Question

Analyse the importance of employee relations in respect to influencing HRM(Human Resource Managnment) decision-making.

Need to show the source or reference( book or online...).

Answer 1

Any successful company's strong base is its men. Employees are a source of knowledge and ideas but this resource often remains untapped. The involvement of employees in the decision-making process not only empowers them to contribute to an organization's success but also saves the company time and money in increased productivity and reduced outsourcing.

When employees participate in decision making, they acquire a professional and personal stake in the organization and its overall success. This dedication contributes to improved efficiency as workers engage actively in all facets of the business and desire to see their efforts ultimately succeed. This not only promotes the growth of the business, but also provides on-the-job training for the staff. Increased accountability expands employee skill sets, preparing them for future additional responsibility.

Participation in the decision-making process offers an opportunity for each employee to express their opinions and share their experience with others. While this improves manager-employee relationships, it also encourages a strong sense of teamwork among workers. The expression of points of view allows dialog between workers, with each employee bringing their individual strengths to a project. It is also a good way to collect information about the workers as to how they work in a team environment, and where training might be required, all of which contributes to an increase in productivity and eventually an increase in good teamwork and success.

Using employees in the decision-making process, rather than outsourcing, saves money , time and provides reliable assistance to the company over the long term from those who know the company well. It is expensive to employ an external consulting firm which can take up precious resources in fees and the time spent training outside consultants in different areas of the company. However, employees are already aware of these processes, offer insightful knowledge of the needs of the company, and understand the company's policies at large.

Reference- Investing in People: Financial Impact of Human Resource Initiatives by  John Boudreau and Wayne F. Cascio