Importance Of Employee Relations

Importance of employee relations in respect to influencing HRM decision making

Employee relations refer to the efforts made by companies to facilitate effective and positive relationships between the employees as well as employers of an organisations. It is very important that organisations work in a manner that equal treatment is received by all its employees. The effectiveness of employee relations in a firm could be determined by their commitment and loyalty towards the company as well as their satisfaction levels. Ernst & Young uses employee relations as human resource strategy to ensure the optimum usage of these human resources in the company. The importance of employee relations in respect to influencing HRM decision making is mentioned below:

  • Productivity: Ernst & Young operates in different parts of country marinating good brand image. It is of vital importance that HR managers of the company ensure that the employees stay productive regardless of the situations. To maintain the brand image of the firm, HR managers must take decisions that contribute in increasing the productivity of the employees. They should be fair to them and decisions taken must enhance their productivity in the firm.
  • Regularity: In an organisation like Ernst & Young, the daily operations involve almost all the individuals to ensure a smooth running of business operations. Absence of even one employee hinders the work and sometime exerts pressure on other individuals. Decision-making of HR managers must ensure better employee relations so that employees stay motivated to work with efficiency daily and provide best services to clients.
  • Loyalty: Employees are assets for growth and development of Ernst & Young. They are exposed to company's working, their strategies and even decision-making process adopted by the firm. Through effective customer relations, the HR managers of the company must ensure this loyalty in each employee of the organisation. This can be done by involving them in decision-making of the firm so that they realise their importance and provide better commitment towards the firm.
  • Conflict Management: There are many employees working at different designation in Ernst & Young, so it is essential to maintain harmony among them. But there are times when these conflicts arise on a large scale. This could be between employees or between employers and employees. HR managers must take decisions without being biased and must build take effective decisions that strengthen their employee relations.

Key elements of employment legislation and the impact it has upon HRM decision making

Employment Legislations or employment law includes those set of laws and regulations that protect the rights of the employees working in the workplace. It covers all the issues related to employees, for instance, occupational safety, retirement and pension plans, discrimination in workplace and so forth. It is very essential for companies to follow these regulations as they have an impact on the whole organisation.

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Ernst & Young must ensure that these laws are rightfully followed within the company and employees are treated fairly and equally. Moreover, the company must ensure the safety of its employees and give it a full priority. These legislations are briefly discussed below:

  • The Sex Discrimination Act, 1975: This refers to the discrimination against employees on the basis of gender. Companies often discriminate employees during selection of employees for particular jobs, during training sessions, while distributing incentives and opportunities for growth, etc. Managers at Ernst & Young must work in an ethical manner and must not discriminate any employee regardless of the gender. Equal opportunities and fair incentives must be given to employees, even unanimous training and development programmes must be introduced in the firm.
  • The Equal Pay Act, 1970: This act states that men and women must receive equal pay for performing similar task. This means that both the types must be given equal importance in the firm. Ernst & Young must ensure equal pay to all its employees and must value women and men as equal. Such equality would facilitate better commitment of employees in the firm and would enhance their productivity knowing that it would be paid.
  • The Race Relations Act, 1976: The act suggests that under no circumstances must employees be discriminated on the grounds of race. This discrimination might be on the task given to the employees or the pay scale, or even opportunities given to them. The decisions taken on salaries, incentives, bonuses and opportunities at Ernst & Young must focus on facilitating equality in the workplace and the clients. In addition to this, the managers must ensure that employees belonging to other religion must be treated fairly amongst other employees of the organisations. This would enhance the reputation of the firm in the market and they would be able to gather more customers internationally.
  • The Disability Discrimination Act, 1995: This act is applied to the organisations who have more than 20 employees. They must not discriminate any employee if they are disabled. In contrast to this, they must be given proper support and motivation to work despite of being incapable physically. Managers at Ernst & Young must provide better access to disabled employees in terms of transport, seating facilities elevators etc. These decisions would enhance the productivity of the employees as they will be equally treated in the work place.

Impact of employment legislations on Human resource management

The HR managers must ensure that these legislations are well applied in the organisations. These laws influence employees, working environment, business operations, salary issues, etc. In context to Ernst & Young the HR manager must employee protection through these legislations.

The application of HRM practices in a work-related context

Person Specification

This refers to the skills that are required in a potential job candidate in order to complete the activities and roles of the position offered by the firm. This is necessary for the firms as it would provide a clear idea of what is required from the candidate. It includes the educational qualifications of the candidate, training experience and their personal qualifications that must be possessed by the individuals.

The current requirement at Ernst & Young is of an Human Resource Manager, the person specification for which is discussed below:

Person Specification

Job title: Human Resource Manager





MBA Executive (Human Resource)

Full time MBA

Relevant Experience

Experience of five years in same field.

Trainee at any reputed company for more than 12 months.

Skills And Competencies

·Appropriate knowledge of human resource practices

·Managing customer relationships

·Effective communication skills (both verbal & written)

·Effective influencer

·Leadership Skills

·Presentation Skills

·Management Skills

Job Advertisement: A job advertisement refers to electronic or print notification which shows intentions to hire personnel for a particular designation in the firm. Job advertisement is used by the managers to get application by information society about the post that is vacant. For HR Manager, the Job Advertising used at Ernst & Young is as follows:

Job Advertisement

Job Opportunity For Human Resource Manager

Qualification: MBA (Human Resource)

Experience: Minimum 5 years at the post of Human Resource Manager

Age Limit: 25 to 35 years

Salary Package: As per competencies and skills.

Other Benefits: As per policies of Ernst & Young

Last Date Of Submission:

Send Curriculum Vitae (CV) at personal Email ID of the firm.

Address: Ernst & Young, London, United Kingdom. Phone: 000-00000


Thus, it is concluded by the report that Human Resource Management is very important in organisations driving towards achieving success. The report includes the purpose and functions of HRM which is essential for organisations to effectively manage the employees. It also includes a detailed analysis of recruitment and selection process along with emphasis on their advantages and disadvantages. The report covers benefits of various HRM practices within organisations for both employees as well as employers. Along with this, effectiveness of different HRM practices is evaluated on the basis of their contribution in raising organisational profit as well as productivity. Employee relations and their influence on Human Resource Management is also discussed briefly. The report inculcates the key elements of employment legislations and their impact upon Human Resource Management decision-making. Lastly, the application of HRM practices is discussed by preparation of job specification and job advertisement.

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