CHAPTER ONE
1.1  BACKGROUND OF THE STUDY
Relationships between employees and management are of substantial value in any workplace. Human relations is the process of training employees, addressing their needs, fostering a workplace culture and resolving conflicts between different employees or between employees and management. Understanding some of the the ways that human relations can impact the costs, competitiveness and long-term economic sustainability of a business helps to underscore their importance.Human relations in the workplace are a major part of what makes a business work. Employees must frequently work together on projects, communicate ideas and provide motivation to get things done. Without a stable and inviting workplace culture, difficult challenges can arise both in the logistics of managing employees and in the bottom line. Businesses with engaging workplaces and a well-trained workforce are more likely to retain and attract qualified employees, foster loyalty with customers and more quickly adapt to meet the needs of a changing marketplace.The quality of workplace relations is critical to employee retention. Employee retention may seem trivial — especially in a workplace that is used to a high turnover — but managers must remember that turnover is financially very costly. Every new employee requires a substantial investment of time and energy in their recruitment and training. In addition, severing ties with old employees can sometimes be challenging, especially if the circumstances are not particularly amicable. Making sure quality employees remain interested and engaged in the business requires patience, compassion and flexibility, but can actually make the business more financially sound.Workplace relationships provide a source of employee motivation, which is important to maintaining productivity. Employees who are interested in their work and in the well-being of other employees tend to be more productive than those who are not. This productivity pays obvious financial dividends to the company, as it can get more done in less time with fewer costs. Building relationships, by both recognizing an employee’s value to the company and a concern for their needs, often goes a long way.The modern business environment often rewards businesses that are able to quickly develop products that meet changing consumer needs. In some industries — such as technology, for example — employees’ ability to come up with effective new ideas is often the difference between the entire company’s success and failure. According to Sallyport Magazine, research shows that creativity is based to large degree in social interaction. Employees’ creativity is often dependent on their ability to communicate with other employees and share ideas. Without quality workplace relationships, employees are less likely to be able to develop and share the solutions that a business needs to survive.The research therefore seek to provide an evaluation of human relation on worker productivity
1.2    STATEMENT OF THE PROBLEM
One of the most significant developments in recent years has been the increased importance of interpersonal skills in almost every type of work setting. For many employers, interpersonal skills represent an important category of transferable skills a worker is expected to bring to the job. Technical ability only is usually not enough to achieve career success. Studies indicate that many people who have difficulty in obtaining or holding a job possess the needed technical competence but lack interpersonal competence.Owners and managers of profit and nonprofit organizations define human relations as fitting people into work situations so as to motivate them to work together harmoniously. The process of fitting together should achieve higher levels of productivity for the organization, while also bringing employees economic, psychological, and social satisfaction. Human relations covers all types of interactions among people—their conflicts, cooperative efforts, and group relationships. It is the study of why our beliefs, attitudes and behaviors sometimes cause interpersonal conflict in our personal lives and in work-related situations.HOWever,Many organization do not give importance to this aspect of work place condition. They neglect the aspect of human relation both between management and staff and between co –workers, through in effective communication channel, lack of cooperation and integration, unresolved complaints and conflict and maintain more of a rigid  formal work environment that do not enhance worker motivation and commitment. Therefore the problem confronting this research is to  provide an evaluation of human relation on worker productivity