Table of Contents INTRODUCTON.............................................................................................................................1 TASK 1............................................................................................................................................1 P1. Analyse the value and importance of employee relations in application to specific organisational examples.............................................................................................................1 P2. Evaluate the fundamentals of employment law that apply to specific organisational example.......................................................................................................................................2 TASK 2............................................................................................................................................4 P3: Explain the different types of rights, duties and obligations an employer and employee has within the workplace...................................................................................................................4 P4: Determine appropriate advice relating to rights, duties and obligations of the employment relationship for a range of given organisational examples..........................................................6 TASK 3............................................................................................................................................7 P5 Conduct and complete a stakeholder analysis for a given organisation................................7 TASK 4..........................................................................................................................................10 P6 Analyse the impact of both positive and negative employee relations on different stakeholders...............................................................................................................................10 CONCLUSION.............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTON Employee relation is considered as one of the essential aspects connected with every organisation. Companies which possess positive employee relation achieve their targets and objectives in a desired manner. They faces less conflicts and sustain a firm position within market. This present assignment is based on Marks & Spencer which is a Britain based multinational retailer and specialises in home products, food items and clothes. Company is headquartered in Westminster, London and founded by Michael Marks and Thomas Spencer in 1884. This report includes importance and value of employee relation along with fundamentals of employment laws. It also involves duties, right and obligation of employees & employer. Appropriateadviceisgiveninrelationtoduties,obligationsandrightofemployment relationship (Chang and et. al., 2015). Also, stakeholder analysis is carried out along with impact of employee relation on stakeholders. TASK 1 P1.Analysethevalueandimportanceofemployeerelationsinapplicationtospecific organisational examples. Employee relation refers to the efforts of an organisation to manage the relation among employers and employees. A firm which has a good employee relation program delivers a consistent and fair treatment to workers. This assists them in committing to their work in a more desired manner. It is the duty of HR manager in M&S to manage the relation among employees and between employers & employees. Importance and value of employee relation in context of M&S is mentioned beneath: Value of employee relation Positive employee relation helps in creating a balanced workplace for employers and workers which results in enhanced employees engagement and achievement of desired outcomes. M&S must adopt principles associated with equity, justice and fairness for entire workforce. Robustrelationamongemployeesincreasesprofessionalismandhumanityatworkplace. Satisfied employees will treat client as their priority which will helps M&S in increasing their sales and revenues (Gul, Akbar and Jan, 2012). Isolated environment discourage employees and spreads negativity around them. Healthy relation among employer and workers also benefits in increasing the overall productivity of firm. 1
Importance of employee relation Everyindividualwithinanorganisationsharesacertainrelationwithotherstaff members. To maintain expenses and increase profitability, it is vital for employees to understand, discuss, coordinate and share their ideas & opinions with one another. These aspects can take place only when employees posses good relation with each other and employers. To earn desired targets and profits, it is vital for employees working in M&S to be comfortable around each other. Below is mentioned the importance of posing a robust employee relation in application to M&S: ï‚·There are many issues within workplace on which a single employee can not take decision. Guidance and advice of other employees is needed to conduct a business operation or activity appropriately. Sharing of ideas and opinions results in target achievement at faster rate. For example, if manager in M&S ask opinion of staff members regarding training and development programs, pros and cons associated with decision can be acknowledged even before formulating it. This will helps the company in adopting only right decisions and tactics. If relation among employees and between employer & worker is not good, no one will bother to share their opinion. This may results in loss of revenues and market share for M&S (Harrison, 2012). ï‚·Conducting business activities and operations are easy if work is shared among all staff members. A healthy employee relation increase productivity level of employees. In case of M&S, if project manager of company is working on a new project then dividing responsibilities among different team members will helps in accomplishing task within allotted deadline. If relation between manager and employees are not good, employees will not be able to deliver their best performance. Good relation among manager and workers will assist in performing business operation appropriately. P2. Evaluate the fundamentals of employment law that apply to specific organisational example. Employment laws are also called as labour laws. These laws mediates the relation among workers, employers, government and trade unions. Collective employee laws relate to tripartite relation between employer, worker and union. These laws are present at both state & federal level and it is important for every organisation to follow these laws. Process associated with employment laws initiates long before employees are recruited (Kalemci Tuzun and Arzu 2
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Kalemci, 2012). Fundamentals of employment laws assist in limiting the possibility of litigation, avoid cost related mistake and generation of revenue & profits. Basic employment laws in UK: ï‚·Employment Equality Law:According to the employment right act of 1996, no business owner and managers within an organisation can discriminate among employees on the basis of gender, nationality, religion and race while recruiting, firing and paying them. Itisimportantfor HR managerinM&Stotreat allindividualsfairly. If management and managers will discriminate on above mentioned grounds, company may face law suites and penalties which creates a negative image of company within market. ï‚·Minimum wage Act:According to this act, a minimum wage is fixed across UK which is 7.83 pounds per hour for employees aged over 25, 7.38 pounds per hour for employees aged between 21 to 24 and 5.90 pounds per hour for individuals between 18 to 20 wage. Management and manager in M&S needs to pay employees according to these specified wages. If employers in M&S are not employing workers according prescribed wages, organisation can face serious consequences such as law suits, penalties, fines. Contract, terms and conditions of employment:All employees within M&S are entitled to specific terms and conditions which should be offered within 2 months of commencing job. It helps in protecting the business and sets out a transparent relation between employer and employees. Contract associated with M&S include following aspects: ï‚·General: Name of the employer, job location, job title and working hours. ï‚·Salary: M&S pays salary on monthly basis. It is important for national insurance and tax payments to be deducted under PAYE scheme. Salaries are given to employees on the basis of minimum wages fixed by government authorities (Karami, Dolatabadi and Rajaeepour, 2013). Some other aspects of employment law in context of M&S: ï‚·Sick Leaves:Legally employees are not entitled to receive salary when they are sick but if worker is sick for more than 4 days then a statutory sick pay is allotted to them which is 88.45 pounds per week. This amount is reviewed on annual basis. It is important for accounts department in M&S to pay the specified amount to sick employed. This will help in formulating strong coordination among employees and employer. 3
ï‚·Notice period:Employer and workers are under obligation to give notice regarding termination of workers. If employment contract is silent on notice period, there are some legal requirements which M&S needs to follow: 1.Worker needs to give one week notice period irrespective of their service length. 2.Notice period of employers range from 1 to 12 weeks. It depends upon length of service of worker. ï‚·Maternity/ Paternity leaves:In UK maternity leave is up to 52 weeks, an employee will receive statutory Maternity pay for 39 weeks. A pregnant employee in UK can take a break of one year and can return to work for same role. In case of M&S, pregnant ladies have right to take an off of one year, they will receive SMP for it. Company can't retain them form joining on same position on which they were working before. Not accepting them will be considered as infringement of law which results in penalties (Mowday, Porter and Steers, 2013). TASK 2 P3. Explain the different types of rights, duties and obligations an employer and employee has within the workplace. Tomaintainhealthyworkenvironmentandstrongrelationamongemployer& employees, it is important for management of a company to specify certain rights, obligation and duties of workers and employers. This will helps in resolving misunderstandings among staff members and manager which results in increasing working potential. In M&S, there are certain duties, rights and obligationsof workers & employers which must be followed strictly in order to maintain employee relation. Right of employees and employers in M&S: EmployerEmployee ï‚·Employer have a right to implement workpolicyaccordingtothe requirement of company. If employees are not willing to obey employer, they can be terminated or penalised. ï‚·It is the right of employees in M&S to refuse unsafe work. No employer or otheremployeecanforcethemto performdangerousworkunless concerned employees agree themselves. ï‚·If employees are not working as perï‚·If employees in M&S are facing any 4
they are directed, employer have the right to give them warning. In extreme case,employeralsohaverightto terminate employees. kindofdiscriminationorinferiority, theycantakelegalassistance.No employer can deny law suits filled by them, unless they are false. Duties of employer and employees in M&S: EmployerEmployee ï‚·It is the responsibility of employers in M&S to provide equipment, tools and other resources to workers according to theirjobdescriptions.Ifmanageris unable to perform their duty in desired manner, it will disrupt the functioning and work within company. ï‚·Main duty of employees in M&S is to performtheiractivitiesbyefficient means.Incase,employeesarenot performing well, they can be suspended or terminated (Ouimet and Zarutskie, 2014). ï‚·Employers must pay salary to workers as mentioned in their contract. If they werepaidless,victimisedemployee can charge them with legal law suites. ï‚·Another duty of workers in M&S is to Follow the instruction of their seniors, superiors and managers appropriately. ï‚·Providingsafeandsecureworking environment to employees is the duty of employers in M&S. ï‚·Employees working in M&S have a dutytokeepsensitiveinformation relatedtocompanyconfidentialand safe. Obligations of employer and employees in M&S: EmployerEmployee ï‚·Providing work to employees as per their contract of employment. ï‚·Toperformworkinanappropriate mannerwhichisspecifiedin employment contract. ï‚·Respectingdignityandprideofï‚·Following all the instructions given by 5
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working staff.senioremployeesandmanager regarding business operations. ï‚·Toadoptrequiredhealthandsafety measureswhileperformingbusiness operations. ï‚·To observe proclamations, work rules, directivesandcollectiveagreements issued in accordance with Law. ï‚·Whencontractofemployeeis terminated, providing them a certificate which includes their job title and length of service. ï‚·Tohandleequipment,materialsand tools appropriately (Poole and Jenkins, 2013). In case employees and employers are not performing their duties and obligations in desired manner, this will disrupt the organisational culture which will results in less productivity and work performing capacity. P4. Determine appropriate advice relating to rights, duties and obligations of the employment relationship for a range of given organisational examples. Employment relationship is termed as a measure to improve the relations mainly between workers and mangers. It is important for an organisation to satisfy the needs and requirements of their workers. This will helps the firm in achieving desired outcomes in a timely manner. A satisfied employee performs with more efficiency and productivity which helps in enhancing revenue and profit margins. In M&S, every activity and operation is carried out in proper manner, but sometimes, it has been seen that employees feel insecure and demotivated while performing their work. Below are mentioned some advices which will benefits M&S in managing employee relation in an appropriate manner: ï‚·It is advised to managers of different divisions in M&Ssuch as marketing, finance and other department that they can implement policies and regulations which will assist in resolving grievances and issues of workers in an appropriate manner. By this, employees will feel satisfied and willingly listen to orders and guidelines provided by seniors. ï‚·ItistheobligationofemployersinM&Stopayemployeesaccordingtotheir employment contract. But due to work load, sometimes employees have to work over time (Shuck and Rocco,2014). To manage appropriate relation with workers, it is 6
advised that employers in M&S can pay them money according to their extra working hours. This will helps in sustaining a positive work environment within company premises. ï‚·It is advised to the workers in M&S that they should perform their work with sincerity and dedication. This will benefits the firm in accomplishing tasks within specified time and satisfaction level of employers will also increase. Satisfied employers will be able to consideredthewelfareofemployeesinamoredesiredway.Thiswillimprove employment relation within M&S. TASK 3 P5. Conduct and complete a stakeholder analysis for a given organisation. Stakeholder is an entity such as social group, customer or employees which has a stake within business. They can be external and internal to the business. A stake is defined as an interest in business or associated activities. It includes ownership, property interests, obligations, legal interests and moral rights. In case of M&S, Stakeholders can either affects the business or be affected by the business but in some cases both situation takes place simultaneously. Stakeholder analysis:It is a process of systematically collecting and identifying qualitative informationtoanalysewhoseinterestshouldbegivenprioritywhiledevelopingand incorporating a policy. In stakeholders analysis, characteristics of stakeholders are analysed and decisions are taken in accordance with that. Characteristics like interests related to policy, alliance with different stakeholders, knowledge and interestof the policy, position against policy, measures that can impact policy process are analysed in desired manner. Basically there are 3 steps to conduct stakeholder analysis. In first step potential stakeholders are identified.After that priority is given to their influence, interest and power. This acknowledge a firm in determining whose interest is more beneficial for company. At last, a good coordination and understanding with identified stake holders are developed (Slack, Corlett and Morris, 2015). This helps in understanding their behaviour regarding company and assist in gaining their support. To Conduct a stakeholder analysis, M&S can opt following mentioned steps respectively: Identificationofstakeholders:Mostimportantprocessbeforeformingand implementing a program is to acknowledge who are the potential stakeholders that can benefit 7
the company. This can be identified by acknowledging all the people which can impact the business or impacted by the business. All individuals which posses some interest within business are considered as stakeholders. In context of M&S suppliers, government, interest groups, customers, employees, family, future recruits, senior executives and other individuals are potential stakeholders. All these mentioned individuals possess some kind of interest in working of M&S. Prioritizing stakeholders:As we know there are different stakeholders that affects the working within an organisation. It is not necessary that all stakeholders are equally powerful, some of them have interest in business while others don't have. To identify which stakeholders are most likely to get impacted and can impact M&S, managers of company needs to prioritise them on certain grounds. Position of these stakeholders on the grid specifies the action that a company can take while analysing which stakeholders are powerful and needs priority. ï‚·Highly powered, highly interested people:These stakeholders are powerful and considered as a priority while implementing a program and policy. Managers in M&S needs to analyse them closely and try to acknowledge their opinions & preferences to gain a positive response form their side. For M&S, Customers and investors are highly interested and high powered people as engaging with these stakeholders benefits the company in maintain revenues and profitability in a desired manner. ï‚·Highly powered, less interested people:These people posses high power but they are less interested within business. Duty of managers in M&S is to satisfy them to a certain extentonly. Giving them more priority is not much beneficial for the company. Government and business analysts are that kind of stakeholders for M&S. ï‚·Low power, highly interested people:These stakeholder posses low power but they are highly interested in affairs of the company. Managers in M&S needs to inform them form time to time about policies and plans of company to ensure that no big problem can arise in future. These stakeholders are helpful while carrying out a project. Employees working in M&S came under this category (Snodgrass, 2012). ï‚·Low power, less interested people:These people posses less power and they are not interested in business affairs of M&S, but manager needs to monitor them to avoid business related problems. Community and interest groups came under this category. 8
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(Source:Stakeholder analysis, 2018) Understanding the expectation of stakeholders:Last step is to discover the behaviour of stakeholder regarding the program and policy M&S is going to implement. Communicating and engaging them with company helps in understanding the behaviour of stakeholders. Manager and senior executives of M&S needs to identify the emotional and financial interest of these stakeholders within company and their motivation factor. This will assist M&S in conducting a proper analysis regarding Stakeholders. Advantageofstakeholderanalysis:Ithelpsmanagersandpolicymakersto communicate and interact with stakeholders in more desired manner. This will results in gaining more support for initiated policy and program. By taking advantage of this analysis, policy makers can prevent potential threats and misunderstandings before implementing a program. There are more chances of success if a program is designed after conducting a stakeholder analysis. Due to this, coordination between employees and employers will improve and efficient employment relation can be achieved (Steger and et. al., 2013). 9 Illustration1: Stakeholder analysis, 2018
TASK 4 P6.Analysetheimpactofbothpositiveandnegativeemployeerelationsondifferent stakeholders. Employee relation posses a considerable impact on the working of an organisation. They can either be positive or negative depending upon the efforts put by employees and employers while interacting & coordinating with one another. Impact of positive employee relation on different stakeholders:For M&S potential stakeholders are customers, employees, senior executives, government, key advisors, investors, suppliers and other individuals. Positive employee relation benefits in conducting business operations efficiently. This will gain the attention of more customers which assists in high revenue and profit generation. Also, it results in satisfying employees, senior executive and investors due to this business operations are carried out in expected manner. Impact of negative employee relation on different stakeholders:Negative employee relation means employees are not satisfied with each other and with employer. This can results in lot of problems like less productivity and reduced working potential. Due to this production and delivery of commodities will get impacted and engagement of customers will decrease. Investors and suppliers will feel reluctant while interacting with M&S, due to which shortage of funds and resources can be faced and overall productivity of company will reduced along with market shares and revenues. CONCLUSION From above mentioned report, it have been analysed that a positive employee relation helps a company in sustaining a firm position within market place. There are some duties, rights and obligation of employees and employer, if they are carried out properly, employment relation improves which results in overall increased productivity. Satisfying stakeholder is important to gain their support and earn high profits & revenues. Positive employee relation results in resolving issues and misunderstandings within an organisation. 10
REFERENCES Books and Journals Chang, X. and et. al., 2015. Non-executive employee stock options and corporate innovation. Journal of financial economics.115(1). pp.168-188. Gul, A., Akbar, S. and Jan, Z., 2012. Role of Capacity Development, Employee empowerment and Promotion on Employee Retention in the banking sector of Pakistan.International Journal of Academic Research in Business and Social Sciences.2(9). p.284. Harrison, R., 2012.Employee development. Universities Press. Kalemci Tuzun, I. and Arzu Kalemci, R., 2012. Organizational and supervisory support in relation to employee turnover intentions.Journal of Managerial Psychology.27(5). pp.518-534. Karami, A., Dolatabadi, H. R. and Rajaeepour, S., 2013. Analyzing the effectiveness of reward management system on employee performance through the mediating role of employee motivation case study: Isfahan Regional Electric Company.International Journal of Academic Research in Business and Social Sciences.3(9). p.327. Mowday, R. T., Porter, L. W. and Steers, R. M., 2013.Employee—organization linkages: The psychology of commitment, absenteeism, and turnover. Academic press. Ouimet, P. and Zarutskie, R., 2014. Who works for startups? The relation between firm age, employee age, and growth.Journal of financial Economics.112(3). pp.386-407. Poole, M. and Jenkins, G., 2013.The impact of economic democracy: Profit-sharing and employee-shareholding schemes. Routledge. Shuck, B. and Rocco, T. S., 2014. Human resource development and employee engagement. Employee engagement in theory and practice.pp.116-130. Slack, R. E., Corlett, S. and Morris, R., 2015. Exploring employee engagement with (corporate) social responsibility: A social exchange perspective on organisational participation. Journal of Business Ethics.127(3). pp.537-548. Snodgrass, R. T. ed., 2012.The TSQL2 temporal query language(Vol. 330). Springer Science & Business Media. Steger, M. F. and et. al., 2013. Engaging in work even when it is meaningless: Positive affective disposition and meaningful work interact in relation to work engagement.Journal of Career Assessment.21(2). pp.348-361. Van Dijke, M. and et. al., 2015. Willing and able: Action-state orientation and the relation between procedural justice and employee cooperation.Journal of Management.41(7). pp.1982-2003. Online StakeholderAnalysis.2018.[online].Availablethrough. <https://www.researchgate.net/figure/Example-of-stakeholder-analysis-framework- from-Hovland-2005-There-are-many-standard_fig1_48990412> 11