This is actively building relationships between the organization  and employees. This is done through regular, open communication, clear procedures to deal with disputes and problems, and encouraging employees to be active in helping grow the business; most of the time the Human Resources Department manages the employee relations within the organization; however a bigger organization will most likely have a dedicated employee relations officer. 

In employee relations, the Human Resources  department has two sides to it; the first part being to resolve and prevent disputes between employees and their managers, the second being introducing, creating and implementing employee relations policies which are suitable for the organization.