1. Effective Employer -Employee Relations
A2 Business Studies

2. Aims and Objectives Aim:
Understand methods of increasing competitiveness of organisational structures
Objectives:
Define internal and external communication
Explain methods of internal and external communication
Analyse effective communication
Evaluate effective communication.

3. Starter
HRM Battleships

4. Effective Relations
The successful modern business recognises the need for positive, constructive relationships between employers and employees.

5. Effective Relations
Three key areas where a business can focus to make the employer/employee relationship work are:
Communication systems in a business
Involving employees (and their representatives) in the decision-making process
Resolving industrial and other disputes with employees

6. Communication Methods
Communication can be defined as:
The process by which a message or information is exchanged from a sender to a receiver .
Communication can be:
Internal: between people in the same business
External: with people outside the business

7. Internal Communication
It links together all the different activities involved in a business.
It also aims to ensure that all employees are working towards the same goal and know exactly what they should be doing and by when.
Brainstorm as many internal communication methods as you can.

8. Internal Communication
Meetings
Conference calls
Team briefings
Message boards
Induction sessions

9. External Communication
Where the business communicates with people & organisations outside of the business.
This is closely linked with the idea of “stakeholders” – i.e. those who have an interest in the activities and results of the business
Brainstorm as many external communication methods as you can.

10. External Communication
Press releases
Marketing materials - adverts
Published financial info
Letters, s
Telephone calls

11. What is Effective Communication?
The sender and receiver of information are properly matched
The message is communicated clearly – i.e. without misunderstanding or misinterpretation
Communication is made using an appropriate communication channel and/or method
The receiver of the communication is able to pass on any relevant and appropriate feedback (i.e. two-way communication)

12. Benefits of Effective Communication?
Motivates employees – helps them feel part of business.
Easier to control and coordinate business activity – prevents different parts of business going in opposite directions.
Makes successful decision making easier – decisions are based on more complete and accurate information.
Better communication with customers will increase sales.
Improve relationships with suppliers.
Improves chances of obtaining finance – e.g. keeping bank up-to-date about how business is doing.

13. Link with Theorists
Mayo emphasised importance of communication in meeting employees’ social needs
Maslow and Herzberg stressed importance of recognising employee’s achievements and self-esteem needs

14. Barriers to Effective Communication
For each of the following discuss how it may be a barrier to communicating effectively:
Language
Noise
Information overload
Technology
Emotion
Inconsistency

15. EV: Effective Communication
What does the success of effective communication depend on?
Organisational structure
Spans of control
Technological systems reliability
Language/cultural barriers