Employee Relations: Importance, Strategies and Legislation in TESCO

This report discusses the importance of employee relations and its value in TESCO. It covers legislation applied to employee relations and the rights and duties of employers and employees. Effective employee relations strategies, stakeholder analysis, and recommendations for improving employee relations are also discussed.

EMPLOYEE RELATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Employee relations......................................................................................................................3
Importance of employee relations and its value in Tesco............................................................4
Legislations law applied to employee relations and followed by TESCO..................................5
Rights and duties of Employer and Employee in an organisation...............................................6
Advices for improving the Employee relationship in the TESCO..............................................7
Effective employee relations strategies.......................................................................................8
Recommendation for increasing and improving the employee relations strategy.......................9
Stakeholder analysis for the organisation....................................................................................9
Stakeholders Engagement and contribution for supporting employee relations within an.......10
organisation................................................................................................................................10
The impact of both positive and negative on employee relations within the workplace...........11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Employement relationship is a people practice in which management of people’s and
groups or teams in an organisation for making them work with complete harmony according to
the group goals with following all the rules and within the framework of the company (Onkila,
2022). TESCO is a retail company of United Kingdom having its operation worldwide for selling
its products and services internationally. This report will include an overview of employee
relations and its importance and value to the organisation and the legislation that applies to
employee relations in the company. Furthermore, investigating the rights and duties of both the
employer and employee and appropriate with specific examples. An evaluation of effective
employee relations strategies including shared culture, power sharing, shared values, effective
communication and continuous learning and improvement. Lastly, the stakeholder analysis for
organisation with recommendations for improving and increasing the efficiency of the employee
relations strategy will be discussed.
MAIN BODY
Employee relations
Employee relation is important for creating and making the positive working environment
between the employee and employer (Ismail, 2020). Employment relationship is necessary for
making sure that the practices of people are fair and all of them are working in groups with
complete harmony. This is the method of creating trust and loyalty of both the parties employer
and employee towards the organisation. The main aim of employee relations is improving the
collaboration of employer and employee in the workplace (Kurdi, 2020). TESCO is a retail
company having its branches worldwide and employees working differently with different
working environment of this company. TESCO has created an environment in which it ensures
that the employment relationship is effective with fairness in the activities of the employees and
employers at all levels of departments for making more profits. TESCO or any other company
without proper working conditions between the employee the company cannot achieve its
objectives efficiently or effectively.

Importance of employee relations and its value in Tesco
 Reduce absenteeism: The healthy employee relations create less absenteeism because
employees will be more confident and feel safe in working with others due to good
relations (Žuľová, 2018). TESCO is creating an environment in which employer and
employees are participating together in the organisation decision making for developing
new ideas and thoughts from both the parties. With healthy employee relations the
employee will enjoy their work and come daily in the office and work with their full
efforts and efficiently.
 Employee engagement: Engagement of employee is the most important role in an
organisation without which an organisation cannot work efficiently. TESCO’s leaders
and managers are communicating more to employees and the leaders are encouraging to
its team members and listening to their particular problems effectively for making them
feel engage in an organisation. The company must share its views and ideas or thoughts
in front of every employee to make them feel belongingness and encourage them to
communicate their individual perspective. This helps the employee to feel engaged and
involved in the discussion.
 Employee satisfaction: It is important for making an employee satisfied in an
organisation because without satisfaction the employee will not work effectively
(Rayment, 2019). The manager or leaders should provide various rewards and
recognition to the employee for making them perform better and send feedbacks for the
inappropriate work. TESCO is using various motivational theories for making its
employee satisfied like providing all the basic and safety needs to each employee in the
company or recognising the good performances by them so that they can achieve their
individual goals with group goals.
 Cultural environment: The peoples in the organisation are from different cultures and
have different perspectives and it creates conflict working together with different
thoughts. The TESCO is creating a good cultural environment in which employee of all
levels can socially communicate with each other and providing platforms to discuss their
ideas and thoughts in front of everyone.

Legislations law applied to employee relations and followed by TESCO
Equlaity Act, 2010
In this act the company should equally distribute all the roles and responsibility to the
employee and no one should be discriminated (Budd, 2018). The TESCO must follow the act
because it is illegal to discriminate on the following grounds religion and beliefs, pregnancy and
maternity, disability, age etc all those people should be treated equally with minimum wages and
compensations and other benefits for good employee relationship for attaining group goals.
Employment Rights Act, 1996
This act protects the employment rights by the government due to malpractices used by the
company on workers like paying less and working more or heavy burden of works etc which
discourage the employee to work in an organization. These acts include the following points
which are:
 Contracts of employment: The Company like TESCO should not breach the contracts of
employment because the employee and employer is appointed on the trust of the
contracts breach of contract leads to demotivation in the mind of employees for work.
 Pay: The company should provide minimum pay or pay according to the work so that
basic and safety needs of the people are fulfilled (Hughes, 2020). The TESCO is
providing its employees all the minimum wages or safety security to maintain its
employee relations.
 Timing: The timing of the firm should not exceed more then 8 to 9 hours because doing
extra work with the same pay or more working times with low salaries makes the workers
demotivated for doing the work efficiently.
 Pensions: According to the government of United Kingdom the company should provide
pension’s facility to its employees for their years of working and stability in the
organization for their help in old ages.
 Study and training: The TESCO should provide proper training and studies about the
work done for making their employees work without the doubts and with full efficiency.
Health and Safety at work act, 1974
According to this act the health and safety at work of employees and employers are
necessary because if these facilities are not provided then they will not work according to the

needs of the company and will feel demotivated (Thompson, 2020). For good employee relations
the TESCO need to provide various healths and safety needs like health insurances, financial
insurances. This company should avoid hazardous materials with workers wearing safety
equipment while doing the work to make its workers feel safe and work without any fear.
The Employment relation act, 1999
This act is all about creating happiness in employee and employer relationship for
promoting good faith between them (Emudainohwo, 2021). The company TESCO needs to
follow this act for their good employee relations because conflict arises if the employee does not
obey his/her superiors or the employer is indulging in various malpractices. This company must
introduce all the rules and regulations of each employer and employees clearly in front of
everyone for no confusion and provide all the facilities and training for the work for no conflicts
by any worker or to maintain peace in the organization.
Rights and duties of Employer and Employee in an organisation
Rights of employee and employer
 Break time: Every employee or employer has the right to get a proper or timely break
times for making them feel relaxed for few minutes from the works and doing others
works like lunch and breakfast etc (Raso, 2020). The TESCO is providing all the
necessity breaks to its employees for making them feel fresh or regain their power.
 Fixed working hours: This is the right of every employee or employer for working with
fixed hour so that they can plan their schedules accordingly because if the company has
no fixed hours then the employees get demotivated and resigned from the company
(Wagner, 2018).
 Healthy work environment: The TESCO should provide healthy work environment
because if the employees are in danger or company is not paying attentions on their
safety needs then the employee’s relation will be at risk and the organization cannot
achieve the goals fully.
 Leaves: The employee or employer has the rights to take leaves in case of emergency or
the company needs to provide certain amount of paid leaves to the employees for their
needs.

 Availability of company resources: This is the right of each individual working in the
company to have the available resources of company by each employee or employer for
making them work with more efforts. TESCO is providing all the equipment and
materials to each worker at each level for making good employee relations..
Duties of employer and employee
 Aiming to achieve a common goal the employee should work hard to achieve the
common goals of the company with individual goals this the first and foremost duty of
the employee and this the duty of employer to guide them properly towards the
organizational goals.
 Higher performances by the employee will be rewarded and recognized and it is the
main duty of the employee to achieve high performances (Islam, 2018). Employer duty is
to motivate and encourage the employees in achieving goals with higher performances.
 No offensive activities by the employee’s because it creates conflicts and demotivation
between the employee relations. Employer responsibility is to guide and control the
conflicts when arises to make harmony in the work and team members.
 Obeying company rules is the sole responsibility of each employee because breaching of
this the company will take strict actions and penalties. Employer is making sure that
every employee is obeying the rules and work according to the set procedures.
Advices for improving the Employee relationship in the TESCO
 Respect between both the parties each employee and employer should respect each
other’s work and the employer should treat their employees with due respects (Van Swol,
2018).
 Right to ask for unfair terminations: The team members of the company have all legal
rights to ask against the unfair termination from the company and can sue the company
for the unfair terminations. The TESCO is giving all its employer and employees this
needs for standing up in case of injustice to them.
 TESCO should provide all the facilities For example in case of Covid-19 and Brexit the
company should provide all its worker work from home facilities so that they have no
problem during these types of situation and feel relaxed during the job.

 Warnings or Promotions this company should give warnings to the employees at the
time example stealing any equipment from the company or exposing company’s data.
Whereas the company should promote the employee for good performances for making
them feel more motivated.
 Improving communication with them and sending right feedbacks to the employee to
make them feel happy and works towards the organizational goals.
Effective employee relations strategies
 Adopting cultural workplace: Creating a shared culture workplace with shared values
and ideas helps the employee to feel good and comfortable in doing the work properly.
The TESCO should plan for various group activities in which employee can interact with
each other’s socially from different departments to share their ideas and thoughts for
growth.
 Power sharing: One of the best strategies by the leader of the company is to give the
authority or power to the employee for taking any decisions without any consult or
interference (Veena, 2019). The company should provide all the power to employee in
small decision making and day to day activities so that they feel involved with due power
and work more confidently.
 Effective communication: The best way of solving problems and developing employee
relations is to communicating with them all the problems and the solutions that arise to
make them feel belong. Employee gets demotivated if their complains are not handled or
their ideas are not communicated. TESCO should hold meetings and seminars in which
all the employer and employee can interact with each other and give their ideas and
thoughts in front of everyone.
 Learning and improvement: Another strategy is providing continuous training and
development sessions to each employee for more advancement and can achieve its
individual as well as group goals equally. TESCO leaders and managers should provide
monthly or weekly training to all its employees so that they can achieve their goals easily
with no doubts and confusion to create good employment relations.
 Proper rewards and recognitions: The most important strategies without which an
employee cannot work with full motivation is rewards against the particular

performances. TESCO should provide proper rewards and recognition to the good
performances by the employee because if this are not provide to them they will remain
dissatisfied and switch to other company for earning more. Rewards should be providing
to each and every one otherwise it leads to conflict between the employees for the
performances.
Recommendation for increasing and improving the employee relations strategy
 Giving constructive feedbacks to the employees regularly to make them help in their
work. With the help of the feedbacks they came to know their mistakes and will not
repeat it again the same mistakes (Zeb, 2018).
 Regularly communicating with the employee by the employer for any change or
suggestions to make them feel happy and free of burdens.
 TESCO should plans for those activities in which the employee of one department can
learn the skills of other department too by horizontal and vertical promotions. This
promotions helps the employee to learn new things and understand the complete picture
of the organisation.
 Comparing the present and past performances of employees for improvements and
rewards is a best way to make each employee know its standard performances for
achieving group goals.
 Developing various skills and knowledge of employees by training and complicated task
so that they can involve their critical thinking skills and learn more things to feel proud of
their abilities.
Stakeholder analysis for the organisation
Stakeholder analysis is identifying the peoples who are involved in a project or have
affects upon the projects like manager, team members of the company before starting the project.
Identifying all the interest and their influences and how they affected by the organisation for
planning and formulating various strategies before starting a project (Wallace, 2020). TESCO is
a big organisation with large number of stakeholders and have directly affected by the companies
activities. So the company has to take all the suggestions from its various stakeholders like
shareholders, influencers, suppliers, financial institution for making any big decisions or before
starting a project for the proper guidance to decrease the risk. The TESCO does the stakeholder
analysis by dividing into groups and ranking them the positions like:

 High power, high interest: They are the Tesco most important stakeholders with high
interest and company is giving them more priority then others.
 High power, low interest: They are the stakeholders which needs to be satisfied for due
to their more power and company can cut them off at the times of big decisions due to
low interest of them (Serravalle, 2019)
 Low power, high interest: Tesco is giving them attention on daily basis due to their
interest in the projects.
 Low power, low interest: They are the stakeholders which company involves them
periodically basis about the projects.
Stakeholders Engagement and contribution for supporting employee relations within an
organisation
 Education: Communicating with the stakeholders like shareholders or financial
institutions will help the company to learn how to invest and when to invest in an projects
to get the best outcomes with least cost of interest (Santoro,2020). The Tesco is gaining
all kind of knowledge of investments and funds from its financial expert’s because they
are funding and doing the business internationally and have more knowledge of the
overall risk and cost.
 Effective decision making: Tesco is using its shareholders in various decision making
processes like getting the feedbacks about the products from the customers or financial
providers for making decisions because they have more experience of the markets.
Involving stakeholders in decision making is necessary for a big project or goals to make
the plan more efficient and effective.
 Risk management: The Company can manage all its risk for future uncertainty by
planning in advance with the specialist. TESCO is involving all its employees and
stakeholders in the projects to make the decisions because they are having high interest in
the project due to profit sharing by all so chances of risk is less because each of them
work with full efforts for earning more.
 Cost savings: Tesco is involving its stakeholders in the projects that ultimately saves time
and cost due to well established plans with professional advices. This saves unnecessary

cost and expenditure on wasteful activities and saves time in improving the performances
in the task.
 Trust: Involving in the decisions and suggestions by the stakeholders build trust between
the company and its stakeholders. Tesco is building trust with its stakeholders due to
global crises and pandemics so that they feel safe about their investments and funds and
give more beneficial ideas for making its company to gain more profits.
All these engagements helps to support employee relations due to suggestions are taken in
front of everyone to make everyone feel involved also all the risk are shared by everyone so
there is no change of inefficiency in work. It builds trust between the employer and employees
for performing in group to achieve more profits.
The impact of both positive and negative on employee relations within the workplace
Positive impact
 Increases productivity: Positive impact of employee relations increases the productivity
in the task and group goals because each employee will do the task with full efforts. The
employer of TESCO is encouraging its employees to do the work with full accuracy by
helping them and giving all type of feedbacks to get them know about their
performances.
 Less absenteeism: Good environment and positivity in an organisation makes its
employees to feel good and happy about their work they will resist to take leaves because
of enjoying their task with the team members (Dyrbye, 2019). The company TESCO is
creating a positive environment by reducing the burden of work with fixed hours so that
the employee feel relaxed doing the work and does not take unnecessary leaves.
 Increase profits: Every employee with positive employee relations perform its task with
full accuracy and productivity which directly leads to increase in the revenue of the
company. This company is making huge amount of profits worldwide due to large
operations and good employee relations. Each employer and employee is doing its task as
on priority basis to earn rewards and recognition from the company.
 High motivation: Highly motivated employees will work more effort then the unsatisfied
one because the leaders of the TESCO is leading and encouraging the employees in a
way so that their individual as well as group goals can be accomplished fully. TESCO is

satisfying all the individual basic to higher level needs to make them feel motivated in
doing the work efficiently.
 Higher employee loyalty: With good employee relations the loyalty towards the work and
between the members increases and creates good harmony among the company due to
trusting each other’s in work. Employee with good relations will not involve in fraudulent
activities and malpractices all will work with complete discipline.
Negative impact Lack of interest and focus: If the company is having low employee relations then the
employee will not work with full interest and the employer will not pay any attention
about the performances. The employees will not work with full focus and concentrations
and leads to inefficiency in the work. Delay in task: The lack of interest of employees and focus the work will be completed
late and delayed. The entire task will be performed with improper time with no fixed
schedules and targets this creates problem for an organisation. Decrease in productivity and profits: Delayed task and focus will cause less productivity
and profits because due to less efficiency the task cannot be completed on time (Quan,
2018). TESCO is dealing in huge sells if the products are not available to the market
proper time the consumer will switch to some other products this will create losses to
company. More conflicts: Less employee relations causes conflicting environment due to no
understanding and trust in the company and the employee will indulge in malpractices
which is not good for the health of the company.
 More absenteeism: No focus on company’s employees complains and problems by the
employer leads to create more absenteeism because employees will feel unhappy and
unsatisfied do not come to the office.

CONCLUSION
From the above report it has been concluded that employee relations is important for the
overall growth of the company as well of the individuals because the organisation success is
totally depends upon the harmony in the business. Furthermore, it has been concluded that
various legislation policies which the TESCO has follow strictly according the government.
There are various rights and duties of the employer and employee that can be used correctly for
achieving group goals. It also has been concluded that various strategies can be used to
increasing the efficiency of the employees with the help of the stakeholders and the company
need to improve all its negative impact of employee relations by creating positive environment
with various strategies used by the company.

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