Unit 8: – Employee Relations: A General

Overview BBS 130 – Human Resource Management

EMPLOYEE RELATIONS: A GENERAL OVERVIEW

1.0. INTRODUCTION:

Employee Relations as a course of study is a critical component in the general understanding of the
relationship that exists between employers and their employees. It is a significant course for persons
being prepared to handle issues relating to the single most important resource in every organization,
namely the human resources. Personnel in the Human Resource department have a great deal to do in
harnessing, and nurturing the employer – employee relationship. It is for this reason that studies in ER
are meant to equip the would-be practitioners of ER and /or HRM with trainees with skills, knowledge
and values for promoting peace, harmony and productivity in organisations.

Thus, a wide range of topic areas are addressed. To start with, the nature of ER is presented as
constituting significant concepts and values. This includes the understanding of such values as fairness
and equity, power and authority, and integrity and trust. Secondly, the context in which ER is exercised
is such an important aspect that time is taken to analyse the diverse environments like the political,
economic, social, and technological aspects. It is no secret that ER is influenced by these factors.
Thirdly, ER is also influenced by the various actors involved in its practice. These include the
managements of organisations and their employees (and/ or trade unions); and third party entities like
government ministries and departments. The relationship between the employer and the employees is
governed by, inter alia, collective bargaining and other forms of employee participation.

In view of the complexities surrounding the employer–employee relationship, ER deals with issues of
grievances and disputes, as well as ways of resolving the same. Related to this is the issue of discipline
and disciplinary procedures in the work place. But as these matters do not exist in a vacuum, the legal
framework that describes generally how all ER issues ought to be handled will be referred to time and
again. Particular attention is paid to the Industrial and Labour Relations Act CAP 269 of the laws of
Zambia. Other laws, like the Employment Act, will also be considered.

Above, all it must be noted that time and again confusions arise regarding terminologies in describing
the relationship between the employers and their employees. These are: Industrial Relations, Labour
Relations, and Employee Relations. Perhaps it is necessary to clarify this sooner than later.

1 Kwame Nkrumah University By Patrick Mwela, MZIHRM

Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

2.0. SCOPE OF EMPLOYEE RELATIONS:

2.1. Clarification of terms:

To understand the scope of ER, it is inevitable to examine the terminologies that are often confused
when people talk about the employer–employee relationship, namely, Industrial Relations (IR), Labour
Relations (LR), and Employee Relations (ER). The best place to start from, supposedly, is IR.
Ordinarily, IR can be described as a social phenomenon that should be understood in a wide context.
In a much wider context it (IR) is taken to mean the relationship that exists between industry and
society. The relationship between the two is very important in the life of any nation as industry
provides the engine for development. Industry is responsible for the creation of wealth, which, through
employment and other means, is distributed throughout society.

At the individual organisational level, the relationship that exists between the organization and the
workers from the community in which it operates constitutes what is known as Labour Relations. In
the USA, Labour Relations is understood to mean Industrial Relations as described above. For our
study we should understand IR to refer to industry–society relationship; and Labour Relations to refer
to organization and /or company–worker relationship.

As for ER, this expression refers to the relationship that exists between managers and employees at the
individual level. It simply refers to the way that a manager relates to his workers whether he
directs/consults them when making decisions, or whether he has empowered them to make their own
decisions in which case they should consult him as and when need arises.

Therefore, it can be concluded that IR is the all–inclusive social phenomenon, which at the
organizational level is known as Labour Relations; and at the management level it becomes Employee
Relations. In the language of mathematics, IR is the universal set that contains subsets of Labour
Relations and Employee Relations. In systems concepts, IR is the system of social relationships with
subsystems of Labour Relations and Employee Relations. Another way to understand these
relationships is to consider IR as existing at the global level, Labour Relations existing at the collective
level and Employee Relations existing at the individual level.

2 Kwame Nkrumah University By Patrick Mwela, MZIHRM

Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

It is clear from these descriptions that the different terms cited above add a different dimension to the
understanding of the concept of the employment relationship. However, the approach in this particular
course of study is not to give too much emphasis on the variations or distinctions among the three terms
although any prominent differences will be acknowledged. Furthermore, considering that IR tends to
provide a foundation, as it were, to the general understanding of the employment relationship, the
preliminary portions of this study will deal with IR with a view to building a bedrock to ER.

2.1.1. Definition of Employee Relations:

Different scholars have defined ER differently. Cole (2002) states that ‘Employee Relations’ refers to
the interrelationships, both formal and informal, between managers and those whom they manage. In
other words, ER describes all those activities which contribute to the organization of the relationships
between employers and their employees. Sometimes these relationships are predominantly formalized
as a result of collective bargaining between employers and trade unions as to the role, status and
working conditions of employees. Because of its importance to national economies, ER has tended to
be the focus of legislation thus, procedures such as balloting for possible strike action or the election of
union representatives, or for the announcement of redundancies, are contained within legal parameters.

The activities or issues that ER deals with largely include the following:
(i) The contractual obligations between employer and employed;
(ii) Communications policy and practice;
(iii) Joint decision-making;
(iv) Joint problem solving;
(v) Collective Bargaining;
(vi) Individual grievance and disciplinary policy and practice;
(vii) Social responsibility;
(viii) Employee development; and
(ix) Employee welfare.
It must be noted that in most of these issues, trade unions play a significant role. However, it must be
emphasized trade unions are a prerequisite in these matters, as ER is as important for non-union
organisations as it is for unionized organisations.

3 Kwame Nkrumah University By Patrick Mwela, MZIHRM

Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

The cornerstone of ER is the contractual relationship that exists between an employee and his/her
employer, even where aspects of the relationship are subject to collective agreements. The individual
employment contract is more than just a written document; it also encompasses unwritten or implied
terms, and can include custom and practice as well as formal matters. The contract is subject to
common law in the commonwealth countries, as well as to the terms of various statutes. When
differences of opinion occur between the parties to an employment contract, the courts or tribunals then
have to decide one way or another.

In most commonwealth countries (like Britain) over the last quarter of a century there has been a
marked shift in ER away from the more combative stance of CB towards a more unified approach to
management - employee relationships. This change has been accompanied by a strengthening of
individual rights in the workplace, both in respect of the individual’s relationships with management,
and in respect of union member’s rights vis-à-vis their union. The change has come about due to a
variety of reasons including the following:
 The increased competitive pressures on commercial orgs, leading to cost-cutting exercises;
 Substantial reorganization of businesses in industry and commerce;
 Privatization of many public sector orgs;
 Org structures have been made flatter, thus changing work responsibilities and expectations;
 Flexibility of working is now an integral element of job design in private and public sectors.

Since time immemorial, and especially in the 20th century, trade unions have had a great say in the way
work is organized in orgs. This has been generally through CB. However, in recent times there has
been a reduction in the participation of trade unions in work organization and their role in CB has been
somewhat weakened especially in the developed world such as Britain. Nevertheless, trade unions still
have an important watchdog role to perform – especially in developing nations like Zambia, supported
by law, to prevent managements from acting in purely arbitrary fashion. Nowadays it is more likely
that groups of employees themselves - as empowered work teams – will contribute to the control of
work and its key processes.

4 Kwame Nkrumah University By Patrick Mwela, MZIHRM

Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

ER in developed countries is dominated by company/ organization-wide relationships rather than by

industry-wide collective arrangements made between trade unions and employers’ bodies on behalf of
their respective constituents. This is the trend that developing countries have been towing too. The
legal systems now act to support individuals in the work place as well as collective groups represented
by a union. The emphasis now is less on producing joint procedures and rules of behavior, and more on
gaining mutual commitment to organizational success within the framework of the law.

2.2. Participants in Employee Relations:

In view of the number of groups having an interest in ER, it is not surprising that differences of
viewpoint should arise concerning both the subject matter and the ultimate goals of this major element
of relationships at work. The subject matter of ER can be seen quite differently by the parties
concerned, as the following examples illustrate:
2.2.1. Managers:
Managers may see ER as one or more of the following:
 Creating and maintaining employee motivation;
 Achieving higher levels of efficiency by cooperation with employees and their representatives;
 Establishing workable and credible channels of communication with employees;
 Negotiating with trade union reps;
 Sharing power with employee representatives in an organized way.

2.2.2. Employees:
The employees may see ER as one or more of the following:
 Management’s effort to win round them to their way of thinking;
 A genuine attempt by management to adopt a benevolent approach to employees;
 A ‘them-and-us’ situation involving management–union meetings and frequent wrangling;
 An opportunity to participate in shop-floor decision making, and possibly even at board level.

2.2.3. Third parties:

Third parties (like government, conciliators, and arbitrators) may see ER as one or more of the
following:

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Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

 Attempting to achieve mutually harmonious relationships between employers and employees;

 Laying down rules of conduct (i.e., fair play) for employer–employee relations;
 Regulating the power struggle between owners and managers on the one side, and employees
and organized labor on the other;
 Establishing peace-making arrangements between the two sides referred to above, and the
protection of the interests of the rest of the community.
Considering the differing views on ER in respect of each participant in the process, it is non-surprising
that some degree of conflict in therefore inherent in ER. In some cases this potential for conflict has
been manifested in industrial action that has brought about severe damage to the employment
relationship as well as to the economy of the country. On a positive note, however, there are also
instances when there has been a substantial amount of common interest.

2.3. Aspects dealt with in ER

2.3.1. Rules and Agreements in ER
A significant implication of ER is that rule-making is essential if the parties concerned are to contain
any conflict within manageable bounds. The main body of rules in ER is drawn from the following:
(a) Company / organisation rules: These are rules and regulations generated by,
and enforced by, persons in management in organisations.
(b) Collective Agreements: These are jointly agreed rules or practices made by
management representatives and employee representatives.
(c) Custom and Practice: These are informal rules which arise from the behavior of
managers and employees over a period of time. Unlike the other rules just
mentioned, these rules are not usually written down.
(d) Legal Sources: These are the rules arising from statute, judicial precedent, and
the Common law, so far as they relate to ER.
(e) Codes of Practice: These may be the codes of professional bodies such as the
Zambia Institute of Human Resource Management (ZIHRM), Law Association
of Zambia (LAZ), or those bodies such as ACAS (the Advisory, Conciliation and
Arbitration Service), ABE (Association of Business Executives), etc.

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Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

2.3.2. Collective Agreements:

Collective agreements are normally reached at in Collective bargaining processes as shall be seen in the
lecture that deals specifically with Collective Bargaining. Collective agreements between employees
and employers are divided into two categories, namely: procedural agreements and substantive
agreements. The procedural agreements are meant to lay down the rules of behavior which the parties
to the employment relationship must adhere to in their relationships with each other. These agreements
cover matters such as the following: negotiating rights for management and unions; scope of subjects
for bargaining, etc. as for substantive agreements, these deals with terms and conditions of
employment. They cover matters like wages and salaries; hours of work; and holiday entitlements, etc.

2.3.3. Negotiations:
A negotiation is way of reaching agreement between two parties in this case. In conducting
negotiations both sides engage in serious preparations which include the following points:
 deciding objectives of the discussions;
 Assessing relative bargaining power vis-à-vis the other side, etc.
An objective for the management side could be, for instance, to obtain acceptance of flexible shift
working at minimum cost to the organization. An objective for the trade union on the other hand might
be to achieve pay parity workers in another company but in the same industry.

2.3.4. Disputes Procedures:

One key role of ER is to address disputes by devising disputes procedures. The aim of disputes
procedures is to settle disputes speedily. Ideally, disputes are solved as quickly and as close to the
source as possible by supervisors or managers in organisations. But should the internal mechanisms
fail, external sources may be called upon who may play the role conciliator, arbitrator, or mediator.

2.3.5. Employee participation:

ER encourages employee participation in the affairs of their organisations. Employee participation
comes in the following forms: consultation, works councils, workers’ cooperatives, board
representation, participative management, as well as collective bargaining.

7 Kwame Nkrumah University By Patrick Mwela, MZIHRM

Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

3.0. THE CONTEXT OF EMPLOYEE RELATIONS

Any social phenomenon, such as Employee Relations, should not be viewed in isolation from its wider
context. By context is meant the background or circumstances surrounding a particular event or
situation which may influence or constrain its development. Thus, in the case of Employee Relations,
again like any other social phenomenon, the context constitutes environments which include the
Political, Economic, Social, and Technological (or simply PEST).

3.1. The PEST:

Each of the environments, namely, the Political, economic, social, and technological, which surround
ER, is composed of a number of interrelated elements and each environment interrelates with the other
environments.

(a) The Political environment:

(b) The Economic environment:
(c) The Social environment:
(d) The Technological environment:

It is evidently clear that ER is influenced – negatively or positively – by the context in which it is

practiced. For instance, the change of government in Zambia in 2011 led to an adjustment in the way
companies operated vis-à-vis the relationship between employers and employees from the political,
economic and social fronts. A good example is the review of the minimum wage which ignited
discussions between workers and their employers. As for technological advancement, this has an
impact on the number and type of workers required in organisations. This has a bearing on the
relationship between the individual, the work, the organisation and the society as a whole.

It can, therefore, be said that changes and /or actions in the political, economic, social, and
technological spheres may directly stimulate or constrain specific ER activities as well as indirectly
influence the attitudes of the participants.

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Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

It can further be explained that each of the environments surrounding IR is composed of a number of
interactive elements and interrelates with other environments and IR. For example: the economic
environment interrelates with social expectations regarding the distribution of wealth; and
government’s economic policy interacts with IR in determining the wage levels. The growth of gender
issues in employment is closely bound up with changing social patterns and expectations in respect of
education, work and family arrangements.

4.0. EMPLOYEE RELATRIONS AND TRADE UNIONISM

Employee Relations is often characterized by the existence of trade unions which represent employees.

4.1. Definitions of Trade Union:

Trade Unions are described as organisations of workers set up to improve status, pay and conditions of
employment of their members. Trade Unions (TU) are also described as associations of workers who
by means of collective bargaining endeavour to improve their working conditions, economic and social
position.

The above descriptions of Unions assume a functionalist approach to the definition. A more generalist
definition of a TU encompasses a variety of organisations, ranging from traditional manual workers, to
white-collar unions and staff associations, to professional associations. To differentiate types of trade
unions three elements are crucial to distinguish and define a TU. These are:
 the nature of their membership
 their purpose, and
 The means they employ to achieve their purpose.

Thus, a trade union can be generally defined as any organisation whose membership consists of
employees, which seeks to organize and represent their interests both in the work place and society and,
in particular, seeks to regulate their employment relationship through the direct process of collective
bargaining with management (Salamon, 1985).

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Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

In addition, there is a legal definition that states that ‘a trade union is an organization, whether
permanent or temporary, which consists wholly or mainly of workers of one or more descriptions and
is an organisation whose principal purposes include the regulation of relations between workers of
that description and employers or employers’ association’. (cf., the Industrial Relations Act, CAP 269).

It should be noted here that the Trade Union’s role in representing its members’ interests outside
workplace requires it to participate in political activities. Trade Unions are an integral and important
part of the system of checks and balances that comprise democracies.

5.0. CONCLUSION:
Ultimately, it must be restated that Employee Relations is a broad concept. It is defined as a set of
activities which contribute to the organization of the relationships between employers and their
employees. This demonstrates that ER has such a broad scope. It deals with almost every aspect of the
interrelationship between the employers and the employees in organisations. Prominent among these is
the setting of Rules and collective Agreements to govern the relationship of the two, enhancing
negotiations and other forms of employee participation such as collective bargaining, entrenching
grievance, disputes and disciplinary procedures.

The various activities and issues that ER deals with are dependent on the disposition of the various
participants in the process. The key participants are, first and foremost, the Managers – who represent
the employers. These tend to see ER as a way of Creating and maintaining employee motivation, as
well as a way of establishing workable and credible channels of communication with employees. The
second is the Employees who tend to see ER as An opportunity to participate in shop-floor decision
making, and possibly even at board level. And the last constitute the Third parties (such as government
ministers, conciliators, arbitrators, and judges). These tend to see ER as an attempt at achieving
mutually harmonious relationships between employers and employees.

It’s essential, therefore, that all the key stake-holders are adequately engaged in the ER process.
However, the role of each one of them must be clearly understood, just as the context in which ER is

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Unit 8: – Employee Relations: A General
Overview BBS 130 – Human Resource Management

practiced must be deliberately taken into account. It is for this reason that a wide range of topics are
covered in this course.

11 Kwame Nkrumah University By Patrick Mwela, MZIHRM