How Employee Relations Influence Stakeholder Behavior

This article discusses the importance of employee relations in influencing stakeholder behavior in the business environment. It explores the impact of maintaining good relations with employees on productivity, retention, conflict prevention, and establishment reputation. It also analyzes the rights and duties of employers and employees, provides advice on employment relationships, and evaluates the psychological contract. Additionally, it discusses stakeholder analysis and the role of employee relations in avoiding conflicts and meeting stakeholder interests.

How employee relations can
influence the behaviour of
different stakeholders

Table of Contents
INTRODUCTION...........................................................................................................................3
1.Importance of employee relation in Sainsbury:........................................................................3
Fundamentals of employment law...............................................................................................4
2.Rights and duties of employer and employee and give advice related to rights and duties of
employment relationship in organizational context and do evaluation of psychological contract
......................................................................................................................................................5
3.STAKEHOLDER ANALYSIS.................................................................................................7
4.Employee relations impact on avoidance of conflict and Stakeholders perspective and
interests in business environment................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Employee relation refers to managing cooperative relationship between employer and
workers. Maintaining good relations with the workforce will be beneficial for the organisation s
happy and satisfied employees are more productive and loyal to the organisation and work
efficiently towards the overall productivity and growth of the organisation. Sainsbury is a
multinational supermarket chain. It was established in 1869 with its origin in London, United
Kingdom. The company is divided into three category i.e. supermarket, bank and argos. The
following report will analyse the importance of worker relations and also the implementation of
employee or labour laws in the establishment to prevent the exploitation and tormenting of
workers. The rights and duties which an employer and worker is obligated to follow will also be
evaluated in the report. Stakeholders analysis will also be conducted which include their
engagement and contribution in associate relations.
1.Importance of employee relation in Sainsbury:
The establishment pay a lot attention on maintaining healthy and harmonious relationship
with their workers as they know that without these people it is not possible to grow a nd prosper
as a organisation because an establishment can only achieve their targeted objective with a
combine efforts of their employees and management.
Productivity of workers: If a person is satisfied and happy with their job and working in a
healthy environment they are likely to be more efficient worker. People tend to flourish in
pressure and tension free workplace atmosphere. Sainsbury focus on maintaining friendly
atmosphere within the outlets. The overall satisfaction level will determine the level of
productivity and efficiency, they are motivated to work more effectively towards
accomplishment of goals if they are supported well by their employer (Nazir and Islam, 2017).
Retention of workforce: Superiors of the company will take necessary actions to motivate and
encourage their staff members and help them in resolving any issue or queries and recognising
their efforts and rewarding and appreciating them will increase the chances of retention and
prevent employee turnover.
Employee empowerment: Involving workforce in various business activities and decision
making process by taking their suggestions, ideas and thought and considering them in final
conclusion process. Also the management of retail outlet tend to provide them with specific

authority to take initial decisions regarding their work will empower the taskforce and make
them accountable towards the establishment.
Prevent conflicts: The human resource personal of Sainsbury are always available for the
grievance handling and conflict resolution of employees weather it is between the co-workers or
with their subordinate (Osborne and Hammoud, 2017). An efficient relation with members will
turn out to be beneficial as they are provided liberty to share their issues and HR assure them to
resolve the problem they are having take actions towards that on priority basis which will result
in fewer battles.
Increased goodwill and establishments reputation: Company is practising good worker and
employer balance. This will help the establishment to emerge as a ethical and employee friendly
organisation in the retail sector.
Suggestion:
Companies can improve the engagement with their staff members by developing
transparent and clear communication procedure and by also providing growth and development
opportunities for the workers. It can also be resolved by building a strong supporting work
structure.
Fundamentals of employment law
These are the laws which are introduced in the favour of workers to prevent their
tormenting, bullying and exploitation by the enterprises and from those who are in power
(Barnard, 2020). It is also help to safeguard the rights of people who are employed in any
organisation like the right to safety and fixed working hours and minimum wages etc.
Family and sick leave law: This law facilitate employee to take approx 12 weeks of without
salaried leaves in a year to take care of their family member in case they are suffering or have
any serious medical condition, they are also eligible to apply for these leaves to take care of their
new born child and these are applicable on care of a child who is been adopted by the employee
(Singh and et. al., 2016). Worker have worked or been employed in the Sainsbury for over a year
than only they are eligible to utilize for these holidays.
Safety and security at workplace law: Labours are authorised to demand for safety equipments
and tools if they are appointed to work in manufacturing units, or they can also refuse to work in
conditions which are hazardous and life threatening. All the industries and also the supermarket

retailer are abided by law to follow all the safety measures otherwise they will be penalised by
the government.
Child labour law: Sainsbury strictly avoid employment of child or youngsters who are below the
authorised age as this is illegal and also not secure at the point of view of safety and security.
Compensation laws: Workers can ask for compensatory amount in case they got injured and fall
ill due to the work conditions. The establishment value their workforce equally as their
customers, so they enrol their every single member working in the enterprise under the health
and life insurance scheme.
2.Rights and duties of employer and employee and give advice related to rights and duties of
employment relationship in organizational context and do evaluation of psychological
contract
Roles and Duties of employees:
Employees are responsible towards their employers. The major responsibilities of employees are-
They are responsible for the work for which they are hired by the organization. They should do
their work seriously and carefully (Cortina, Cortina and Cortina, 2019). They can even fire if
they will regular come late, not doing work on time or coming very late in office. They should
not put themselves in danger. Employees should always follow the instructions given by their
employer. They should always be loyal and honest. If employees are not disciplined then they
can even get suspend by their company. If they are not improving their performance after
warning then actions can be taken against them. They should respect and take care about the
resources which are given by the company. If their health conditions are not good then they
should inform this to their employer. They should ensure that they do not cause harm to others.
Roles and Duties of employers:
Employer has the right to hire the employee. Employers should provide good working
environment to their employees. Proper resources which include tools and equipments should be
provided to the employees which are needed to do the work. Timely and agreed salary and other
benefits should be provided to the employees which be paid holidays, health insurance etc. Safe
and hygienic working conditions should be provided by the employers. Employers should give
proper respect to the employees, ensuring that no discrimination is done. Employers should
enhance good working environment. They should motivate their employees so that their

performance can improve which will help to achieve organizational objectives. Employer
maintain income register of the employees in which it is mentioned that how much salary has to
be paid.
Advice given to the Sainsbury :
Sainsbury should prepare their workplace which is suitable for COVID-19 by ensuring that their
workplace are hygienic and safe (Portelli, 2018). Tables, chairs, systems should be cleaned
regularly with the disinfectant. Sanitizers should be kept so that employees and employees can
sanitize regularly. Spreading general awareness of coronavirus in the organization. Motivation
programs should have done by Sainsbury so that their employee get motivated and work
effectively. Motivated employee will bring creativity and innovation. Company should make
sure that there is no gap of communication between employers and employees. Appreciate
employees for their performance.
Psychological contract and support for employee work life balance
Psychological contract shows the expectations of the employer and employee in the employment
relationship which are values, aspirations, future obligations, expectations etc (Jansson and
Gunnarsson, 2018). It is very important concept to understand that what are the employees and
employers are expecting from the job which can include promotion, flexible working time, work
life balance etc. Employees perspectives should be taken into consideration when designing
work life policies. This theory is implicit. There should be proper balance between work and
personal life. Lack of balance will affect the performance at workplace and personal life as well.
Discrimination should not be their in terms of gender. Women are getting less salary, promotions
and flexibility as compare to males. This theory is the important tool for the work-life research.
Work life policies and practices are included in Psychological contract. This theory is dynamic it
changes with the organization, individual expectations. It is not static and shifting. Flexible
working hours should be provided to the employees so that they do not feel that work is a burden
on them. Work life policies should be such which measure employee loyalty, commitment and
satisfaction. Link between the psychological contract and work life balance will reflect changing
in the work-life composition.
Sainsbury should include their employees in the decision-making process which will help the
company to get innovative and creative ideas. Friendly relationship should be maintained by the

company. It is important to appreciate them and provide them rewards for their good efforts.
Flexibility should be their in the working hours.
3.STAKEHOLDER ANALYSIS
Analysis of stakeholder mainly relates to the entire process of evaluating the internal and
external parties that are responsible and have a significant say towards the decision making of
the company for the better analysis and implementation of practices in the Sainsbury (Eskerod
and Larsen, 2018). The implementation of stakeholder analysis is a key tool in ascertaining what
are the different parties involves and how their decision making gets affected:
All the four categories of the stakeholders can be understood and analysed in a significant
manner in context of Sainsbury as follows: Keep Satisfied: This is that category of stakeholders which has to be kept satisfied at any
cost because their interest may be lower but their power is very high (Rai, Verlinde and
Macharis, 2018). These mostly involve governments and investors who are those parties
which can influence the work practices and norms significantly in Sainsbury. Manage Closely: These are those which have high interest as well as high power and
mainly involve the owners and managers of the business i.e. Sainsbury. They must be

realistically informed and presented with the correct facts so that actual position is clear
before them. Competing companies of Sainsbury are also included here. Monitor: These are those who have low interest and power and require minimum efforts
such as suppliers, contractors, daily wage workers etc. who are not much interested in the
performance or growth of Sainsbury but just fulfil their duties.
 Keep Informed: These mainly involve employees who have high degree of interest in the
growth and progress of the company but yet their powers are low. They must be informed
about all the important decisions of the company and its performance i.e. figures related
to revenues and losses, purchase etc.
The contribution and engagement of the employees of the company is significant in the
growth of the company because when the stakeholders support the organisation in a positive
manner, the path ways for its growth become much clearer and wider (Eskerod and Larsen,
2018). Further, the employee performance and motivation level also rises when they feel
involved in the overall organisational growth and ultimately the conflict resolution also increases
amongst the employees and their overall contribution also improves. Another key benefit of the
positive relationship is that the employees are aware of the major decision being taken thus
improving their understanding regarding companies true position and the influence that it has on
the overall profitability. This ultimately improves the chances of decision making and correct
strategy formulation for top management of Sainsbury.
4.Employee relations impact on avoidance of conflict and Stakeholders perspective and interests
in business environment
Humans are social creature as they cant function on their own they needed to maintain some kind
of personal and professional relationships in order to survive. Likewise it is essential to maintain
a harmonious and healthy engagement with the staff and workforce (Wallensteen, 2018).
Sainsbury put emphasise on group projects and conduct employee engagement programs were
the co-workers can work with each other and along with that get to know each other and
develops bond which will be helpful for them in long run as they will get a sense of belonging to
their workplace if they develop friendly relationship with their subordinates and co-workers.
Better relations will decrease the amount of conflicts and disagreement, as because of the bond
people tend to develop better understanding of each other behaviour and mindset though they
learn to adjust with their mates despite of few flaws (Jung and Yoon, 2018). When friendship

bond is developed people will ignore the mistakes which are manageable at their level and they
will not want to spoil their relationship at the cost of mere disagreements. They will learn to live
with the flaws and try to help and support each other in the fields they are lacking in.
Internal stakeholder which include top management, proper support from them are very
necessary to frame environmental strategies. Employees are the other stakeholder that also affect
the firm. They are the reason for the success of the firm (Bodie, 2016). Environmental goals of
the firm should be supported by the employees which will improve their productivity. Sainsbury
makes sure that they are focusing on both internal and external business environment. Company
is taking lot of interest in the business environment. Shareholders are very important for the
company. They are the investors for the company and risk their money by investing in company.
Bad environmental performance will lead to environmental damage which can make monetary
losses to the shareholders. They can influence the environmental strategy of the firm. Customers
are the external stakeholders for the company. Companies are dependent on the customers. It is
the responsibility of the company to fulfil demand and expectations of the customer. Sainsbury
takes timely customer feedback so that they can know their preferences. Suppliers are the other
stakeholder. Company should carefully choose their suppliers because they are dependent on
them for the supply of the raw material.
CONCLUSION
From the above report it can be concluded that in Sainsbury employee relations are
valued and given importance. Different employment laws are also explained in the report.
Suggestions are also given on how can the organization improve and make effective employee
relations. Further duties, roles and obligations of employee and employer are explained in the
detail and advice to the Sainsbury is given that how they can manage their employment
relationship. Psychological contract are explained and work life balance are discussed.
Stakeholder analysis of the organisation is done and explain how stakeholder contribution
support positive relationship of employees within the organisation. This study also explained the
positive and negative impact of employee relations on stakeholder. Different stakeholders
interests are examined relation to the business environment.

REFERENCES
Books and journals
Barnard, C., 2020. EU ‘Social’Policy From Employment Law to Labour Market Reform.
Bodie, M.T., 2016. Employment as fiduciary relationship. Geo. LJ. 105. p.819.
Cortina, L.M., Cortina, M.G. and Cortina, J.M., 2019. Regulating rude: Tensions between free
speech and civility in academic employment. Industrial and Organizational
Psychology. 12(4). pp.357-375.
Eskerod, P. and Larsen, T., 2018. Advancing project stakeholder analysis by the concept
‘shadows of the context’. International Journal of Project Management, 36(1), pp.161-169.
Jansson, I. and Gunnarsson, A.B., 2018. Employers’ views of the impact of mental health
problems on the ability to work. Work. 59(4). pp.585-598.
Jung, H.S. and Yoon, H.H., 2018. Improving frontline service employees' innovative behavior
using conflict management in the hospitality industry: The mediating role of engagement.
Tourism Management.69. pp.498-507.
Nazir, O. and Islam, J.U., 2017. Enhancing organizational commitment and employee
performance through employee engagement.South Asian Journal of Business Studies.
Osborne, S. and Hammoud, M.S., 2017. Effective employee engagement in the workplace.
International Journal of Applied Management and Technology.16(1). p.4.
Rai, H.B., Verlinde, S. and Macharis, C., 2018. Shipping outside the box. Environmental impact
and stakeholder analysis of a crowd logistics platform in Belgium. Journal of Cleaner
Production, 202, pp.806-816.
Singh, S.K and et. al., 2016. Competing through employee engagement: a proposed framework.
International Journal of Productivity and Performance Management.
Wallensteen, P., 2018. Understanding conflict resolution. SAGE Publications Limited.
Wallensteen, P., 2018. Understanding conflict resolution. SAGE Publications Limited.Portelli,
N., 2018. Duties of former employees after the termination of employment (Bachelor's
thesis, University of Malta).
1

2