Employee Relations: Importance, Legislations, Rights and Duties, Strategies

This study material discusses the importance of employee relations, key legislations that apply to employee relations, and the rights and duties of both employers and employees. It also evaluates effective employee relations strategies such as shared culture, power sharing, shared values, effective communication, and continuous learning and improvement. The subject is Employee Relations and the course code is TOP15165. The content is relevant for students studying in any college or university.

Unit Number and Title Unit 20 – Employee
Relations
Credit Value 15 Unit Level 5
Project Title Employee Relations
Statement of
Authenticity:
I certify that the work
submitted for this unit
is my own and the
research sources are
fully acknowledged.
1

Table of Content
1.0 Introduction p
2.0 An overview to employee relations, what it is and its importance
and value to the organisation p
3.0 An explanation of key legislations that applies to employee
relations and which the organisation must adhere to p
4.0 Investigating the rights and duties of both the employer and
employee. Determining the most appropriate advice related to
specific examples p
5.0 An evaluation of effective employee relations strategies
including shared culture, power sharing, shared values, effective
communication and continuous learning and improvement p
6.0 A stakeholder analysis for the organisation p
7.0 Justified recommendations based on critical insight for
improving and increasing efficiency of the employee relations
strategy p
8.0 Conclusion p
References p
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1.0 Introduction
Employee relation is defined as employers and employee’s relationship in an
informal and formal nature which take among staff members interactions and
management in all working situations. In addition to this, employee relation involve of
those areas of HRM which deals directly with staff members and also by collective
agreements. It is mainly associated with managing the relationship among
employees and higher authorities at workplace (Bathini and Kandathil, 2019). It is
important for an organization to maintain an effective employee relation as it help to
develop positive working environment, increase productivity and performance and
many more. For the present study, Marks and Spencer is taken into consideration. It
is a multinational retailer which specialize in selling home products, food products,
clothing etc. The company was established in year 1884 and is headquartered in
England, United Kingdom. The report will cover value as well as importance of
employee relation and the laws which applies to employee relations. Along with this,
there is a discussion regarding duties and rights of employee and employer. In the
last, stakeholder analysis of respective organization is elaborated and the
recommendations is given to improve efficiency of employee relation strategy.
2.0 An overview to employee relations, what it is and its
importance and value to the organisation
Employee relation is basically the efforts put by company for maintaining
positive and effective relationship with staff members so that they can retain for
longer time period and meet with the targets as well. In addition to this, it is vital for
organization such as Marks and Spencer to maintain a good relationship with its
employees as it has direct influence on the performance and productivity of a
company. If an organization is able to maintain good relation with its employees then
it ensure attainment of higher growth and success at marketplace (Beuselinck,
Markarian and Verriest, 2021). Employees are the major asset and one of the major
reason of company’s success and growth and for this it is important to maintain good
relationship with employees. It is determined that of staff members have a good and
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respectful relation with higher authorities then they are more likely to be satisfied and
loyal. The value as well as significance of employee relation is given below:
Less conflicts at workplace: It is determined that when higher authorities
have good relationship with its employees then the conflict arise at workplace is less
as issues were solved mutually and timely. Increase in number of conflicts have
negative impact on the activity and operations of organization. An effective and
positive relation develops healthy as well as positive working culture at workplace
due to which there is less conflicts and the activities is implemented in a proper
manner.
Employee loyalty: When a productive as well as pleasant work environment
is developed then it has direct impact on the loyalty of staff members. It is
determined that companies who have an effective employee relationship at
workplace is able to boost morale and efficiency of staff members. It is important for
a company to invest in labor relations as it will assist to deal with the changing and
challenging business environment (Boivin, 2019). With reference to Marks and
Spencer, it is analyzed that company provide rewards and recognition to its
workforce on the basis of their good performance as it help in developing good
relationship and gain loyalty of employees in an effective manner.
Improved productivity: It is analyzed that a positive and effective
relationship with employers assist staff members to generate high revenue through
increased productivity. This is because when the workplace environment or
atmosphere is pleasant then morale and motivation is increased due to which
employees put full potential in order to meet with the targets and attain objectives as
well. In relation to Marks and Spencer, its higher authorities ensure that the
requirement of its employees is fulfilled and a positive working culture is provided to
them so that they can work without any mental pressure and put efforts to attain
objectives.
The higher authorities of Marks and Spencer also ensures equality and
freedom is being provided to its staff members as it help in maintain good relation
with customer and develop positive mindset of employees towards company
(Gubareva, Kovalenko and Novikova, 2019) Apart from this, there are also other
aspects that is attained by respective company because of employee relations such
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as increase in revenue, decline in employee turnover, growth and development,
improvement in brand image and so on.
3.0 An explanation of key legislations that applies to employee
relations and which the organisation must adhere to
There are various key legislations that is developed by government for
protecting and safeguarding the interest of employees. In addition to this, the key
legislation applies to employee relations and an organisation must adhere to is given
below:
Workplace discrimination law: It is consider as one of the significant legislation
that is followed by company to protect against the discrimination of any person
based on disability, age, religion, origin and many more. It is determined that if
employees feel discriminated and partial at workplace then it impact directly on their
performance and productivity. In relation to Marks and Spencer, its higher authorities
follow workplace discrimination law in order to ensure equality at workplace. This
also help company to develop positive mind-set of employees and retain them for
longer time as well. Apart from this, it assist to maintain good relationship with
employees which is one of the important factor to gain success and growth.
Health and safety act: The main objective of this act is to protect the health
of staff members and ensure their safety at workplace. In addition to this, following of
this law ensure employees that they are safe at workplace and can work without any
fear as well (Curtin, 2019). In relation to Marks and Spencer, it is determined that its
higher authorities follow this law in order to provide safety to its employees and to
decline incidents at workplace. Moreover, it assist company to make employees put
full zeal to attain objectives within stipulated time period.
Equal pay act: This law states that there is equal pay to both men and
women prevailing at workplace and is also important in order to maintain equality in
the organisation. Along with this, it also include no discrimination against female
employee regarding pay, promotions, transfer, training and many more. Apart from
this, equal pay act assist to develop a positive image in mind of employees and in
market as well. With reference to Marks and Spencer, it has almost equal number of
men and women who perform the work and execute activities (Kwon and Kim, 2020).
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In addition to this, it also help company to decline number of conflicts due to which
targets are accomplished in a timely and smooth manner.
National minimum wage act 1998: This act mainly protect the rights of employees
to get minimum wage of their performance so that they can survive and fulfil their
requirements as well. In addition to this, national minimum wage give right to staff
members such as no dismissal, nit to suffer detriment, right to have arrears, get
remuneration, access to book keeping records and so on. Following of this law assist
in fulfilling requirements of employees because of which they work without any
mental pressure. With reference to Marks and Spencer, it is committed to national
minimum wage act that ensure to provide basic salary to staff members. Moreover,
the company also ensures that they are paying wages to staff members which fulfil
their basic requirement and also assist them to have safe and better household.
4.0 Investigating the rights and duties of both the employer and
employee. Determining the most appropriate advice related to
specific examples
Rights and responsibilities of employer and employee:
Rights of employee:
Equal pay for equal work: It is the basic right for workers that if they are
doing better work then they will pay for right price for this work within a particular
period of time. Mark & Spencer workers should be ensure that they have right price
for their work and get equal and fair remuneration which free from scale pay gap.
Get national minimum wage: Government has set a basis wage of minimum
for workers which is continuously based on time to time increased in prices that are
prevailing in their marketplace. Each and every workers in the business organization
are fulfil their needs and wants according to their expectations. Marks & Spencer
employees demands for minimum wages for any information and wants to fulfil all
their needs according to their employee expectation.
Responsibilities of employees:
Duties to care for themselves: Workers must have to take care of others
especially in case of health and safety because there is risk if worker can eat
something unhygienic then they have problem of health issues. Mark & Spencer
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ensure that each and every employee are maintain their health no unhygienic food
can eat and it is duty for managers to check every employee have a perfect health in
their business organization.
Manage work effectively and efficiently: To manage work effectively in
organization so employees are make sure that they have to manager proper task in
an effectively manner and avoid misunderstandings if any are arises in business. In
case of Marks & Spencer, it is very important for organization that operations can run
smoothly or effectively without any hesitation.
Rights of employer:
Loyalty of workers: To maintain or build their relationship with employee and
their management which is very essential to make so many efforts are put into
organizations. Marks & Spencer employee are loyal and honest towards their work
and accomplish their goals and objectives in the same time.
Establish policies and procedures: Employer in business organization has
a right to make rules and regulation which have to be follow all employers which are
named as leave policies, pay for performance, rewards, compensation and suitable
behaviour of employer are should be recognised. Marks & Spencer are also make
some necessary adjustments and make rules and regulation in their business
organization which is fit for employer must be followed.
Responsibilities of employer:
Treat their employee fairly and equally: It is one of main responsibilities of
employer to treat equally for each and every individually with so much respect and
maintain relationship with other workers. With relation to Mark & Spencer, there are
few legislation are determine and it is very significant to maintain positive relationship
and their working environment.
No discrimination: Employer must be ensure that there is no discrimination
in organization which is related to race, religion, age and so on. Employee also must
be treated equally and equal opportunities should be provided and it has a basic
right for equality and freedom. Mark & Spencer employer has a responsibilities
where there is no discrimination between employee and employer that's why each
and every employee in organization provide equal opportunities.
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5.0 An evaluation of effective employee relations strategies
including shared culture, power sharing, shared values,
effective communication and continuous learning and
improvement
In the management it is well known that the importance of good employee and
employer relationship in such a way which is helpful to make the control on the flow
of management which help to raise the productivity of the employee as well as
organisation.
Shared culture: In this, the employee used to feel that they productive and
some of MVP in the organisation. In this, it is helpful to conduct the level of
satisfaction which is associated with the employee of the company which help to
maintain the diversity and culture in which the employee are being feel motivated
and respected. In the Marks and Spencer, they used to trust on the environment
which is associated with the employee and their work which may influence the
attitude of the employee which is proper and appropriate this help to lead to enhance
the productivity and performance of employee.
Effective communication: As per this, the employee used to show number
of transparent factor in the organisation. Moreover, they are readily focus on the
working which is show the authenticity which is going with organisation. Moreover,
the communication is the basic mode to interact and encourage in the selected firm.
In the context with the Marks and Spencer, they used to focus on the very specific
key pointer which is associated with the employee and firm expectation which is
working with diabolical structure which used to make vacuum.
Shared value: The selected firm which is usually encourage other to work
together and make appropriate decision for the employee itself. They help to boost
the self esteem and self confidence of employee and they are ready itself to take
challenge and responsibilities. In order with Marks and Spencer, they used to
encourage their employee which is appropriate and show the comfort with their team
work and make resilience within firm and create environment which is enjoyable
while working.
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Continuous learning and improvement: It is important for companies to
provide continuous training & development session as it not only improve their skills
but also develop their morale and conflict. In addition to this, when staff members get
training then they gain both personal as well as professional growth. Moreover,
training and development session clarify roles and responsibilities to employees due
to which all the activities is implemented in a proper and timely manner. With
reference to Marks and Spencer, its higher ensure that training is provided to all the
new and existing employees as it help them to know about policies or changed
policies and also about the technology used by company. Moreover, it also help
company to develop an effective relationship with employees.
Rewards and recognition: It is consider as one of the effective employee
relation strategy as it is analysed that if employees get rewards from the higher
authorities of their good performance then they feel motivated and important at
workplace which is one of the factor of good employee relation. In relation to Marks
and Spencer, it ensure that its employee is being rewarded for their effective
performance in front of all the staff members. This develop a positive mind-set of
employees towards working and leads to increase in efficiency and productivity of
staff members. Moreover, it also assist to develop a healthy and better relation
among employers and employees.
6.0 A stakeholder analysis for the organisation
Stakeholder is process of of systematically gathering and proper way of
analyzing qualitative information to determine whose interest which must be taken
into account when developing that implementing towards policy and program (Kim
and Lee., 2020). In perspective of Marks and Spencer company having major people
who are main contributor towards company growth. The activity allows the company
towards effectively communicate with employees and involving them that would
hgelp to accomplishing desired goals and objectives. It is mainly involves where it
includes four categories which are high light below:
Keep Statisfied: This factor depicts that the high power which becomes
important for Marks and Spencer company to keep their stakeholder satisfied. In
includes satisfying about stakeholder interest within company.
Manage closely: This category involves the stakeholder with relatively
through high power and high interest such as investors, they need to be managed
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closely through company as they company expand their functioning effectively (Rui
and Lu, 2021). Marks and Spencer need to effectively manage their investors in
order to enhance through overall performance effectively.
Monitor: The Another one is the monitor this category involves where
stakeholder such as government who has high power and low interest in functioning
of the business. In the case of Marks and Spencer which is well established
company having strong which creates brand image within around globe.
Keep Informed: The last category involves where the stakeholder such as
employees who has low power within company, in case of Marks and Spencer
employees employees remain interested in the functioning of the company.
Stakeholder Engagement: The business organization which majorly focus on
maintaining positive and effective relation with their major stakeholder and
continuously influencing them to remain part of company. It is been essential for
making decision that are taken into better consideration in order to meet the needs
the requirement of each and every person. So, as to effectively and smoothly carry
out business activity. It is also refers to condition when the business organization.
Reward for performance: This one of essential factor where stakeholder of
company that leads to creating better employee relation (Luengalongkot, Chim and
Hongwiset, 2020). In case of Marks & Spencer, management ensures to provide
rewards and benefits to their employees as per their performance which leads to
satisfying employees effectively, enhancing the performance of the employees also
leads motivating them towards achieving desired goals and building positive
employee relation.
Objective of firm with profitability of different stakeholder: The main focus of
the company where it help to maintain their position within global market and
continuously satisfy about its customer through offering quality product and services.
In order to display proper financially position company constantly update their
financial statement which helps to leads to enhancing about interest of investors and
the government within the company and building better relation also effectively. In
the case of Marks and Spencer company have effective and influence brand value in
competitive retail business where they can hire skilled and potential and qualified
employees too.
Impact of both positive and negative employees relation on different
stakeholder:
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Stakeholder Positive impact of employee
relation
Negative impact of
employee relation.
Employee (Internal) In case of Marks and Spencer
the adequate employee
relationship allows the
employees to effectively work
towards accomplishing
organisation goals as they seem
to be more concerned about
accomplishing where
organisational goals rather than
focusing on their personal goals
and objectives as they are aware
about fact of their efforts which
will be considered effectively by
their employers who will also
leads to reducing turnover rate.
As per the negative
employee relation leads to
influencing the
performance of employees
and creating dissatisfaction
among other employees.
As not get to offering
required training or lack of
communication between
manager and employee or
employer and employee.
This will leads to create
negative relationship
building (Gan, Laporte and
Calabretto, 2020). To
adding towards this certain
issues prevailing within
company such as
favouritism will lead
towards creating negative
environment within
company influencing the
relation of employees.
Customer (External) The customer are the main
stakeholder in which business or
company fulfil their demand from
provide them proper product and
services. It is major driving force
behind enhancing towards the
profitability of the company.
Creating strong and long lasting
relationship with them and also
offering them quality product and
services according to need will
leads for retain them for longer
period and also lead them to
become loyal customer.
From the increasing of
competition and availability
of suitable product if the
company unable to satisfy
the needs and wants of
their customer and also
fails to consider to their
valuable opinions than that
will leads to loosing
customers. The negative
where customer relation
creates directly influence
the functioning and
profitability of business.
Company owner
(Internal)
The positive impact of Marks
and Spencer company owner
would get positive impact by
generating more share capital.
Many investment would raise
The negative impact of
company owner of Marks
and Spencer that they
need to make concerned
to each and every
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better business management
activities on that there might
create opportunities to reform
business in positive manner.
stakeholders and consult
the decision making with
them. This situation would
not have one side decision
making and it will contain
advantages and
disadvantages
Suppliers(External) As the positive impact of
suppliers where the business to
continue to better buy their
product and services in order to
maintain their own profitability
and long term financial health. In
perspective of Marks and
Spencer their supplier are more
important as they provide
manufacturing of Marks and
Spencer products. To provide
them proper profitable business
along with financial health would
generate in better manner.
The negative impact would
generate for Marks and
Spencer if they are not
fulfilling the demand of
customers as per the
requirement then it will
create more implication for
customer as well as
company as well.
7.0 Justified recommendations based on critical insight for
improving and increasing efficiency of the employee relations
strategy .
The company need to adjust their business policies and structure on the basis
of market fluctuations and trends where they can better deliver opportunities towards
workers. In perspective of Marks and Spencer they must identify address where the
low wages in order to give them satisfactory living and also minimising preacaution
work in supply chain and operation of the company.
Better alignment of policies with having actual working makes goods to develop
which fail better implement in actual knowledge of the company within Marks and
Spencer must make sure enough that their management practice not lacking in this
particular objectives.
To more engage and implement employees in Employee engagement activities
which would make their work stress reduce, also provide them positive working
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environment and conduct meeting with them to work on their impulsive behaviour
and emotional intelligence.
8.0 Conclusion
From the above discussion, it has been concluded that it is vital for an
organization to maintain a positive and effective relationship with its employees as it
help in managing, attracting and retaining them for longer time period. In addition to
this, there are various benefits gained by an organization due to effective employee
relation such as employee loyalty, increase productivity, positive brand image, less
conflicts, decline in employee turnover ratio and many more. It is analyzed that to
make an effective relationship with employees it is important for company to satisfy
their requirements and also to resolve their issues rapidly and timely. Moreover, the
key legislation applied to employee relation are equal pay act, workplace
discrimination act, minimum wage act and many more. It is determined that following
of all this law assist company to maintain its performance level and decline the level
of issues and discrepancies effectively. There are different rights and duties of both
employees and employers which is important to perform in order to execute activities
in a systematic manner and meet with the targets on time period. Furthermore, it is
analyzed that there are different factors that is associated with employee relation
strategies such as shared values, communication, culture, continuous learning and
development power sharing etc.
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