Managing the employment relationship - Essay Example

mmunicated down to the employees and workers is affected by line managers who lack effective communication skills and the information is ultimately relayed in an untimely way. Small and medium scale enterprises depend on relations between owners and employees. This level of informality fosters positive social relations of production and helps develop close team working, and facilitate rapid and direct communication channels. On the other hand, this same informality situation also presents the problem for subjective, highly-discretionary, ill-informed and unjust managerial approaches.

The negative outcome of this set-up can lead to a poor firm performance and consequently, presents a poor safeguard for the protection of employee rights. Smaller companies tend to ignore important labour rights of workers. Hence, there are calls for improving employee participation and employee grievance procedures in small firms such as SMEs. Generally, smaller organisations like the SMEs adopt varying degrees of informality in their labour management practices, hence the adoption and incorporation of any formal employment regulation to these firms can be challenging in the area of compliance.

A distinct possibility is to encourage these firms by way of specific government regulations to set up alternative systems for addressing employee rights and grievances. basic right for workers to extend a degree of control over managerial decision making in a Small and Medium Scale Enterprise (SME). Economic efficiency emphasizes that it makes sense for employers to encourage closer employee participation in the business as it creates more understanding and commitment. These practices actually mean a lot to the participants and these schemes fosters organisational effectiveness and employee well-being.

(Dundon et al. 2004) Direct employee participation takes on renewed forms. Direct participation involves individual techniques such as written and electronic communications, face-to-face