Value of good employee - employer relation

• Formal paths of employee representation

  1. Work council

  2. Trade unions

  3. Quality circles
• Formal paths of employee representation leading to

  Increased motivation
• Increased motivation leading to

  Increased productivity
• Increased productivity leading to

  • Lower absenteeism
  • Lower staff turnover
• Lower staff turnover leading to

  Workers staying with the company longer
• Workers staying with the company longer leading to

  • Increased knowledge and experience
  • Improved decision-making process
• Increased motivation leading to

  • More contribution of knowledge and ideas
  • Support and improvement of the decision-making process
• Increased productivity potentially leading to

  • Increased competitiveness
  • Increased efficiency
  • Lower unit costs
  • Lower prices
  • Increased market share
• Maintaining workers for longer leading to

  Increased innovation
• Increased innovation allowing the business to become

  More competitive
• Good employer-employee relations leading to

  More flexible organization
• Improved trust between employer and employees leading to

  • Better management of knowledge and information
  • More flexible organization
• Trust issues can be a reason for resistance