Employee Relations and Stakeholder Engagement in Tesco PLC

This report discusses the value and importance of employee relations and employment laws in Tesco PLC. It also explores the different types of rights, duties, and obligations of employers and employees, and mechanisms for managing employment relationships. Additionally, it analyzes the impact of positive and negative employee relations on stakeholders.

BSc (Hons) Business Management (Top up)
BMP6005
The Work and Employment Relationship
Assessment 1
How employee relations can influence the
behaviour of
different stakeholders
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Content
Introduction 2
An explanation of the value and importance of employee relations
in application as well as explanation of the fundamentals of
employment law 2
An explanation of the different types of rights, duties and
obligations an employer and employee has within the workplace.
An exploration of various mechanisms for managing the
employment relationship and make justified solutions for a range of
specific organizational examples 4
A stakeholder analysis for the organization and analysis of how
stakeholder engagement and contribution can support positive
employment relationships 6
An analysis of the impact of both positive and negative employee
relations on different stakeholders 7
Conclusion 9
References 10
1

Introduction
Employee relation is a term that defines a bond or a relationship between an
employee and an employer of an organization. In order to achieve the goals and
objectives effectively in every organization it is very essential to have collaborative,
healthy and friendly relations between the employees and employers (Onkila and
Sarna, 2021) . Effective employee relation is helpful to an organization in creating a
productive and a positive workplace environment. The present report is based on the
British multinational retailer Tesco PLC. The company is the large size organization
with approximately 423,092 employees and us headquartered at Welwyn Garden
City, UK. The present report aims to highlight value and importance of employee
relation in an organization and the fundamental laws of employment. Father rights
and duties of employee and employer are evaluated. Stakeholders are the most
essential part of an organization therefore stakeholder analysis is conducted in the
report. In the end report covers negative and positive impact of employee’s
engagement on stakeholders.
An explanation of the value and importance of employee
relations in application as well as explanation of the
fundamentals of employment law
For the successful organization employee’s relation play a major role. The
large organizations like Tesco PLC there are the huge number of employees n a
develop happy employee relationship with the employees they must value and
importance of the employee relations in an organization. The values and importance
of employee relations as discussed below:
High employee loyalty: dangerous positive and friendly employee and employer
relationship within an organization like Tesco PLC then it is highly visible that there is
high loyalty of employees towards the organization. Good employee relations help
employee to get productive working environment and that can support their work in
an effective manner (Liu, 2021). Also it is analyzed to that more the employees are
loyal towards their organization that considered as the asset for the Tesco PLC
because this helps the company to meet their targets and objective successfully.
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Augmented motivation: in order to create a healthy working environment it is very
essential to have a good friendly and healthy employee and employer relationship
within an organization. But these factors are directly linked to each other in
motivating the employees which leads to better performance. In Tesco PLC designer
lies that higher the employees are motivated they are more dedicated and excited to
work for the productivity and profitability of the organization thus motivated
employees are key assets for the company to raise its revenue.
Minimal chances of workplace conflicts: when an organization has a healthy an
effective employee relations then to work collaboratively with each other without any
internal conflicts. Thus means in Tesco PLC employee has been able to build
effective employee relations which enhance stability to work together and also make
the employer capable of solving the problems between the employees (Brockman,
Luo and Xu, 2020). When there are conflicts within an organization then the
productivity and the performance of employees is high also this leads to equality
between the employees which enhance their learning within organization.
Enhance trust and confidence: when employers and employee have a good
relationship then automatically this improves trust between them. Trusting each other
always help them in a completing the goals and objectives effectively as this boost
the confidence of the employee that there supervisor for higher management shows
a trust which enhances the performance of the employee. Therefore effective
employee relation is it key to improve trust and confidence thereby making the
employees feels recognized at a part of an organization.
Employment laws: UK government has articulated several laws that protects
rights of both employee and employer within a workplace. The legal employment
laws as discussions related to the legislation on minimum wages, discrimination,
dismissal, holidays etc. helps to maintain honesty and transparency between the
relationship of the employer and employee within the UK organizations like Tesco
PLC. There are some legal laws and legislation of the employment data followed by
the Tesco PLC these fundamental laws are helpful to the organization and building a
effective employee relation. Some of the basic employment laws followed by the
Tesco PLC are discussed below:
Equality act, 2010: this is one of the legal laws that strictly states that all the
employees within an organization must be fairly and equally treated. No employee
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should be discriminated on the basis of color, gender, age, caste, religion, nation,
culture and much more (Ervani and Wijaya, 2021). In Tesco PLC all the employees
booking only same position are delivered with the equal pay and workplace
opportunities so that they can work with pride within an organization where there is
strict compliance with UK employment laws.
National Minimum Wage Act 1998: employee working at certain position must be
given the certain minimum wage as per the criteria stated in the UK legislation.
Hospitals law temple must be provided with minimum wage at the workplace and
Tesco PLC the employees are given pay for their work as per the given law. Also for
the extra working hours the company pays extra to their employees.
Health and safety at work, 1974: noted to motivate employees satisfying their
health and safety needs soil important for which according to which employees of the
organization that safe and healthy to breathe and eat. In Tesco is employee has a
health insurance and also the working environment is highly safe, friendly and
secured.
All the above mentioned employment laws are some fundamentals laws that
helps an organization to maintain healthy good and effective employee relations and
also the laws are mandatory to be followed by all the companies so that their
employees can work in a safe and secure working place (Sánchez-Monedero,
Dencik and Edwards, 2020).
An explanation of the different types of rights, duties and
obligations an employer and employee has within the
workplace. An exploration of various mechanisms for
managing the employment relationship and make justified
solutions for a range of specific organizational examples
Rights of employers:
 Within an organization it is a right of an employee to demand and expect
outstanding performance and productivity from their employees. In Tesco PLC
the employers assign a target of work with set timelines in order to make the
employees work as per the demand and expectation of employer.
 Every employers of an organization has a right to question their employees. In
Tesco PLC the employees are responsible and accountable for all of their
actions during their working.
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Rights of employees
 Employee has a right of denying not working more than the documented
working hours on an average week that is 48 hours a week.
 Employees have a right to gain the equal opportunities within an organization
and to work in a safe and healthy working environment.
Duties of employers
 It is the duty of an employer to grant fair salary and appraisal to the
employees for the work they have done (Ash and et. al., 2020).
 Employer also has a duty of maintaining healthy and safe working
environment for the employees there by keeping an eye on the safety and
security of the employees at the workplace.
Duties of employees
 An employee has a duty to actively listen to the information regarding the
work and execute the work to the best. They are required to inform their
employees if any mistake is done while working.
 With the covid-19 safety measures it is the duty of employees to get
vaccinated and take a reasonable care of their health and safety at workplace.
Responsibility of employer
 Employers act as managers and leaders of the organization therefore they
have a responsibility to provide appropriate training to their employees in
order to enhance their work performance.
 It is the responsibility of the employee to serve or deliver the employees with
the necessary amount of resources in order to do their work effectively (Maya
and et. al., 2020).
Responsibility of employees
 It is the responsibility of employee to comply with rules and regulations of the
organization to have ethical and legal working.
 Employee has a responsibility to adhere to the timelines in order to be
punctual as this makes work effective and also maintains Harmony.
Various mechanisms for managing employment relationship
Within an organization employees are considered as the key asset as the as a
potential of increasing and decreasing the profitability and productivity of an
organization. Therefore, in order to gain higher performance it is very important for
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the employers to manage the employment relationship. During the covid-19
businesses half face to the challenge of ineffective employment relationship which
has caused a lot of problems and issues between the employers and employees.
This resulted in negative impacts like demotivated employees, reduced productivity,
higher conflicts and much more. Also there is one of the most major problems that is
increasing employee turnover due to the lack of engagement between the employer
and employees. To mitigate this situation Tesco PLC opted various mechanisms in
order to improve employment relationship which is discussed underneath:
 Tesco PLC provided their employee’s effective training and development the
organizing training and development program so that people can adapt to get
ready for the remote working this help the employees to work effectively at the
home and maintaining the employee’s engagement (Koromila and et. al.,
2021).
 The company started regular course of constructive feedback through by
communicating in person through video calling approach. This was the most
effective mechanism used by the Tesco plc in order to increase the interaction
of the employer and employee and to regain the relations between both.
 Every week the employees were send a feedback form in which they were
required to note down their problems they are facing and share their weekly
experience which helped both employer and employee in resolving the issues
they were getting an immediate solutions.
A stakeholder analysis for the organization and analysis of
how stakeholder engagement and contribution can
support positive employment relationships
Stakeholders of the organization of the persons that are involved and interested in
the business activities of the company they are the persons that are affected as well
can affect the organization. Therefore it is very essential for the organization to take
care of their stakeholders (Sengupta and et. al., 2021). Help of the stakeholder
analysis the company can easily identify their stakeholders and their level of interest
as well as influence within an organization.
High influence, low interest: these are the individuals that pertains high influence
and power within an organization therefore it is very important for an organization to
keep them satisfied in order to maintain productivity and profitability within an
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organization customers of the Tesco PLC comes under this category as they have
high influence in changing the strategies and the products of the organization.
High influence, high interest: these are the stakeholders the very high power as
well as higher interest within the organization in Tesco PLC the board of directors
that are highly engaged with the organization and also the make efforts to grow the
company therefore they are highly interested and informations are shared with them.
Low influence, low interest: the type of the stakeholders that are not involved or
interested with the activities organizational also they have less power that can
influence the business.
Low influence, high interest: stakeholders that was very minimal power than an
organization but has a huge interest in the activities of the business these people in
the Tesco PLC referred the employees as they are very legitimate power and there
but are highly interested in the different activities occurring within an organization
(Sakka and Ahammad, 2020).
Stakeholders Contribution in employment engagement
For an organization it is very essential to understand that company provides
all the detail information to their stakeholders so that they can effectively analyse the
merits and demerits attached to it. Then it is clear that stakeholders have a direct
benefit in increasing their employee’s relationship. In Tesco PLC there is great extent
of transparency and honesty of the information with the stakeholders the employees
of the part of stakeholders there are also considered as the most important
stakeholder of the company. This Helps in building a mutual trust between the
organization and their employees thereby increasing the employee’s relationship.
By this stakeholders initiates an open communication within the organization
making it easy for the employees and employers to share problems with each other
and thereby issues are solved immediately which helps in maintaining effective
relationship between the employees and employers.
An analysis of the impact of both positive and negative
employee relations on different stakeholders
It is very essential to note that for an organization and their employees it is
very important to create a positive employee relation because it is an environment as
a potential of increasing productivity and profitability within an organization and also
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creates direct impact on stakeholders. The stakeholders of the Tesco PLC are able
to gain a significant amount of benefits from the positive employee relations. On the
other hand negative relations between the employees of the organization results in
wreaked havoc impact on stakeholders (De Prins, Stuer and Gielens, 2020). The
negative relations of the employees directly become cause of conflicts within an
organization.
Employees
Positive
The positive employee’s relation is helpful to an employee in gaining motivation and
environment where the employee can gain the peer to peer learning experience.
Negative
The negative employee relation between the employees and employers of the Tesco
plc results in the lack of trust for each other which become a reason of demotivation
and thereby results in ineffective performance and loyalty of the employees.
Employers
Positive
The positive employee relation helps the employers in building the motivation
in employees as also through these employees obey their employers by which it
becomes easy for the employers to make the employees reach the organizational
goals.
Negative
The negative employee relation impact the employers by making it difficult for
them to make their employees follow their instruction and also during changes in
organization the negative employee relation makes it hard for them to implement the
change easily.
Customers
Positive
When in an organization there is a positive employee relation then the customers
experience good customer service as the when employee’s relation is positive the
quality products and services are delivered to the customers (Lee and Kim, 2020).
Negative
With the negative employees relation the customers gets affected and are able to
realize the ineffective management of the employees and employers in their way to
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doing business. As through this their low productivity, lower performance and profits
which creates a bad image of company on customers.
Conclusion
From the above study it is analyzed that for every organizations to have a productive
and an effective environment it is very important to maintain the good employee
relations within the organization it is analyzed that if employees and employers build
healthy and communicable relation then they aims to increase the productivity and
profitability of the organization. There are various advantages of having an effective
member relations among which the most important one that it motivates the
employees. List the stakeholders of the organizations are highly important therefore
it is very important to timely conduct stakeholder analysis in order to analyze the
negative and positive impact of stakeholders in maintaining the employee relations.
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