Impact of Employee Relations on Organizational Success

The report highlights the significance of employee relations in maintaining a healthy work environment. It discusses various aspects of employee relations that impact company operations and services. The analysis includes stakeholder evaluation of ASDA, demonstrating the positive and negative effects of employee relations on different stakeholders.

Employee relations

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Importance of employee relations in ASDA..........................................................................1
P2 Fundamentals of employment law in ASDA..........................................................................2
P3 Different types of rights and duties........................................................................................2
P4 Rights and obligation for the employment relationship.........................................................3
P5 Stakeholder analyses of Asda.................................................................................................3
P6 Impact of employee relation on stakeholders.........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Employee relations is considered as a very essential factor that helps in maintaining the
processing of the operations and services in an efficient and appropriate manner (Nyberg, Pieper
and Trevor, 2016). Also, it can be termed as a sort of effort that is being made and developed by
the company in order to make a sort of consistency in the operations of the company. It also
means providing fair and equal treatment to all the employees of the company. The report
includes the analysis of employee relations in ASDA and the rights, legislations involved. Also,
it helps in understanding the stakeholder analysis along with the influence of employee relations
on it.
P1 Importance of employee relations in ASDA
Although employee relations is considered as an effective way of managing all the
operations and services in ASDA but some well known and common examples of it are
discussed as under :
 It helps in maintaining a strong and balanced employee relations so that ASDA can be
able to focus on the basic requirements as per the competitiveness in the market place. It
can also help ASDA to achieve all the objectives and targets at a much faster rate.
 Also, it is obvious enough that the output from a single person might be low as compared
to a whole team because a single mind can speak a few ideas but a whole team can speak
enormous number of ideas. So, after discussing and understanding each idea, ASDA can
come on to a final conclusion that can seem effective enough for them to achieve the
targets and goals.
 Efficient employee relations can also help in making the environment of ASDA happier
and healthier. It is because this is obvious that after so much of hard work and stress,
employees at ASDA will also want to relax their selves. For that they can have
interactions with people etc. it is because this helps in providing a sort of relaxation to
them. This can further help them in keeping their focus on the work better, thus it can
further help ASDA to have a higher productivity and popularity rate.
 Also, it leads to a decrease in the conflicts and issues because when there will be an
efficient set of employee relations in ASDA, it will automatically help in making the
culture and environment of the organisation happier and healthier. Thus, it will help in
reducing the rate of conflicts and complications.
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P2 Fundamentals of employment law in ASDA
Employment law is also considered as labour law and it helps enormous number of
employees because it makes involvement of all the basic features, whether it is about the rights
of the employees etc., it acts very essential in providing support to the employees. ASDA makes
involvement of all the aspects of the employment law o that each and every employee can stay
satisfied with their role in ASDA and thus, they can be able enough to keep their focus on the
operations and services in a way that they all can be able to achieve all the objectives and targets
at a much faster rate. It also helps in mediating the relations as well, whether it is between the
employees, staff or the authorities, it helps in mediating the relationships between all (Albrecht
and et.al., 2015). As per the standards by the government, it is important that each and every
organization follow the labour law because it involves the rights of the employees. Whether it is
about the income, rights or any other related factor, it is very important that no organisation can
take extra benefits from any employee. So, ASDA ensures to follow the same and has made the
guidelines in a way that all the employees can stay satisfied with the job and no employee is
undergoing any sort of complication or trouble such as depression, discrimination or racism etc.
Therefore it helps ASDA in maintaining all the relations and operations in a way that it seems
efficient enough to achieve all the objectives and targets at a much faster rate. It includes all the
rights of the employees and employees at ASDA should also stay aware of thee. In ASDA, the
authorities usually organise various sessions in which they make all the employees aware of their
rights so that if in case, any employee in the future moves to some other organisation, they
should know their rights so that no person can make misuse of them. So, this can be considered
as a very essential feature of ASDA to make involvement of proper laws and policies so that the
whole management of the operations and processes can stay balanced enough.
P3 Different types of rights and duties
There are various legislations made by the government in order to provide a sort of
satisfaction to the employees as well as employers. Some well known examples of it are
discussed as under :
Equality Act 2010
As per the equality Act 2010, it considers the fact that there should be no sort of
discrimination in the workplace. Whether it is about the colour, race or gender, it is completely
not acceptable at all. It is because any sort of racism or discrimination with the employees can
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actually affect their mental stability and it can further cause various complications such as
depression etc. so the law says that there should be no sort of racism or discrimination with any
member in the work place. ASDA also ensures the fact that no employee or employer can seem
involved in such type of actions because along with the negative impact on the person, it will
also affect negative and bad on the image of the company. So, ASDA ensures and supports no
sort of discrimination. Also, the law says that if anyone found guilty in such actions, they might
have to pay huge amount of penalties and also, the punishment can lead to the imprisonment of
the person as well.
The Health and Safety Act 1974
As per the Health and Safety Act 1974, it considers the fact that if in case of any incident
or accident, it is the responsibility of the organisation to ensure proper safety and security of the
employee. Also, the same is being followed by ASDA as it make sure that all the safety of the
employees is in their hands and if in case, any incident happens, it is the responsibility of ASDA
to provide them proper care and support till the time their near ones can come. This is also
considered as a very effective initiative by the government so that all the employees can feel
safe and secure enough while working in an organisation. So, it is the responsibility of ASDA
and all the employers to make sure to provide proper safety and security to the employees. This
also helps in making the employee relations efficient enough so that the employees can also
consider the fact that they are important for the company which further helps in maintaining their
focus towards the achievement of the goals and targets and that too at a much faster rate.
P4 Rights and obligation for the employment relationship
Each person in the organization has responsibility to perform their work effectively. Hey
has to fulfil these obligations in order to perform well in the workplace. Employer is responsible
to provide health and safety measures to its employees. This is considered as an essential
provision of employment contract. Asda provides healthy workplace environment to its workers
and give them proper training so that they can manage their work well and can minimize
accidents in the workplace (Supanti, Butcher and Fredline, 2015). Employer has duty to provide
equal development opportunity to all its workers in the organization. Higher authorities of Asda
follow employment legislation act strictly and believes in developing strong relationship with its
staff members. Thus, it pays salaried to its employees on the bases of their skills and designation
in the company. For example if new applicant join the firm then HR managers offer them basic
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pay but seniors get more salaries because of their experience. This develops trust between
employer and employees and both perform their work in the firm with loyalty. Employees are
liable to follow instruction of their higher authorities and have to follow safety measures (Han,
Bonn and Cho, 2016).
Higher authorities of Asda provide all kind of safe machinery, regular health checks ac to
ist employees so that they feel secure and work with fulfil efficiency in the firm. Employees
Employee relationship plays significant role in the organization, it develops understanding and
minimize confusion between employees and employer. For example Asda give adequate training
to its workers and employees are liable to perform their allotted work with full efficiency. They
have to work under supervision of high er authorities and have to work seriously (Caillier, 2014).
They are liable to avoid putting themselves from danger. But employees have rights to discuss
their problems with the managers and share their views with them. Employers has rights to
instruct the workers so that they perform their work effectively. If both these persons perform
their work effectively then it develops healthy relationship among them (Albrecht and et.al,
2015).
P5 Stakeholder analyses of Asda
Asda is the international retail firm, it operates its business across the world. Its main
agenda is to provide more benefit to the stakeholders and make them satisfied. If stakeholders are
satisfied then it may enhance overall profitability and productivity of the business unit to great
extent. There are various stakeholders of Asda:
 Customers: consumers play significant role in the business. They have power to influence
overall profitability and performance of firm to great extent. If consumers for the
company are satisfied then entity may earn more profit and can gain competitive
advantage in the market (Keskes, 2014). Asda aims to provide satisfactory services to its
clients so that they feel happy and retain in the organization for longer duration. It offers
services as per their requirements that is why company has strong relationship with its
clients.
 Employees: Workers are another most important stakeholder in the Asda. Higher
authorities of cited firm always develop strong relationship with its staff members. It
provides necessary training to the employees so that their skills can be developed and
they can get better career development opportunities (Nyberg, Pieper and Trevor, 2016).
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It analyses needs of staff members and fulfil these needs by providing them reward and
recognition. This is the way through which entity develops strong relationship with the
skilled labour and retain them in the workplace for longer duration. If employees are not
satisfied then they will move towards other brand this may affect productivity of the
business to great extent. Because in such condition entity will have to hire new applicants
and new people can not be able to deal with consumers well (Shao and Skarlicki, 2014).
This may impact on overall satisfaction level of consumers and sales volume of Asda
may get reduced. Thus, Asda motivates its workers by giving them reward ad
recognition. This encourages people and make them loyal towards the brand. By this way
they deal with consumers well and provide them satisfactory services.
 Suppliers: they are another essential stakeholder of the Asda. Cited firm develops strong
relationship with its suppliers so that it can get quality raw material on time. Strong
relationship helps in receiving order on time and at low cost (Supanti, Butcher and
Fredline, 2015). By this way entity become sable to control over its costing and provide
high quality products to consumers at lower prices.
 Government: It is another essential stakeholders, changes in regulation impact on the
overall business performance to great extent. Activities of government influence overall
functioning of Asda because it has to modify its operation as per the new guidelines.
These are the external stakeholders those indirectly impact on the business unit.
Company follows all legal guidelines that help the firm in establishing its stores outside
countries and expanding its business across the world (Han, Bonn and Cho, 2016).
 Investors: they are the important stakeholders, they can influence business activities of
Asda easily. If they are not satisfied with the operations then they will not invest in the
business thus, company may face financial issues.
Stakeholders Impact on
business
Influence Importance to the
business
Strategy for
engaging
stakeholder
Customers High High Very important To provide
quality products
at affordable
rates, to offer
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attractive
discounts and
make effective
communication
with consumers.
Employees High Medium Important Provide reward
and recognition,
provide necessary
training
Suppliers Medium low Important Provide them
details about
profit of the firm
developing strong
relationship with
them.
Government High medium Important Pay timely tax,
give detail of
profit and loss in
financial year
investors High High Very important Provide each
detail regarding
profit and
liabilities, involve
in meetings
Stakeholder analyses explains the importance and impact of the stakeholder in the
business unit. If company is able to satisfy its stakeholder then it will help the firm in sustaining
in the market for longer duration. Customers impact on the business to great extent and they have
power to influence overall performance of the Asda (Nyberg, Pieper and Trevor, 2016). If they
are not satisfied then they can move towards other firms which may decrease profit of the
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company. Furthermore, if investors do not get expected return over their investment then they
will not prefer to invest money in the business which may impact on operational efficiency of the
firm.
P6 Impact of employee relation on stakeholders
Employee relationship is very important for the growth of the business, it is essential for
the entity that to have positive relationship with all its stakeholders otherwise it may fail to
satisfy stakeholders and fulfil their needs. One of the most important stakeholders of Asda is
customers (Supanti, Butcher and Fredline, 2015). They are high important for the cited firm and
can influence its performance in the market. If company has strong relationship with its
employees, they it will be able to raise skills and abilities of the workers. By this way workers
will feel satisfied and they will deal with clients well. On other hand if employees do not have
strong relationship in the business unit then it may affect their satisfaction levels and they will
not pay attention on needs of consumers. In such condition consumers may move towards other
firms. Thus, strong employee relationship impact positive on the consumers because they get
immediate response and get immediate resolution for their issue (Han, Bonn and Cho, 2016). By
this way they stay in the organization for longer duration and give positive reviews to others.
Suppliers are another stakeholder of Asda. Company has strong relationship with its
suppliers. They provide necessary benefit to all its suppliers so that they provide high quality
products to Asda on time (Albrecht and et.al, 2015). If company does not have good employee
relationship then it may create confusion in logistic activities thus, it may get fail to order right
material from suppliers and pay them on time. This may decrease confidence of suppliers an and
they may break contract with the organization. But strong employee relationship helps in
minimizing confusions and developing strong relationship with the suppliers (Shao and
Skarlicki, 2014).
Investors plays significant role in the Asda, company has good investors those who invest
their money in order to get high return. If company has good employee relationship then
employee will feel satisfied ad they will put their high efforts to raise business performance.
They will deal with clients well so that they become loyal consumers of Asda. In such condition
overall profit of the cited firm will get increased. By this way investors will get high return over
their investment (Keskes, 2014). But if company does not have good relationship with nits
employees then it may increase issue of high staff turnover. By this way entity will have to spend
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more in hiring new staff and new employee will not be able to provide products and services to
the consumers as per their requirements. This may impact negative because investors will not get
desired return over their investment. This may make them negative towards the brand and they
will change their investment decisions (Caillier, 2014).
CONCLUSION
It can be concluded from the report that employee relations play a very major role in
maintaining a happier and healthier relations in an organisation. There are various different
aspects of employee relations that throws an impact on the operations and services of the
company. Also, there are proper laws and legislations made that helps in analysing the factors
more precisely. Stakeholder analysis of ASDA has also been included along with the positive
and negative impact of employee relations on various stakeholders.
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REFERENCES
Books and Journals
Supanti, D., Butcher, K. and Fredline, L., 2015. Enhancing the employer-employee relationship
through corporate social responsibility (CSR) engagement. International Journal of
Contemporary Hospitality Management. 27(7). pp.1479-1498.
Han, S. J., Bonn, M. A. and Cho, M., 2016. The relationship between customer incivility,
restaurant frontline service employee burnout and turnover intention. International Journal of
Hospitality Management. 52. pp.97-106.
Caillier, J. G., 2014. Toward a better understanding of the relationship between transformational
leadership, public service motivation, mission valence, and employee performance: A
preliminary study. Public Personnel Management. 43(2). pp.218-239.
Albrecht, S. L. and et.al., 2015. Employee engagement, human resource management practices
and competitive advantage: An integrated approach. Journal of Organizational Effectiveness:
People and Performance. 2(1). pp.7-35.
Keskes, I., 2014. Relationship between leadership styles and dimensions of employee
organizational commitment: A critical review and discussion of future directions. Intangible
Capital. 10(1).
Nyberg, A. J., Pieper, J. R. and Trevor, C. O., 2016. Pay-for-performance’s effect on future
employee performance: Integrating psychological and economic principles toward a contingency
perspective. Journal of Management. 42(7). pp.1753-1783.
Shao, R. and Skarlicki, D. P., 2014. Service employees’ reactions to mistreatment by customers:
A comparison between North America and East Asia. Personnel Psychology. 67(1). pp.23-59.
Wang, W. and Seifert, R., 2017. Pay reductions and work attitudes: the moderating effect of
employee involvement practices. Employee Relations, 39(7), pp.935-950.
George, C., 2015. Retaining professional workers: what makes them stay?. Employee
Relations, 37(1), pp.102-121.
Marginson, P., 2015. The changing nature of collective employment relations. Employee
Relations, 37(6), pp.645-657.
Ibrahim, M. and Al Falasi, S., 2014. Employee loyalty and engagement in UAE public
sector. Employee Relations, 36(5), pp.562-582.
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