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Purpose

The purpose of this paper is to explore the significant predictors that have an impact on cultivating an environment of positive employer–employee relations in power sector organization.

Design/methodology/approach

Primary data were gathered by administering a structured questionnaire among 154 respondents (executives and non-executives) of a state-owned power sector of India. Exploratory factor analysis and multiple regression analysis were employed for statistical analysis of the data using SPSS (version 20).

Findings

The analysis used a total of 17 independent variables, and only three factors were extracted, namely organizational justice (OJ), employee empowerment (EE) and conflict management (CM), and established as the significant predictors of employee relation (ER). The proposed hypotheses were found to be statistically significant.

Practical implications

This scholarly endeavor provides plausible insights regarding the predictors vital for nurturing harmonious ER in power sector undertakings. It becomes highly imperative for both managers and academicians for developing strategies to cultivate a facilitative work environment to generate contented and competent workforce that can confront the challenging business world.

Originality/value

This work is a distinct manifestation of exhibiting quality relationships among the organizational entities by integrating the association of OJ, EE and CM for flourishing cordial employee relations (ERs) in the new perspective of power sector.

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