CHAPTER ONE

INTRODUCTION

 

1.1 Background To The Study

Business owners wishing to compete at a world-class level must understand the human side of their organisation and business processes. According to Jansen et al. (2013: 192-216), they must be social architects who can work across levels and functions of the organisation, continuously improving the business process and fostering an atmosphere favourable for innovation, risk-taking, self-directed teamwork, commitment, quality and self-improvement. To survive and grow in the twenty-first century, entrepreneurs must learn and use appropriate human skills to motivate and inspire all those involved in their business (McDermott et al., 2013:289).

Various sources including Accuff et al., (2004), Browne et al., (2009), Donaldson et al., (2007), Ford et al. (2003), and Selmier et al., (2013) have suggested that without strong relationships, it becomes impossible to be successful as a business owner. These studies express the opinion that business owners need to have long-term employer and employee relationships that will carry them through challenging and difficult times, as well as relationships with other business owners and customers, to share struggles, resources and best practices, which can really give them an edge.

Relationships are complex but research from Anderson et al., (2002), Boxall (2013), Hartline et al., (2004), and Alcarzar et al. (2013) suggest that they can be managed. Jackson (2009) concluded that the reality about business relationships is that they are just like any other relationship; they require lots of effort to maintain and they must be mutually beneficial to all the stakeholders. Jackson emphasised that as in any business relationship, a business owner must be willing to give, share and support, not just take or receive.

 

1.2 Problem Statement

The employer and the employee relationship is important to a company productivity. A relationship that is built on trust and understanding can make the employee and manager more efficient. A poor relationship that lacks cohesiveness will dampen productivity and can lead to high rates of employee turnover. Just as with all relationships, the employer and employee relationship is one that must develop over time. Employers can promote the building of relationships by speaking candidly with their employees about their lives, asking them about their families and learning about their interests. Similarly, employees can promote the building of this relationship by being open with their employer and sharing information about themselves and their lives.

Though the type of employee and employer relationship that is considered appropriate varies from company to company, boundaries exist at almost all companies. Generally, it is unethical for employers to develop romantic relationships with their employees. Similarly, employers should exercise care to ensure that the relationship they develop with one employee isn’t notably closer than the relationship they develop with others, as this can lead to concerns regarding favoritism or similar issues of unfairness within the work place.

All this controversy has raised concerns towards investigating the effects of employer employee relationship on organisational productivity.

In the course of this research, the following questions have to be addressed.

Research Questions

1. What are the various kinds of relationships that exists between employers and their employees?
2. What is the role played by positive employer employee relationship to business growth?
3. How effective is the business when the relationship between the employer and the employee is poor?

 

1.3 Objectives Of The Study

The main objective of this study is to determine the effects of employer-employee relationship on organisational productivity. Other specific objectives include;

1. To examine the different kinds of relationships that exists between employers and their employees.
2. To assess the role played by positive employer-employee relationship to business growth.
3. To evaluate the effectiveness, the business, when the relationship between the employer and the employees is poor.

 

1.4 Hypothesis Of The Study

Here two statements are made to determine whether or not, the type of relationship that exists between the employer and the employees affect organisational productivity. These two statements are known as the null (H0) and the alternative hypothesis (H1).

H0:  Employer-employee relationship has no significant effect on organisational productivity

H1: Employer-employee relationship has a significant effect on organisational productivity.

 

1.5 Significance Of The Study

The key reason for undertaking this research is to determine the effects of employer-employee relationship on organisational productivity.

This study is important to several groups including the researcher, the company, other researchers and the entire community as a whole. These groups stand to benefit from the study in the following respects;

The researcher: this work is important to the researcher in that, it will be graded in partial fulfillment for the award of a bachelor’s degree in management.

The company: This research is important to the company which is used as the case study as well as other companies as it will make them understand clearly how the business can be affected by the kind of relationship employers build with their employees.

Other researchers: This study will help other researchers who have interest in further research as their literature review