Employee Relations and Stakeholder Analysis

The given assignment is about understanding employment relations, focusing on stakeholders, and their influence on employee engagement and performance. It involves analyzing various determinants of employee engagement and their effect on performance, as well as examining the role of stakeholders in this context.

Employee Relations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Value and importance of employee relations...................................................................3
P2. Fundamentals of employment law applied to the organisations......................................4
TASK2.............................................................................................................................................6
P3. Different types of right, duties and obligations of employer and employee at workplace.. .6
P4. Determine appropriate advice relating to rights, duties and obligations of the employment
relationship.............................................................................................................................7
TASK3.............................................................................................................................................8
P5. Stakeholder analysis in Amazon......................................................................................8
TASK4...........................................................................................................................................10
P6. Positive and negative impact of employee relations on different stakeholders.............10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Employee relation defines the formal and informal relationship between employer and
employee which takes place within the management. An organisation which wants to make itself
successful in a particular industry will put emphasis on positive employee relations. Organisation
undertaken in this report is Amazon which was founded in 1994 and deal in e-commerce and
cloud computing industry which provides Amazon app store, echo, kindle, prime, etc. In this
report, explanation of value and importance of employee relation is done with relevant examples.
It also determines the fundamentals of employment law. It further puts emphasis on various
rights, duties and obligations of employer and employee at workplace. Analysis of stakeholders
contribution and engagement in an organisation and identifies the positive and negative impact
on employee relations to stakeholder is elaborated.
TASK1
P1. Value and importance of employee relations.
Maintaining healthy employee relation is a prominent approach for organisational
success. Every individual is required to share certain relationships with their subordinates and
colleagues because they need people to share, talk, discuss, etc. at workplace. Employee relations
are the organisation's efforts to tackle relationship between employer and employee. Amazon, by
following good employee relation will provide fair and consistent treatment to all employees
which will be advantageous in committing people to their jobs and loyal to the company, leading
to minimising the labour turnover rate and absenteeism (Ackers, 2014). It is a part of human
resource strategy designed to assure the most appropriate and effective use of people to
accomplish the organisational benefits and goals. An effective employee relation begins with
clearly written polices and procedures. Furthermore, the employer and employee delivers their
maximum time in the organisation so it becomes necessary that they work peacefully by sharing
good relations. Thus, employee relation is very important in Amazon because of the following
reasons discussed below :
 Productivity : Healthy and good relations develops a pleasant and soothing working
atmosphere. This increases the employee motivation and they work with full zeal and
confidence which maximises the productivity and efficiency of work in Amazon. For
instance, when there is peak season then Amazon must create environment in which work

is equally distributed and employees does not feel pressure of work. This will help in
fulling their responsibility during the peak season effectively and efficiently and
contributes in maximising productivity (Anitha, 2014).
 Employee loyalty : When Amazon will successfully create the pleasant working
atmosphere for its employees while increasing productivity, this will have a direct impact
on employees loyalty towards the company. For instance, when employee will be
motivated and channelised towards the company then it will inspire them to become loyal
towards the Amazon. It will be useful in minimising the employee turnover and
absenteeism rate because having this kind of workforce will improve employee retention
rate for the company. This will finally leads to minimising the cost of hiring, recruitment
and selection because employees will be loyal.
 Minimising conflicts : When working atmosphere is friendly and efficient then it will
minimise the chances of conflicts (Baddon and et. al., 2017). For instance, when Amazon
will have good environment then employees will be able to focus on their work and
chances of conflicts will be reduced. Thus, it will be useful in generating the efficient
productivity for the organisation.
 Communication : It is the most important element in an organisation because it acts as a
passage of transferring information and knowledge between different people and
department in a company. For instance, Amazon will adopt effective communication
strategies which will make people clear about the vision and mission of the company.
Proper communication is also helpful in understanding the issues of employees and
developing relevant solutions. This will maintain harmony at the workplace and develops
good employee relations.
P2. Fundamentals of employment law applied to the organisations.
Every business follows various legal laws and regulations for the benefit of the
organisation. Some laws are even made mandatory for the companies to take in account.
Employment laws are the legal policies and fundamentals which are made to protect the rights
and interests of the people at workplace (Bergbom and Kinnunen, 2014). These are very
important for being an effective employer, supervisor or manager and this process starts even
before the organisation hire any individual. These laws will be useful in dealing with potential
dangers and also helps to define the professional legal advice which is important in effectively

operations of the business. For this purpose, Amazon will adopt various employment laws which
will regulate the employer employee relationship and they are discussed below :
 Recruitment Law : This laws is useful in recruiting staff and focuses on that employer
must understand and keep themselves updated regarding the obligations which will
assure them in recruiting and selection process comply with the law (Employment law,
2018).
 Terms and conditions of employment : They are the elements of agreements and
contracts which determines the employment relationship between employee and
employer (Ferguson, 2018). This provides resources related to the legislations and laws
useful in governing the terms and conditions of employment in an Amazon which will
provide written contracts or agreements, notice periods, etc.
 Data protection act 2018 : This laws is helpful in protecting the important information
and assures that it is used efficiently in accordance with legal compliances. This act is
useful for Amazon in UK as it implements the general data protection regulation which
stresses on that all employers need must be aware about the duties and rights and
breaching the same will cause penalties and fines. Thus, it provides assurance or privacy
and confidentiality at work.
 Holiday entitlement and pay : Amazon in UK, will be entitled to the minimum
enactment necessitates for paid holiday each year for a full time employee is 28 days
which involves public holidays.
 Working time regulations 1998 : Working hours in Amazon, UK will be operated by
this law. This puts limitation on a working week and working day to an average of 48
hours and 8 hours respectively. It also provides paid leaves and rest breaks to the workers
and staff.
 Equality act 2010 : It gives equal right for equal pay to equal work to both men and
women at workplace. This assures equality between men and women. This act also
ensure and prevents race discrimination, religion and belief discrimination, protects from
bullying and harassment at work.
 Public interest disclosure act 1998 : This law protects individual who blow the whistle
in the public interest (Godard, 2014). This happens when a worker renders certain form

of information which has come to their attention mainly employer or regulator to develop
a concern about the danger or illegal act that can affect others.
 The transfer of undertaking regulations : This protects employees terms and
conditions of employment when a business is transferred from one owner to another.
TASK2
P3. Different types of right, duties and obligations of employer and employee at workplace.
Each employer and employee will have various rights, duties and obligations which are
required to be followed ta workplace. This will make them clear with the work they are required
to perform and help them in accomplishing organisational goals and objectives effectively and
efficiently (Gregory, 2016). When roles and responsibilities are explained then all this will be
related to the health, safety, wages, equal opportunities, employment terms, etc. So, Amazon will
have different set of rights and duties for their employees and employer which will help in
accomplishing goals by maintaining harmony in the company and they are discussed below :
Employer : It is a people or organisation who is responsible for hiring and selecting
employees for the Amazon. Different rights, duties and obligations are :
Rights Duties Obligation
They have the right to stop the
work through immediate
notification from health and
safety representatives.
To provide safe and secure
workplace free from illegal
activities
They are responsible to pay
employees the agreed amount
if they arrives and performs
the work.
They also have right to request
and review improvement
notices issued by work safe
departments of the country.
Establish and communicate
operating programs so that
employees will work in
accordance with it.
They are also accountable for
providing work according to
the contract.
Employee : They are the people or individuals who work in the organisation either part
time or full time under an agreement which can be written or implied and they have recognised
right, duties and obligations in Amazon which are discussed below :
Rights Duties Obligations
They are entitled to work in an It is the duty of the employee To follow instruction given by

environment which is free
from discrimination,
harassment and abuse. Thus,
ensures equalities at the work
place.
to wear the uniform before
leaving for work. As Amazon,
has specific uniforms and
dress code for their workplace.
the employer related to the
terms of agreement and
working rules.
It is the right of the employee
to select their flexible working
hours. In Amazon, there are
shifts, so employee can choose
any shift depending on their
comfort and suitability.
Also, there are certain policies
in an organisation which are
essentially followed by
employees. These can be
related to privacy,
confidentiality, respect, etc.
To inform the employer
rapidly of any act which
creates fear or danger for them
or any illegal activity like
harassment, etc. which may
affect the individual.
P4. Determine appropriate advice relating to rights, duties and obligations of the employment
relationship.
The above discussed rights, duties and obligations of the employment relationships are
very crucial for every organisation. When Amazon follows these rights and obligations then it
will have favourable impact on employment relation (Guillon and Cezanne, 2014). For instance,
when employer will provide the required minimum wage as per the law to its employees then
they will feel motivated and work with full zeal and confidence. Apart from this, organisation
must provide effective leadership which provides training and guidance to the employees. This
leadership will be such that it will eliminate the chances of conflict, leader or employer will act
as a link between top management and employees so that employees problems can be easily
transmitted to the top management and they will devise policies which will be beneficial for the
entire organisation. Amazon, by adopting various legal laws will provide people with safety and
security in various aspects like jobs, harassment, abuse, illegal activities, etc. Further more,
adopting various rights and duties for women employees will be useful as they will be able to
maintain work and home appropriately. Also, male and female employees and employers of
company must be able to work flexibly which will help them in maintain work life balance. This
tool determines the balancing between the personal and professional life such that people will be
able to enjoy both. When Amazon can execute the work life balance programs successfully, it
will motivate people to work in the company with full confidence and potential for

accomplishing the goals and objectives effectively and efficiently. This further reduces the
labour turnover rate and absenteeism and makes company cost effective by cutting the expenses
involved in recruitment and selection process.
TASK3
P5. Stakeholder analysis in Amazon.
Stakeholder is a person, group or organisation that has involvement or anxiety in an
organisation (Ibrahim and Falasi, 2014). There are lot people involved in the successfully
completion of the work. Every organisation has different kinds of stakeholders like customers,
suppliers, distributors, employees, employers, societies, etc. It is very important to manage theses
stakeholders because of the proper functioning and operation in a company. Amazon is a online
retailer company which makes use of cloud computing and e-commerce to practice its business
model that enable it to exercise its functions effectively in the advance, complex and increasing
use of internet. As this is large company, it has to take in account numerous underlying
stakeholders. Following are the stakeholders in the Amazon are discussed below :
 The directors and top management : They are the people who are concerned about the
growth and profitability of the company. The board of directors and top management
encourages the innovation and adds cost effectiveness in a business structure that will
maximise the level of profits earned.
 Employees : This stakeholder group is concerned with competitive compensation and
career development (Jennings, McCarthy and Undy, 2017). They are crucial because of
their support to the organisational culture of Amazon. The manpower resources of the
company makes incredible innovation which maximises efficiency of the business.
Amazon fulfils the expectations of these stakeholders with effective leadership
development and by established suitable compensation polices related to the growth of
the company. For instance, Amazon can provide high pay to the IT professionals who are
directly engaged in developing and maintaining the technology in e-commerce business.
 Strategic supply chain partners : These stakeholders evaluates and expects the
company to grow and expand which will be advantageous in earning higher return from
sales of their products, higher returns from the company and earn brand association with
the company.

 Customers : It is the most important stakeholder group in Amazon as primary aim of
every organisation is to satisfy customer needs and demands which is essential for the
existence of the firm. The main concern of these stakeholders are fair pricing, suitability
in services and expects high level of online security while transacting with the company.
Amazon fulfils these concerns of customers by focussing on technology and services. For
instance, company employ people who are highly qualified and uses advanced
information and communication technology in working so that customers can get ease of
secure transaction, efficient purchase and delivery services (Kaufman, 2015).
 Community : These stakeholders are the group of people who are concerned with social
wellness and development of the society. Amazon initiates corporate social responsibility
programs for such communities. They are interested in encouraging development
supports like education, healthcare and environmental preservation. For instance,
program namely Amazon smile initiated by Amazon aims to donate its certain
percentage of sales revenue to the respective charitable organisations.
Power grid matrix
Amazon uses Power grid matrix model for analysing its stakeholders. It is an instrument
that helps the company to categorize project stakeholders with maximising powers and interest in
the project (Marchington, 2016). This focuses on key stakeholders who can develop or interrupt
the tasks and in turn helps in prioritization of stakeholders. During the stakeholder analysis,
following points are to be considered :
 Analyse the interest and motivations of stakeholders in a task.
 Identify conflicting interest between various stakeholders.
 Determine relationship between stakeholders.
 Examine the level of engagement required from each stakeholder.

Source : STAKEHOLDER POWER/INTEREST ANALYSIS.2018
TASK4
P6. Positive and negative impact of employee relations on different stakeholders.
Employee relation is maintaining good and long lasting relations between the employees
and employer. It is very important element as this governs the entire operations and functions of
the organisational structure (Mowbray Wilkinson and Tse, 2015). Also, it has been emphasised
to place importance on stakeholders because there are many people who are associated with the
company and employee relations in Amazon can have negative and positive impact on them.
Positive impact of employee relation of different stakeholder
 When Amazon will maintain favourable relations with the customer who are of prime
importance in the company then they can generate huge revenues. Customer satisfaction
is very important in business organisation. When there are healthy employee relations
then this will help company to produce innovative products for their customers, creates
efficient customer services related to the delivery process and managing their queries.
 Healthy and favourable employee relation will also help in acquiring the majority of the
market share in e-commerce industry. It will be useful in maintaining low bargaining
power of customers and high negotiation power with suppliers. Thus, it will be beneficial
in reducing cost and increasing efficiency.
Illustration 1: STAKEHOLDER POWER/INTEREST
ANALYSIS.2018

 Favourable relations with distributors and delivery people will give the benefit of
reaching the right product to the right people at right time (Poole, 2017). As Amazon,
has several delivery modes like prime, drone, etc. so it become important to maintain
good relations with distributors and delivery people which will also satisfy customers in
getting the product at suitable time.
 It is very important to maintain employee relations with community. Presently, every
organisation is engaged in various CSR activities which increases their image and
goodwill in the market. So, if there are good relations then organisation can develop
programs for communities in regard of social welfare. And it will be successfully
implemented only when internal relations are good.
Negative impact of employee relation of different stakeholders
 When Amazon fails to maintain good employee relations with customers then this can
affect the company adversely. Improper relation with customers will be unable to
produce innovative products, inability to deal with different customer perceptions and
buying behaviours. Dissatisfied customer will lead to negative publicity, poor ratings on
internet, etc. leading to decrease in sales and profitability.
 It is required to maintain good relations with supplier but if Amazon fails to do this then
it could bear heavy prices for purchasing its products and may have to compromise with
quality.
 Providing compensation and timely pay to their employees is important because if
Amazon fails to fulfil the financial need of their employees then they will not feel
motivated to work for the company (Shields and et. al., 2015). This in turn can leads to
high employee turnover rate, increase in absenteeism, lacks innovations, etc.
 If Amazon fails to maintain relations with distributors then this can be very harmful for
the company in financial terms and also affects the image of the company. This is
because distributors and delivery people are the sources who sends the items purchased
by the customers to them. When organisation won't understand them then they will be
discouraged to work effectively which in turn will affect the customers and sales.
CONCLUSION
From the above report it has been concluded that employee relation is the key for
successful businesses. This will help people to work peacefully in the business world without

any conflicts. This report has explained the principles of employee relations like loyalty, etc. and
fundamentals laws are explained in detail which ensures rights and interest of employees at
workplace. It also determines various advices relating to rights, duties and obligations of
employment relations. It further places importance on stakeholders and its analysis. And lastly, it
gives a detailed understanding of positive and negative impact of employee relation with various
stakeholders.
REFRENCES
Books and journals

Ackers, P., 2014. Rethinking the employment relationship: a neo-pluralist critique of British
industrial relations orthodoxy. The International Journal of Human Resource
Management.25(18). pp.2608-2625.
Anitha, J., 2014. Determinants of employee engagement and their impact on employee
performance. International journal of productivity and performance management.63(3).
p.308.
Baddon and et. al., 2017. People's capitalism?: a critical analysis of profit-sharing and employee
share ownership. Routledge.
Bergbom, B. and Kinnunen, U., 2014. Immigrants and host nationals at work: Associations of
co-worker relations with employee well-being. International Journal of Intercultural
Relations.43. pp.165-176.
Ferguson, M.A., 2018. Building theory in public relations: Interorganizational relationships as a
public relations paradigm. Journal of Public Relations Research.30(4). pp.164-178.
Godard, J., 2014. The psychologisation of employment relations?. Human Resource
Management Journal.24(1). pp.1-18.
Gregory, A., 2016. Public relations and management. In The public relations handbook (pp. 76-
100). Routledge.
Guillon, O. and Cezanne, C., 2014. Employee loyalty and organizational performance: a critical
survey. Journal of Organizational Change Management.27(5). pp.839-850.
Ibrahim, M. and Al Falasi, S., 2014. Employee loyalty and engagement in UAE public sector.
Employee Relations.36(5). pp.562-582.
Jennings, C., McCarthy, W.E.J. and Undy, R., 2017. Employee Relations Audits. Routledge.
Kaufman, B.E., 2015. Theorising determinants of employee voice: An integrative model across
disciplines and levels of analysis. Human Resource Management Journal.25(1). pp.19-
40.
Marchington, M., 2016. Employee involvement. In Encyclopedia of Human Resource
Management. Edward Elgar Publishing Limited.
Mowbray, P.K., Wilkinson, A. and Tse, H.H., 2015. An integrative review of employee voice:
Identifying a common conceptualization and research agenda. International Journal of
Management Reviews.17(3). pp.382-400.
Poole, M., 2017. The origins of economic democracy: Profit sharing and employee shareholding
schemes. Routledge.
Shields and et. al., 2015. Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Online
Employment law. 2018. [Online] Available Through :
<https://www.cipd.co.uk/knowledge/fundamentals/emp-law>