Lack of trust between management and employees can have widespread effects that negatively impact such things as communication, productivity, goal achievement and conflict resolution. No favoritism is shown. However, this does not mean that superior performance goes unrewarded and lackluster performance is unchecked. Employees act on what they perceive or believe. It's important that employees be told the truth, even when it's uncomfortable for management or employees.
Good communication insures that employee's beliefs are based on organizational realities.
In fact, some people believe real progress is not possible without it. The key is managing conflict so that it does not adversely affect performance in the organization. Efforts in this area communicate to employees that the company cares about their careers and futures. At small businesses, this can be as simple as individual discussions with employees about their career goals. Business owners should focus on five key areas that form the solid foundation upon which good employee relations are built.