Syllabus: SQA - Higher Course Spec Business Management
Module: Management of People
Lesson: Employee Relations

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Introduction

The “Management of People – Employee Relations” unit within the SQA Higher Business Management course helps learners explore how effective employee relations contribute to organisational success. Rooted in the SQA Higher framework, this section develops students’ understanding of employer-employee dynamics, trade union roles, and the impact of legal frameworks.

For teachers and SLT, it offers a chance to anchor lessons in contemporary workplace realities, aligning theory with the practical expectations of employment law and HR strategy. This topic also naturally supports Gatsby benchmarks and wider employability goals by demystifying how businesses manage people.

Key Concepts

This unit focuses on key areas of employee relations, including:

  • Employee participation: How involving employees in decision-making (e.g. works councils, quality circles) can improve morale and productivity.

  • Trade unions: The roles and rights of trade unions in collective bargaining and representing employee interests.

  • Industrial action: The causes and types (strikes, overtime bans, work-to-rule) and their impact on businesses.

  • ACAS (Advisory, Conciliation and Arbitration Service): The role of ACAS in resolving disputes through conciliation and arbitration.

  • Legislation: How employment laws such as the Equality Act 2010, Health and Safety at Work Act 1974, and Employment Rights Act 1996 influence workplace policies.

  • Employer-employee relationships: The importance of communication, trust and mutual respect in fostering positive working environments.

Real-World Relevance

From the junior doctor strikes to Amazon warehouse disputes, employee relations are consistently in the headlines. These issues make great classroom examples.

Take the recent Royal Mail industrial action: staff walked out over pay and conditions, sparking national conversations about modern working practices. It’s a live case study that helps students link classroom content to real decision-making scenarios.

Similarly, the introduction of hybrid working models has shifted how businesses think about communication, engagement and trust. It’s an evolving topic, perfect for sparking discussion.

How It’s Assessed

Students are assessed through the SQA Higher exam, which includes:

  • Extended response questions: These typically ask students to explain, discuss or analyse the impact of employee relations on business performance.

  • Command words to teach explicitly: explain, discuss, compare, analyse, evaluate.

  • Case study application: Many questions include scenario-based prompts requiring students to apply theory to a business context.

Typical question:

“Discuss the possible impact on a business of taking part in industrial action.”

Assessment success hinges on structured answers that apply business theory, use appropriate terminology, and consider both sides of an issue.

Enterprise Skills Integration

Employee relations tie directly into enterprise skills like:

  • Decision-making: Evaluating whether to engage with a union or handle matters internally.

  • Communication: Managing feedback loops between staff and leadership.

  • Conflict resolution: Understanding negotiation and mediation processes.

You can embed these skills using role-play activities (e.g. mock disciplinary hearings), problem-solving tasks (e.g. designing an employee engagement strategy), or analysing HR decisions in mini case studies.

Careers Links

This topic connects with several real-world career paths:

  • HR professionals and people managers who navigate employment law, staff engagement, and conflict resolution.

  • Union representatives and mediators working to protect employee rights.

  • Legal and compliance roles requiring in-depth understanding of workplace legislation.

  • Entrepreneurial careers, where building a team culture is vital for start-up growth.

It supports Gatsby Benchmark 4 (linking curriculum to careers) and 5 (encounters with employers, particularly when inviting guest speakers from HR or unions).

Teaching Notes

Top tips:

  • Use contemporary case studies to spark debate.

  • Get students role-playing different sides of disputes to build empathy and critical thinking.

  • Keep the law practical: link each act to a real-world consequence or headline.

  • Break down union roles and terminology early — this is often unfamiliar territory.

Common pitfalls:

  • Students often confuse employee participation with employee empowerment — clarify the difference.

  • There’s a tendency to memorise laws without understanding their business impact. Use scenarios.

  • Be careful with over-simplifying industrial action. Discuss long-term impacts on both reputation and productivity.

Extension ideas:

  • Create a mock employee handbook with disciplinary and grievance procedures.

  • Analyse how different leadership styles (autocratic vs democratic) affect employee relations.

  • Debate: “Do unions still matter in modern workplaces?”

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