Value and Importance of Employee Relations in Tesco

This report discusses the value and importance of employee relations in Tesco, a leading retail organization. It covers the fundamental of employment law, rights, duties, and obligations of employees and employers, and stakeholder analysis. The report highlights how positive employee relations contribute to organizational success.

Employee Relations

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1 Value and Importance of employee relations in Tesco..........................................................3
P2 Fundamental of Employment Law.........................................................................................5
LO2..................................................................................................................................................6
P3 Rights, Duties and Obligation of employee and employer.....................................................6
P4 Advise relating to rights, duty and obligation of employment relationship...........................8
LO3..................................................................................................................................................9
P5 Stakeholder Analysis..............................................................................................................9
LO4................................................................................................................................................11
P6 Impact of Positive and Negative employee relations...........................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Employee Relations refers to relationship between employer/management and
employees. Employee relations are also considered as efforts of organisation to create and
maintain positive relations with employees. Positive employee relations are important for
organisational success and this also contribute in keeping employees loyal and engaged in their
work. This report will discuss various aspects of Employee relations in context of Tesco. Tesco,
British Multinational groceries and general merchandise retailer headquartered at Hertfordshire,
England. This is a leading retail organisation and is located at 6800 locations in 11 countries in
the world. Tesco employs around 450000 employees and its employment relations are positive
leading to employees which are engaged in the organisation and capable in providing their
maximum support to achieve organisational objectives. Values and importance, fundamental of
employment law, rights, duties of employee and employer, stakeholder analysis will be discussed
in the report for their contribution in positive employee relations in Tesco.
MAIN BODY
LO1
P1 Value and Importance of employee relations in Tesco
Employee relations are important in every organisation regardless of their nature and size
etc. But in Tesco employee relations are more important because employees of Tesco directly
deal with its customers and this is important to maintain good and positive employee relations so
the performance of employees does not affect the customer satisfaction at the Tesco (McCabe,
2019). Positive employee relations are the reason that customer service and support of employees
at the Tesco stores is considered very effective. Some of the importance and value of employee
relations in Tesco are;
Makes Tesco Happy Place to Work
Positive relations with employer and management make Tesco a happy place where
workers can work. Positive workplace and positive relations make it easy to solve the problems

effectively and employees can get support from other employees and management whenever
required. Happy workplace encourages employees to take willing participation and work
proactively. Tesco allows its employee for flexible working and various rewards are provided to
employees so that they can work happily and also make extra efforts to improve their
performance.
Reduced absenteeism and Turnover
This is another importance of employee relations in Tesco as the employee relations will
reduce absenteeism and turnover in the Tesco. This is possible because when employees and
workers are happy working then it limits the possibility of willingly remaining absenteeism and
employees leaving the organisation (Gosavi, Garud and Bisen, 2018). Turnover and absenteeism
both are unfavourable in Tesco as this affect productivity in the organisation and along with that
this also affects cost and profitability. Additionally Tesco also provides job security to its
employees which involves a contract and this ensures that employees will not be terminated over
small issues in the organisation.
To keep employees informed about their Role and increase employee engagement
Employee engagement is a key contributor of organisational success and improved
performance because employee engagement leads employee to improve their performance by
their own. Employees take initiative and fins ways in which they can perform their job in better
way. This is why employee engagement is important and Tesco has employees who are
considered that they can go to any extent to help their customers this is because of their high
employee engagement. To keep employee informed about their role this is also possible through
the employee relations. This is a part of employee relations that management continuously
communicate with their employees in order to keep employees informed about their role in the
organisation. This will reduce any type of job role ambiguity of the employee and they will be
able to focus on their work.
Alignment of Objectives
Employee relations allow employees and Tesco to align their objectives with the
organisational objectives this allows to fulfil objectives of both employer and employee to

achieve together (Muthoka, 2017). Employees also feel inclusive in the Tesco and this is
important to get their maximum contribution in organisational process.
P2 Fundamental of Employment Law
Contract of Employment
This is a statement which is mandatory to be provided to employee within 2 months of
commencement of job by the employee. This statement consist of terms and conditions of the job
which includes job timings, employment condition, conditions of termination and benefits which
employee will receive in exchange of the services given to Tesco. In Tesco this employment
contract also serves as basis for job security of the employee.
Discrimination
This law govern any activity under which employees are discriminated in the workplace
because of their distinct characteristics. This is governed by Equality Act, 2010 and this form
basis of anti-discrimination in UK. This law if mandatory to be followed by Tesco and this law
protect discrimination on the grounds of religion and belief, sexual orientation, and age (Payne,
2018). Tesco has to consider this factors and cannot discriminate among its workers at any time.
Tesco has to follow this regulations while recruitment and selection. This law is applicable while
giving opportunities and promotions in the Tesco. Employees are entitled to equal treatment at
their workplace as per this law.
Health and Safety
Health and safety at the workplace are important part of employment law and protect
employees from any type of conditions which affect their health and put their safety into risk. In
Tesco health and safety of the employees in the workplace is governed by Health and Safety at
Work etc. Act 1974 this act provides provisions for health and safety in the organisation. under
this local authorities have power to inspect workplace and implement changes in the system of
the workplace according to safety of the workers.
Termination/unfair Dismissal

Termination is important part of employment and unfair and wrongful dismissal is the
one which breaches the terms of contract and employees are safeguarded from this on the basis
of Employment Rights Act 1996 (Morrison, 2019). This law governs the reason for which Tesco
terminates a contract and the conditions for termination need to fall under the statutory
conditions for termination. Tesco might fall in legal troubles in case it terminates employees
under conditions which are not according statutory conditions of termination.
Workplace Participation
This fundamental of employment law not only provide provisions for employee
participation in the workplace but also is important for harmonious employee relations in the
Tesco. This fundamental of employment provides provision for workplace participation and
includes right to vote, and right to collective bargaining (Vergis, 2019). In Tesco all its
employees are members of Usdaw and their contract manages workplace participation of
employees. This workplace participation provide terms of coordination in employee and
employer.
LO2
P3 Rights, Duties and Obligation of employee and employer
Employee and employer both has some of the rights and at the same time some duties and
obligation towards each other. The rights are;
Of Employer
Protection of the Trade Secrets
This is one of the rights of the employer that their trade secrets remain protected. This is
very normal that while working in Tesco employee will get to know the trade secrets of the
Tesco this depends on the nature of the job of employee. Management employees are exposed to
more critical secrets of the Tesco and others are also exposed to secrets which are important for
performance of their job (Divya, 2019). This is why it is right of the employer that their trade
secrets are protected and employees do not share them with anyone.

Loyalty of the Workforce
This is also right of the employer that their workforce remain loyal to them. This includes
that they work for the interest of employer and perform their roles with respect and loyalty.
Employer can also expect that in individual interest and organisational interest employees keep
interest of the organisation first. Employees at Tesco has fulfilled their this duty very efficiently
and Tesco has managed to get and employ loyal workforce.
Of Employee
Right to paid equally and lawfully
Employee has rights that they are paid equally and according to wage regulations of the
country. Equal payment means employees working at the same level in the organisation,
employed at the same time and having similar qualification should be paid equally.
Right of data protection
This is the right of employees that the data they provide to Tesco in order to get
employment (Sudworth and Abrahams, 2018). This data should be protected and no third party
can access the data without permission of the employee.
Contract of Employment
The document contains all the term and conditions that employee in the organisation is
required to follow and this is the employee to get the contract of employment within two months
of their joining in the organisation.
Duties and Obligation of the Employer
Compliance with Labour Laws
This is the duty and obligation of the employer that they comply with all the labour laws
and employment regulations while treatment of the employees in Tesco. This includes providing
them fair wage according to regulations, giving them paid leaves medical, casual etc. Providing
safe working condition to employee is also responsibility of the employer.

Maintain mutual trust and confidence
Employer should fulfil this duty and show trust in the employees regarding their
competency and ability to work. This is moral duty of the employer and mutual trust will help
employees to work easily in the Tesco.
Duties and Obligation of the Employee
Perform duties with care and diligence
This is the duty and obligation of the employee that they perform their duties with care
and diligence (Roba, 2018). This is the responsibility that employees take care of resources and
property of the employees while performing the duties.
Obey the rules of the employee and comply the terms of employment
This is the duty and obligation of the employees that they follow all the rules of employee
and the rules for employment in Tesco. This is also the duty of employees that they follow terms
of the employment in Tesco.
P4 Advise relating to rights, duty and obligation of employment relationship
Employment relationship consists of two parties employee and employer. Obligation and
duties of one party in this become right for another party. For example, performing duty with
loyalty and diligence is duty and obligation of the employee and this is the right of the employer
to expect loyalty and best performance from the employee. Likewise receiving minimum fair
wage is right of employees and at the same time employer has duty to pay minimum fair wage to
the employees.
Above discussion discussed some of the rights and duties which employee and employer have
from the side of law and legal regulations (Witanowski, 2017). But this is also important that
employee and employer have rights and duty for each other in their employment relationship
which is based on the mutual trust and respect for each other.
Here it is advised that both employee and employer have trust for each other. This will make it
easy for both the parties to fulfil their duties towards each other and in doing so they will be able
to exercise their rights.

Both employee and employer should also have a psychological contract according to which they
know that they are responsible for each other. Psychological contract means that it is not
mentioned and written in any contract but it is duty of employee that while working they are
required to take care of the resources and materials which are given to them to perform their
duties properly.
Ethical aspect of the rights and duties should also be considered by the employee and employer,
employer should show trust in their employees this will strengthen their relationship. In this
matter both the parties should avoid actions which can harm interest of other party. For Example,
employee get to know many of the trade secrets now it is their ethical duty that they protect such
secrets as they might harm interest of Tesco.
Duties and rights become simple to exercise and complete when Tesco and its employee both
understand that they are important for each other and their success (Oriet and Oriet, 2018). This
respect for each other makes it easy as this create psychological contract in employee and
employer and they make their best efforts to fulfil their responsibilities and duties towards the
other party.
LO3
P5 Stakeholder Analysis
Stakeholders are those parties which have interest in organisation and its process and
those stakeholders of the organisation impact the employment relations in the firm. There are
various parties which are considered to be stakeholders of the firm (Hujainah and et.al., 2018). In
relation with Tesco its stakeholders are its customers, shareholders, employees, government,
pressure groups and financial institutions.
Stakeholder analysis of Tesco and their impact on Employee relations in Tesco is as follows-
Matrix provides stakeholders on the basis of power and interest. Power refers to impact
that stakeholders can make on the operations of the Tesco and interest refers to interest that
stakeholders which might be financial and non financial in the Tesco.

Figure 1 Stakeholder Analysis Matrix
High power, low interest
These are stakeholders who can significantly influence functioning and operation of business.
But there interest in business remains low this is means what they get from business in exchange
is low. The stakeholders included in this are government as they can significantly impact
operations of the business but their interest is low (Alonso and et.al., 2018). Employee relations
get significantly affected because of these stakeholders as they determine the underlying
regulations of the employment relations. Customers are also known as stakeholders with high
power and low interest as they also significantly affect and impact business operations and their
interest remains low. Employee relations get less affected because of this but customers get
significantly affected because of employee relations negative employee relations will directly
impact customer service. Such stakeholders are required to keep satisfied.
Low Power, low interest
These stakeholders are only required to engage and participate in the organisational
functions and require minimum efforts from the side of Tesco. These are also not able to affect
and impact the employee relations in Tesco.
High Interest and High power
These are the most significant stakeholders in the organisation. These stakeholders affect
and impact decisions of the organisation and along with that benefits they receive from the

organisation are also high. Directors and top management are stakeholders whose power and
interest both are high. They are key players in the organisation and also affect employee relation
in the Tesco (Lamba, Latief and Arifuddin, 2019). One other stakeholder in this category for
Tesco is Usdaw this organisation and employee representation has high power in Tesco because
all the employees of the Tesco are part of only this recognised trade union and in relation with
employees they can significantly affect the decisions of Tesco. On this basis it can be said that
both are able to make significant impact on the employee relations of the Tesco.
High Interest and Low Power
These stakeholders are required to keep informed and they are not able to make any
significant impact on the employee relations of Tesco. These stakeholders are bank and financial
institutes which provide finance and this is why their interest in Tesco is high but their power to
impact and influence Tesco and its decisions.
Stakeholder of Tesco and their Power and Interest are as follows-
Shareholder of Tesco
They are the stakeholders who invest their money in the Tesco and they are also known as
owners of the Tesco and this is why their power in Tesco and their interest both are high. Interest
is high as they are the one to get the benefit of profit earned by the Tesco.
Board Members of Tesco
After Shareholder board members have highest rights and this is why their power and interest in
the organisation is also high in the Tesco.
Usdaw
Usdaw is a recognised trade union and all the members of Tesco are its members and this
is why its power to influence the decisions and at the same time its interest both is high in Tesco.
This stakeholder is concerned with trade union or employee union.
Employees

Power of employees depends on the position they are working at and this gets reduced as
the position gets lowered still power of employees in Tesco is low and their interest remains to
salary and perks they get in exchange of their duty.
Government
Government has high power and low interest in Tesco as company has to follow and
carry out its operations as stated by government and this is why their power is high on the other
hand there is no interest of government in Tesco. This is why their power is high but their
interest is low.
Bank and financial institute
They provide financial assistance to Tesco and in exchange they get their interest and
return this is why their interest is high in Tesco but their power is low as they cannot influence
decision making in Tesco.
LO4
P6 Impact of Positive and Negative employee relations
Employee relations are vital factor behind success and failure of organisation. Earlier
discussion analysed impact of various stakeholders on Tesco and this part covers impact of
positive and negative employee relations.
Positive employee relations
Positive employee relation can also considered as favourable employee relations. Positive
employee relations are based on trust and respect among employee and employer. Impact of this
is also favourable for Tesco (Liang, Renneboog and Vansteenkiste, 2018). Tesco has positive
employee relations and Tesco has experienced its impact in form of loyal and competent
employees.
Impacts of positive employee relations
Increased Motivation

Human relation approach of management considers that positive relations are main
contributor in motivation of employee. The same way positive relations in employee and
employer relation also increase motivation of the employee. Increased motivation of the
employees result in increased productivity and improved performance of the employees.
Less absenteeism
Absenteeism increase when employees and their relation with employer or management
are not good. In contrast when employees and employer are having positive relations they will
not remain absent without any important reason, this way absenteeism in Tesco will reduce
because of positive employee relations (Basterretxea and Storey, 2018). Along with this positive
employee relations also include that employees can share their concern and issues related to the
organisation because of which they remain absent. Along with this management will also
understand and resolve the issue being faced by the employee. This mutual act will strengthen
the employee relations and as a result absenteeism will reduce.
Higher Retention Rates
Employees seek to work with organisations where they are valued and efforts from the
side of management to improve the employee relations shows that they value the employees
working for Tesco. This will help in creating positive feelings in the mind of employee and as a
result their retention rate will increase.
All these impact of positive employee relations shows that these are favourable and employee
and employer both put their efforts in ensuring that their relationship is positive. Both will be
able to take advantage of positive relations.
Negative employee relations
Negative employee relations refer to those relations in which employee and employer do
not share any harmonious relations. Basic requirements of positive relations like respect amd
trust do not exist in employee relations. Positive employee relations are ideal for organisation but
negative relations are also there and they also are able to make impact on the Tesco and
employees of the organisation.

Impact of negative employee relations
Hiring issues
This is a very common problem which is faced by organisations where employee
relations are not good (Jung and Ali, 2017). This is because this creates negative image of the
organisation and this restrain efficient employees to apply in the organisation.
Increased Conflict
Negative employee relations increase conflicts in the organisation and this directly affect
the performance of the employees and reduce their productivity. Conflicts also affect culture and
environment within the organisation and those who are not directly the part of the conflict also
get affected because of this.
CONCLUSION
On the basis of above analysis it can be concluded that employee relations are important
aspect of human resource management in organisation. Contribution of employees in
organisation can only be capitalized when company is able to maintain positive employment
relations with its employee. Employee relations are based on law but effectiveness of the
employee relations is based on wilful contribution of employee and employer in making the
relationship positive and strong. Positive relationship helps both employee and employer and
both are able to achieve their objectives.

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