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Dr. D. S.Chaubey,
Dean Research & Studies,
Uttaranchal University, Dehradun, India
Navita Mishra, Dr. Rajat Praveen Dimri,
Research Scholar, Asst. Professor,
Pacific University, Udaipur, India Department of Management studies,
SHRU, Jolly Grant, Dehradun, India
ABSTRACT
The business has become more competitive in the present era. Globalization, privatization and
liberalization have brought the sea change in the business organization. The employees relationship
management has emerged as one of the important tool for motivating employees and enhancing their
satisfaction. Increased competition, changing customer needs, influence of technology and changing
business environment has posed many challenges before management. The employee relationship
management is a human resource management aspect that is influencing performance of small and
large organizations in the 21st century (George & Jones, 2008). This study aims to find out the
perceived relationship between employee relations management practices and job satisfaction
among the employees working in some selected small and medium enterprises located in Dehradun,
district of Uttarakhand State. Descriptive Study was done. In a survey of 167 employees, it was
found that there is strong relationship between ERM practices and employees job satisfaction.
International Refereed Research Journal ■ www.researchersworld.com■ Vol.– VIII, Issue –2(10), April 2017[15]
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INTRODUCTION:
In the present business environment, the need for an Employee Relationship Management System within the
enterprise is critical today and the reason behind this the growing size of the organizations. This system helps
the organization to strategize the overall growth of the organization which includes the growth of every
individual in the organization. ERM is not a product, or a technology rather it is an approach or a blueprint that
aims to bring conversation into newer avenues within an organization. Today most of the organizations focus on
technology for improving employee relationships such as HR system, Salary disbursal system, HRIS,
Performance Management, electronic mail for improving communication, training and development program
etc. These technologies have enhances efficiency rather than relationships. If the management does not adopt
employee centered values, the aforesaid technologies can result in spreading negative and low morale rather
than having a positive impact on attitude and morale of the employees. ERM tools abolishes the dependency on
control systems and hierarchical command while introducing more of a self organized culture of employees
that is inter-networked to cooperate on the points of need. Employee relations have become the driving force
of competitive organizations in the global business environment. Maintaining good interrelationships
among various stakeholders is the critical aspect that determines organizational performance (Armstrong, 2006).
LITERATURE REVIEW:
Employee Relationship Management and its practices:
Oluchi defined ERM as a process that companies use to effectively manage all interactions with employees,
ultimately to achieve the goals of the organization. The human resources department can play a critical role in
this process, both in terms of training and coaching managers and executives on how to effectively establish and
nurture relationships with employees and in measuring and monitoring those relationships to determine whether
objectives are being met.
Employees Relationship Management(ERM) have many advantages to the organizations. Wargborn, (2008)
emphasing that ERM doesn't only foster high level of performance it has many documented positive effect in
organizations such as strengthening corporate communication and culture, fostering learning -about company
products, services and customer profiding real time access to company training, targeting information to
employees based on their interests and needs -user personalization, Streamlining the performance
management , managing resource creatively, Freeing the HRM department to concentrate on more strategic
tasks, raising the productivity encourages innovation levels of the employees, reducing employees turnover
reducing recruitment and training costs and supporing management to afford effective and consistent
rewarding. In line with this George & Jones, (2008) also advocated that it involve the communication and
relationship between management and its employees that is aimed at maintaining employer-employee
relationships that in the end contribute to satisfactory productivity, job satisfaction, motivation and morale of
the employees.
Kaliski(2007) believed that effective employee relations enhances positive communication and attitude between
management and employees, promotes the overall wellbeing of employees during their tenure at the company and
helps in preventing and resolving problems involving employees' that affect work situations. Employee
relationship management entails the ability to, balancing life and work needs, employee needs open, the ability of
the organization to keep good relations with its stakeholders including trade unions, employees, suppliers and
customers and measuring and monitoring results.Organizations normally engage in various employee relationships
management practices to develop healthy relationships and extract the best out of each team member.
According to Schweitzer & Lyons (2008), these management practices include: 1) employee empowerment and
involvement; 2) initiating employee suggestions; 3) facilitating collective bargaining;4) conflict management
and grievance redress measures; 5) expertise training and development; 6) transparency in communication and;
7) encouraging group activities (teamwork) .
These employee relationship management practices can have many different effects on the work of an
organization; they can enhance perception and strengthen corporate communication, foster learning, increase
employee involvement, provide real time access to company training, targets information to employees based
on their interests, streamline performance management, manage resources, encourage loyalty and commitment,
raise productivity, encourage innovation levels, reduce turnover and retain human talent.
Empowerment as a recent and advanced manifestation of employee involvement improves employee relations
and contributes directly to organizational objectives by increasing skill sets and granting authority to the
employees to make decisions that would traditionally be made by managers (Ivancevich, 2001). It can
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encourage employees to be creative and to take risks, which are key components that can give a firm a
competitive edge in a fast-changing environment (Hymowitz, 2000).
According to Shapiro (2000), organizations are giving efforts to involve employees to different degrees by
which staffs are encouraged, enabled and empowered to contribute towards goal attainment. Spreitzer et al.
(1997) reveals that workers with greater choice concerning how to do their own work have been found to have
high job satisfaction. Employee empowerment is more relevant in today?s competitive environment where
knowledge workers are more prevalent(Jarrar&Zairi, 2002; Wimalasiri&Kouzmin, 2000). Thus, it is of vital
importance that HR managers today understand that empowerment is really a necessary tool to increase
employee satisfaction, which will transfer into greater productivity and organizational effectiveness.According
to Garrido, Rez and Ant,(2005) Disciplinary procedures adopted by organizations determine how organizations
recognize and respond to employee disciplinary issues in the organizational context. Transparency and effective
communication in disciplinary matters will enhance the relations between the employer and the employees
Sweney & McFarlin, (2005) in their research found that effective approaches adopted in conflict management
within the organization like coaching, training, mediation and facilitation will enhance employee and
employer relations thus improved job satisfaction. The opportunity of employees to join trade union of their
choice as their right always influences the spirit of team work and motivation to perform well in an
organization. The employees who are members of trade unions tend to feel protected and have a voice over their
employers in the changing business environment.
Other practices that employees' use to measure their level of job satisfaction with an employer are; collective
bargaining agreement, grievances and dispute settlement, work life, how employees are engaged in the
organization's decision making, trade unionism, career growth and promotion opportunities, organizational
culture and rewards. The application of human relations in managing human resources is critical in
today's business competitive environment (Christen, Iyer & Soberman, 2006).
According to Amessa and Drakeb (2003) communication is one of the critical components that enhance
the spirit of team work within the organization. Decentralized organizational structures can enhance the quality
of decision making in an organization and vice versa. Top down and bottom up management approach in an
organization is likely to promote cohesiveness among workers of the organization hence job satisfaction.
Timely feedback of employees on evaluations from top level managers and open door culture of sharing ideas
between top level management and lower level management always enhances employee satisfaction and
organizational performance.
Job Satisfaction:
According to Armstrong, (2006) Job satisfaction is the fulfillment which an employee feels in relation to their
jobs and work place. It brings the question, whether the employee is happy or content at their jobs. An
employee may be measuring their satisfaction in financial, non-financial or psychological contract terms. Job
satisfaction degree levels of people range from extreme dissatisfaction to extreme satisfaction. People also
posses various aspects attitudes regarding their jobs such as, type of job done, amount of pay, co workers
subordinates and supervisors.
George and Jones(2008) in their research found that aspects that promote job dissatisfaction range from;
poor leadership style, inability of firms to allocate adequate resources to train workers, inability to settle
employee disputes on time, inappropriate compensation policies and inappropriate performance appraisal
techniques. On the other hand it is evident that organizations that maintain good relations with their employees
are likely to experience increased profits, improved customer service delivery, minimal resistance to change,
dedicated and motivated staff who work to achieve organizational objectives. Due to job dissatisfaction,
performance of the organization has been affected resulting to increased employee turnovers, decreased profits
and performance standards in the competitive business environment in the recent past. Other aspects that
enhanced job satisfaction included; training of employees, open communication and timely introduction of
change.
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RESEARCH METHODOLOGY:
Present research is exploratory as well as Descriptive in nature. Research is based on primary as well as
secondary data. Secondary data was collected from different sources like: books, magazine, journals, research
paper etc. Primary data was collected by using survey method; a structured questionnaire is designed covering
different dimension of social media marketing and its influence on customers in building purchase preferences.
Construct related to social media marketing and its outcome were developed on the basis of review of the
literature and research by the different authors. Descriptive research was used for this study since it explores
and describes variables' relationships the way they occur without manipulating them. This design is a
framework used to attach the research components together (Krishnaswami, 2003). The descriptive study is
aimed at obtaining information can be subjected to analysis, extraction of patterns and drawing of
comparisons for clarification purposes and provision of making decisions platforms. Both quantitative and
qualitative data were obtained for the purposes of comparison.
DATA COLLECTION:
Present research is based on primary as well as secondary data. For collecting primary data, structured
questionnaire was developed covering the various factors affecting relationship in the organization. An extensive
literature survey was carried out to develop the construct for the study in the form of questionnaire. Secondary
data was collected through books, online and print journals. The research instruments used in the study were self
administered questionnaire with structured question items that were answered by the organization employees. The
questionnaire thus developed was piloted on a sample of 200 respondents working in selected small and medium
enterprises located in Haridwar visiting personally and contacting them personally. Almost 180 responses were
received after editing 167 questionnaires was found suitable and taken for the study. The confirmatory factors
analysis was carried out to identify the important factor. Descriptive statistical analysis was carried out to analyse
the relative importance of various construct developed for the study.
DATA ANALYSIS:
The data collected during the research was edited, coded, classified on similarity basis and then tabulated. The
data was analysed using simple descriptive statistics of frequencies and mean. Regression analysis was used
to find out the relationship between variables of the study.
The regression model used was of the following form; Y= ?0 + ?1X1 + ?2X2 + ?3X3+
ANALYSIS OF RESULTS:
This section contains employees' personal attributes such as the age, gender, marital status, family size,
education level and income level in the organization. The reason for their inclusion is to shed more light on the
characteristics of persons involved in the research and describing issues affecting the relationship between
Employee Relationship Management practices and job satisfaction. Table 1 indicates the Demographic
Characteristics of the respondents.
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The information presented in the above table reveals that 51 respondents i.e. 35.7 % were from age group up to
25 years; 20 respondents i.e. 14% were from age group 25-35 years;33 respondents i.e. 23.1 % respondents
were from age group 35-45 years;24 respondents i.e. 16.8% belongs to the age group 45 to 55 years; 15
respondents i.e. 10.5% were from age group 55 years and above. This shows that sample is dominated by the
young category respondent ranging in the age group up to 25 years in the sample followed by the age group 35-
45 years.
Male respondents were more as compared to female respondents.120 respondents i.e. 83.9% were male whereas
only 23 respondents i.e. 16.1% were female .Thus, sample is dominated by the male respondent in the
sample.54 respondents i.e. 37.8% were unmarried and 89 respondents i.e. 62.2% were married. Majority of the
respondent were from unmarried category.5 respondents i.e. 3.5% were having family size upto 2 members; 62
respondents i.e. 43.4% were having 3-4 members; 59 respondents i.e. 41.3% were having 5-6 members and 17
respondents i.e. 11.9% were having more than 6 members. The information presented in the above table reveal
that out of total respondents, 14 respondents i.e. 9.8% were educated up to matriculation; 22 respondents, i.e.
15.4% were intermediates; 65 respondents, i.e. 45.5% were graduates; 36 respondents, i.e. 25.2% were post-
graduates and 6 respondents i.e. 4.2% were professionally qualified. This shows that maximum respondents
were graduates and post-graduates.. Out of total respondents, 17 respondents i.e. 11.9% were earning Up to
Rs.15000 PM; 42 respondents i.e. 29.4% were earning between Rs15000to Rs.25000 PM; 18 respondents i.e.
12.6% were earning between Rs.25000 to Rs.35000 PM; 34 respondents i.e. 23.8% were earning between
Rs.35000 to Rs.45000PM; and 32 respondents i.e. 22.4% were earning Rs.45000 and above. Majority of the
respondents were earning income between Rs15000 to Rs.25000 PM and Rs.35000 to Rs.45000 PM.Out of
total respondents, 13 respondents i.e. 9.1% were managers; 12 respondents i.e. 8.4% were supervisor; 64
respondents i.e. 44.8% were entry level workers; and 54 respondents i.e. 37.8% were others which includes
administrative staff.
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Above table 2 shows the year of experience of respondents in the present organization. Out of total, 77
respondents i.e. 53.8% were associated with their present organization for less than 3 years; 26 respondents i.e.
18.2% were associated with their present organization between 3-5 years; 18 respondents i.e. 12.6% were
associated with their present organization between 5-10 years; 14 respondents i.e. 9.8% were associated with
their present organization between 10-15 years; and 8 respondents i.e. 5.6% were associated with their present
organization from more than 15 years. It is seen that majority of the employees of the organization were
associated for less than 3 years.
From the above table 3, it is clear that the highest mean was 3.3776 for the factor there are multiple methods to
determine employee misconduct. The second highest rated factor was there is standard provision of
communication in case of misconduct with mean 3.3706. The least rated factor at 2.9231 mean was the Senior
management of the organization are always ready to resolve employee issues using informal methods than
formal methods. This implies that senior management of the organization are always ready to resolve
employees issues using informal methods , this may not be the case always .
CONFLICT MANAGEMENT:
For an organization to grow effectively and efficiently it depends on the way it manages the conflict within its
organization. Thus, respondents were asked to indicate their perception on the effectiveness of conflict
management. The results are indicated in Table 4 .
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From the above table 4, it is clear that the highest rated factor with mean 3.1678 was managers always seek
consensus with employees during conflict resolution. The least rated factor with mean 2.9371 was appropriate
parties are involved in conflict management forums between the employer and employees and so on.
TRADE UNIONISM:
Trade unionism acts as a communication bridge between the employer and employees during grievances and
collective bargaining agreements. Armstrong (2006) asserts that employers should encourage employee to be
members of trade unions for them to feel protected and recognized in the organizational context. This study
sought to know whether trade unionism has an influence on job satisfaction. The results are indicated in Table 5.
Above table 5 shows the employee perception towards trade unionism. The findings indicate that a majority of
the employees believed that employers always encourage their employees to join trade unions (mean=3.6783).
The second highest rated factor with mean 3.0350 was Trade union decisions are respected by both the
employer and employees. The third highest rated factor with mean 2.7902 was Union representatives are
respected by employers and the least was Trade union always represent the welfare of employers and employees
with a mean 3.33.
COMMUNICATION:
Communication plays crucial role at organizations and it is one of the most important factors which improve the
relationship among employees. When communication is open and transparent, employees can build high trust in
their organization and perceive the organization as being transparent. This study therefore was an attempt to
identify how communication affects levels of job satisfaction. The results are as shown in Table 6.
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The findings presented in table 6 shows the distribution of responses on communication. The findings indicate
that a majority of the respondents believed that Communication hierarchy is two way traffic (mean=3.7692) and
the least was Managers interact with their employees openly with a mean =2.1189.
The above table 7 shows the employee perception towards Employee Empowerment and Involvement.The
findings indicate that a majority of the respondents believed that the management delegates some
responsibilities to employees (mean=3.3706) and the least was Management supports employees job related
activities with a mean =1.4476.
Std.
Mean
Deviation
Employee creative thinking is encouraged in the organization . 3.0350 1.00990
The management review and acknowledges employee suggestions 2.3497 1.25742
Managers regularly seek employees opinions on job related issues 2.1189 1.18968
Employees are rewarded whenever their suggestions are approved. 3.0350 1.00990
Valid N (listwise)
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JOB SATISFACTION:
There are different factors that were tested to indicate the level of job satisfaction. The results were shown in table 9.
Table 9: Level of Job Satisfaction
Std.
Mean
Deviation
My job properly utilizes of my abilities and skills 3.1958 .78056
I am satisfied with the decision making involvement in decisions affecting your work 3.0210 .76424
I am rewarded for my efforts’ quality 2.3986 .50546
I feel encouraged to come up with better and new ways of performing tasks . 3.2867 .45382
I have resources and tools to perform my duties well 2.6993 1.21629
I get a feeling of personal accomplishment from my work 3.0559 1.36751
I am satisfied with my work 2.5455 1.28768
I am satisfied with the chance of getting a better position in the company 2.7692 1.16094
Valid N (listwise)
From the above table 9, it is clear that the highest rated factor with mean 3.2867 was I feel encouraged to come
up with better and new ways of performing tasks. The second highest rated factor with mean 3.1958 was my job
properly utilizes of my abilities and skills. The Third highest rated factor with mean 3.0559 was I get a feeling
of personal accomplishment from my work .The fourth highest rated factor with mean 3.0210 was I am satisfied
with the decision making involvement in decisions affecting your work and the least rated factor was I am
rewarded for my efforts' quality with mean 2.3986.
REGRESSION ANALYSIS:
Regression analysis was carried out to impact of Employee Relationship Management Practices on job
satisfaction of the employees. In this study the simple linear regression analyses was used to assess the impact
of Employee Relationship Management Practices on job satisfaction
a. Predictors: (Constant), enc, Conflict Management, Discipline, Communication, Trade Union, Employee
Empowerment and involvement and encouragement of employee suggestion
The information presented in table 10 shows the R, R-Squared, Adjusted R Square and Std Error. R denotes the
correlation between observed and predicted values of the dependent variable. The value of R ranges from -1 and
1. Small values indicate that the model does not fit the data well. In this case, R= .559. The above table shows
the model summary and overall fit statistics. We find that the adjusted R² of our model is .282 with R2=.312.
a. Dependent Variable: JS
b. Predictors: (Constant), enc, Conflict Management, Discipline, Communication, Trade Union, Employee
Empowerment and involvement and encouragement of employee suggestion
The above table 11 shows the F-test .The F-test statistic is the regression mean square divided by the residual
mean square. The linear regression's F-test has the null hypothesis that there is no linear relationship between
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the two variables With F = 10.281 and 142 degrees of freedom the test is highly significant, thus we can assume
that there is a linear relationship between the variables in our model.
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