Employee Relations: Importance, Fundamentals of Employment Law, Rights and Obligations, Stakeholder Engagement

This report discusses the importance of employee relations, fundamentals of employment law, rights and obligations of employer and employee, and stakeholder engagement. It analyzes how positive employee relations can improve business outcomes and evaluates the psychological contract and support for employee work-life balance. The report is based on TESCO, a multinational retail brand of the UK.

Employee relations

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Discussing value and importance of employee relation...............................................1
P2 Explaining fundamentals of employment law in relation to organisation.................1
M1 Analysing the value and importance of employee relation for improving business
outcomes.................................................................................................................................3
P3 Explaining different types of rights, duties and obligations of employer and employee
within workplace..................................................................................................................4
P4 Determining appropriate advice relating to rights, duties and obligations of
employment relationship......................................................................................................5
M2 Evaluating the psychological contract and support for employee work life balance in
respect to rights, duties and obligations of employment relationship....................................5
P5 Analyses of how stakeholder engagement supports positive employment relationship
in organisation......................................................................................................................6
M3 Examining in detail different stakeholder and interest in broad business environment for
supporting positive employment relationship........................................................................7
P6 Evaluating impact of positive and negative employee relation within workplace....7
M4 Critically evaluating hoe positive and negative employee relationship affects employee
engagement, motivation and performance.............................................................................8
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................9

INTRODUCTION
The term employee relation is related with the relationship between employers and
employees which emphasises importance to make sure of relationship among organisation and its
people are managed with transparent practices and relevant laws. The living standard of
employee is improved with the help of salaries. The employees helps in achieving entire
objectives of organisation as they are main part for company which is set by higher authorities of
business organisation. The efforts are made by organisation for creating and maintaining positive
relationship with their employees which helps to keep employees loyal & more engaged in their
work. The employees are viewed as stakeholders by organisation and have contribution for
having positive relation (Aung, T.T., 2020). The report is based on TESCO which is
multinational retail brand of UK. It was established by Jack Cohen in 1919 and headquarter is
located in Welwyn Garden City, England. The report covers value & importance of employee
relation, fundamentals of employee’s law along with rights and duties of employer and employee
on workplace. Further, it covers stakeholders’ engagement and evaluates positive & negative
employee relation within the workplace.
MAIN BODY
P1 Discussing value and importance of employee relation
In the workplace the individual shares certain relationship with his fellow workers which
influence directly on employee satisfaction and engagement. The positive employee relation with
companies helps in motivating, understanding and retaining its employees. At the workplace the
healthy employee relation helps in reducing problem of absenteeism and work is enjoyed by
them. The load of work is ease with positive relation with workers which increases productivity.
The conflicts in the workplace is reduce by developing positive work atmosphere, then
employees of firm works in productive manner which increases value of organisation of Tesco.
The employees of Tesco become loyal by having effective understanding with management as
their needs and complexities which is faced by them is understood. These are the values which
guides everyday and seeks to recruit those people who share these values. The importance of
employee relation with company are as follows-
 Increased Motivation- The positive and healthy relation in workplace motivate
employees to perform best with hard work. The maintaining of good relation with
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employees improves communication and efforts of employees are recognised and made
them feel praised. In context to Tesco the company management ensures that working of
employee is within team and unity. The encouraged employees helps in creating great
working environment.
 Increased productivity- The productivity of the organisation is increased by having
strong employment relation. In relation to Tesco the employees are more productive at
work and satisfied because of great relation between employee and employer. The
positive working environment increases employees productivity and performance which
leads to rise in profit (Cañibano, A., 2019).
 Retain loyal employees- The positive relationship between workers and managers is
encouraged by companies. The employees are made feel comfortable and appreciated to
make them feel more loyal. The loyalty among employees is boosted with the positive
employee relation and by creating pleasant & productive work employment. In context to
Tesco the chances of employee retention also increases with increase of loyalty which
benefits company in long run.
 Employee engagement- This is related to the extent where employees feel passionate
towards their jobs and workplaces. In framework of Tesco it is important for employee to
understand its job role and responsibility in respect to organisation for achieving the
goals in most effective manner. It provides work satisfaction and quality of work is
improved.
P2 Explaining fundamentals of employment law in relation to organisation
The employment law are area of law which governs the relationship of employee and
employer. The employment law works for protecting the workers rights, promotes health and
safety. It is collection of laws and rules and creates minimum requirements of working
conditions for employees. In organisation more than one employee works then it becomes liable
to follow all the laws which is related to employees (Chaudhary, R. and Akhouri, A., 2019). The
employment law provides economic stability by giving employers right to operate their business
freely as long and treat employees fairly. The government legislation has implemented different
types of laws in order to protect employees which is essential for the company in context to
Tesco to follow these laws. There has been discussed different types of employment laws-
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 National minimum wages Act 1998- This act is related to wages and salaries of workers
all across the UK. It sets out the minimum amount of pay for which worker is entitled to
per hour. On the basis of workers age the wages are based. For the employers it is legal
requirement to pay workers national minimum wage. Every company is required to
follow the minimum wages slab amount that is from 1 April, people of more than 23 age
will get 8.91pounds, age between 21 yo 23 will get 8.36 pounds and who came between
the age group of 18 to 20 will provided 6.56 pounds. In framework of Tesco, the
company management will offer wages to its employees in accordance to their position
and ability of carrying task. It will also going to offer different types of perks, rewards
and compensation to their employees for improving productivity and retention within the
company.
 Employment rights Act 1996- For codifying existing law on individual rights this act
was passed by the government for in UK labour law. When the employees work it has
dealing with rights. This is important for the company employers to satisfy requirements
and needs of employees within workplace for maintaining the productivity and
performance of employees (Cooper, E.A and et.al., 2020). Different types of policies is
been written in relation to have employees job security and safety facilities. In relation to
Tesco it is important for management to focus on such policies so that job satisfaction
level can be increased of employees. The rights of the employees are set out in situations
like dismissal, parental leave and redundancy.
 Health and safety work act 1947- In such employees have legal responsibility for
making sure that they offer safe working environment. This act is related to employees
well being and safety within workplace to make them feel safe ans secure which directly
affects the employees stability for long term. It involves carrying out risk assessments,
offering staff training and provides adequate safety equipment. The Tesco adopts this act
to make employees feel secure.
M1 Analysing the value and importance of employee relation for improving business outcomes.
It is been seen that good employee relation helps in improving the employee motivation
and team spirit. The company starts treating people as valuable assets rather then resource. The
effective employee relation helps the organisation in context to Tesco to increase cooperation an
d understanding in workplace. Within company the employee relation encourages open and
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effective communication. The employee relation is important as it increases the chances of
employee motivation and leads to fewer conflicts. Maintaining organisational culture
necessitates employee relationships (Dalal, K.K. and Thaker, N., 2019). Tesco has a strong
organisational culture because its employees are willing to help one another and interact and
cooperate with one another, which helps the company maintain a positive working environment.
P3 Explaining different types of rights, duties and obligations of employer and employee
within workplace.
To make things work well the employer and employee must respect certain legal
obligations. The employer and employee in context to Tesco is required to perform certain rights
duties and obligations which are as follows-
The rights of employer are-
 In the company the management has right of hiring and firing individuals. The new
employees can be recruit and select after testing their skills and required qualification
status.
 The employer also have right of defending secret data collected to the organisation.
Employer of Tesco also has the rights to dismiss dishonest and unsuitable staff from their
company after giving an appropriate reason
The duties are-
 The employer is responsible in development of healthy and happy working environment
within the business structure so that employees can feel motivated and with utmost
productivity the task can be carry out (Deepa, R. and Baral, R., 2021).
 The employer is also responsible for relation of comfort of all workers within the existing
culture.
The obligation are-
 The important obligation of employer is to offer guarantee for safety of employees within
the workplace.
 The other obligation is at time of dispersion of salary they are required to act as
representative from the employees side. The company manager ensures that employees
receive their salaries without any errors and deviations.
The rights of employees are as follows-
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 The important right of the employee in workplace is to get healthy and safe working
environment.
 The another right of employee is to get leaves and to ask management for leaves whether
is paid or sick. In context to TESCO, certain number of leaves has been assigned to their
employees which can be utilized by them (Dhir, S and et.al., 2020).
The duties are-
 The employees in context to Tesco are responsible to follow the instructions of manager
and carry out the assigned tasks with great productivity.
 They have to look all the improvement and preparation which have been given by the
company.
The obligations are-
 In the company the employees are obligated to wear dress code which is is being
provided or has been decided by the management.
 The other obligation is that employees of company always remain loyal towards the firm
and do not reveal any secret of organisation to any one outside.
P4 Determining appropriate advice relating to rights, duties and obligations of employment
relationship.
In the company different types of rights, duties and obligation is performed by employer
and employee which helps in protecting employees from harmful events. In the organisation if
theses rights, duties is adopted it can benefit in number of ways such as developing health
working environment, systematic functioning of all operations in company. In context to Tesco
large amount of workforce works as it has well reputed image across globe. The company
management is required to maintain good and healthy working relationship with its employees in
constant manner (Dundon, T. and Wilkinson, A., 2021). The follow of proper policies in
company leads to increase of employees productivity and employee engagement in decision
making within the company. The company gets the advantage of loyalty of workers within the
workplace. The motivation of employees is increased which directly affects the performance and
productivity of employee is increase in company. The healthy relationship helps in avoiding
conflicts between employees and management. The culture of the workplace is improved in
many ways such as trusting employees, recognizing employees’ practices and efforts. It is
recommended that the Tesco employer conduct a practical skill check when hiring new
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employees and be aware of the nature of the work and responsibilities that will be assigned to
employees once hired. This will help build a good relationship between workers and employers
as all conditions are clarified before hiring which is a good activity. Tesco employees are
encouraged to raise their voice to their highest authority if they feel that improper activity is
being committed in the workplace, whether related to themselves or to another employee. Being
afraid to express their thoughts would not be there. Employees themselves must encourage their
teammates to raise their voices about unlawful activities involving them in their workplace
(John, K and et.al., 2021).
M2 Evaluating the psychological contract and support for employee work life balance in respect
to rights, duties and obligations of employment relationship.
The psychological contract term is related to individuals expectations, beliefs, obligations
as perceived by employer and worker. The individual psychological contract enables employees
to watch their roles in company. Between the employee and employer it is an unwritten set of
expectations which involves informal arrangements, mutual beliefs, and perceptions between the
two parties. The balanced contract shows that employer values and respect their employees and
find their roles within the company for success which leads to increase in productivity (Linde, B.
and Goudriaan, C., 2020). The continuous interaction among employer and employee improves
employee loyalty and allows employees to make use or their talent for promoting and
progressing company goals.
P5 Analyses of how stakeholder engagement supports positive employment relationship in
organisation.
The stakeholder engagement define procedure where companies communicate and gets to
know their stakeholders which makes companies better to understand them their requirements,
how engaged they are and in what way company plans & actions affects their goals. The
organisation uses this process to engage relevant stakeholders for clear purpose for achieving
agreed outcomes (Wang, G and et.al., 2019). The stakeholders are one who affects directly or
indirectly the activities and performance of organisation as they are internal and external groups.
These bodies includes shareholders, investors, employees and supplier. The internal stakeholder
has interest on the company operations whereas external stakeholder are those who do not have
direct link with organisation but involved with the business activities such as creditors, trade
groups etc. In context to Tesco the stakeholder engagement is important as it provides companies
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social license to operate, expand or innovate. The relationship is improved between companies
and stakeholders and offers positive public image which enhances companies reputation. In
Tesco several stakeholders of company plays various role for having success and engaged in
positive way.
 Employees- These are the one who have direct interest in administration. They relies on
sound business decision from executive for having job security, earn fair salary and to
have safe environment. They usually require advantage like job satisfaction, payment and
business growth.
 Investors- They are interested in business as investment relies on the success of
company. The investors hopes for financial returns on the investments and money is
invested by them when they are comfortable to get return over certain period of time.
Some of investors are shareholders (Puspita, L. and Kasiyati, S.B., 2021).
 Government agencies- They are also stakeholder which collects different taxes from
business. The government have certain regulations where business is operated.
M3 Examining in detail different stakeholder and interest in broad business environment for
supporting positive employment relationship.
A good understanding between employer and employee is crucial to reduce labour disputes. It
has been shown that the structure can only thrive if it takes care of people management.
 Enhanced Motivation: When an employee is prosecuted for their work, it can cost an
organization a significant amount of money in lost productivity. It is crucial to ensure that
employees in administration feel comfortable and valued.
 Conflicts Reduction: Conflicts affect the company in the form of lower productivity.
When employees do good business and have normal trust between them, it leads to
maximum productivity. This will also help to reduce the staff ratio, which will also assess
the overall trend of the association.
P6 Evaluating impact of positive and negative employee relation within workplace.
For the organisation the employees are backbone of company as strong relationship with
its team mates or employers puts direct affects on the organisation performance. The positive
relation among employer and employee leads to high motivation and employee engagement. In
respect to Tesco, the impact of both positive and negative employee relationship is been
discussed below-
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Positive Impact
 Growth and development- The economic growth and development is contributed by
employees and employers by having harmonious relationships which helps in increasing
efficiency which leads to higher productivity and growth. The positive relationship with
managers makes employees more efficient which increase the productivity of Tesco.
 Enhanced motivation- The company can have decrease in productivity because of
disengaged employees. The companies with engaged workers experiences high
productivity and it is ensure by the organisation that their workers of Tesco feel
authorised and gratifying for increasing psychological state and motivation (Rahman, S.
and Singh, T., 2019).
 Increase in Revenue- The great employee relation puts positive impact on the
development and company revenue. The more engaged and driven worker leads to great
consumer satisfaction and improved products & services which helps in enhancing sales.
In respect to Tesco the manager is required to maintain good relation with employees to
provide better working environment. The end consumer and company both are benefited
with the healthier and happier environment of working (Villiers, C., 2021).
 Employee Loyalty- The pleasurable and productive work atmosphere encourages loyal
workforce which helps in improving employee retention. The employees are the most
valuable assets for the company as if they are involved or motivated they meet
anticipation of company. In respect to Tesco the strong employee and employer
relationship benefits to both employee and organization.
Negative Impact
 Lack of clear Guidelines- In the workplace the lack of clear guidelines results in
confusion between employee bad employer which leads to negative impact on employee
relation. This in turn leads to anxiety and anger among the employees.
 Misunderstanding employee relations- This is also an negative impact on the
employee relations because of inappropriate relationships are develop between
management and employees. This results to decrease in productivity nad performance of
employees (Salas‐Vallina, A and et.al., 2021).
 There are many negative effects of poor employee relations in the Tesco workplace as
lack of employee interaction, lack of communication, lack of coordination and many
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others impact the overall productivity of the company by lowering their levels and
therefore a communication gap that is due to poor employee relations leads to delays in
the completion of tasks for the company.
 The company is negatively affected with government because of poor relations with
government if it is not happy or has terrible dealings with a organisation, it will try to
intervene with the company's operations and continue to impose penalties for minor
mistakes (SANTHI, R., 2019).
M4 Critically evaluating how positive and negative employee relationship affects employee
engagement, motivation and performance.
It has been found that a good relationship with employees helps to support the employee's
level of motivation as he acts more with the manager, shares his problem with him and feels
comfortable in the system. When status in the organization is lacking, there is less connection
with management and other employees, lower engagement also increases employee turnover.
Overall, the environment is poisoned (Sheikh, S., 2019). Employee performance is also
hampered when they get originative dislike mixed with praise, but it can be formulated if they
help with a strategy that helps improve execution, become more motivated and engaged in the
organization.
CONCLUSION
From the above it is being concluded that employment relation is an best approach for
managing the relation of employer and employee. The good relationships in the organisation is
not only advantageous for the business but also healthful for the individual by having
development of their skills and more interaction and helping more to meet their need for help in
the future cover the same person they are helping now. There are several rights, duties and
responsibilities of worker as well as employees that they must follow carefully, and if they
circumvent these rights and responsibilities, a conflict will arise in the organization. Therefore,
they are advised to strictly observe their rights and duties in order to make a great operative
environment that immediately contributes to increasing an organization's productivity. In the
development of healthy employee relation the stakeholder also plays an important role.
Henceforth, the organisation can improve relationship with employees in several ways and on
time goals can be attained with full efficiency.
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References:
Books and Journals
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Dalal, K.K. and Thaker, N., 2019. ESG and corporate financial performance: A panel study of
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