Employee Relations: Value, Importance, and Fundamentals of Employment Law

This document discusses the value and importance of employee relations in organizations, using Tesco as an example. It also explains the fundamentals of employment law and the rights, duties, and obligations of employers and employees in the workplace.

Employee Relations

Table of Contents

INTRODUCTION
Employees, workforce, staff, labours and workers are the name called to the people in an
organisation who are responsible for executing all the plans in action on behalf of company and
works for attaining all its goals and objectives (Poon, 2019). Employee relations is a concept
referring to two way efforts made by the employer and the employee for developing strong long
term relationships for working effectively and contributing to the end goals of the business. The
report acknowledges Tesco Plc. for making in depth analysis and justification. Tesco is a leading
international supermarket store which was founded in 1919 by Jack Cohen and headquartered in
London, United Kingdom. Tesco deals in food and non food products that are made available
and sold to customers through supermarkets, superstores, hypermarkets, convenience stores and
retail outlets. The report consist of evaluation of value and importance of employee relations
along with fundamentals of employment law. Moreover, rights, duties and obligations of
employee and employers are identified. At last stakeholder analysis will be conducted in
addition to it positive and negative impacts of employee relations are determined over the
stakeholder body.
TASK 1
P1. Explain the value and importance of employee relations in application to specific
organisational examples.
Employee relation is an integral part of every organization’s working environment and
smooth functioning. Employee relations are result of efforts made by the management and
leaders of the organization for managing and maintaining efficient relationships with individuals
working. Employees relation is a two way effort that means employees are also responsible to
make efforts in order to develop effective relation with their superiors. Numerous reasons
reflects upon the value and importance of employee relations which are elaborated below in
context Tesco.
 Employee engagement- The importance of employee relation which is most influential
and provides a huge value to the organization is of increase employee engagement in the
operations and functioning of the entity. Large company like Tesco hold large number of
employee base who are skilled with separate efficiencies in separate fields (Wilkinson
and et. al., 2020). Effective employee relations enable the entity to increase employee

engagement in the operations bringing more creative ideas and working efficiently as
teams are motivated and members are encourage to work properly with most potential.
 Productive performance- Employee motivation is most important for business to
perform in a respective manner and to attain all the pre-determined in the preferred time
period. The overall performance of organization and its productivity depends upon
employee performances and their constructive efforts made for completing the respective
tasks. Therefore another value which will be provided to Tesco by maintaining effective
employee relation is productive performances of employees and higher standard of
abilities (Jennings, McCarthy and Undy, 2017).
 Healthy work environment- The average time employees spend in the workplace from
their day is around 9 hours. It is automatically in rice that respective workplace should be
safe and healthy for the individual to work with their utmost potentials. In case of Tesco
employees have an average working hours of nine hours a day thanks working
environment plays a very important role. Effective employee relations the work was
becomes a better place for staff members as they are comfortable to work in it. Employee
relations between the staff members and the management keeps them motivated and
enable the organization in managing all the talents and improving their employee
retention ratio.
 Effective decision making- In an entity multiple decisions are made and which are
important for present and future of the company and its growth. Working in an
organization like Tesco involves decision making on several stages and at various
concerns. Authority and responsibilities are delegated to individuals according to their
skill sets and their position in the company which renders them decision making power as
well. There are multiple stages which arises their employee for the management cannot
make efficient decisions by themselves and suggestions are required. this is a stage where
employee relations when does a value to the company and to the individuals as
employees and management are engaged together for making potential decisions in any
situation. The probability increases of making correct decisions and also increases the
motivation level of an individual all the whole team as their self-esteem is induced too
(Jacoby, 2018).

M1 Make valid suggestions on how an organisation could improve and respond effectively to
employee relations.
These are few important and value added aspects that are facilitated to the company like
Tesco by developing efficient practices and making appropriate efforts towards maintaining
employee relations. Both Employee and the employer are engaged in the organization and work
for obtaining all the respective pre-determined goals by productive performances motivation and
positive attitude towards growth and development of the company.
P2. Explain the fundamentals of employment law that apply to specific organisational examples.
Employment laws are the policies and regulations that are developed by government for
protecting the rights of workers employed in the company working for their purposes and
benefits. Employment laws are also defined as strict guidelines government of states and
countries provides for keeping people safe and obligating the company to work ethically and
align their internal laws for the workforce in relation with benefiting employees and keep them
safe in their respective positions. Employment law outlines the relationships between employers
and employee and regulate it as well. It governs over the expectation of employer form their
workers, what can employer's ask employees to do and how those employees can be protected
and safeguarded form any malpractices and misconduct (Unsal, 2019).
These employment laws are developed for governing the actions of employers and mostly
works in favour of workforce or personnels in relation with any circumstances and guides the
management of organisations in aligning and integrating their practices with the regulations.
There are certain fundamentals employment laws which are presented by the parliament of
United Kingdom for retail industry in which Tesco is operating and few in general and these are
elaborated below:
 Minimum Wage Act- The act was established by government and made necessary for
companies of all sizes and scope to follow. The national minimum wage of United
Kingdom sets out a basic pay a worker will be paid per hour at least by the law. In UK
these per hour rate for wages are divided through ages of individuals, which stood form
April 2019 to be £8.21 an hour for workers ageing between 18 to 25 years, 21 to 24 will
be £7.70, under 18 £4.35 and at last Apprentice £3.90. these rates are changed by the
government every year and all the organisation like Tesco and others have to compile

with them for keeping the conduct and make sure to pay salaries and wages to workers
accordingly.
 Equality Act 2010- This act was established for protecting the rights for workers in
relation to equal chances being provided to all and keeping them safe from any
discrimination in workplace and in the society. The act provides guidelines for basic
protection against direct and indirect discrimination, harassment, victimisation in
workplace. The act was regulated in 2010 with the objective of gradually minimizing and
finally vanishing any discriminating practices being performed in workplace and in the
society on any basis such as age, gender, religion and other. For instance, in Tesco
management have developed their guidelines for managing discrimination by integrating
the guidelines provided by the parliament.
 Health and Safety Act 1974- The act was developed in 1974 laying multiple duties for
employers as they are obligated for keeping people safe at work by providing them the
safest and protective working environment and premises of work. Management of Tesco
is obligated and responsible for taking sever steps for keeping in store and administrative
premises safe for the people and also making sure to provided them the safest
environment which keep good care of their mental and emotional health (Pawar, 2016).
For instance, making regulations for fighting discrimination is the step taking for
managing the mental and emotional health of workers in Tesco who are employed at
operational and managerial activities.
TASK 2
P3. Explain the different types of rights, duties and obligations an employer and employee has
within the workplace.
Every organisation is different from others and bifurcate either in size or by their
operations or purposes. This implies that multiple activities exist in the workplace and in each
unique operative firm. Tesco is unique as well functioning through its own different ways for
their respective objectives and goals. This bring in several duties, rights and obligations for the
employer and employee both at their respective positions which are mandatory to be followed
and rightly executed for productive results and potentially attaining organisational short and
longer term goals in all department and on overall basis.

Some of the specific Rights, Duties and Obligations of employee's and Tesco are
determined below which are practices by them in workplace in order to smoothly run the
company.
EMPLOYERS
Rights of employers:
 Right to ask- The management or the leaders under whom employees and daily wagers
are working have the right to ask questions and make enquires form the workforce about
the firm and work relevant information. For instance, team leaders in Tesco have right to
make enquires about diminishing performances of individuals or a single employee.
 Right to Delegate power and work- The company is regulated by management and
directors on the higher level making all plans for executing in order to attain the set
objectives long or short term. They holds the right to delegate power or keep it
concentrated at the higher level. Also work is delegated by the management to all the
different team in Tesco such as marketing, finance, sales and others (Khoreva, Vaiman
and Van Zalk, 2017).
Duties of employers:
 Training and Development programmes- Employee's are the pillars of a company who
perform and face practical situation in order to keep the functions running. But
employees skills demolishes and which brings a duty for employer that is Tesco's
management to render training and development opportunities to workforce by arranging
sessions which are suitable.
 Safe work environment- Another responsibility or duty of management of Tesco is to
make sure of providing a safe and secured environment to employees for maintaining
their productivity and efficiencies. Safe work environment will motivate and encourage
personnels for being creative and perform with utmost potentials for attaining aims of
Tesco.
Obligations of employer:
 Fair Recruitment Practices- The obligation of employers are mainly states through the
employment laws and regulations established by government and parliament of the
respective region. Accordingly, Tesco also have the obligation to practice fair recruitment

and hire people on the basis of their abilities and potentials rather than discriminating
amongst candidates.
 Working time regulations and Holidays- One more obligation which is set out by the
employment contracts and laws is of per day working hours and for holidays. The
management of Tesco have to provide paid holidays yearly to employees. Moreover,
maternity off is obligated too which is paid as well.
EMPLOYEES
Rights of employees:
 Right to Speak- Every employee of any organisation has the right to speak for
themselves. That is employee can raise questions and have the right to receive all the
respective answers ethically.
 Right to receive pay slips- All the salary holders that is permanent employees in Tesco
have rights to receive pay slips which provides them information of their salary
bifurcation on monthly basis (Naim and Lenka, 2018).
Duties of employees:
 Team Woking- The duties of employees are numerous of varied nature and a core duty
is to work in teams and properly. The employees of Tesco have to work in teams and its
is one factor which makes them employable.
 Work with productiveness- Another duty of an individual of being a salaries permanent
employee of a large organisation like Tesco have another duty to carry out their task
productively and render best results to their teams and contribute in ultimate goals of
Tesco.
Obligations of employees:
 Develop safe and healthy work environment for colleagues- Employees expect a safe
and secured environment for them to work for which management makes efforts. But
employees themselves have the obligation of working in such manner and maintaining a
safe and secured environment for others in the company such as by working ethically and
not being discriminative.
 Obey Rules and Regulations- The obligation is very important as Tesco have to follow
all employment laws, employees also have to follow all the rules and regulations in order

to make entity success in following their guidelines provided by the government (Noe
and Kodwani, 2018)S.
P4. Determine appropriate advice relating to rights, duties and obligations of the employment
relationship for a range of given organisational examples.
As reflected that employee relations is a two way chain or efforts made by employees and
employers to manage and maintain healthy and appropriate relations. Both the company and
employees have to essentially work in several concerned aspects in order to manage and develop
health relations with staff members and encourage them to work in the same manner for further
developments. These employee relations involves business aspects like, rules and regulations,
economic stability, social concerns and many other.
In order to practice and maintain better relations duties, rights and obligations of
employers and employees plays a vital role when practised and followed properly and in
significant manner. For instance, Tesco holds the obligation to conduct recruitment and selection
by fair means which induce a work environment of fair practices and no discrimination should
take place. Workplace culture will be developed in such ways that employees will be well aware
of the consequences of any such practices.
Another example of integrating obligation and duties of employees and employers is of
following rules and regulations. If Tesco needs to be the company who works ethically and
follow all rules, the employees have to make sure of becoming ethically practitioners for making
a trend of running by the rules and making the firm work by all laws and ethics (Para-González,
Jiménez-Jiménez, and Martínez-Lorente, 2018).
Moreover, Tesco has the duty to provide a safe and secured environment to workforce
and it is the obligation of people that is personnels in Tesco to maintain it and respect the efforts
made by management by putting extra efforts for making it better for their colleagues. Therefore,
employers and workers duties, rights and obligation are integrated for rendering a safe,
productive, healthy workplace to everyone preset in the premises for working efficiently and
rendering productive results for obtaining all goals of Tesoc by team work and potential
employee relations.

M2 Evaluate the psychological contract and support for employee work life balance in relation to
rights, duties and obligations of the employment relationship.
Psychological contract are the set of promises and expectation which two or more people
in a business setting exchange with one another while performing their duties and enjoying their
rights. This contract support in employee work life balance as they make their goals accordingly
and which enable them in inducing their efforts towards their duties and works under their
obligation without crossing lines as well as enjoy their rights too while working in the
workplace. Also, it enhances employee relations as well, because both employees and employers
of Tesco are satisfied with their rights and performances rendered by workforce and contribution
made to the overall goals achievement.
TASK 3
P5. Conduct and complete a stakeholder analysis for a given organisation.
Stakeholders are those internal and external parties who have impacts over the
operations, functions, decision making and profitability of the firm. Stakeholders are the group of
parties who holds significant interest and power in company and can make differences in the
functioning and decisions being taken and performed. Major stakeholders of Tesco who are
internal to the brand are their Employees and external stakeholder are Customers,
Government. Those who are internal and external both are Shareholders and Investors.
Stakeholder Analysis is a process defined for mapping out and establish effective
communication to stakeholders in relation to their influence, interest and power in the
organisation. The stakeholders analysis of Tesco is as follows which has three major stages,
presented below:
Step 1: Identifying stakeholders
The first stage is of identifying the stakeholder of Tesco which is the job performed by
the management of Tesco. In this step brainstorming is done to gather information about those
parties who are majorly impacted by the functions and work of Tesco. The major stakeholders of
Tesco are employees, customers, government, shareholder, investors, third parties, suppliers,
financiers and many other.
Step 2: Prioritizing stakeholders

This is the next stage of the analysis in which stakeholders are prioritised by assessing
their influence level, power and interest in the operations and practices of Tesco. In order to do
so the Power Interest Grid is used which has four quadrants in which stakeholders are palced
according to their power and interest levels on two respective horizons (Moore and Piwek,
2017). Placing of Tesco's stakeholders on the matrix is as follows:
 High Power, High Interest-The stakeholders who have high power and interest in
operations of Tesco are the customers and employees who needs to kept informed and
effective communication needs to be developed.
 High Power, Less Interest- The stakeholders having high power but lower interest are
the external third parties and government.
 Low Power, High Interest- Those who have low power and high interest are the
investors of Tesco.
 Low Power, Low Interest- Those who have low power and interest are the suppliers of
Tesco.
Step 3: Understanding key stakeholders
This is the last stage of analysis once major stakeholders are identified and prioritised
then the key stakeholders are determined. In relation to Tesco key stakeholders are the are
employees, customers and valued shareholders of the company form whom operations are
funded, plan are executed and sales are made. These stakeholders have to be kept informed by
using effective communication channels and their power and interest in operations and functions
of Tesco are huge.
TASK 4
P6. Analyse the impact of both positive and negative employee relations on different
stakeholders.
Stakeholder of Tesco who are majorly being impacted and are impacting the functioning
and smooth operations of Tesco's work are identified in the section above which are its
Customers, Employees, Shareholder and Government. All these stakeholders have ample of
power to influence the decision making and other operational actions of the company and in
same manner are affected too by the activities such as employee relations. The positive and
negative impact employee relations hold over these stakeholders are presented underneath.

STAKEHOLDERS DESCRIPTION POSITIVE NEGATIVE
Customers The customers are the
whole and sole of a
retail business
organisation. They are
the individuals who
creates revenue for
Tesco and creates
earnings.
The positive impact of
effective employee
relations over
customers is they
receive the best quality
of goods and services
while availing
offerings of Tesco (De
Prins, Stuer and
Gielens, 2020).
The negative impact of
employee relations
over customers impact
if the employee's and
employers are not in
good terms. The level
of services and
offerings diminishes as
employee performance
reduces.
Employees The personnels or
workforce or
employees of company
are those who
conducts the activities
and executes all plans
of company in real
practical situations.
The positive impact of
employee's relations is
directly enjoyed by the
personnels of Tesco as
they receive job
satisfaction and stay
motivated which
renders them
opportunities to
develop as a
professional and on
personal level too.
The negative impact of
bad employee's
relations which are
faced by the workers
of Tesco is unhealthy
work environment,
lower chances of
development in skill
sets and personal
abilities.
Shareholders The parties of
individuals who holds
ownership of share's in
Tesco are the
shareholders of
company through
whom capital is raised
The employee
performance increases
which moves company
towards creativity and
betterment due to
effective employee
relations and which
In the contrary if
employee's relations
are not maintained in
Tesco company suffers
due to lacking
performances and poor
results are provided

and in returns
dividends are paid in
respective period form
the earnings.
results in higher
profits and returns to
shareholders.
which automatically
reduced the earnings
and returns of
shareholders.
Government The government of a
particular region is
responsible for smooth
running of economy
and for which makes
laws and regulations
for every aspect. These
laws businesses have
to comply as well and
which are made in
relation to them (King,
2016). Government is
basically is a
regulating party
looking over the
economy and the
whole region.
Positive impact of
employee relations in
Tesco to government
is company will be
running ethically as all
parties are working by
the laws.
Government is not
majorly impacted by
employee relations but
it can bring some
tarnishing impact over
Tesco and which is
part of economy and
that can result in
negatively influence
over government but it
will not be directly
impacted.
M4 Evaluate how positive and negative employee relationships can affect conflict avoidance and
resolution.
The above discussion and evaluation positive and negative aspects are identified that are
influencing and impacting different stakeholder of Tesco. Moreover, positive and negative
aspects of employee relations can also binds up the impacts of conflicts and resolutions taking
place in company. In conflicting situation between employers and employee of Tesco positive
employee relations allows people to communicate and understand one another and search for
solutions together. On the contrary, negative employee relations do not support the resolution in

the conflicting situation it rather induces the conflicts and imposes more hindering elements
around it.
CONCLUSION
The above study and discussion summarises the necessity of strong and effective
employee relations in the current modern workplace environment and practices. The
governments of different regions have developed and passed multiple laws and regulation in
favour of workers for protecting them and their rights. The report analyses the value added by
employee relations to the company bringing more efficiency, higher level of engagement of
people, motivated workforce and productivity. While conducting through evaluation employees
and employers duties, rights and obligation are identified which are needed to be fulfilled by
them in order to be potentially working and achieving all objectives of company. In addition to
this stakeholder analysis is conducted as well in the assessment for the respective company
which reflected upon the changed made and still required to be made in operations for best
interest of stakeholders and for keeping them potentially involved in the organisation, its
function and maintain their support.

REFERENCES
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