Value and Importance of Employee Relations in Tesco

Employee Relations

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Value and importance of employee relations in Tesco.....................................................3
P2 Fundamentals of employment law that apply to Tesco.....................................................5
LO 2.................................................................................................................................................6
P3 Different types of rights, duties and obligations of an employer and employee within the
workplace...............................................................................................................................6
P4 Determine appropriate advice relating to rights, duties and obligations of the employment
relationship.............................................................................................................................7
LO 3.................................................................................................................................................8
P5 Stakeholder analysis for Tesco..........................................................................................8
LO 4...............................................................................................................................................10
P6 Impact of positive and negative employee relations on different stakeholders..............10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Employee relations can be defined as the relationship that is shared by the employees
within an organisation (Al Mehrzi and Singh, 2016). For an organisation to have a healthy
environment, the employees must be comfortable working with each other. The managers and
leaders in the company should encourage a healthy atmosphere within the company premises. An
organisation having good employee relations treats its employees fairly in order to ensure that
they are committed to their jobs and loyal to the organisation. Tesco is a British multinational
company that sells groceries and other general merchandise and is headquartered in England,
United Kingdom. The company is the third largest grocery retailer having outlets across Asia,
Europe and USA. The report explains the value and importance of employee relations in an
organisation and the fundamentals of employment law that are relevant for the same. The report
also describes the various rights and duties possessed by an employer and an employee at his
workplace and explains the power and interest of the company's stakeholders through a
stakeholder analysis. It also analyses the positive and negative impact of employee relations on
various stakeholders of the organisation.
MAIN BODY
LO 1
P1 Value and importance of employee relations in Tesco
Strong and healthy employee relations are an important component for the success of any
organisation and help it achieve its goals and objectives (Baddon and et. al., 2017). The
managers and leaders at Tesco ensure that a healthy environment prevails in the company, all the
employees are comfortable in working with each other and conflicts among them can be
minimised. This leads to an increase in the overall performance as well as productivity of the
staff. The value and importance of employee relations in context of Tesco is explained below -
 Productivity – Strong and healthy employee relations help in creating an atmosphere that
is pleasant and the employees like to work in. This helps in increasing the motivation of

the employees and also their morale. Tesco invests into various programs to develop
healthy and positive employee relations which in turn benefit the organisation with
enhanced productivity of the employees leading to a rise in the profits of the company.
Also, when the employees of the company are productive, it automatically leads to an
increase in the overall productivity of the organisation.
 Reduction in conflicts – An efficient and healthy work environment reduces the extent
of employees having conflicts with each other (Barry and Wilkinson, 2016). Thus, Tesco
has a sound and efficient work environment with efficient employer-employee relations
that has resulted in the organisation's success and reduced staff turnover.
 Motivation of employees – Employees can simply be motivated and encouraged through
recognition of their work and efforts that they put in getting tasks done. Tesco
understands this completely and thus makes various efforts throughout the various
departments that the employees are committed and happy while doing their work which
leads to an increase in their productivity.
 Increased Employee Loyalty and Morale – Healthy and positive employee relations in
Tesco have led to the creation of a pleasant and productive work environment that has
drastically impacted the loyalty of the employees towards the brand. Thus, the company
has been able to cut costs on recruiting, hiring and training new candidates. Also, the
employees feel confident and secure regarding their jobs and therefore deliver their best
output.
 Retention of employees – Organisations today, face the major problem of a high staff
turnover with the existing employees switching their jobs due to several reasons (Chen,
Leung and Evans, 2016). Therefore, Tesco makes sure the communication within the
company is healthy and that all the major decisions are communicated to the staff so that
they get a sense of being considered and involved by the company. As a result, the
company has a low turnover and has been able to retain its employees for a long period of
time.
 Concrete goals – The senior management in Tesco ensures proper formulation of goals
so that they can be achieved easily. Once concrete goals and objectives are presented to
the employees, they feel confident and urge to work more efficiently as parts of various
teams in order to achieve the same. This not only motivates them but also makes them