How do employment relationships impact on the overall success of an Essay

How do employment relationships impact on the overall success of an organisation - Essay Example Although it might be argued that the employer is the source of all the funds which makes the firm operational, the firm is still, by and large, operated by the employee. The increase in international competition and the rapid technological advances are favoring organizations which are more efficient, innovative and productive. These external factors are forcing firms to alter their administrative and management structures. The intensified pressures have generated major challenges in managing employment relationship (Noer, 1993; Herriot, Manning and Kidd, 1997). The basic principle behind the concern for this field is the ‘friendlier’ and ‘more responsive’ the employee governance system is, the greater will be the probability of employees being actively engaged in their work. The idea stems from the notion that, as you build trust and friendship with and among the employees, the employee will reciprocate the effort thru his work. In this paper, we will be exploring whether there is truth in this claim. Employees joining an organization are usually characterized by enthusiasm, commitment and advocacy for their new employer partly because of the thought of receiving a salary and partly due to the pride of belonging to an organization and doing something productive. Suffice it to say, at the start of employment, they are highly engaged. When we say highly engaged, we mean that they are actively participating in the organization. 2. Not-engaged employees are those who have essentially become disinterested with their work. They spend time but not energy and passion into their work. They are not necessarily negative or positive about their company but they take a wait-and-see attitude toward their job, their employer, and their co-workers. The commitment is simply not there anymore. Many empirical studies have demonstrated a relationship between