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Analyse the importance of good employer/employee relationships in the running of companies such as Inell Limited - Leaving Cert Business - Question A - 2002
Question A
Analyse the importance of good employer/employee relationships in the running of companies such as Inell Limited. Refer to the central role of the Human Resource dep... show full transcript
Worked Solution & Example Answer:Analyse the importance of good employer/employee relationships in the running of companies such as Inell Limited - Leaving Cert Business - Question A - 2002
Step 1
Importance of Good Employer/Employee Relationships
Answer
Good employer/employee relationships are crucial for the success of any organization, including Inell Limited. Here are some reasons why:
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Improvement of Service to Customers: A positive relationship can significantly enhance the quality of service provided. Employees are motivated to improve existing skills and acquire new ones, thereby increasing customer satisfaction.
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Employee Motivation: When employees feel valued and included in the decision-making process, their motivation increases. This sense of ownership drives them to contribute more effectively to the organization's goals.
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Risk Management: Strong employer/employee relations can lead to proactive measures to manage risks. Employees are more likely to communicate potential issues or suggestions for improvement, which can reduce the likelihood of operational losses.
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Productivity Gains: Employees who work in a supportive environment tend to be more productive. This can lead to increased sales and overall organizational improvement.
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Decreased Turnover: A good relationship reduces staff turnover rates, allowing the company to maintain a stable workforce. This is critical for preserving the knowledge and expertise within the organization.
Step 2
Role of the Human Resource Department
Answer
The Human Resource (HR) department plays a significant role in fostering good employer/employee relationships through various means:
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Open Communications: HR should ensure that all employees have access to vital information about the organization. This includes updates on successes, challenges, and strategic direction, which helps build trust among stakeholders.
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Health and Safety Regulations: Ensuring that workplace safety standards are met is a fundamental responsibility of HR. This creates a safe working environment, thus enhancing employee satisfaction.
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Employee Agreements: HR should implement clear procedures for handling grievances, redundancies, and other employment-related issues. Establishing these agreements minimizes conflicts and promotes fairness.
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Valuing Employees: The HR department should treat employees as invaluable assets. Recognizing their contributions and providing opportunities for development fosters loyalty and engagement.
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Training and Development: Continuous investment in training is essential. The HR department should ensure that employees have access to development programs, which help them grow and improve their skills.