Empl0yee Relation

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1. Introductiona. Employee relations may be defined as those policies and practices which are concerned with themanagement and regulation of relationships between the organisation, the individual staff member, andgroups of staff within the working environment.b. In 1986 an advisory committee, the Industrial Relations Management Committee (IRMC) was constitutedby Council to consider all matters related to current and future industrial relations at the University. In 1998

this Committee changed its name to the Employee Relations Management Committee (ERMC). In 2000 thecommittee was again reconstituted as the Labour Relations Management Committee (LRMC). The LRMC isadvisory to the Vice-Chancellor, and through the Vice-Chancellor to Council and Council's sub-committee onremuneration. Consequent to the AIMS recommendations and with respect to HR and the subsequentrestructuring process, from the beginning of 2002, the LRMC was renamed the Employee RelationsManagement Committee (ERMC).c. The membership of the LRMC is determined by GPC from time to time. Current membership is included inthe membership of committees booklet, which is published bi-annually.d. The employee relations section of the Human Resources Department is responsible for liaison withemployee representative bodies, monitoring procedures, and developing proposals for the ERMC'sconsideration.

2. Objectives

a. Sound employee relations are based oneffective mechanisms for communication and participation. i a i safe and effective work environment.commitment and motivation of all i staff.

b. Accordingly, the University's policies and practice are aimed atpromoting channels of communication at all levels. i identifying and i expanding common areas of interest between all staff.anticipating and i defusing conflict wherever possible.encouraging staff to articulate i concerns and conflict and seek resolution of underlying issues.providing i channels for conflict resolution and developing mutual trust in their reliability.

3. Employee Representation

a. The University Council recognises the principle of freedom of association.b. Where staff members choose to have a trade union represent them, the University will makearrangements for recognition, collective bargaining and dispute resolution.c. All staff members have the right to join the representative body of their choice, but this does not meanthat the University will recognise all such bodies for collective bargaining or other purposes. Moreover, whileacknowledging that the membership policy of the representative body is the prerogative of its members, theUniversity is committed to maintaining non-racial conditions of employment.d. Staff members have the right not to belong to a representative body. The University Council will nottherefore agree to membership of a representative body becoming a condition of service or appointment.e. At present there are two staff bodies which are recognised unionsi. The National Education, Health and Allied Workers' Union (NEHAWU) representing, at present, alladministrative and support staff in payclasses 1 - 4.ii. The UCT Employees' Union representing, at present, all staff in payclasses 5 - 12, excluding certain

management positions.

f. The Academics Association has significant academic staff membership. Members of the executive and staff from the HR Department consult the Academics Association on matters relating to academic staff.

4. Victimisation/Coerciona. No staff member shall be victimised by University management as a result of his/her membership of arepresentative body.b. University management will seek to protect staff members from being coerced into membership of any


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association against their wishes, or from being coerced in any way as a result of their non-membership of any association.

5. Collective Bargaininga. The University Council will recognise a representative body for the purposes of collective bargaining onbehalf of staff members in a defined common interest group (the bargaining unit) where the majority of

staff members in the bargaining unit demonstrate their wish to have that body represent them.b. Such recognition shall be formalised in a recognition (or procedural) agreement with the representativebody. This agreement shall include details of the following:. The bargaining unit - definition of the common interest group.i. Procedures - how negotiations, disputes, grievances, disciplinary matters etc. will be handled. Recognitionand procedural agreements between the University and the NEHAWU, and between the University and theUCT Employees' Union were signed in 1986 and 1991 respectively. Please note that the recognitionagreement with NEHAWU was revoked in 1999, and a new recognition agreement concluded in 2000.

6. Communication and Consultation

The University Council recognises the importance of open communication and joint consultation betweenmanagement and staff. It therefore encourages the exchange of information, ideas and views about matters

of mutual interest and concern through both formal and informal channels.a. Informal systems

The University Council encourages informal communication and consultation at all levels. Department andsection heads are encouraged to develop appropriate arrangements to promote discussion of any matters of interest and concern at the workplace.b. Consultative committees

Where a recognition agreement has been entered into, the administration will arrange regular consultativecommittee meetings between Human Resources Department staff and other key members of managementand the union. The role of the consultative committees is to provide a formal channel of communicationbetween management and employee representative bodies. In particular, management will seek staff members' views prior to taking decisions affecting their interests. In the same way, staff members bring

their issues of concern to the attention of management.

The University administration and employee representative bodies are free to initiate agenda items.

7. Grievance Resolution

The University Council considers it essential that, where a staff member (or a group of staff members) isdissatisfied for any reason arising from the work situation or employment relationship, this should bearticulated and resolved as quickly as possible, at the lowest possible level.

A procedure for addressing grievances has been agreed with the NEHAWU and the UCT Employees' Union.8. Discipline

A staff member is required to maintain certain standards of conduct. Any staff member who fails to maintainacceptable standards of conduct in accordance with his/her employment contract, specific job requirementsand/or the University's rules, renders himself/herself liable to disciplinary action. Such disciplinary action isdesigned to be corrective and to improve conduct (other than where dismissal is warranted) and should betaken as soon as possible after the event.9. Poor Performance

A staff member is required to maintain certain standards of performance. A staff member who fails tomaintain laid-down standards of performance in accordance with his/her employment contract, specific job


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requirements and/or the University's rules, renders himself/herself liable to corrective action.10. Employee Relations Training

The University provides staff training to promote informed and sound employee relations practices.a. Staff induction course

Induction courses and refresher training sessions are provided to ensure that staff are familiar with theUniversity's policies and procedures.b. Management/supervisory training

Staff who manage others are provided with training in the skills necessary to give effect to the University'spo ManagementParadise.com : Your Gateway to Online MBA Degree Program. Management Students Forumfor MBA,BMS, MMS, BMM, BBA, students and aspirants. > Projects HUB for Management Students ( MBAProjects and dissertations / BMS Projects / BBA Projects > PUBLISH / UPLOAD PROJECT OR DOWNLOADREFERENCE PROJECT > Public Relations Management . > employee relations

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INDEXPage No. Topic3 INTRODUCTION4 ORGANIZATIONAL CONSTRAINTS5 THE PUBLIC RELATION ACTION PLAN7 NEED FOR EMPLOYEE COMMUNICATION9 THE ROLE OF PR10 FORMS OF EMPLOYEE INVOLVEMENT12 SUGGESTION SCHEMES14 CASE STUDY16 BIBLIOGRAPHY

INTRODUCTION

In any successful organization the relationship between the employer and the employee is cordial and thereexist mutual respect for each other. There are immense benefits of team sprit. It leads to improvedproduction, employee motivation, customer satisfaction and reputation of business. Therefore, everyorganization should have a vision which should be common.

Sharing of a common vision enable the organization to massage it activities successfully instead of beingdominated by one voice on the top.

People should be involved in the functioning of an organization so that they they get motivated and that theorganization is working for their interest as well as its own. The employees should be rewarded not only infinancial terms of feeling that they belong to a winning team.

No business organization can succeed unless and until the corporate objectives of business are compatiblewith the personal objectives of individuals.

There are two parts of corporate relation such as:1. Employee relation or internal relationFor example: Mutual respect and understanding between employer andemployee


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2. External relationFor example: customer relation, investor relation etc.

ORGANIZATIONAL CONSTRAINTS

A large number of organizations very often fail to make use of skill and knowledge that are possessed by

their employees. The fact is that even the workers today want more involvement in and control over theirown work.In the history of employee relation all over the world, the subject of employee involvement has been a topicof recurring interest.

There are varied reasons for the same. They are

Employees are often unaware of what others are doing in the whole organization.

They are under the impression that any type of face to face communication, meetings and discussions iswaste of time.

When the employees are not allowed to influence events they feel powerless and also lose a feeling of commitment.

Employees develop a feeling of insecurity when they are not able to see the value of their position.

Employees are ignorant about the organizational goals and they do not know what an organizationsuccessful.

THE PUBLIC RELATION ACTION PLAN

In the recent times the management have come to realize the changing workers values and as such theyare trying to bring a change in the total work environment.

Every organization has to adapt to the changing environment and bring about necessary changes. In fact,adapting to the change is important. As an agent of change the public relation believes in sustained,permanent nature of public relation within the organization.

The value of good communication between the organization and its employees and between the shop floorand management is understood well.It is necessary that public relation should identify the internal and external goals which can get best out of the employees.

In order to tap the interest of the employees the public relation action plan must include:

A vision for the future with involvement and commitment of all the members of the organization.

The transaction of the set vision into an action plan for change and adjustment taking place in theenvironment.

Encourage the employee to understand the aims of the organization.

Develop a greater under standing and appreciation of the common interest and mutual interdependence of all the section of enterprise.

Make full utilization of the employee potentials for organizations development and individual employeegrowth.

Provide a feedback and take review of the progress made

Warning signals and cautious footsteps for the public relation personnel:

Dont try to extract and achieve too much in a hurry.


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Remember the key players in any organizations are the workers and their unions and not the

management.

Know the entire structure and functioning of the trade unions.

There is bound to be criticism about the management as well as public relation action plan by the workers.

I t should be taken positively.

The public relation and communication activities in commercial and industrial organization may be treatedwith utmost skepticism by management, unions and employees. Do not get upset.

Be patient and learn step by interaction with the union for improving relation.

Try to understand that the union representatives have problem expectations and values which may not beagreeable with the objectives of the organization.

When people are given an opportunity to have some influence over what actually happens around them,only then that a feeling of commitment is developed towards the organizational objectives.

NEED FOR EMPLOYEE COMMUNICATION

The in house campaign is best suited for tackling the issues involved in employee communication frominside. Since the solution to the problems come from the bottom up, everyone is expected to participate inthe creativity of the organization. It is not one person but all must think and act together to find various wayto grow. The employee communication aims at receiving positive feedback with the help of verbal and/ornon-verbal means, which is reality is a sender/receiver activity.

According to Redfield (communication is management) whether an organization aims at service, productionor distribution, it consist of individuals and group of people. Their work is related to work of the other groupand individuals as well as the organization.

Therefore the policy of an employee oriented corporate culture can not be carried without the total internalcommunication which plays a decisive role. Individual can not do without communication if they want tofunction in a way that is both motivating and motivated. The employees need correct and thoroughinformation in order to be able to propagate the organizations identity and stand up for ones organization if attacked by others. Correct employees communication increases interest in the organization, support andstrengthens its identity.

Requirements for effective Employee communication:-Lynn Townsend has set forth the following eight requirement for effective employee communication:

Employee communication must be recognizes as an essential tool of management. It is a way to achievecorporate objective, build team work and motivate. It can make managers become better leaders. Thisrequirement recognizes that employee attitudes and resulting performance are improved by effectivecommunication.Employee must be well-informed concerning their mutual interest in company success. Management

position on issues need to be know, an employee should be persuaded to actions that will be best servemutual interest and goals.Individuals managers must actively support corporate communication efforts. Managers must develop

team work among them and work co-operatively with the corporate office. The management hasresponsibilities to create a climate conductive to communication and to maintain the flow of communicationthrough open channels.Great emphasis must be placed on communication and measurement. Communication can not be left to

chance. There must be a plan as to communicate what, how, to whom for what purpose and to what effect.Top management must establish a communication climate; other divisions and departments will reflect

this climate.A long term investment in professional talent and communication programming must be made.

Programming and qualified people cost money, but it is well spent.Management most recognizes its responsibility to listen as well as to speak. If the boss is not a good

listener, those who report to him will soon stop trying to communicate with him.


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Management must recognize the desire of employee to help their company, and the power of communication to tap this great potential. employee is willing to help, and communication can turn thisdesire into action.

THE ROLE OF PR

If the organisation wants to improve internal communication internally, it should first get the managers and

supervisors to communicate with people who they manage. In many professional organisations, themanagement comes forward to help the trade unions communicate with their member.

Unfortunately it is seen that neither side is known to be doing this important job. In such a situation PRperson as communication expert have crucial role to perform.

However on account of rapid progress and application of media, the shop floor has passed through anevolutionary process.

Under such a situation higher standards of the means of internal communication will be the only acceptablesolution. As a result of this there is another challenge to PR in the new communication environment.

In order to promote effective communication within the orgnisation, the PR conjunction with the managerialpersonnel has to be prepared and put into practice an action plan. This will apply to PR as well as themanagers including first-line supervisors. With help and support of the top management, PR may oversee

and given pervasive guidance to all those who need to the communication.

The following are the essential guidelines.

1) Never create the distance between yourself and the workforce. If there is any existing hurdles close thegap.2) Frequently meet the employees & keep communicating in a sustained manner.3) Even in the presence of Management Information System & delegation of authority senior manager mustnot stop personal communication.4) Whenever you find an employee or a group of employee have done well be generous lavishing praise aswell as reward. It is a good moral booster.5) Never make promise instantly or in a hurry.6) The communication between the employees and the union leader should always be clear cut. If you findthere is a communication gap do not hesitate to point out to the union above the dissatisfaction withcommunication between the employees & the leadership. Although it is difficult, but it will be an excellentsource of constructive co-operation & mutual trust.7) Communication just does not mean instructing people about what to do & how to do it should be madeentirely participative. Involvement & participation in the decision making process lead to commitment.8) The biggest obstacle to motivate the employees is lack of communication or its in appropriateness. Themanagers should be made this to understand.FORMS OF EMPLOYEE INVOLVEMENT

According to Maslow in motivation and personality secrecy, censorship, dishonesty and blockingcommunication threaten all the basic needs. Given below are a few employment arrangements which maygo a long way in order to fulfill employee needs. According to the employees all of these and many moreactivities are communication in returns and will effectively promote employee involvement.

Activities Employee involvement1) Written and face to face communication from managers to employees with 2-way exchange of views andideas. 1) Briefing sessions, house journals, training and development courses as health safely newlegislation etc.2) Upward communication designed to tap the employees knowledge and opinion and both at the individuallevel and through mechanism of small groups 2) Total quality management, suggestion schemes, qualitycircles, attitude survey.3) Handling grievances 3) Individual employee shop floor supervision union and managementrepresentative.4) Consulting employees and their representatives as a management process 4) Joint consultativecommittee, work committee/council. Worker representative on the board of directors corrective bargainingon monetary &benefit issues


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A significant aspect of employees involvement and employee communication was revealed through a casestudy conducted in several Indian organizations in private as well as public sectors.

The perception of the workforce feeling a sense of environment and moderate satisfaction with

communication process can be noticed at least 13% people. They are not satisfied with the important fact of working life. (P). in the worst case (T) the respondent constitute 27% who are thoroughly dissatisfied withall aspects of their service condition, involvement and communication. The respond under Q. R. S. aredistinctly homogenous group like P. & Q. but differ widely in their attitudes towards basic questions of entitlement involvement and communication.

P: Involved with the organization and moderate satisfaction with employeecommunication but totally dissatisfied with pay benefits and workingconditions

Q: Involved with the organization and satisfied with employee communicationbut not satisfied with pay benefits and working conscious.

R: Not involved & dissatisfied with employee communication but satisfied withpay, benefits & working condition

S: Satisfied with all the above

T: Dissatisfied.

The PR and communicating people may draw their own conclusions and proceed with the right managerialstrategies and communication mix.

SUGGESTION SCHEMES

The basic idea of suggestion scheme in the organization is to build a two way communication process. Thescheme spells out clear rules and procedures for submitting ideas as a motivating device. There are manypossibilities. A few of them are.1. Suggest different ways and means for the optimum utilization of the available resources and increaseproductivity and profitability.2. Suggest ways of standardization of work and procedures and thereby simplify and improve quality of work.The belief of being heard would result in motivation and greater productivity.

Employee Communication and Media:

There are many media available for employee communication. The public relations expert will determine thesuitable media, depending on the budgets provided for the employee communication and need. It calls forthe skills of the public relations practitioner. Employee communication is ultimately desired to build loyaltyand respect. The objective is to make each employee feel an important part of the organization. Unless theemployees are well versed with the policies and broader objectives of the organization they will not do thebest job for the accomplishment of the objectives. Employees are the internal public and the public relationsofficer should give a major effort on communicating with them to promote good internal public relations.It is necessary for the PR and communicators to be adequately trained and psychologically prepared towardscreating the right environment in order to use the tools of communication fully.

The essential ingredients towards building a better communication process are:1. Promoting a culture of open communication.2. Appropriate media.3. Proper channels of communication.4. Clarity in communication.5. Internal and External communication.


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6. Sufficient knowledge of public relations and communication staff.

Selection of the Media:

The media may be oral or written. The selection of the media may depend on the speed with which themessage has to be communicated. Oral and face to face communications are more effective and quick. Thebasic objective has to be kept in mind for the selection of the media. If the message is a highly confidential

one then it cannot be discussed on the phone. Similarly a complaint has to be given in a written format.

Tools:

1. Print Media: News letters, bulletins, house journals, handbooks and manuals, suggestions schemesletters, reports, newspapers, pamphlets, magazine posters, etc.2. Verbal and Visual media: Training programme, demonstrations, slide presentations, the grapevine,internal telephone, radio and television programmes.3. Electronic Media: Websites, cell phones, e-mail, pagers, etc.

Case Study

SituationIn early 2002, actor and licensed jet pilot John Travolta approached Qantas Airways about a possible

relationship in light of his longstanding, genuine, specific interest in the airline. After deciding that Travoltacould serve as an "ambassador-at-large" for the airline, his role was developed to assist Qantas on a rangeof employee and brand-building initiatives, the first being a global tour to encourage people to crossborders, rekindle friendships and make new friends.

ChallengeThe theme preferred by Qantasa "Spirit of Friendship" world tourwell reflected the brand's "Spirit of Australia" slogan, but did not present a strong reason for Travolta's round-the-world jaunts.

StrategySince Ogilvy felt that Qantas on its own would only draw a specific type of media such as aviation andbusiness publications, they used John Travolta and the relationship between him and Qantas as theenticement to entertainment and international press as well as wire services and major market newspapers.

CampaignOgilvy sent media invitations for the Los Angeles press conference using only Travolta's name and the tickleof a "unique global initiative," leaving the press to speculate what the fuss was all about.

Rigorously pursued key media, both national and international, to attend both press conferences in LosAngeles and New York; used exclusives to guarantee position in critical media

Created a brand specific press package to highlight the tour and showcase John Travolta in a classic 1964pilot uniform

ResultsOgilvys efforts on behalf of Qantas helped achieve the following:

1. Qantas key markets had numerous international hits from the Los Angeles and New York pressconferences. The global public relations value exceeded $42 million.2. More than 300 local and national television breaks highlighted the Qantas "Spirit of Friendship" GlobalTour including segments on "Entertainment Tonight," "Access Hollywood," "Live with Regis and Kelly" and"CNN Headline News."3. Total audience reached: 50 million+ in the United States alone.4. More than 900 television breaks worldwide highlighting the Qantas "Spirit of Friendship" Global Tourincluding segments on "HBO Asia" in Hong Kong, "BBC News" in London and "RAI 1" in Rome.5. More than 2,000 print articles worldwide featured the Qantas "Spirit of Friendship" Global Tour with itemsranging from The Sunday Telegraph in Australia to the Sunday Times in London; extensive print coverage inall U.S. markets for every stop of the tour.6. Raised employee morale by arranging for John Travolta to meet and speak with Qantas employees ineach of the cities on the tour. Travolta spoke about his passion for aviation and special attachment to


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Qantas

BIBLIOGRAPHY

1. Principles of Public Relations: - C. S. Rayadu, K.R. Balan2. Public Relations Management : - Romeo S. Mascarenhas

WEBLIOGRAPHY

1. www.google.com2. www.managementparadise.com3. www.bmsexcellence.com4. www.ogilvypr.com/case-studies

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hsinam

June 23rd, 2008, 03:51 PMThree Ways to Build Successful Manager-Employee Relationshipsby Chris Musselwhite

The manager-employee relationship has a critical impact on performance. So why do companies often

neglect to emphasize or provide training to help managers build this important connection?

Exit-interview research shows the No. 1 reason people leave their jobs is their managers. In fact, the onlyrelationship that may be more important to an organization than the company-customer relationship is themanager-employee relationship. Yet, this all-important relationship frequently is left out of the equationwhen it comes to performance management and talent retention strategies.

Smart companies know if managers are trained and charged with responsibility for the success of theirreports, departmental and organizational performance will take care of itself. Companies that don't drivehome the importance of this relationship to frontline managers, or provide the necessary training, willeventually pay the price via the loss of good employees and decreases in performance that result fromemployee dissatisfaction.

There are three leadership practices essential for high-performing teams. Since high-performing teams arecomprised of high-performing individuals, this model works equally well to show managers how to

strengthen the manager-employee relationship and keep employee satisfaction on high.

No. 1: Promote Understanding of Shared Goals and Task Relevance

For employees to work together effectively, they must understand group and individual goals. When thisunderstanding is poor, work inefficiencies, lower work quality and low employee morale often are the result.

Lack of goal clarity often is misidentified as an individual performance issue. This leads to blame, conflictand increased turnover by frustrated employees who are working hard but not getting the results theorganization expects. Often, organizations will address this through personnel changes, but because theyare addressing a symptom and not the cause, the problems will inevitably resurface.

When employees understand shared goals, talent managers can cultivate an atmosphere focused onproblem solving, removing performance barriers and delivering outcomes. This eliminates finger-pointingbecause when everyone understands the relevance of everyone else's contributions, employees haveincreased awareness of their interdependencies and thus have more respect for one another.

As a result, employees feel more valued and find their work more motivating, which leads to a greatercommitment to the company, better individual contributions and higher employee satisfaction. This createsopportunities for increased collaboration and greater efficiencies, leading to improved team andorganizational performance.

Effective managers promote better understanding of purpose by communicating the organization' s mission,values and strategic objectives. To carry this good communication full circle, the effective manager alsoprovides opportunities for employees to give feedback on this information and then takes it back to topmanagement.

The organization benefits from the perspectives of employees in the trenches who often are closest to thecustomer, and closing the feedback loop can enhance the manager-employee relationship by showingemployees their opinions and input have value and can make a difference in the company's overall success.

No. 2: Ensure Adequate Knowledge and Resources

Talent managers can't have a high-performing organization without competent and knowledgeableemployees who have the resources and tools they need to do their jobs. People enjoy doing work they cando well. If they are forced to do work they aren't qualified for, they will not be happy, and work performanceand quality will suffer.

When employees lack knowledge, they also will use resources inefficiently. Mistakes will be common, andquality issues will be prevalent. When necessary resources are unavailable, knowledgeable employees will


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become discouraged, which can lead to frustration and, subsequently, high turnover.

Like a lack of understanding, a lack of knowledge can reveal itself in the guise of poor individualperformance. The organization is likely to respond with personnel changes instead of better training,increasing the chance the organization will experience the same problem at some point in the future.

When employees are knowledgeable and have good resources, they are better-informed, solve problems

more quickly and make more data-driven decisions. In addition to knowing what they need to know,knowledgeable employees have a better understanding of what they don't know, which also can contributeto better decision making across the organization.

Employees who make good decisions experience success on a regular basis. This contributes to jobsatisfaction and empowers employees to solve problems and make more decisions, which in turn, will makethem feel more valued, more loyal, more likely to stay with the organization and more likely to producehigher-quality work.

To produce these results, the effective manager ensures employees are in jobs that make the most of theirskill sets, and provides ongoing development as job responsibilities and qualifications change. To do thesetwo things effectively, managers must take the time to get to know their people by listening carefully forpotential performance issues and providing timely feedback.

As members of the most-distracted, information- packed and fast-moving workforce in history, good

listening skills have never been more important. Talent managers cannot assume they know whatemployees want. Effective listening can help everyone slow down and fully consider a situation beforereacting.

When managers model good listening skills, employees will learn to seek them out when they have aproblem. Thus, managers will hear more, good and bad, in time to give feedback that can make adifference.

Timing can differentiate feedback from criticism. Early feedback allows employees to make changes and canimpact a situation. Untimely feedback, no matter how well-intended, isn't useful and often is perceived as anassignment of blame or criticism.

Managers that provide ongoing development can help build strong employee relationships. Developmentincludes providing time and opportunities for cross training and personal development and takes intoconsideration individual job competencies and organizational needs. Again, this investment in individualsmakes them feel valued, can increase loyalty to the company and will pay off in higher organizationalperformance.

No. 3: Facilitate Effective Interaction

Even if talent managers promote a shared purpose among well-trained, knowledgeable employees who haveunlimited resources, it is virtually impossible for individuals to achieve anything as a group without effectiveinteraction. Ineffective employee interactions lead to inefficient coordination efforts, and in today'sworkplace, nearly every significant project requires cross-functional and cross-disciplinary interaction andcooperation.

Miscommunication causes poor information sharing and makes it difficult to get the right people involved atthe right time to make the best decisions. Consequently, people attempt problem solving and decisionmaking in isolation or with the wrong people. This can result in poor decision making, prolonged decisionmaking or, even worse, no decision making at all.

On the other hand, effective interaction can stimulate opportunities for collective learning for both managerand employee and greatly enhance employee job satisfaction. On an enterprise level, effective interactioncreates a culture of collaboration and encourages sharing of ideas and information that is critical forinnovation.

Managers can facilitate healthy employee interactions in many ways. One, they can create environments inwhich people are comfortable asking challenging questions. When managers respond without defensiveness,they model a key behavior necessary for productive interaction. The best managers model effectiveinterpersonal behavior, which starts by asking questions and listening. This is easy to say, but often difficult


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to do.

Building strong, valuable manager-employee relationships starts with the basics: effective problem-solvingand decision-making processes. For example, in meetings, do talent managers have an agenda and stick toit? Do they make sure everyone is heard and that certain individuals are not allowed to dominate thediscussion? Do they make sure someone without a personal agenda facilitates the meeting? Consideringthese questions can encourage productivity and free up time for more personal engagement between

manager and employee.

An organizational climate that promotes individual learning also can facilitate effective manager-employeerelationship building. Research shows some 67 percent of employees say they learn the most when workingwith a colleague, which emphasizes the need for effective interaction between employees, and particularlybetween managers and employees.

Interactive problem solving through listening and asking question models positive interaction betweenmanagers and employees. When employees see that managers don't make decisions or work in isolation, itgives them permission to do the same.

To Reap the Benefits of One, Implement All Three

When the three leadership/performa nce management strategies - to promote understanding, ensureknowledge and facilitate interaction - are in place, everyone thrives: the individual, teams and the

organization. But unless all three are implemented effectively at the critical manager-employee level, theother two are rendered virtually ineffective.

For example, a group's goal clarity and knowledge are suboptimized without effective interaction among itsmembers. Employees and managers must have good understanding in order to have effective interaction,but having understanding doesn't always ensure effective interaction will take place. An organization couldhave the most knowledgeable and talented people in place, but without clear understanding of purpose andeffective interaction, employees will become frustrated. Further, the most knowledgeable employees are inhigh demand in the market, and they often are the first to seek opportunities elsewhere.

The lynchpin to the effectiveness of all these strategies lies in the manager-employee relationship. Whenthis relationship isn't successful, individual, team and organization performance all will eventually suffer.

When companies refocus on this critical relationship through a renewed emphasis on basic, effectivemanagement practices, they can improve individual, team and organizational performance, increaseemployee satisfaction and strengthen talent management and retention efforts.

When it comes to performance management, it's an often told but wise lesson: If talent managers wanttheir organizations to thrive, they must continually cultivate the people and the relationships responsible formaking them grow.

[About the Author: Chris Musselwhite is the founder, president and CEO of Discovery Learning, a provider of experiential hands-on learning and personal assessment solutions

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licies (eg. communicating and consultingcan be argued (and it is) that the relationship between an employerand employee really does not affect performance. The employer exchanges pay for the performance of

specified work, and that is all that is necessary. As in a legal agreement, one party contracts for specificservices of the other party. Recent research suggests that employees perform better when they work in asituation with mutual investment, or even overinvestment by the employer, than they do in a legalagreement situation. The implication is that the employee-organizational relationship does matter andshould be chosen carefully. Many employees seem to respond favorably in performance and attitude whenorganizations are willing to commit to a mutual relationship.

The Psychological Contract The long-term economic health of most organizations depends on the efforts of employees with theappropriate knowledge, skills, and abilities. One concept that has been useful in discussing employees


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relationship with the organization is that of a psychological contract, which refers to the unwrittenexpectations that employees and employers have about the nature of their work relationships. Because thepsychological contract is individual and subjective in nature, it focuses on expectations about fairness thatmay not be defined clearly by employees.

Traditional psychological contract

In the good old days, employees exchanged their efforts and capabilities for a secure job that offeredrising wages, comprehensive benefits, and career progression within the organization. But as organizationshave downsized and cut workers who have given long and loyal service, a growing number of employeesquestion whether they should be loyal to their employers. The transformation in the psychological contractmirrors an evolution in which organizations have moved from employing individuals just to perform tasks, toemploying individuals expected to produce results. Rather than just paying them to follow orders and put intime, increasingly employers are expecting employees to utilize their skills and capabilities to accomplishorganizational results. According to one expert, the new psychological contract rewards employees forcontributing to organizational success in the competitive marketplace for goods and services.

LoyaltyStudies suggest that employees do believe in these unwritten agreements or psychological contracts, andhope their employers will keep their sides of the agreement. When employers do not, employees feel a

minimal necessity to contribute to the organizational productivity because they no longer trust the company.Thus, employees loyalty has been affected negatively. Not everyone feels that a decline in employee loyaltyis a problem. However, more employers are finding that in tight labor markets turnover of key people occursmore frequently when employee loyalty is low, and they have concluded that a loyal and committedworkforce is important.).

Documents

Empl0yee Relation