Employee relationship management and its impact on job satisfaction

Research Paper

Human Resource Management

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In business, human resource management (HRM or HR) is a key to effective and efficient control of people in a company or organization to contribute to achieving the organization’s goals and objectives. The research paper discusses the functions and role of Human resources in a company or organization. Human resource management has a lot of benefits in a company. Good HRM has a positive relationship and creates greater productivity in a business. Good relationship conducts employee survey, embraces flexible work options, updates technology and tools, and offers career development and skilling resources. Good HRM has a positive relationship with financial success in that it influences company financial performance positively. It also creates diversity. Diversity in a business drives its performance, and lack of diversity impairs business results. When a company practices inclusion, it allows positive outcomes such as high performance, creativity, innovation, and psychological safety. Some of the keywords found in this paper include:

HR-human resource

HRM-human resource management

IT-information technology

ERP- Enterprise Resource Planning



In business, human resource management (HRM or HR) is a key to effective and efficient control of people in a company or organization to contribute to achieving the organization’s goals and objectives. Its objective is to increase employee performance to achieve the employer’s strategic objectives in question. The control of people within an organization is the primary concern of human resource management, mainly concerned with policies and systems. The human resources department oversees employee benefit layout, talent acquisition, learning and growth, performance evaluation, and reward management, controlling different pay and employee benefit systems.


The field of human resources is also concerned with change management and labor relations, or the stabilizing of organizational activities with the requirements imposed by collective bargaining agreements and government regulations. The overall goal of human resources (HR) is to make sure that the company can achieve success through the efforts of its employees. Human resource professionals are responsible for managing an organization’s human capital and putting policies and processes in place. They can concentrate on various areas, such as discovering, hiring, choosing, coaching, building employees, and keeping workplace relationships or benefits policies and procedures. Coaching and building professionals ensure that employees are appropriately trained and are given opportunities for ongoing development.


Training programs, performance reviews, and incentive programs are all used to accomplish this. It is the responsibility of employee relations to address workers’ concerns when rules are broken, such as in cases of harassment or discrimination. Improving payback structures, parental leave programs, special offers, and other employee benefits are all part of the process of managing employee benefits. Human resource generalists and business partners are found on the other side.  These human resources specialists could work in various roles or as labor relations representatives who work with unionized workers. Companies that demonstrate great Human resource management practice are more likely to enjoy greater productivity, financial success, and diversity and inclusion. Human Resource Management encourages the workers and the customers, improving the firms’ productivity and the organization’s financial status.


The main objective of the research is to determine the impacts of Human Resource Management on the finance of a company, performance, and diversity. 

Specific objectives 

  • To determine the role of HRM on the company’s productivity. 
  • To find the importance of good HRM on the finance of the company.
  • To establish a good HRM positive relationship with inclusion and diversity.

Employee Relationship Management

Employee Relationship Management, also known as ERM, controls relationships within a business organization. These relationships can exist between an organization and its employees and between coworkers who are on the same level as one another (Chaubey et al., 2017). Employees who want to be productive must do so in an environment that encourages them to think outside the box. When employees have a cozy, working relationship with their coworkers, it will show their overall performance and productivity. The level of communication and collaboration will increase. A well-managed enterprise resource planning (ERP) system will create the way for a satisfying worker’s experience and contentment from the job your employees perform.

Role of Employee Relationship Management

When developing strong employee relationships, human resource management can be a significant contributor. They can organize activities that encourage employees to collaborate and with managers. HR specialists can improve relationships at work in various ways, divided into two sections.

Between Coworkers

If adequately nurtured, peer relationships have the potential to improve the culture of your organization significantly. A positive relationship fosters camaraderie and increases employee morale. When employees work in groups, they can acquire new skills, encourage one another, and collaborate more effectively. Employees who work in a healthy environment are more likely to perform well and achieve their objectives.

  1. Build cross-functional Teams

Cross-functional teams work across organizational boundaries to achieve common goals. CFTs enable employees from various departments to pool their resources and work together toward a common objective.

Different teams who have never operated together before can get to know one another by putting together this team. Furthermore, problem-solving becomes more efficient when people with various skills collaborate on a project. When you unite experts in diverse sectors, you will generate new and innovative ideas.

When people collaborate, they can let go of their preconceived notions and understand one another’s points of view. It enables them to see how their colleagues arrive at a decision and the thought process that goes into it.

  1. Encourage Social Interactions

The most effective way to socialize with one another is through food and drink. Our company, Vantage Circle, holds mandatory team lunches to commemorate all significant company milestones. When you stop to think about it, it’s incredible that employees show up to a job every day, work in the exact location, and rarely interact with one another. When working in large corporations, people tend to keep to themselves. When they take their lunch breaks, they continue to eat at their relevant desks while browsing through their phones or watching videos, for example. You can arrange team lunches and potlucks to ensure that your employees don’t feel like strangers in their workplace. These gatherings can provide excellent chances for people to meet and network with members of other organizations. Relaxed surroundings of this nature can even foster the development of friendships and the formation of strong bonds.

  1. Conduct Team Building Activities

The advantages of participating in group activities are numerous and innumerable. It increases the frequency with which employees communicate and enhance problem-solving and decision-making abilities. Most relevantly, team-building activities help build and strengthen bonds among group members. When groups collaborate, it creates an environment where trust can be made and exchange ideas and opinions. For the most part, it is about sharing and merging knowledge and experience to achieve objectives.

  1. Equip them with Communication Tools

Employees must communicate with one another for relationships to be formed and maintained. When there is a communication breakdown, it can lead to misunderstandings and, ultimately, to conflict. Because of the impact and immediacy of innovation in today’s world, it is imperative to be connected to the outside world. Workplaces, too, must similarly equip themselves. Providing workers with forms of communication is an effective way to ensure that they can always share vital information and with the organization. Messaging apps such as Skype and Slack enable people to communicate with one another from anywhere in the world using cloud-based communication tools. As a result, you can efficiently strengthen the bond among your remote workers by utilizing new-age communication tools.

Between the Manager and the Employee

Employees are frequently hesitant to share data with their supervisors because they are constantly concerned about its appearance on their performance evaluations. Managers who can bridge the gap between themselves and their workers without being overly friendly or overly authoritative, on the other hand, will develop long-lasting relationships with workers.

  1. Hold 1:1 Meetings

These meetings, as opposed to feedback or appraisal meetings, are one-on-one interactions between a manager and an employee that take place face to face. These meetings are scheduled in advance and are attended by every member of the organization’s staff. During these meetings, the worker has the right to discuss anything with the manager, including new ideas, issues, and concerns.

When it comes to operating these meetings, managers play a critical role in the process. Once you have scheduled time in your planner to meet with an employee one-on-one, how your relationship develops from there is heavily dependent on you.

They must first create an environment where workers feel comfortable expressing their concerns and issues to management.

Second, once an employee begins to express his or her issues, the manager must remain calm and expansive while listening to the employee and attempting to resolve the matter. When an employee perceives that you are open to hearing their views and concerns, they will be more likely to return to you with more information. This will help to build trust and strengthen your relationship with your employees.

  1. Conduct Surveys to understand how employees feel

Collaborating in this company, we frequently hear managers and CEOs express dissatisfaction with their employees, claiming that turnover is too high, and so on. However, instead of determining why employees are dissatisfied, companies attempt to burden them with meaningless tasks.

Although you may be providing excellent insurance coverage to your employees, it is possible that what they need is a work at home policy. There is no other way to find out than by conducting surveys.

Surveys such as employee engagement surveys and 360-degree surveys help organizations to comprehend the needs of their employees and customers. Once you understand where you are missing, you can correct the problem and provide your employees with workable solutions.

As a result of conducting these surveys, your employees will feel that you sincerely care regarding their needs and demands. This will help you build trust and loyalty among your employees, improve your brand recognition, and strengthen your overall relationship.

Benefits of Positive Relationship Created by HRM

  1. Heightened Employee Loyalty

Employees do not resign from their positions. Employees who do not believe their workplace culture is feasible are not likely to hesitate to change their employment status. This primarily occurs when employers fail to recognize the importance of strengthening ties with their employees.

Neglecting the chances to transform workers’ relations results in financial losses for the employers and the company. However, it also seriously damage their company image, preventing them from attracting new talent in the future.

As a result, employers must constantly monitor how their employees feel and whether their careers progress.

  1. Increased Motivation

Employees with positive workplace relationships are more likely to give their all and work harder. The ability to maintain positive relationships with your workers is not limited to effective communication. Recognizing and applauding your employees’ efforts in the workplace is also essential. Even employees appreciate it when their superiors praise them, as it helps increase their productivity and motivation. It is proven that highly motivated employees make for excellent team members.

Additionally, employees who have a high motivation are much less likely to suffer from burnout than their counterparts.

  1. Fewer Chances of Workplace Conflicts

Conflicts in the workplace are one of the most common reasons businesses go out of business. Disputes of this nature typically arise due to disagreements between employees and the employer. If left unaddressed, these disparities will continue to grow, widening existing gaps. Having a positive relationship with the staff is the only reasonable solution in the employers’ court situation. In this way, employers can make fair and objective decisions involving their employees and reduce the likelihood of conflict within the organization.

  1. Improves the Trust and Confidence

Building confidence and trust in the workplace takes a significant effort for both employees and employers. It would not be incorrect to compare it to a puzzle, with the most crucial being maintaining positive employee relations. Employee positive employee relations foster the growth of confidence and trust in the workplace. The majority of businesses employ employee relations managers to handle the same tasks. These managers are responsible for ensuring that the organization’s efforts to improve employee relations remain on track. Additionally, how employers communicate with their employees impacts the level of trust and confidence. As a result, it is critical to maintain open and honest workplace communication.

  1. Ensures a better Workplace Culture

Companies are described by the culture that exists in their workplace.

Workers and job seekers alike are always looking for opportunities to work for companies with positive work cultures. Trusting your employees, rewarding employees’ efforts, and coming out to support employees in distress are all examples of good work culture that can be described in various ways. Like all of the other factors, a strong employee relationship contributes to developing positive workplace culture. It has been shown that when employees have a positive relationship with their manager, they are more likely to adhere to the firm’s policies and principles. Employees benefit from this, which is reflected in their overall satisfaction with its services.

All the factors described above motivate the workers, and hence employees work well and thus the productivity of the company increases.

Role of Good HRM on a Positive Financial Success

Human resources are widely regarded as the most valuable asset an organization possesses. A significant amount of attention must be paid to human resource management to achieve its goals. Successful human resource management contributes to achieving three fundamental objectives of each enterprise: survival, growth, and income increase. It also provides them with a confrontation with competitors in the market, which is extremely cruel. A company’s financial performance comprises two components: financial effectiveness and profit. Profit evaluates the return on the investment and the return on assets, whereas economic efficiency controls the sales revenue and the net profit margin, respectively.

One of the subjects of this paper is an examination of the relationship between various human resource practices and the economic condition of businesses in different industries. Consequently, the purpose of this research paper is to determine the best HR practices based on the financial performance of the companies. The paper’s methodology includes the following steps: descriptive and comparative methods, followed by a questionnaire and an econometric model to test this relationship empirically. All of this is done using the IBM SPSS v.23.0. The research uses current literature and publications in human resource management activities and financial performance.

Nothing is completed in an organization without the participation of its members.


And the human resources department is the nerve center of all things people-related. It is responsible for activities such as recruitment, onboarding, leadership development, and career advancement, all of which have a significant impact on the success of an organization.

Consequently, human resource management impacts almost every element of a company’s financial performance, both directly and indirectly, and has the potential to have an amazingly positive and profitable result. However, demonstrating this point can be difficult because the power of the people is a metric that is all too rarely tested in today’s world.

HR groups that are adept at undertaking people analytics are increasing profits – as well as their reputation – by evaluating and showing the influence of individuals on financial performance, which is changing the game. Therefore, we can summarize by saying a strong relationship between HR and the company’s finance department is key to the success of a business.

Human Resource Management and Diversity

Any organization must create a more culture of inclusion first to comprehend what makes up workplace diversity in the first instance. The term “workplace diversity” refers to the wide range of differences between individuals within an organization. Individuals’ identities are not the only diverse thing; others’ perceptions are also important. Race, sex, ethnicities, maturity level, religion, sexual preference, citizenship status, military service, mental and physical conditions, and other unique differences between people are all considered when discussing diversity in the workplace.

Benefits of Diversity in the Workplace

There are numerous advantages to working in a diverse environment. Companies that commit to hiring a new diverse workforce, for starters, will benefit from the increased number of qualified candidates and a shorter time to fill open positions. Companies that do not hire from a diverse pool of candidates run the danger of losing out on qualified applicants and could have a more challenging time filling key positions, resulting in higher overall recruitment costs.

An online study taken by Glassdoor found that 67 percent of applicants consider diversity in the workplace when evaluating job offers, and 57 percent of workers believe their businesses need to be more diverse due to the survey results. These figures are extremely telling. A diverse workforce allows organizations to fill vacancies with suitable candidates faster by recruiting from multiple talent pools and enhancing their employer brand, which is critical for attracting the best candidates.

It can also be beneficial for businesses to have a diverse workforce that includes multilingual employees who come from various ethnic backgrounds. This is especially true for companies seeking to grow or enhance efficiency in international, national, regional, and local markets.

Impact of Diversity on Business Performance

Diversity Improves Company Performance

Companies with a diverse workforce outperform their counterparts regularly.

Gartner’s research predicts that, through 2022, 75 percent of organizations with inclusive and diverse decision-making teams will outperform their financial targets in terms of profits. According to the study’s findings, teams that are gender diverse and inclusive outperform their less inclusive and diverse counterparts by 50%.

As part of a 2019 study conducted by Weber Shandwick in collaboration with United Minds and KRC Research, 66 percent of executives at companies that have connected their company objectives with diversity and inclusion goals believe that diversity is a significant driver of a firm’s profitability, as per a 2018 BCG report, businesses with more varied leadership generate more innovation revenue—45 percent of total revenue versus only 26 percent in companies with less diverse leadership teams.

Diversity Improves Public Perception of Your Brand

According to Purdue Global’s Cates, DEI impacts all aspects of a company’s operations, along with what prospective buyers think of the company.

“It’s possible that DEI was not a concern 50 years ago,” Cates explains, “but today, people want to know who made the product and who is involved in the service.” Is there anyone on the job who looks like me? Do they speak similarly to me? Do they behave in the same way I do? “Do they share the same moral principles as I do?”

Cate’s paper “Do Physical Traits of Sales Professionals Play a Role in the Customer Decision Process?” published in The International Journal of Business, Marketing, and Decision Science in 2017, argues that the diversity of your sales staff can have an impact on customer purchasing decisions. Cate’s paper is available online.

Diversity Improves Employee Retention and Engagement

According to research, inclusive and diverse workplaces have higher morale, a more robust culture, and higher levels of employee engagement.

According to a Deloitte survey, millennials who believe their business fosters an inclusive workplace have higher levels of engagement, with 83 percent expressing this belief.

According to a 2019 Yello survey, 70 percent of respondents said they would consider looking for another job if their manager did not show a commitment to equality.

According to a 2017 report by The Kapor Center and Harris Poll, workplace culture is a significant factor in employee turnover, negatively impacting the retention of underrepresented populations and likely to cost the technology industry more than $16 billion per year.

Problems of lack of diversity in a Business

When diversity is lacking in a workplace, many peculiar problems arise, which impairs business. The adverse effects of lack of diversity in a company manifest differently depending on the person experiencing a low-diversity workplace.

  1. Fewer allies for discrimination victims

When there is a lack of equality in the workforce, one of the most severe consequences is that the victim of harassment or discrimination may feel isolated and alone. As a result, victims are less likely to report discrimination, which is one of the most severe consequences of a lack of equality in the workforce. Failure to report discriminatory practices not only harms the victim’s career but also fosters a workplace culture in which abuse and discrimination are tolerated and even encouraged. Toxic work environment societies are one of the most severe issues associated with a lack of equality in the workforce, and they are becoming increasingly prevalent.

  1. Limited perspectives in the workplace

In the same way that tone-deaf deliverables are one of the consequences of a lack of diversity in the workplace, shortcomings within the workplace due to a lack of varied viewpoints from its workforce are another. This could include a company leaves policy that does not consider the needs of certain religious groups or an office room layout that makes it considerably more difficult for workers to reach the restroom, the kitchen, and other critical employee areas.

The lack of gender equality in the workforce can result in policies that unfairly place a more significant burden on women than on men. For example, a dress code requiring female workers to wear constrained clothing or a specific amount of makeup and a brief impairment leave rule that fails to provide the type of assistance pregnant women need can result in policies that unfairly burden women more than men. Similarly, a lack of gender equality in the workforce can lead to constructions and layouts that have unintended consequences for one sex, such as glass-bottomed walking paths that expose the undersides of women’s skirts in architectural or engineering planning.

A lack of gender equality in the workforce is not the only lack of equality that restricts companies’ perspectives when creating products and strategies and implementing internal policies at their respective organizations. When a company’s workforce does not reflect a diverse range of cultural beliefs, its operating schedule may fail to recognize certain holidays or consider the needs of specific employees, such as Jewish employees who must come home briefly evening on Fridays to observe Shabbat.

  1. Limited role models

Another issue that can arise in a workplace where there is less or no equality is the inability of underrepresented employees to find and communicate with mentors. It is possible that not receiving the same level of support as their colleagues at the start of their careers will cause them to fall behind as their colleagues’ careers progress, resulting in them losing tens of thousands or even hundreds of thousands throughout a career.


For example, a foreign-born worker brings a wealth of knowledge and experience to the table that an American-born worker does not. After arriving in the United States, she may have had to learn a new language, navigate the journey, and adjust to a completely different culture all at the same time. A more senior staff member at the company who has also immigrated to the United States may be compassionate with the foreign-born worker that other employees at the company may not do. In her role as an advisor to the newer worker, she has the opportunity to address specific challenges that come with being a foreign-born person working and living in the United States of America.

Good HRM and Positive Relationship with Inclusion

Diversifying the workforce has proven to be beneficial from a business standpoint. Employee performance differs by 12 percent between nondiverse and diverse organizations, with similar improvements in intent to stay factors in both groups. Diversity of age, gender, race, and ethnicity on teams and geographic and national culture reflects the highly diverse user base that companies serve. As a result, the organization can provide better service to its clients. According to Reina, “we are aware of a link between innovation and diversity.

Although diversity is the first and simplest step, involvement is the key to leveraging diversity.

Additionally, CIOs should look for “cognitive” diversity in addition to a mix of ages, genders, and cultural backgrounds. Cognitive diversity refers to bringing together people who have a variety of thinking styles, habits, and perspectives. A team’s performance is hindered if everyone has the same personality. Different people employ a variety of approaches to thinking. Diversity of thought can be the difference between a team succumbing to groupthink and achieving better results due to its collective experience. Organizations are also becoming more multidisciplinary as they increasingly concentrate their teams on delivering business-related products. Using their diverse expertise and experience, these interdisciplinary teams — including business roles and IT — can make faster decisions. This is because everyone required to choose is already a member of the same organization. The delivery of a project cannot be turned over to information technology (IT). A single team is responsible for the entire process, from design to delivery. The high level of performance is demonstrated by the ability to deliver work in less time while maintaining higher quality standards.


I will encourage every company to demonstrate high Human Resource Management practices to enjoy a satisfying financial profit, diversity, and inclusion. The presence of human resource management in every company is very significant because the company’s productivity will increase. Diversity and inclusion will also allow equality and their good relationship, which leads to high performance. For every companies productivity to flourish, it requires strong management that includes Human Resource Management. Every company should also encourage diversity and inclusion.   


In conclusion, we have seen that human resource management (HRM or HR) is a key to effective and efficient control of people in a company or organization to contribute to achieving the organization’s goals and objectives. The main aim of this research paper was to discuss the role of Human Resource Management in a business in terms of productivity, financially, diversity and inclusion. We have seen that Human Resource Management plays a vital role in every industry. Every company that demonstrates high Human Resource Management practices has a high chance of getting high productivity, financial performance, and diversity and inclusion. 















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