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Order Now / اطلب الان5HR01 Employment Relationship Management is a unit within the Chartered Institute of Personnel and Development (CIPD) Level 5 Intermediate Diploma in Human Resource Management. This unit explores the key concepts, principles, and practices of managing employment relationships within organisations. It focuses on understanding the importance of nurturing positive relationships between employers and employees to drive engagement, satisfaction, and productivity. The unit covers areas such as communication strategies, conflict resolution, negotiation skills, employment law, and the role of trade unions. By studying 5HR01, HR professionals can enhance their ability to foster harmonious workplace environments, align organisational and employee goals, and effectively manage changes in employment conditions.
Employee Involvement
Employee involvement encompasses the extent to which engaged employees are asked for their opinions, their suggestions, and to contribute to decisions without being given the title of decision-maker. It consists of managerial steps created to enhance how committed, effective, and happy employees are (McIlravey, 2019). Its involvement is about allowing staff members to impact choices and actions in their workplace.
When public sector organisations combine, including employees in the changes to systems, processes, or teams can help everyone feel more involved and prevent resistance to the changes. For instance, including frontline staff in talks about new policies after a merger makes them and the organisation feel more assured and trusting. As a result, the workplace is friendlier because employees receive appreciation and attention (Questback, 2022).
Employee Participation
On the other hand, employee participation refers to staff formally joining in decisions, usually by joining trade unions, forums, or committees. It allows employees to make significant differences in a project instead of only offering suggestions (Parasuraman, 2024).
In this context of the public sector with a merged system, workers’ voices can come from unions in talks or from shared committees. Therefore, people work together cooperatively and notice improvements in the way organisational change is handled.
What Differentiates Involvement from Participation
While employee involvement happens informally on the manager’s terms, employee participation is planned and organised. Besides, involvement is concerned with recommending changes in daily activities, and participation deals with changes in policies and environment (Recognize, 2022).
Participation allows employees to share in shaping important choices (Chen, 2024). Contrastingly, employees share their thoughts, but the final calls are made by management in employee involvement (Questback, 2022). Furthermore, people tend to participate in collective ways (for example, within unions), compared to involvement, which happens individually or within groups (Recognize, 2022).
Therefore, using both techniques correctly after a merger helps everyone, and by being aware of their differences, the new team can enhance employee relationships and keep things running smoothly within the public sector.
Comparison of Unions and Non-Unions
Since the public sector organisation is now running with leaders from the private sector, it is vital to understand how employee representation forms improve employee relations and create harmony at work.
Union Employee Representation
Trade unions are officially formed organisations that represent workers when they discuss issues with employers (Suff, 2023). An example of a trade union in the UK is Unite the Union (GOV.UK, 2024). Since trade unions are supported by law, they are involved in bargaining, joint negotiations, and sometimes must act in collective industrial action. They give employees a formal and protected voice when important changes involving mergers take place.
Non-union employee representation
Non-union forms of employee representation encompass employee forums, staff councils and works councils. Such bodies include people chosen by their peers who talk to managers about workplace topics. They do not enjoy collective bargaining rights or legal authority to make sure their agreements are put into practice or to arrange industrial actions. Employee forums encourage employees to share their thoughts and help keep workers united at their place of work (ACAS, 2022).
Similarities
Employee voice
In both forms of union representation, staff are given a way to raise questions and contribute to decisions, which helps keep them engaged (GOV.UK, 2024; ACAS, 2022).
Both forms are usually involved in negotiation committees or consultative groups that help staff and management communicate (GOV.UK, 2024; ACAS, 2022).
Besides, both work toward trust, less conflict, and better employee connections, which are important for the merged company’s achievement.
Differences
Collective Bargaining Rights
Trade unions benefit from government-backed rights to bargain, but employee forums are not given such power by law (GOV.UK, 2024; ACAS, 2022).
The restrictions
Trade unions deal with subjects such as salaries, work rules, and disputes; for non-union workplaces, workplace involvement initiatives are the main objective (GOV.UK, 2024; ACAS, 2022).
Furthermore, trade unions are organised and expect members to follow rules, but employee forums are loose and their impact is limited (GOV.UK, 2024; ACAS, 2022).
Power Differences
Since trade unions are recognized by law and can force changes or industrial strikes as necessary, their role is vital after a merger. At these forums, companies are encouraged to work with their employees by focusing on cooperation instead of rules (Suff, 2023; ACAS, 2022).
To sum up, the leaders should consider both types of employees and unions to establish ongoing positivity among staff at this key merger period.
Employee voice points to how employees share their thoughts, problems, and suggestions within the company. Promoting employee voice is key to uniting staff, handling changes well, and sustaining good morale in the newly combined public sector organisation. Even so, how employee voice relates to organisational performance is not simple, and both positive and negative opinions exist.
Arguments supporting a positive impact
A number of studies point out that giving employees a voice can greatly boost organizational results. According to the CIPD (2024), when people have opportunities to voice their thoughts in forums, staff councils or through trade unions, the organisation sees more creativity, lowers turnover rates, and improves how engaged their workforce is. When people are engaged, they accomplish more, stay loyal, and work towards the company’s goals. Because much of what the public sector provides is people-based, employee opinions are highly valued. Employees can point out what does not work well, offer ideas for improvement, and participate in deciding on solutions. The relation between constant employee voice mechanisms and enhanced service in workplaces was reported in an ACAS study from 2022 (ACAS, 2025).
Arguments Questioning the Impact
Not every study shows that employee voice necessarily boosts a company’s performance. Critics suggest that a lack of action after setting goals can make people annoyed and to lose hope. A study shows that adding a voice platform but not addressing feedback from users can actually make things worse rather than better. If the leaders in new organizations encourage staff to speak out but do not keep them informed or lack discussion on important matters, people may get discouraged and resist the new situation (Grossman, 2022). Bureaucratic and slow-moving voice channels in the public sector can result in a delay, instead of achieving effective results. Hence, the usual advantages of high staff engagement are not achieved.
Conclusion
Therefore, while there is solid support for an association between how much employees are heard and the organisation’s achievements, it must be done properly and valued to achieve positive results. It will be important for the study organisation to make sure voice mechanisms encourage involvement from all groups to help improve how well and together team members handle the merger.
How Better Working Lives Can Be Created
In this rapidly changing public sector organisation, making sure that working lives are better is necessary to improve how employees feel, keep them from leaving, and support a positive atmosphere.
Better Working Lives concept
The concept of better working lives involves helping employees feel valued, secure, and involved in what they do. This supports the CIPD’s viewpoint on “good work,” which means employment is secure, provides meaning, is financially fair, and helps employees improve their health and skills. Good work includes giving staff chances to develop, participate in important decisions, and respect their time outside the office (CIPD, 2024). For the public sector organisation, enhancing the way people work will help manage the cultural and staffing problems caused by the merger and new management.
Ways of designing better working lives
Flexible working practices
Offering remote work with flexible time or condensed workweeks is a way to help employees balance their jobs and private lives. Flexibility takes into account different employee needs, which is important in the public sector because people can face special challenges (CIPD, 2024). For such policies to work, managers and workers should trust each other and share information, so loyalty grows and turnover is reduced among the merged groups.
Employee voice and involvement mechanisms
Forums, ideas boards and discussions with management provide staff a way to have their say and affect workplace decisions. By using this approach, companies are supporting CIPD’s view that having a say in what happens is central to good work (CIPD, 2024). Including staff in the process of creating new company policies and practices can lower their uncertainty and resistance, strengthen their team spirit, and encourage them to commit fully to the organisation’s goals.
Hence, better work lives require a focus on positive, caring, and flexible work experiences. Ensuring flexibility in work and encouraging employee input should be central approaches for this organisation’s new leaders to boost morale and help the team move smoothly through the merger.
Difference between Organisational Conflict and Misconduct
Since the recent merger in the public sector organisation has brought new leaders and a large number of personnel changes, recognising the differences between organisational conflict and misbehaviour will help manage employee relationships more effectively.
Organisational Conflict
When individuals or groups in an organisation disagree over goals, values or interests, it is known as organisational conflict. If handled well, CIPD says, it can be an ordinary and helpful process in an organization. Employees, teams, and even managers may experience conflict because of problems with communication, fighting for resources, or stress from change (CIPD, 2020).
As an example, old employees in a public sector organisation might disagree with newer management about proposed changes in working habits or culture. For example, disagreements can arise when it comes time to agree on where duty and effort will lie within the team.
Misbehaviour
Unacceptable conduct by staff is known as misbehaviour, which includes intentional actions that defy work rules or break standards and injure either the company or its members. Such acts are absenteeism, insubordination, theft, or harassment. Generally, misbehaviour is thought of as bad and must be corrected with consequences to maintain order and save the organisation’s reputation (Morris, 2021).
For example, if a person in the merged organisation always arrives late without justification or refuses to obey safety rules, it would be considered misbehaviour.
Key Differences
Nature
People might argue over ways of thinking or the things they want, which can either help a company improve or cause trouble during organisational conflict (CIPD, 2020), whereas misbehaviour happens when someone breaches the rules or is not ethical (Morris, 2021).
Impact
Conflict has the potential to improve a company if it is solved wisely, but if staff misbehave, it usually becomes a challenge and must be managed (CIPD, 2020; Morris, 2021).
Management
Usually, management helps people work through their differences by discussing, reducing misunderstandings, or finding a solution (CIPD, 2020). People who are unruly are usually handled using set rules and sanctions (Morris, 2021).
As a result of the merger, it is important for the new leaders to separate these parts: dealing with conflict to create a team spirit, while keeping rules to ensure that standards and laws are met. With this knowledge, integration will progress more smoothly and relations between employees will improve.
Emerging trends
Industrial Conflict and the Use of Sanctions
Knowledge of ongoing changes in industrial conflict and sanctions matters greatly for dealing with employees in the merged public sector organisation. A couple of noticeable trends are:
Shorter strikes and more injunctions are being used by employers as a way to block industrial action
Shift from Long strikes to shorter, strategically planned strikes
Usually, in the past, both labour and management would take part in prolonged strikes during industrial action. Lately, there has been a change toward short, carefully designed strikes. For example, in the UK between June 2022 and February 2023, there were more strikes in rail, postal services, and education than usual (Office for National Statistics, 2023).
Pros and cons
Short strikes keep minimal strain on services and limit the effects on both sides of a business. Moreover, short, regular strikes can make employers maintain constant attention, without allowing them to catch up. Still, by regularly sharing information, the problems stay in the public consciousness (ACAS, 2024).
Nevertheless, long series of short strikes can make employees tired and less motivated. Besides, industrial actions held often can complicate the process of ensuring legal compliance. Also, disruptions often continue for so long that people eventually feel tired and care less about the cause (ACAS, 2024).
Relevance to the case study
Shorter, planned strikes in the merged public sector would allow both sides to fix employee problems before there are major disruptions to the public.
Increased use of injunctions to stop industrial actions.
Trend Overview
Firms are increasingly turning to courts for stop-work orders. Under the Strikes (Minimum Service Levels) Act 2023, employers can give work notices explaining which workers must report and refuse to work during a strike, now allowing employers to dismiss workers without automatically facing unfair dismissal charges (Gov.uk, 2023).
Pros and cons
During actions, injunctions permit the necessary services to keep going. They also provide clear guidelines for dealing with industrial disputes through the law. Besides, because of the possibility of being prosecuted, employees might avoid being part of industrial action (Marshall, 2025)
Nevertheless, due to injunctions, the relations between employees and employers may become more tense. Also, because they involve legal action, getting an injunction can add up in costs for employers. Injunctions are also linked with first amendment issues. Using strong legal methods could tarnish the company’s reputation (FasterCapital, 2026).
Relevance to the Case Study
Those leading the merged public sector organisation need to deal with the difficulty of industrial action and sanctions. Being aware of these changes will support the creation of strategies that satisfy employees and the business.
The current trend of shorter strikes and wider use of injunctions is reflective of big modifications in industrial conflict and sanction practices. Being aware of these trends and their effects helps the newly united organisation preserve good and effective relationships with its employees.
Distinguishing between Third-Party Conciliation, Mediation, and Arbitration
Because the merged public sector organisation merges leadership and people practice teams, knowing how to address disputes through conciliation, mediation, and arbitration will be important for a harmonious workplace.
Third-Party Conciliation
During third-party conciliation, an independent party known as a conciliator tries to assist both sides in reaching a suitable agreement without requiring anyone to agree. The conciliator suggests possible solutions and proposes advice, but only helps and does not decide (ACAS, 2024).
Example:
Acas aims to help settle disputes at work before they reach an employment tribunal (ACAS, 2024)
Advantages and disadvantages
Third-party conciliation is flexible and chosen. Both parties can take part in arbitration at will. In addition, it can settle the problem without spending money on legal charges or facing a tribunal (Korte, 2023).
However, without a recorded settlement, such agreements are not obligatory. Also, if one person involved does not cooperate, the resolution may not happen (Korte, 2023).
Best Use
Conciliation is well-suited to resolve disputes about contracts before the dispute escalates and formal grievances begin.
Mediation
Mediation is a private process in which an unbiased third party, mediator, helps employees talk through and settle their issues. Unlike a conciliator, the mediator does not bring forward their own solutions (CIPD, 2024).
Example
An HR mediator brings together two team members to solve a personality issue that is hurting their effectiveness at work.
Advantages and disadvantages
Mediation helps from breaking relationships by supporting open talks and understanding. Additionally, it enables parties to find their own solution (Morris, 2025).
However, it is not recognised under the law. Like conciliation, no legal consequences depend on findings. In addition, it does not work for all conflicts. It is bound to fail when serious crimes or legal rights are at stake (Acas, 2022).
Best Use
Conflicts between people or those among teams are situations where mediation usually succeeds.
Arbitration
An arbitrator is involved in arbitration, considering the dispute and handing down a final ruling that stands like a court order (ACAS, 2022).
Example
There may be a trade union dispute over salaries settled by a person appointed by Acas if a company or individuals agree to arbitration.
Advantages and disadvantages
Arbitration makes a binding decision that has the authority to be upheld and cannot be changed. It is also faster than tribunals since it solves disputes more rapidly than cases in a court (ACAS, 2022). Nevertheless, it includes no easy ways to challenge. Once the court decides a case, it is typically considered final. Moreover, parties allow the arbitrator to make decisions for them, which can be a challenge if one parties or both parties are not satisfied with the final verdict (SeamlessHR, 2025).
Best Use
Since it works well for legal or contractual issues, arbitration is the correct solution when a group needs a definite outcome.
Key Distinctions
Formality
Both arbitration and conciliation are formal, meaning the outcome is legally binding, but mediation is informal and does not require one to obey the outcome (GOV.UK, 2025).
Decision-making
Arbitrators provide a final solution, conciliators offer several solutions for the parties, and mediators help parties talk without deciding on solutions (GOV.UK, 2025).
Enforceability
Unlike mediation and conciliation, which depend on both sides agreeing, the result of an arbitration is legally required (GOV.UK, 2025).
With this knowledge, the people leading the new public sector body can handle disagreements and conflicts at work according to the law.
Guidelines for Unfair Dismissal in Law: Capability and Misconduct
Since many of the leaders in this newly merged public sector organisation are from the private sector, learning how to handle dismissal without breaking laws is very important to protect both the company and its employees. The legal and procedural foundations for making dismissals fair come from the ERA (The Employment Rights Act) 1996 and the Acas Code of Practice on Disciplinary and Grievance Procedures.
Capability
Capability is about an employee’s fitness to do their job based on what they can do, know, or have learned. Both being unwell and working below standards are included in this (Morris, 2023).
Example
Regardless of extra help and training, a worker in finance remains late with reporting. It is possible this is a problem of capability rather than one of accountability.
Relevant Legislation
Employees may be dismissed due to capability under Section 98(2)(a) of the Employment Rights Act 1996 (Pearson, 2025).
Principles:
Companies are expected to cover all steps of the process, like training, providing assistance, or making reasonable changes.
Individuals experiencing concerns should be made aware and allowed to work on their problems (using, for example, a performance improvement plan).
When someone becomes ill, employers should review the medical situation and see if the person can be moved to another job (Pearson, 2025).
Supporting Case
Spencer v Paragon Customer Communications Ltd (2021) ruled that a dismissal for capability was unfair because support with performance was not given (Vlex, 2024).
Misconduct
Misconduct happens when a worker behaves or acts in a way that breaks the company’s policies (GOV.UK, 2024).
Example
Someone in procurement keeps using offensive language towards their colleagues, in opposition to the company’s code of conduct.
Relevant Legislation
Another fair reason for dismissal, established by Section 98(2)(b) of the Employment Rights Act 1996, is misconduct (GOV.UK, 2024).
Principles
Rules set out in the Acas Code of Practice should be used to ensure a fair discipline process.
The employee is required to know what is alleged, must be able to respond, and should receive a fair representation of their view.
The consequences should not be over the top. Even when an employee behaves grossly inappropriately (stealing or being violent), proper procedure should still be followed (GOV.UK, 2024).
Supporting Case:
The court said in Polkey v AE Dayton Services Ltd (1987) that failing to use a fair method can result in even a justified dismissal being classed as unfair (Croner-I, 2025).
If the public sector company understands and uses these rules properly, it will ensure that the organisation’s people processes are lawful and trusted by all.
A grievance comes about when an employee or a group of employees makes a formal complaint about issues at work that affect their employment status. Grievances may affect one individual or a group and usually cover issues such as breaking organisational policy, unfairness, or breaching employment laws (Globy, 2024).
Now that many new leaders in the public sector are unfamiliar with employee relations, figuring out the roots of grievances helps keep the workforce happy and united (Naeem, 2023). Grievances can be caused by several factors including;
Poor communication and lack of transparency
Why it happens
Not all changes to policies, managers or jobs may be shared properly after a merger. Those unaccustomed to public sector roles might overlook why it is important to communicate often and to everyone
Impact
When employees do not feel involved or know their jobs, confusion, low moods, and a lack of trust in leaders might result. As a result, more people are likely to express their complaints (Naeem, 2023).
Prevention
Organisations should make use of open platforms by putting employee forums, broadcasting team briefings, or updating the intranet. They should give their team a say in discussions to reduce doubts and inspire more support (Naeem, 2023).
Perceived Inequality or Unfair Treatment
What makes it happen
Grievances can start when private sector leaders do not realize they should address workload sharing, promotions, or recognition from the public sector’s point of view (Empuls, 2023).
Impact
If people experience bias or discrimination, they may become unhappy as a group, interact less, and might file claims under the Equality Act 2010 (Acas, 2025).
Prevention
Entities should make sure they always apply policies the same way, teach new leaders to respect equality and diversity and decide on staff matters using objective rules (Empuls, 2023).
Workload and working conditions
What Makes It Happen
Staffing differences following a merger and issues with company culture might make the workload higher or expectations at work less clear. Those who work in overcrowded departments may feel that the support is lacking.
Impact:
In most cases, stress, losing work, and lowered productivity result, eventually causing health-related or written complaints (Empuls, 2023).
Prevention
Organisations should keep assessing how much work employees have to manage, make sure they are not overloaded, and focus on health and happiness at work through flexible work options (Empuls, 2023).
It is especially crucial for any newly united public sector body with rookie leaders to manage complaints well, as it protects both employee confidence, the organisation’s stability, and legal obligations. Handling grievances effectively comes with various benefits including;
Safeguarding Employee Trust and Engagement
If problems are handled quickly and justly, employees appreciate being treated with respect and regard. As a result, people trust their leaders, and the environment becomes more open (Lee, 2025). Because of different standards in the private and public sectors, incoming managers might accidentally miss concerns voiced by public sector employees. Ignoring or dealing incorrectly with employee concerns can cause people to become distant, feel unsupported, and create two separate groups within the organisation, mainly after major changes are implemented (Crooks, 2024). Hence, there is a need for an effective grievance handling procedure.
Preventing Escalations into Formal Dispute
Strong grievance management helps to stop small matters from escalating into big issues or widespread issues with employees. Lack of management of grievances may result in strikes, personnel changes, and damage to a public sector body’s reputation, which is expensive and disruptive for those who depend on their public trust and service (Lee, 2025). Unsettled issues about equal pay or unfairness can develop into union disputes, which could upset the service and anger the public (Crooks, 2024).
Market Risk Reduction
Solving grievances within the organisation helps keep it safe from legal risks created by laws such as the Employment Rights Act 1996 and the Equality Act 2010 (ACAS, 2024). Mishandling issues about discrimination, harassment, or bullying can lead to expensive claims, financial charges, and harm to a business’s reputation. Having effective handling ensures that employees know they have the chance to fix issues within the organisation first (Crooks, 2024).
Supporting the Organisation’s Mission and Vision
A fair response to grievances helps create a work environment that reflects important public service principles such as fairness, transparency, and accountability. It shows a focus on acting ethically and managing well, which matters greatly as the company unites its teams and helps staff cope with the shift to a new structure (ACAS, 2024).
Therefore, handling issues that arise with employees is key to keeping harmony at work, limiting risk, and keeping the organisation’s climate safe during times of transition.
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