Dear Swati,
Management of Employee Relations depends to a great extent on the situation and the organizational requirements. Even after the emergence of new HR concepts, the former ideology of Personnel Management has not become outdated. Therefore, when your requirement compels you to fire an employee, you should do so, and on the other hand, if you are in a market that is relatively inelastic in labor, you have to act accordingly. A kind of flexible approach is recommended in managing employee relations. I recall the basic theme of "SEEMA BADHA" (I do not know whether the spelling is correct), a Bengali novel with the meaning "Limited Company," which revolves around the Personnel Manager of a company, the strategies, ideas, and so on. In the novel, a picture of how a dispute is fabricated just considering the 'situation' is shown. I have also experienced prolonging a negotiation with the workers simply because the company's order book was almost empty! and at the same time proceeding with conciliations to settle a dispute during a situation of an overflowing order book!
Don't worry, be confident to meet any situation, and draft your HR policies in a flexible manner without many problems for both the employer and employees.
Regards,
Madhu.T.K