It is desirable for an organization to have proper and effective ERM since this enables the personalizing of Employee Relations. Good Employee Relationships contributes significantly to the success of the organization. The importance of ERM is summarized in the following point (Vineet et al., 2013, p. 23): 1. ERM promotes commitment, morale and trust in the organization. It establishes a link and congruency through psychological commitment between employees contract and employment relationship. It also aims at principle of fairness and ensures that organizational objectives as well as employee needs are fulfilled. 2. ERM facilitates employees in achievement of organizational objectives. It further tries to help employees in achieving tasks and targets set for their job positions and helps in developing effective communication channels and systems so that information needs of employees are met. It emphasizes on performance, growth and development of employees for creating competitive advantage.