IMPORTANCE OF EMPLOYER-EMPLOYEE RELATIONSHIP TOWARDS

THE SUCCESS OF A BUSINESS

Importance of Employer-Employee Relationship Towards the Success of a Business

By

Dell Louise A. Cadalso, Alpha Church Centauri R. Caro, and Latrell A. Turco

Bachelor of Science in Business Administration

Major in Financial Management

BA304 Section A - TTh 8:30-10:00am

Negros Oriental State University

IMPORTANCE OF EMPLOYER-EMPLOYEE RELATIONSHIP TOWARDS
THE SUCCESS OF A BUSINESS

Abstract

Most of the time, employer-employee partnerships may help or hinder the

accomplishment of corporate objectives. The form of partnership established in a

company may have an impact on competitiveness, either positively or negatively. Though

the goal of any company is to increase benefit, the employer-employee relationship may

be a hindrance to achieving those goals. The aim of this research is to provide readers

with evidence-based knowledge on the role of the employer-employee relationship in the

growth of a company. The paper also emphasizes the importance of work satisfaction in

inspiring positive relationships between these two parties and recommends

recommendations for managing the relationship.

Keywords: employer-employee relationships, organizational growth, job satisfaction.

IMPORTANCE OF EMPLOYER-EMPLOYEE RELATIONSHIP TOWARDS
THE SUCCESS OF A BUSINESS

Introduction

Employers not only recruit workers, but they also form new partnerships. They

sometimes work in close quarters, which fosters relationships. Relationship management

is vital to an organization's growth or failure (Demirbag, Collings, Tatoglu, Mellahi, &

Wood, 2014; Keeble-Ramsay & Armitage, 2014; Persson & Wasieleski, 2015; Sparrow

& Makram, 2015; Wilkinson, Dundon, Donaghey, & Townsend, 2014). Most of the time,

employer-employee partnerships may help or hinder the accomplishment of corporate

objectives (Atkinson & Sandiford, 2016; Boxall, Guthrie, & Paauwe, 2016; Caza,

McCarter, & Northcraft, 2015; Dobbins & Dundon, 2015; Dundon & Dobbins, 2015;

Felstead, Gallie, Green, & Inanc, 2015; Heffernan & Dundon, 2016; Pratono &

Mahmood, 2015). The form of relationship that is formed in a company may have an

impact on success, either positively or negatively. Though the goal of any company is to

increase benefit, the employer-employee relationship may be a hindrance to achieving

those goals. Strong partnerships boost efficiency, improve employee satisfaction, and

boost productivity (Valizade, Ogbonnaya, Tre- gaskis, & Forde, 2016; Xesha, Gervase

Iwu, Slabbert, & Nduna, 2014). In comparison, bad partnerships contribute to poor

results, increased pressures and disputes, and inefficiency and unproductivity. To

improve performance, the complexities of employer-employee partnerships must be

central to management practices. In addition, company managers must consider the

human side of their operations. Employers are empowered to serve as social engineers

who can collaborate across roles and layers to continually develop business processes and
promote an environment that encourages risk-taking, creativity, loyalty, efficiency, self-

improvement, and self-directed teamwork (Jansen, Curseu, Vermeulen, Geurts, & Gibcus,

2013; Kooij et al., 2013). Employers/owners are encouraged to develop and employ

relevant human skills to inspire workers in their business cycles in order to succeed and

prosper in today's challenging and competitive global sector (Khoreva, Vaiman, & Van

Zalk, 2017; McDermott, Conway, Rousseau, & Flood, 2013; O’Donoghue, Conway, &

Bosak, 2016; Zhou, Hong, & Liu, 2013). A strong employer-employee partnership fosters

trust, cooperation, and, in many cases, work satisfaction. Several studies have shown that

good relationships lead to an organization's growth and that there is a beneficial

connection between strong relationships and organizational efficiency (Acuff & Wood,

2004; Burns, 2012; Donaldson & O’Toole, 2007; Ford & McDowell, 1999; Håkansson &

Ford, 2002). Organizations must also prioritize long-term employee and client

partnerships, as well as relationships with other companies, in order to exchange risks,

best practices, and tools that can give them a competitive advantage. Relationships,

including their complexity and multifaceted existence, can be maintained (Anderson &

Kerr, 2002; Boxall, 2013; Hart, 2004; Hartline & Bejou, 2004; Martin Alcázar, Miguel

Romero Fernández, & Sánchez Gardey, 2013). A commercial partnership is analogous to

any other relationship in that it takes much work to sustain and must be mutually

beneficial to both parties involved. Owners in any business partnership should be able to

support, share, and provide rather than either receive or take (Xesha et al., 2014).

The aim of this research is to provide readers with evidence-based insights on the

relevance of the employer-employee relationship to business performance and

development. The paper also investigates the effect of the employer-employee

arrangement on organizational success. Finally, it stresses the importance of work

fulfillment in inspiring positive relationships between these two parties and suggests

recommendations for handling the relationship. The paper is intended to provide detailed

understandings among researchers and industry professionals to become more

knowledgeable of the possible problems likely to confront current and future companies,

as well as the associated variables available to implement in their businesses to

completely predict potential employer-employee problems.

IMPORTANCE OF EMPLOYER-EMPLOYEE RELATIONSHIP TOWARDS
THE SUCCESS OF A BUSINESS

Literature Review

According to Gennard & Judge (2005), “employee relations is the analysis of the laws,

legislation, and agreements that regulate how workers are treated as persons and as a

social entity, with the preference assigned to the individual versus the collective

partnership differing from organization to company based on management values. As

such, it is concerned about how to win people's loyalty to an organization's corporate

priorities and strategies in a variety of situations...” Appropriate employer-employee

partnership activities in the workplace are helpful because they offer better solutions to

disputes, management procedure, and efficiency problems (Vickers-Willis, 2008). It

promotes improved working environments for productivity, satisfaction, engagement,

longevity, discipline, loyalty, and so on, while eliminating any needless employer-

employee problems. Many studies have identified several factors for business

organizations in order to build good partnerships and achieve organizational success.

Schein established the presence of an implied contractual arrangement between

employers and workers in his psychological contracts based on a set of hypotheses

regarding the essence of their relationship. He believed that workers would be handled

honestly and equally, and that the partnership would be based on fairness and equality,

which necessitated adequate correspondence about improvements and innovations.

Employers would also respect and appreciate workers' contributions (Cullinane &

Dundon, 2006). Today, the effectiveness of a company is primarily determined by how

well human resources are employed and handled, which is clearly the primary feature, i.e.
"achieving results by people." Employee contribution suffers when morale is poor, just as

it does when talent is low.

Thus, management must comprehend the fundamental employee emotions that serve as

motivators for their contributions at work (Vickers-Willis, 2008). According to

Bhattacharya, Sen & Korschun (2008), Employers must rely on those partnerships if they

want their organization to prosper and expand. Employees that are encouraged or

empowered deliver more and more outcomes (Burns, 2012). Additionally, the quality of

competency and customer experience improve. However, there are enemies or causes that

influence employer-employee partnerships and therefore corporate development, such as

integration, unions, coordination, sexism, compensation, a lack of confidence and respect,

business culture, and so on.

 Questionnaire

The questionnaire was divided into 2 sections. The first section (Section A) concentrated

on employers (owners) views on the impact of relationships in organizations. The second

section (Section B) focused on employees views on the impact of relationships in

organizations. A five point Likert Scale of I to IV in the questionnaire was adopted to

assess the degree of agreement of each parameter where I represented ‘strongly disagree’,

II ‘disagree’, III ‘uncertain’, IV ‘agree, and V ‘strongly agree’. The aim was to evaluate

whether the perceived questions were more agreed upon and widely relevant. Also,

Yes/No and multiple choice questions were used in order to obtain accurate and specific

data. The interview mainly focused on the respondents’ opinion, experience and

knowledge of the subject matter. In the process, data on judgments made by the

respondents were weighted, and the basic descriptive statistics were computed.

Consequently, by using this approach, the respondents’ preferences were more precisely

clarified.

Section A: Employer

Table 1. Business Survival and Relationship

No. Questions Likert Scale

I II III IV V
1. Business cannot survive without relationship?
2. Relationship enhances market competitiveness?
Frequency
Percentage (%)

Table 2. Image and Profile, Relationship

Questions Category Frequency Proportion

Good employer-employee Yes
relationships create a positive No
business image and profile in Skeptical
the community?
 Table 3. Productivity, Customer Service, Retention, Strike, Trust and Communication,

Others and Relationship

No. Questions Likert Scale

I II III IV V
1. Good relationships with employees increase
productivity?
2. Good relationship with employees improves
customer services?
3. Good relationships with employees makes it
easy to retain valuable employees?
4. Good relationship with employees reduces
employee strike?
5. Good relationship with employees create a
favorable working environment?
6. Good relationship with employees promotes trust
and open communication?
7. Good relationship with employees increase Job
satisfaction?
8. The company attracts and retains outstanding
employees
9. I have a good relationship with my employees
10. The business cares about employees and
contributes to their success
11. I communicate openly and honestly with
employees
Frequency
Percentage (%)

Section B: Employee

Table 4. Loyalty, Survival, Satisfaction, Organizational Growth, and Relationship

No. Questions Likert Scale

I II III IV V
1. Employee loyalty is valued and rewarded in this
organization
2. I believe the organization deserves my loyalty
3. Over the years my loyalty to the company has
grown stronger
4. I would like to see my relationship with the
organization grow in the foreseeable future
5. Good relationship with customers provide the
opportunity to grow
6. I contribute to the success of this business
7. The employer communicates openly and
honestly with employees
8. The company retains outstanding employees
9. I have a good relationship with my employers
10. The business cares about me and contributes to
my success
11. I am willing to work for this organization for the
next five years
12. Personally, I strongly feel attached to this
organization
Frequency
Percentage (%)
 BUSINESS PROPOSAL TIME TABLE

DATE ACTIVITY
April 1-3, 2021 Choosing and finalizing the topic to be
discuss/research.
April 4, 2021 Looking/searching for sources about the
chosen topic.
April 5, 2021 Composing the Abstract, Introduction and
Questionnaire.
April 6, 2021 Encoding the composed Abstract,
Introduction and Questionnaire
April 7, 2021 Submission of the Proposal