After defining the two terms unions and labor it's easier to understand what type of relationship exists between the two. A union tries to combine the problems of the labor force and present it in front of the management to increase the weight age of the problem as a whole. The unions and labor should go along incase mutual benefits are expected. If members of the labor force does not collaborate with each other than a union is useless. If unions need to succeed they need to have large memberships. Labor unions can make organizations accept their demands by negotiating and if that doesn't work out then the strength of the unions determines whether a strict action like going on a strike or abandoning work can be taken. Labor unions also try to make the organization help labor in their bad times for example if a labor worker has a family member suffering from a disease that is expensive to cure than the organization can help that person financially if the labor union puts pressure on the management.
Effects of labor union relationship can be diverse for an organization. Collective bargaining has seen a decline in the US workplace lately. In the beginning when unions started to operate studies proved that they have no effects on financial improvements of an organization in fact they proved to be negatively affecting an organizations performance. These results were denied later as newer studies showed opposite results even though collective bargaining was on a decline. Hence effects of labor unions can be different for different organizations depending upon the situation and atmosphere of the organization.
The effects of employee relations' strategy, policies and practices have been huge on organizational performance but here we will highlight the most relevant and important ones. Employee relations' strategy is basically created and implied to make the work environment friendlier and to make the employees collaborate with each other and work as a team when needed. The effects of employee relations' strategies, policies and practices should obviously be positive on the organizational performance. The previous sentence states a fact but situation and atmosphere of an organization can alter this fact. Other factors that can change this fact include the type of strategies, policies and practices that are being implied. For example if the organization favors group work and has employee relations strategies, policies and practices based on these concepts than organizational performance can improve if team work or group work is given more opportunities in the daily operations, but in the same way if groups and teams are not made properly or the groups or team members are unable to co-operate which each other due to some reasons than the organizational performance can decline. In the same way if an organization follows the individualistic approach in its workplace and strategies that are based on this concept are implied then a worker would find it difficult to work effectively if teams or groups are made hence the organizational performance would decline and if he is made to do work alone and given proper incentives individually then his performance would improve resulting in the improvement of organizational performance. In the same way if the employee relations strategies, policies and practices are changed then a quick adoption is impossible hence it does affect organizational performance and usually it's in a negative manner. Changing employee