Organizations need to prevent and resolve problems that arise while working. Every organization should ensure that they have an employee relations program that helps in increasing good morale and employee satisfaction. Additionally, one of the most effective ways of ensuring good employee relations is adopting a strategy that values employees as stakeholders in the business (Gennard & Judge, 1999).
The post-war consensus took place between 1945 and 1979. Laws were created that gave legal rights at work to employees. The employer’s obligation towards workers was also specified. In addition, disputes were resolves through mediation and social unions agreed to provide assistance to governments in resolving the economic problems of the country. However, industrial relations declined there was unemployment and wage demand and inflation continued to rise. In addition, unions improved through legislation and to achieve flexibility in the workplace, negotiations and social compromise was used rather than being imposed by employers.
Consequently, the Keynesian economic objective was designed to manage the demand of the economy through achieving full employment as well as an economy that is stable. It was believed that through Keynesians, the level of unemployment depended on government policy and that the state was able to achieve a low unemployment rate by accepting a high but steady rate of inflation.
A tribunal system was established in the UK to deliver the recommendations of the Donovan Commission by coming up with a system that was fast, easily to access, informal and not expensive. However, this has not been successful, as it never met the standards of the tribunal. Employers view the use of employment legislation disparagingly.