-regarded businesses are in a good position to attract and retain the best staff
Ease of Implementing Change
- Where there is trust between managers and employees, significant change is more likely to be welcomed rather than feared
- Employees will look to play their part in implementing change as they understand and welcome its importance to business success