5HR01 Employment Relationship Management: Complete Study Guide
5HR01 Employment Relationship Management is one of three pathway units in the CIPD Level 5 Associate Diploma (HR pathway). Worth 6 credits, it examines how organisations manage the employment relationship to create better working lives—covering employee voice, conflict resolution, and the legal framework for handling workplace issues.
This guide breaks down everything you need to understand about 5HR01, including the key concepts, what each assessment criterion is asking for, and how to approach your assignment effectively.
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What You'll Learn in 5HR01
The unit covers three main learning outcomes:
- Understand employee voice and practices to support better working lives — The difference between involvement and participation, union and non-union representation, the link between voice and performance, and what "good work" means.
- Understand different forms of conflict behaviour and dispute resolution — Organisational conflict vs misbehaviour, trends in industrial action, and the differences between conciliation, mediation, and arbitration.
- Understand how to manage performance, disciplinary and grievance matters lawfully — Unfair dismissal principles, causes of grievances, and why effective handling matters.
Key Concepts and Frameworks for 5HR01
Employment Relations Perspectives
Understanding different perspectives on the employment relationship is fundamental to this unit:
- Views the organisation as one unified team with shared interests
- Conflict is seen as irrational, caused by poor communication or troublemakers
- Trade unions are viewed as unnecessary interference
- Management has the right to manage; loyalty is expected
- Accepts that employers and employees have legitimately different interests
- Conflict is natural and can be constructive if managed well
- Trade unions are a legitimate way to balance power
- Negotiation and compromise are how interests are reconciled
- Sees fundamental conflict between capital and labour
- Employment relationship is inherently exploitative
- True resolution requires structural change to capitalism
- Useful for critical analysis, though less common in CIPD practice
Employee Voice and Involvement
Employee Involvement — Management-initiated practices that give employees a say in decisions affecting their work. Examples: team briefings, suggestion schemes, quality circles, employee surveys. Typically focuses on task-level decisions.
Employee Participation — Arrangements that give employees (often through representatives) influence over higher-level organisational decisions. Examples: works councils, board-level representation, collective bargaining. Involves sharing power.
The key difference is the depth and scope of influence. Involvement is typically shallower and management-controlled; participation involves genuine power-sharing.
Forms of Representation
Trade Unions
- Independent organisations representing workers' collective interests
- Can negotiate binding collective agreements
- Have legal protections for members and representatives
- Membership has declined but remains significant in public sector
Non-Union Representation
- Employee forums, staff councils, works councils
- May be management-initiated or legally required
- Information and consultation rather than negotiation
- Less power than unions but still provide voice mechanisms
Conflict and Misbehaviour
Organised Conflict — Collective action by workers, often through unions:
- Strikes (withdrawal of labour)
- Work-to-rule (doing only contractual minimum)
- Overtime bans
- Go-slow actions
Unorganised Conflict/Misbehaviour — Individual acts of resistance:
- Absenteeism
- Sabotage
- Theft/fraud
- Walking out
- Deliberate poor performance
Understanding both types helps explain why conflict emerges and how to address root causes.
Dispute Resolution
- Third party helps disputing parties communicate
- Often used in employment tribunal claims (ACAS Early Conciliation)
- Conciliator facilitates but parties make their own agreement
- Focus on settlement rather than relationship repair
- Third party helps parties understand each other and find solutions
- Voluntary and confidential
- Parties control the outcome; mediator doesn't decide
- Aims to preserve or repair the employment relationship
- Increasingly used for workplace disputes before formal procedures
- Third party hears both sides and makes a binding decision
- Parties must accept the arbitrator's ruling
- Used in collective disputes or as alternative to tribunal
- Less flexible than mediation but provides definitive resolution
The ACAS Code of Practice
The ACAS Code of Practice on Disciplinary and Grievance Procedures is essential for 5HR01. Key principles:
Establish facts: before taking action
Inform the employee: in writing of the issue
Hold a meeting: to discuss the matter
Allow accompaniment: (colleague or union rep)
Decide and inform: of the outcome
Provide right of appeal:
Failure to follow the Code can result in tribunal awards being increased by up to 25%.
Unfair Dismissal
To defend a dismissal as fair, an employer must show:
- A fair reason (capability, conduct, redundancy, statutory restriction, or some other substantial reason)
- They acted reasonably in treating that reason as sufficient for dismissal
- They followed a fair procedure
The "band of reasonable responses" test asks whether the decision fell within the range that a reasonable employer might have made—not whether it was the decision the tribunal would have made.
Assessment Criteria Breakdown
Learning Outcome 1: Employee Voice and Better Working Lives
AC 1.1: Differentiate between employee involvement and employee participation and how they build relationships
This asks you to:
- Define both involvement and participation clearly
- Explain key differences (depth, scope, who initiates, power distribution)
- Link to unitarism and pluralism
- Discuss how each builds (or doesn't build) employment relationships
- Consider connection to motivation and engagement
Key verb: "Differentiate" means clearly distinguish between the two concepts.
AC 1.2: Compare forms of union and non-union employee representation
This asks you to:
- Describe different forms of union representation (trade unions, shop stewards, JNCs)
- Describe non-union forms (employee forums, staff councils, works councils)
- Compare in terms of power, scope, legal status, effectiveness
- Consider advantages and disadvantages of each
Key verb: "Compare" means examine similarities AND differences.
AC 1.3: Evaluate the relationship between employee voice and organisational performance
This asks you to:
- Present arguments that voice improves performance (engagement, innovation, retention)
- Present counter-arguments (difficult to measure, other variables, not always positive)
- Reference high-performance work practice research
- Make a balanced judgement based on evidence
Key verb: "Evaluate" means weigh up evidence and make a judgement—don't just describe.
AC 1.4: Explain the concept of better working lives and how this can be designed
This asks you to:
- Define "good work" and "better working lives"
- Cover job quality factors: pay, security, autonomy, development, work-life balance
- Discuss how organisations can design good work
- Link to wellbeing, health, and engagement
- Reference Taylor Review or similar frameworks
This connects to current debates about job quality and worker wellbeing.
Learning Outcome 2: Conflict and Dispute Resolution
AC 2.1: Distinguish between organisational conflict and misbehaviour
This asks you to:
- Define organisational conflict (collective, organised action)
- Define misbehaviour (individual, unorganised resistance)
- Provide examples of each type
- Explain the difference in causes, manifestation, and response
Key verb: "Distinguish" means show clear differences between the two.
AC 2.2: Assess emerging trends in the types of conflict and industrial sanctions
This asks you to:
- Discuss trends in strike activity (shorter, strategic strikes vs long walkouts)
- Reference statistics (days lost, workers involved)
- Consider increasing use of injunctions by employers
- Discuss individualisation of conflict
- Cover current/recent sanctions and their application
Use ONS data and recent news—this should be current and specific.
AC 2.3: Distinguish between third-party conciliation, mediation and arbitration
This asks you to:
- Define each method clearly
- Explain roles and processes for each
- Discuss when each is appropriate (individual vs collective, formal vs informal)
- Cover ACAS's role in conciliation
- Consider advantages and limitations of each
This is a core concept—be clear on the distinctions.
Learning Outcome 3: Managing Performance, Disciplinary and Grievance Matters
AC 3.1: Explain the principles of legislation relating to unfair dismissal in respect of capability and misconduct issues
This asks you to:
- Explain unfair dismissal law principles (fair reason + reasonable response + fair procedure)
- Define capability and misconduct
- Distinguish ordinary and gross misconduct
- Cover the ACAS Code requirements
- Discuss right to be accompanied, warnings, record keeping
You need legal accuracy here—reference the ACAS Code and Employment Rights Act principles.
AC 3.2: Analyse key causes of employee grievances
This asks you to:
- Define what a grievance is
- Identify common causes: management behaviour, unfair treatment, workload, bullying, pay disputes, working conditions
- Analyse why these issues become formal grievances
- Consider individual vs collective grievances
Key verb: "Analyse" means break down the causes and explain the underlying factors.
AC 3.3: Advise on the importance of handling grievances effectively
This asks you to:
- Explain consequences of poor handling: tribunals, reputation damage, morale impact
- Discuss benefits of good handling: early resolution, relationship preservation
- Cover impact on individuals and teams
- Link to psychological wellbeing and engagement
Key verb: "Advise" means provide guidance as if to a manager or organisation.
Common Mistakes to Avoid
- Confusing involvement and participation — They're related but different. Involvement is shallower and management-led; participation involves genuine power-sharing.
- Mixing up mediation, conciliation, and arbitration — Know the differences. Mediation and conciliation are facilitative (parties decide); arbitration is adjudicative (third party decides).
- Ignoring the legal framework — 5HR01 requires understanding of unfair dismissal law and the ACAS Code. Don't treat it as purely theoretical.
- Being one-sided on voice and performance — AC 1.3 asks you to evaluate, which means considering evidence on both sides, not just arguing voice is always good.
- Outdated examples — Use current statistics and recent cases. Industrial relations has changed significantly—don't rely on 1970s examples.
- Forgetting the "better working lives" angle — This unit has a focus on good work and wellbeing. Show you understand the positive agenda, not just managing problems.
Useful CIPD Resources
Employee Relations: An Introduction Factsheet: — Overview of the field
Discipline and Grievance at Work Factsheet: — Practical guidance
Employee Voice Factsheet: — Forms of voice and their impact
Managing Conflict in the Modern Workplace Report: — Current research
Trade Union Recognition Q&As: — Understanding union rights
Access these through the CIPD Knowledge Hub.
Other Key Resources
ACAS Code of Practice on Disciplinary and Grievance Procedures: — Essential reading
ACAS guides on mediation and conciliation: — Practical process guidance
ONS Labour Disputes data: — For trends in industrial action
Taylor Review (Good Work): — For better working lives concepts
How People Study Pro Helps with 5HR01
People Study Pro provides structured guidance for every 5HR01 assessment criterion:
Criterion-by-criterion guidance: — Understand exactly what each AC is asking
Suggested structure: — Know how to organise your answers
Key concepts: — Identify what to cover without being given the answer
Harvard referencing tool: — Generate correct citations instantly
AI and plagiarism checking: — Submit with confidence that your work is original
Getting Started
If you're working on 5HR01:
- Understand your perspective — Are you approaching from unitarist, pluralist, or balanced view?
- Know your legal framework — Read the ACAS Code before you start writing
- Use current examples — Reference recent disputes, trends, and statistics
- Balance theory and practice — Show you can apply concepts to real situations
- Consider multiple stakeholder views — Employer, employee, union, HR perspectives
5HR01 is about managing the employment relationship effectively—balancing employer needs with employee voice, and handling conflict constructively when it arises.