Employee Organization Relationships (EOR) and Team Performance

Employee Organization Relationships (EOR) and Team Performance

An office includes various members who play different roles with different team collectives. After dividing the workforce into a group of employees and employers, examination or analysis for relationships and team collaboration is possible by the Employee Organization Relationships (EOR).

Employee organization relationships play a huge role in team performance and the employment relationship.

Team effectiveness is present when the members are engaged, and employers ensure employee well-being and wellness.

Another important metric for team performance keeping in mind EOR is collective efficacy and team cohesion. We will learn about collective efficacy and team performance in this article later.

Employee Organization Relationships (Relating To Team Performance)

Employee organization relationship refers to the metric to measure and investigate the experience and feeling of employees towards the employer and vice versa.

EOR helps in analyzing how daily activities in an office like communication, the methods of productivity organization, and employee engagement and team collective are present in the organization.

Employee organization relationship is important as when employees and the employees share a profound and collaborative bond with the team; the organization is in profit.

When mutual respect and support are present among the two groups, the employees are more passionate about their work and give their best shot.

For strengthening the bond between employees and employers, future researchers can come up with more findings.

Important to Remember ensure proper employee organization relationships

Still, the following things are important to remember to ensure proper employee organization relationships and team:

Employee Retention

The measure of employee retention rates can explain the company’s employee and employer relationship situation. When employees leave more often, it is clear that their relationship with employers is not good.

About the relationship of employees with team members and internal communication, it is important to note the differences between the perspective of the employer and employees.

When EOR is better, the team performance gets higher as loyal and passionate employees tend to stay in the company for longer and help in giving more output.

The whole team benefits as team collective efficacy increases, and there is no need to hire new employees and put extra effort into grooming and training new workers.

When a loyal employee leaves the office, it is a loss to the team and the entire office for future directions.

Workplace Conflict Management

When the employee and employer maintain harmony, there is no reason for misunderstanding. But issues may disturb the employee organization relationships and team.

Future researchers can note that both employers and employees must keep an open mind for conflict management.

When a team gets into a conflict with the organization, the team automatically performs badly.

For increased team performance, it is important to maintain a good relationship between team members in the first place and later cooperate with the organization for better performance.

Rather than playing a blame game, it is important to find solutions to the problems to mediate the relationship.

The problem in a team is the problem of the whole company. Also, the company’s major problem is the problem of every team and its members. 

Higher Productivity

Employee engagement is important for a team to yield high productivity and team effectiveness. When employees are not happy and satisfied with their jobs, presenteeism and absenteeism increase, and the management inside the office has a hard time retaining employees. This state leads to less work due to less focus, and the team is not functional.

When there is a good bond between employers and employees, the employers work well with each team giving excellent results.

The whole organization benefits and generates revenue with collective team efficacy. EOR aids in the team’s overall productivity for better performance and future directions.

Risk Mitigation

An organization encounters numerous risks and levels of analysis, and it is upon the employees and employers to mitigate such risks.

The employers can detect and predict the risk, and the employees can hold discussions in a team to find solutions to the risks in any project or work.

With stronger EOR, teamwork flourishes, and the employees believe their problem is their problem.

The special bond between each employee increases, risks are detected at the early stage of project development, and the level of analysis needs improvement.

Types of EOR and Team Performance

Employee Organization Relationship (EOR) differs mainly from two factors. Knowing how these factors interlace and affect the relationship between employers and employees can determine how they directly or indirectly affect team performance.

The major factors that build types of EOR and affect team performance are mentioned below: 

Offered Inducement (OI)

Work induced refers to the task assigned by employers to the employees. The employees have their team with a lead, and the lead requires guidelines to assign tasks to the other team members.

The work-induced on employees can be high or low depending on the situation, which affects the type of EOR with team performance.

Expected Contribution (EC)

EC refers to the contribution expected by the leader or employers from the employees. The contributions are expected due to work assigned to employees by employees.

The expected contribution can result as high or low and depends upon employees’ hard work for better performance.

With the two factors, namely, work-induced and contribution expected, the types of EOR are further divided into balanced and unbalanced EOR. 

The different types of EOR concerning work-induced and expected contribution and team performance are: 

Types of EOR and Team Performance

1. Quasi-spot Contract (Low OI and low EC)

In this EOR, the work given to team members is low, and the contributions expected from them are also low.

For this EOR, the employees provide incentives to employees and expect the employees to meet the basic requirements of the task. 

The team performance with such rewards leads to the basic completion of tasks. In this approach, the team does not generate new ideas and innovations as little is invested in team members.

2. Mutual Investment (High OI and High EC)

In mutual investment, the offered inducement is high, and the result expected from team members is also high.

Employers provide genuine incentives, invest in the employee’s professional development, and expect employees to give proper outputs by helping the team grow and give productive outputs.

As the resources provided to employees are for their individual career development, and at the same time, they contribute to their respective teams by utilizing the skills and training provided to them. 

A team can perform better only when the employer learns properly and gives proper input with innovation for high team performance. This approach is common in Information Technology organizations. 

3. Under Investment (Low OI and High EC)

Under investment includes low offered induced and high contributions from employees. This type of EOR makes it difficult for employees to deliver the expected output. When investment and rewards are low, the team doesn’t perform well.

This approach can lead to employee burnout as employees have a hard time balancing the pressure of work-induced upon them. The team members cannot blame poor team performance as the approach is not always feasible.

4. Over Investment (High OI and Low EC)

Over-investment occurs when the offered inducement is high, but the team members cannot deliver the outputs.

This type of EOR makes an organization weak, and employers are disappointed in the respective teams of employees.

The overinvestment demotivates the organization as the employees deliver poor results. The team performance is low compared to the investment done for employees from the employer’s side.

Collective Efficacy and Team Performance

Collective efficacy in an organization refers to the perception of a group to communicate, collaborate and work together for team performance.

When all members agree on the same conclusions and objectives for the same goal, then collective efficacy is the mindset of group members. 

In an office, Collective Efficacy between employees and employers is important as it helps in improving the team performance through the leadership, effort, motivation, communication, and involvement of team members for a common goal.

Team Cohesion and Team Performance

Team cohesion refers to the strong psychological connection with team members. The cohesion of a team includes a commitment to work and standing up for other team members.

With high team cohesion, team members share the same strategy, and rather than thinking of individual professional development, they think for the whole team.

Team cohesion is one of the most important factors to speed up team performance. In lack of team cohesion, the members do not take part in team activities eagerly and do not focus on the team goals, leading to poor team performance.

EOR, Team Cohesion and Collective Efficacy for Team Performance

Proper employee organization relationships within an office where team members are in team cohesion and are eager for collective efficacy can maximize team performance.

When the relationship between the organization and employees is not stable, the team members cannot focus on their team goals due to a lack of psychological affinity, i.e., team cohesion.

Without team cohesion, collective efficacy or the desire to do work proficiently in a team decreases for every member, and the overall team performance decreases.

The main criteria for the high productivity level are proper employee organization relationships.

The employee team requires team cohesion for collective efficacy that leads to excellent team performance and mediates the relationship among team members.


The journal of applied management with the school of management includes a lot of information regarding the employee organization relationships with team performance. EOR is essential for increasing the overall team performance with team cohesion and collective efficacy.

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