Employer and Employee Relationship

Employment Relationshups

INTRODUCTION TO EMPLOYMENT RELATIONSHIP

An employer is a person or business that employs one or more people for wages or salary. An employee is a person who works for another in return for financial or other compensation. The relationship between the employer and employee includes the connectedness as well as the mutual dealings between them. Referred to as the employment relationship, it is of significant importance in any organisation to continuously seek methods to improve and maintain these relationships.

Relationships should be ethical and based on trust in order for a company to obtain growth and profits. The improvement of the employment relationship is important to both the employer and the employee for the following reasons:

* Employee productivity increases when employees feel they are treated with respect;

* Employees are involved in relationship marketing which encourages them to perform conscientiously which results in rewards of higher wages;

* A good employer-employee relationship provides an intrinsic sense of self-satisfaction.

* Employees perform better when they are reminded, through fair compensation, that their efforts result in something of value.

A psychological contract exists between the employer and the employee; employers should adopt the attitude that their employees are special, should be treated humanely and that compensation should be distributed fairly according to an employees' skills and efforts, whereas employees should consistently work to the best of their ability and avoid any action which may be inappropriate in the working environment.

The employer-employee relationship is continuously changing and managers are altering their style of management to suit the needs of employees. Most organisations realize that their success and profits are largely due to their employees and their involvement and commitment.

The lack of employment security has reduced the level of employee loyalty & therefore more emphasis...