How Employee Relations Influence Stakeholder Behavior

How employee relations can
influence the behaviour of
different stakeholders

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Explanation of importance of employee relation and fundamental employment laws...............3
Explanation of different type rights, duties and obligations of employer and employees in
organisation..................................................................................................................................6
Stakeholder analysis for organisation and stakeholder engagement and contribution can
support positive employment relationship...................................................................................7
Analysis of the impact of both positive and negative employee relation on different
stakeholders.................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Employee relation is defined as the relationship between organisation and employees. Basically,
it is the efforts of organisation to develop and maintain positive as well as effective relation with
its employees. Constructive and positive employee relation facilitates the organisation to engage
loyal employees for long period of time. Organisations should develop healthy relation with
employees through provide them motivation in order to enhance their confidence and morale
(Capano and Howlett, 2021). In this report the chose organisation is Tesco which is founded in
the 1919 by the Jack Cohen. It is British multinational groceries retailer, which headquarter is
situated in Welwyn Garden City, England, UK. 4,23,092 employees are working in the
organisation. In this report importance of employee relationship, employee legislations of
employment are defined. Various rights and duties of employees and employees covered.
Stakeholder analysis and positive as well as negative impact on stakeholder of employee relation
is covered in this project report.
TASK
Explanation of importance of employee relation and fundamental employment laws
Employee relationship: Employee relation is defined as the all process that develops effective
and positive relationship with employees. Effective employee relation motivated employees to
perform in defined manner and retain with respective organisation for long period of time. There
are various human resource strategies are implemented by the Tesco to maintain positive relation
as well as ensure that all organisational goals and objectives are achieved appropriately.
Respective organisation focuses on various issues that impacts on employee performance and
solve them in effective manner (Camilleri, 2018). Tesco develops strategies to build effective
relationship with its employees. It offers them benefits, improve their working life and develop
balance and provide positive working environment as well.
Importance and value of employee relationship in organisation: Strong relationship of
employees with employer as well as organisation helps organisation to attain all goals and
objective efficiently. Positive employee relation enhances their productivity, performance and
retain them with organisation. Tesco builds better relationship with its employees through
providing proper training and development opportunities. Some importance of employee
relationships is discussed below:

Retain loyal employee: Effective employee relation helps organisation to retain employees
form long period which is important for the growth and development of organisation. If
employees leave organisation because of some certain reasons than organisation again conduct
the long process of recruitment and provide them training that needs investment. On the other
hand, if employees are satisfied and feel comfortable than they will retain and be loyal towards
organisation that provides various competitive advantages to Tesco.
Fewer conflicts at work place: There are various conflicts and problems are raised within
organisation which is very common. Management of these conflicts is necessary to run business
in smooth manner. As conflicts affect the performance as well as productivity negatively of
employees. Through implementing effective employee relationship, conflicts are resolved
properly that enhance the satisfaction level of employees (De Stefano, Bagdadli and Camuffo,
2018). Tesco focuses on better employee relationship that help in enhancing employee
productivity and resolve all conflicts efficiently.
Growth and development: Positive relationship between employer and employees helps
organisation grow and develop even in competitive environment. If employees of organisation
are well-motivated then they are able to attain the high work performance. Tesco offers different
facilitates to its employees as well as motivates them to work in more efficient manner.
Enhance employee motivation and loyalty: Effective working environment facilitates
organisation to enhance employee loyalty as well as retain employees with organisation. As
employee are the valuable assets of organisation and help Tesco to attain all goals and objectives
in efficient manner (Donia, 2019). If employees of organisation are motivated then they help
Tesco to meet organisational expectations and goals. Tesco enhances positive relation with their
employees and inspire them to achieve all goals effectively.
Employment laws: Employment laws and legislations are formulated by the local
authorities to support the functioning as well as activities of organisation that provides various
rights to employees. For every organisation, it is compulsory to follow and implement all
employment laws in proper manner in order to run all business activities smoothly. If
organisation does not follow these laws than it has to face various negative implications such as
huge charges and fines and imprisonment that affect business. Some employment laws are
defined below: