Importance of Employee Relations and Employment Law: A Case Study of Marks and Spencer

This report discusses the importance of employee relations and employment law in the context of Marks and Spencer. It covers the fundamental laws of employment in the UK, the rights, obligations, and responsibilities of employers and employees, stakeholder analysis, and the positive and negative impacts of employee relations. The report emphasizes the significance of maintaining a positive relationship between employees and employers to increase motivation, loyalty, and revenue. It also highlights the importance of stakeholder engagement and contribution to support positive employment relationships.

1

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
A brief statement of value and importance of employee relations at the organisation as well as
an analysis of the fundamental of employment law:...................................................................3
An account of the various rights, obligations and responsibility which an employer and
employee has within workplace:.................................................................................................4
Stakeholder analysis for Marks and Spencer as well as examine how stakeholder engagement
and contribution can support positive employment relationships :.............................................6
Positive and negative affects of employees relation on various stakeholders :..........................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Employment relationship examine a legal activity between employee and its employer which is
there if a person executes its work under certain circumstances in exchange of worthy amount. It
is also evaluated as a major point which is behaviours of employer's obligations as well as rights
towards its colleagues, subordinates and seniors. As because of this managers need to keep the
relations healthy among its employees in order to encourage efficiency in the organisation. The
following report is based on Marks and Spencer, which is a Multinational retailer in United
Kingdom and was founded by Michael Marks and Thomas Spencer at the time of 1884 and they
are having their headquarters in London, England (Ando, 2021). They deals in home, food and
retail products. The following report will cover importance and value of relations of employee as
well as their fundamental law linked to this. Moreover, it will cover about the obligations and
right for employee and employer at the organisation. Additionally, stakeholder analysis as well
negative and positive impact in the activities of the organisation will be there.
TASK
A brief statement of value and importance of employee relations at the organisation as well as an
analysis of the fundamental of employment law:
Employee relation refers to the company's hard work to make and keep a optimistic bond with
among subordinates and seniors. By keeping optimistic, brawny employee bond, company
expect to keep their workers loyal and more productive in their accomplishment of goals and
objectives. The importance and value of employee relation is described below in context to
Marks and Spencer:
 Increased Motivation – Less engaged workers can cost a company lots of money
because of low productivity. Organisation which have ensures the engagement of its
workers receives higher productivity in the company (Arvas, 2021). In context to Marks
and Spencer, management requires to make sure that their employees are working
together with having a proper bond which can help in workers feeling motivated and
empowered.
 Loyalty of employees – A grateful and productive working atmosphere can have an
impact on the employees loyalty and maintaining peace among the workers. Proper
worker relations are the main reason for the success for any organisation. Irrespective of

the number and size of the employees, in relation Marks and Spencer, they required to
give attention to the relations among the employees. It can assist them in accomplishing
long term success (Bobek, Pembroke, and Wickham, 2021). Employee relation is very
essential for the company's long term success as it is majorly dependent on the
productivity and engagement of their staff. The most important asset of the organisation
is their employees and growth of the company totally depends on them so organisation
need to keep their employees motivated.
 Enhanced Revenue – Employee relations has a optimistic impact on the long term
revenue and growth of the firms. The perks of a healthier and happier working
atmosphere is not only in the organisation but also helps in customer satisfaction. In case
of Marks And Spencer, company having more encouraged and engaged workers leans to
give results in better consumer satisfaction which can increase their sales and revenue.
 Reduction in turnover – Relation among the employees is the backbone of any
organisation. Bad relations among employees can impact the outcome and result in high
employee turnover. In relation to Marks and Spencer, worker have good employee
relations that gives higher wages and several other tempting rewards that makes their
employees to stay and work more hard for them.
Fundamentals of employment law of UK
It includes all the aspects of the bond between employee and its employer. It includes
newest knowledge on the law of employment in the nation. These laws impacts the employees
and its seniors across of various industries. As a worker, people can know and understand their
and their co worker's rights and obligation in the organisation which involves safety, health,
leaves, wages, rewards and more (Cao, and Yu, 2021). There are various legislations which
affects the employment relationship that are discussed below-
 National Minimum Wages Act- This law is aimed to protect the rights of workers and
ensure that they are given minimum wages for the work they do for the employer. Its
purpose is to make sure that employees are given legitimate wages so that they can work
effectively and earn their livelihood. Likewise, if minimum amount is provided to staff, it
leads to positive relationship between employer and employee and they feel motivated to
work even harder.

 Employment Rights Act- The aim of this legislation is to ensure that employees are
protected from unfair and wrongful dismissals. They are also entitled to the employment
contract so that there are written terms of working between them which will help them to
have healthy relationship among employer and staff.
An account of the various rights, obligations and responsibility which an employer and employee
has within workplace:
Rights, duties and obligation of an Employer:
Rights of an employer :
 Fire an employee – Employers have all the right to fire an employee who is not able to
perform to cope up with the vision of the company and if that employ misconduct with its
colleagues or seniors and if that person violates the policies of the company.
 Right to non disclosure – It is the right of an employer to protect the firm's intellectual
asset against any type of violation of the employee (Chen, and Eyoun, 2021). An also
need to sign a bond of non solicit and compete agreement which are made by the
employment lawyers that tell that a person cannot utilise the firm's name without the
permission and also is not allowed to solicit customers of the organisation.
Duties and obligation of an employer :
 Safe and healthy working environment - Main responsibility of an employer in a work
place is to provide their employees a safe and healthy atmosphere to its employees. They
need to set up healthy and safe manufacturing plants, machines, system and
management.
 Basic Facilities – Management should focus on providing safe set up for their
employees from dangerous chemical and harmful substance. They should make
particular regulation for the storage and usage of such things with proper protocols
(Decker, 2021). Moreover, employer must ensure that their employees are getting basic
facilities like tidy eating mess, clean toilets, water which is good to drink and clean and
neat work place.
 Inequality at the organisation – In any organisation, it is the duty of the employers to
provide a work place which is free from all type harassment, discrimination and abuse.
In every workplaces these are important challenges.
Rights of an employee:

 Right and equal work – Employees should get a fair and an equal working atmosphere
as manager or leaders should not be biased and unfair while allotting positions of work,
as they should not be in favour of any particular individual or group of people for any
activity in the organisation.
 Safe working environment – It is the right of an employee to get a safe and healthy
working environment . As they should be aware of healthy workplace which is their basic
right and if there's a misshapen in the organisation then it is the duty of the management
to price the affected employee with worthy compensation (Hu, and et.al., 2021).
 Wages – It is the duty of the management and a right of an employee to get their wages
on time and the amount they deserve. Government has set a minimum wages for every
employee that should be given to them.
Duties of Employees :
 Loyalty towards work of organisation – An employee should accomplish its task or
work which was assign by its employers within a deadline of that specific task. An
employee must be loyal towards the organisation and its objectives.
 Obeying the orders – It is the duty of an employee to obey the command of its seniors
and managers. Particularly commands given by the managers should be in respective of
law and it should sound morally. Moreover, its an employee's right to not accept any
order which against the law and can go against its moral character.
 Competency in work – An employee should work in order to utilise their skills for
which they are hired for and while doing the work and must do it with due diligence and
if it is not done then that particular employee will be incompetent in its work.
Stakeholder analysis for Marks and Spencer as well as examine how stakeholder engagement
and contribution can support positive employment relationships :
In a firm, stakeholders have a crucial role in accordance of managing the task of the company.
These project stakeholders are the people who are regularly included in the goals and objectives
that are impacted as a conclusion of its efficacious implementation (Jahagirdar, and et.al., 2021).
Below is the brief analysis of it :
Stakeholder Analysis – In this method its is usually used to analyse the interest and power of
the stakeholder in the organisation. In the respective of this, manager can analyse on how
frequently they affect the attitude of the organisation. Main motive of this analysis is to execute

efficacious activities which can assist to communicate and properly informed staff in accordance
to accomplish activities of the business to properly to achieve the given objectives or tasks. The
power interest of stakeholder method is describes below:
 Keep satisfied – People who comes in this have high power but bit low of a interest in
the organisation and its practices. In case of Marks and Spencer, they are the CEO,
Managing directors, Head of departments and so on. Though, for the organisation Marks
and Spencer, they are needed to keep the employees satisfied in accordance of their job
profile (Kim, and Park, 2021).
 Manage closely – These are the people who have high interest in the organisation as well
as high power in the business activities. In context to Marks and Spencer, people of this
level are managers of various departments like HR manager, sales manager, and other
managerial level workers. Though for the organisation they are needed to fully focused
with them as well try to give more efforts and hard work.
 Monitor – In this level of stakeholder analysis, it is the people who have low interest in
the practices of the business and low interest in it also. In case of Marks and Spencer,
there consultants , supervisors, staff in administration department are in this level. Thus,
organisation needs to monitor them but they don't have to include them in the decision
making of the several topics.
 Keep informed – People who are in this level possess low authority in the business
activities but also have higher interest in the activities of the organisation. In relation to
Marks and Spencer, labour, sale support , customer care department and many others are
the belong to this category (Koukal, Kyselovská, and Vlachová, 2021). For the
management of the organisation they are needed to properly instruct people and should
make sure that no major problems are coming in front of them.
Stakeholder engagement can lead to optimistic employment relation :
In case of Marks and Spencer, it plays a crucial role as it supports in maintaining productivity
and profitability directly of the organisation. Stakeholder engagement is actually a activity in
which a company can communicate with its stakeholders and also can make them to be the part
of the organisation. In respective of Marks and Spencer, management always try to address all
the wants and needs of its stakeholders in accordance of giving all the satisfaction of the business
services. It also refers to the condition that is there when the company is hiring most worthy

people in according to the requirements and needs of the organisation. In this condition, it is
needed for them to full fill desires of their employees in accordance to manage practices of the
company effectively. These type of activities leads to external and internal stakeholder of the
company such as employees, consumers, investors, government bodies etc.
The influence of various stakeholder over the objectives and profitability of the business :
In a firm, stakeholder perform important role in the operations of the business. Though it is
needed for the company to analyse their interest in regards of business practices (Lee, 2021). In
context to Marks and Spencer, it is needed for the, to execute such activities by which they can
enhance their profitability as follows:
 Appraisals in accordance of performance – In relation to company Marks and
Spencer, firm needs to execute employee engagement activities as their performance
appraisals in accordance to give them suitable satisfaction regarding their job profile.
These activities assist in improving their productivity of people. The management of
Marks and Spencer gives performance based appraisals to its stakeholder in accordance
to create an efficacious engagement with the employees for very long time.
 Quality of services – In respect of satisfaction of stakeholder, it is needed for the
company to give premium services by evaluating their needs and wants. All these
activities assist in managing long lasting bond with them (Mori, and et.al., 2021).
Managing department of the company Marks and Spencer, gives all the required quality
services to their stakeholder which helps them to make wanted condition in their own
favour.
Positive and negative affects of employees relation on various stakeholders :
Stakeholder Positive impact of employee
relation
Negative impact of employee
relation
Investors Investors are those people who
involves debt and shareholders
both, These are the outside
stakeholder who have high
power and very low interest in
the organisation. In case of
Apart from this, If company
Marks and Spencer, did not
generate better profits and
revenues then it can leads to
decline in its investments from
outside investors as because

Marks and Spencer, investors
invest funds in the organisation
and expects the revenues from
the business. This increase the
valuation of the firm and
management works more
effectively and efficaciously
(Sautter, 2021).
these people gets the funds for
the organisation.
Customers Consumers are the most
valuable stakeholder for the
firms. In context to Marks and
Spencer, consumers buys
various kinds of products by
getting tempted towards firm's
marketing and sales, public
relation and various other
techniques. After that they
think of purchasing that
specific products from that
particular brand (Tripathi, and
Mishra, 2021). On the other
side of it consumers look for
what quality product firm is
offering them and in case of
Marks and Spencer, firm is
recognised for offering
premium quality products and
services to its consumers and
in which their consumers
purchasing behaviour directly
affects the organisation's
As consumers gets optimistic
impacts on the organisation
then it can also provide a
negative impact on the firm. If
consumer is not satisfied with
the quality of the products
then I can to lead to the loss of
consumer base, In case of
Marks and Spencer, their loyal
customer base is the reason for
the existence of the company.
So if the consumer is not
happy with the quality of any
of their product then they can
switch to some other brand
which is offering the same
product with the better quality.
So this can be the reason for
the loss of company's loyal
consumer base.

success and revenues.
Employees Employees are the main assets
of any organisation, so a good
employee relation in the firm
can give a outcome of better
communication among the
employees and managers
(Zhou, and Yeh, 2021). It
enhance the stability of
organisation that is needed for
the regular growth of a firm.
Employees put their efforts and
time for the accomplishment of
the goals and objectives of the
firm. In relation to Marks and
Spencer, management gives
suitable training and
development to enhance firms
profits and revenues. Company
gives them bonus, rewards and
safe working atmosphere to
enhance their productivity and
efficiency.
If firm does not give reward,
proper appreciation, credits
work on a biased system etc
can lead to low moral of the
employees which affects the
internal productive which can
lead to long term decline of
the company (Peltz, and et.al.,
2021).
CONCLUSION
From the above report it is concluded that relationship among the employees play a crucial role
in the long term growth of an organisation. In this respect, there are various obligation and duties
which are examined by the management in the regard of their rights. All the activities helps in
evaluating a optimistic atmosphere with the support of their policies which are effective. The

stakeholder or employees of a company are managed by evaluating their interest and power
towards the organisation. The main goal behind evaluating is to analyse their negative and
positive impact regard in decision making of the business.

REFERENCES
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