1.1 Background of the study

An organization is a structural component consisting of components such as people, materials and money, which are interconnected and interdependent in achieving an organizational goal. All these sub-components must work together before an organization can increase or improve its productivity. But among them, a person who is an employer and an employee must exist in a cordial relationship between themselves and with the organization, so that they can realize the goal of the organization, manage materials and money, and also have satisfactory working conditions. Again, employees in organizations are vital elements that an organization should always try its best to satisfy, because without employees, it would be difficult for an organization to survive. In this case, the employer in the organization should have a good relationship with employees that will help employees feel relaxed and satisfied in their workplace.

However, in the context of a widespread discussion, employee relations are considered as fairness, trust and harmonious relations existing between employers and their employees in the organization, which have a positive impact on the effectiveness of the organization (Bingham, 2016). It is also considered in simple terms as a relationship that exists between an employer and an employee. According to Muhammad, Sohail and Riaz (2013), their study "The Impact of Employee Relationships on Employee Productivity in the Hospitality Industry of Pakistan" considers employee relationships as a set of organizational functions and practices that address people-related issues such as staffing, compensation and benefits, performance management, organizational development, health and safety, communication and administration. This means that people separated as employees should have connections or relationships with each other that will allow them to work together as a team in doing a certain job. However, employees who have worked so hard need compensation and benefits that will make them satisfied in their workplace. To determine employee satisfaction in the workplace, it is necessary to take into account certain variables, such as health, safety, employee dining room, compensation, benefits, communication and many other variables, so that the organization can improve its performance.

Thus, an organization can improve its performance only when the employees working in this organization develop a sense of belonging and make every effort to help the organization thrive. It is against this background that this study apparently explores the impact of employee relationships on the effectiveness of the organization, using Michelle's pharmaceutical company as an example.

1.2 Problem statement

Recently, in some organizations, there has been a decrease in work efficiency due to insufficient managerial abilities of the personnel department responsible for the welfare of employees in the organization. Organizations can improve their performance only if proper relationships with employees are adopted and maintained. However, relatively little has been written about the day-to-day management strategies associated with managing modern relationships. Over the years, the Chartered Institute of Personnel and Development has conducted a series of interviews with HR specialists who were designed to establish what the term "employee relations" means for them and their organization.

Nevertheless, the vital factors determining the effectiveness of work in the workplace are the relationships between employees, which are given little, if any, priority attention. The aspect of relations between employees and how it is related to efficiency, the management did not pay the attention that it deserves. This is based on the fact that employees in each organization should be considered as the most valuable assets in that organization. Consequently, their working environment largely affects whether the organization achieves its goals.


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