Employee Relations and Stakeholder Analysis

This report discusses the value and importance of employee relations in organizations, focusing on TESCO. It explores different types of rights, duties, and obligations of employers and employees. The report also covers the conduct and completion of a stakeholder analysis and the impact of positive and negative employee relations on various stakeholders. Suitable for HRM courses.

Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................3
Value and importance of employee relations.........................................................................3
Different types of rights, duties and obligations an employer and employee........................4
Conduct and complete a stakeholder analysis........................................................................7
Impact of both positive and negative employee relations on different stakeholders.............9
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Employee relations play a very crucial role in influencing the behaviour of stakeholders
in an organisation. Present report is based on TESCO where there is critical understand
developed of the employment relationship, management at micro and macro level. Further there
is critical analysis of the roles & responsibility of different stakeholders that consist of trade
unions, employers and government that is affecting the level of employee relationship in the
organisation (Maheshwari Samal and Bhamoriya, 2020). Employee relations are very necessary
to understand its impact on the way organisation is managing their functions by using theory of
stakeholder analysis. It leads to understand the impact on relations between employer and
employees & its value for achievement of organisations objectives.
Value and importance of employee relations
Employees are having healthy and strong relationships with their employers that lead to
entire company being benefited. It leads to a situation those employees’ posses mutual respectful
relationships with employers so that they can be productive, loyal and happy art same time.
The importance of employee relations in context of TESCO is mentioned below:
Retain loyal employees: Loosing an employee to competitors is devastating.
Organizations have to encourage positive relationships among managers and workers to be more
successful. This leads to TESCO leading to employees be more comfortable and appreciated
(Samwel, 2018).
Fewer conflicts at workplace: When a individual is enjoying being with their employers
and co workers this leads to lesser possibilities of conflicts. A peaceful workplace will lead to
many benefits for employer and employee relationships in TESCO.
Enhancement of productivity: Employees are having a positive relationships then it will
lead to higher productivity in the organization as there will be generation of higher revenue. If
employees are feeling happy then they will be putting their bets efforts and there will be
maintaining of personal stakes in the organization.
Fundamentals of employee law:

There are several employment laws that have been formed for the purpose of evaluating the laws
in UK.
In this employee is regarded as a individual who has entered at a workplace under a contract of
employment. In this act “contract of employment” means a contract that is part of services or
apprenticeship that may be implied or expressed in both writing and oral (Wiggenhorn, Pissaris
and Gleason, 2016).
National minimum wages act 1998:
It is a fact that is setting out of the minimum amount that has to be paid to a worker according to
per hour contribution. The wages are based on the age of worker. It is a necessary legal
requirement that employers have to pay to workers according to their national minimum wages
in TESCO.
Employment relations act 1999:
It is a fact that is implemented by employers in TESCO and is focusing on establishments of
number of rights that are part of trade union recognition, no recognition and the industrial actions
that have to be taken by employer and employees.
Agency worker regulation 2010:
It is aimed at stopping of discrimination against agency workers. It leads to ensuring that they are
offered with correct pay with right number of holidays and safe working environment for
employees in TESCO.
Maternity and paternal leaves regulations 1999:
There are all tech regulations that have been established to provide all the rights to employees for
maternity leaves, paternal leave etc.
Different types of rights, duties and obligations an employer and employee
Employers Employees
Rights Employer in every
organisation gets some rights
that are provided them with
nature of law and arsing out of
legal compliance of laws in the
organisation. In TESCO it
Harassment free workplace:
employers have to provide
employees with a workplace
where there is no
discrimination or unequal pay.
A safe workplace has to be

consists of hiring an employee,
managing employee work and
providing them with timely
instructions. Dissolving of all
the legal implications of
employment contact in the
legislations that are identified
clearly under law.
Looking after employees,
making policies related to their
working hours, medic benefits,
increment policies, paid
leaves, compensation, over
time wage rates. All such
policies are to be formed by
employer according to
different job roles & job
position that are prevailing in
their organisation. But it is
measured that there are no
policies that are unfair or not
relevant. Further if there is any
instances of non compliance
with any legal laws formed by
government then there can be
voice raised by employees in
such situations.
provided to protect workers as
some guidelines have been
formed to ensure safety and
healthy work environment.
If employer is violating the
employee rights or health &
safety workplace then they
have to be protected for
reporting illegal activity.
Employees must get fair pay,
the federal labour standards act
sets the minimum wages
(Bergh and Hoobler, 2018.
In case employees are working
overtime then they have to be
paid
Duties Conducting timely risk
assessments
Controlling of risks to injury
and health that can arise
In TESCO employees have to
be honest and not to disrupt
business by taking part in
irrelevant industrial actions.

because of risk assessment
providing information on risks
and protecting of employees
from it.
Training employees to deal
with risks at workplace
Consulting with staff members
regarding all the safety and
health issues.
There has to be timely
following of all the orders of
employer until they are fair
and justifiable.
Working with reasonable care
and skill
Showing minimum resistance
to changes if it is good for the
organisation and can lead to
long run positive outcomes.
Obligations Pay employees at least a rest
of national minimum wages.
Providing employees with
itemised payslips
Offering employees a daily
rest time of minimum of 20
minutes if they are working for
a time period of more than six
hours in a day.
The average working hours in
a week must not exceed to 48
hours.
A minimum of paid holidays
every year.
Offering legible statutory sick
pat, statutory pay for
maternity, shared paternal
leaves and redundancy pay to
employees.
To work according to
employer requirements. UK
employees have to perform
their job roles & job duties so
that they are not facing any
type of dissonance on part of
employers.
Above mentioned rights, duties and obligations have to be performed by both employer &
employees to ensure appropriate functioning of TESCO.

Conduct and complete a stakeholder analysis
Internal stakeholders:
The internal stakeholders of TESCO consist of managers, employees, board, executive
committee & shareholders. In TESCO employees are one of the vital assets. TESCO board
consists of chief executive chief financial officer and some of non executive directors. The
internal stakeholders are determined as powerful and important for this organization. There are
different types of internal stakeholder that is going to be mentioned below:
Employees are determined as a internal stakeholders who focuses on increasing
productivity and profit margin in future period of time. Therefore, their main focus is to increase
performance level during particular phase of time period. The organization provides training
session to its subordinate in order to conduct their work in an appropriate manner. Hence, the
main focus is to perform their allotted task in an appropriate manner. The management team of
organization focuses on motivating its subordinate for conducting their work in an appropriate
manner. They also provide rewards to its employees for conducting their task in an efficient
manner during particular phase of time period.
Owner: Furthermore, owner is determined as a internal stakeholders who focuses on
handling different activity of organization in an appropriate manner. They focus on motivating
its employees and provide training session to its subordinate in order to increase their knowledge
for conducting different task in an appropriate manner. There are various tasks which is
conducted by owner in order to handle its staff in an appropriate manner during particular phase
of time period (Shen, Dumont and Deng, 2018).
Manager is determined as the internal stakeholder who focuses on maintaining
appropriate strategy in order to success and growth of the organization. Therefore, it is depend
upon the manager to make appropriate strategy in order to take operation decision of business
organization in future period of time. Hence, it is necessary for management team of
organization to make appropriate strategy for performing different activities and task in an
appropriate manner. It help in increasing productivity level in future period of time which will be
helpful in taking decision in future time period.
Therefore, the internal stakeholders of TESCO consist of managers, employees, board,
executive committee & shareholders. In TESCO employees are one of the vital assets. there are

various types of internal stakeholders who perform different work in an appropriate manner and
their main focus is to increase profit margin in future period of time.
External stakeholders:
These are the ones who are external related to TESCO and are affecting their functioning in both
positive and negative manner. There are various stakeholders in the organization.
Suppliers: These are part of external stakeholder in TESCO where the main focus has to be on
maintaining positive and long run relationship with them so that they are able to provide benefits
of long run contractual relationships. In TESCO there are supplier surveys that are organized to
ensure that there is sharing of best practice and leanings across their overall supply chain.
Shareholders: TESCO is maintaining dialogue with their analysts and investors so that there can
be responding to questions in general meetings (Heslinga, Groote and Vanclay, 2019).
Wider society: There has to be engagement with stakeholders that consist of regulators and
government, trade bodies, media and community groups. The engagement ranges from working
groups to surveys, responding to information requests.
Customers: all the values include the vision and mission statement of TESCO is focused on
maintaining the satisfaction level of customers. TESCO is willing to offer fresh, great quality,
affordable food so that they are able to maintain the expectations level of their customers.
Stakeholder engagement and contribution can support positive employment relationships
within an organization:
Stakeholder analysis and stakeholder management is based on basic three steps that is
identification of the stakeholders, working out for their influence, interest and power and lastly
there has to be development of good understanding between all the stakeholders to understand
the way to response according to their needs and expectations. The overall collaboration and
engagement of TESCO with its stakeholders leads to understand the evolving practices and
address all the sustainability issues. It also provides a opportunity to share the leaning with each
other. TESCO is committed towards listening to all their stakeholder groups both internal and
external. With proper stakeholder engagement and increasing the contribution towards
maintaining of positive relationship in a organization is very helpful in development of strategies
that can assist in careful consideration towards employees expectations. When employees
requirements are properly met then it leads to higher satisfaction level and they are not willing to
leave TESCO that results into higher cost effectiveness. It leads towards higher employee

motivation as there are long term considerations of employee morale. In TESCO stakeholder
analysis leads to fair practices that is meeting all the legal obligations and offering a non
discriminatory workplace environment for employees. All these aspects lead to development of
Positive relationships between employer and employees in TESCO.
Impact of both positive and negative employee relations on different stakeholders
Staffs are crucial part of firm which contributes towards accomplishment of organizational
goals by performing many practices. The entity’s success as well as development depends upon
quality that is performed by workforce (Yakovleva, 2017). So, TESCO have to focus towards
formulating its relations with workers to maximize their performance at marketplace and
accomplish anticipated success. The affirmative and adverse staff relations have appropriate
influences upon stakeholders up to huge extent, which can be effectually understood through
particular points:
Pessimistic relationship affect on stakeholders
The pessimistic staff relation is aspects when employer doe not put effectual potential
towards workers requirements at workplace and does not treat them fairly. This results into jobs
satisfaction within staff, conflicts and several issues which may enhance into firm as well as may
affect their performance that can also influence its performance of market. TESCO is facing by
the issue of staff relations due to unfair treatment which they put forth towards its workforce.
This may influence firm’s performances that have adverse influence upon its stakeholders. For
instance, dissatisfied employees cannot render much attention towards clients which leads
towards shrinking of market area that may left entity within loss. This also affects investor
because this determines not much interest for investing finance within organization.
Optimistic staff relation affect on stakeholders
The positive employee relation will aid TESCO to develop performance of its staff which in
turn increases profit of firm. Additionally, this also assist them for representing optimistic image
at market that may contributes toward enhancement of goodwill that support for keeping
stakeholder engaged into action which is performed by entity. For instance, an appropriate image
within marketplace helps respective entity for attracting investors’ in order to contributes
towards and support entity for accomplishing success at marketplace. In addition to this, positive
relation aids them to enhance workers work quality which is helpful in brining much client
satisfaction from service rendered by its staff.

Rather than this, adverse staff relation will maximize job dissatisfaction that also leads
towards higher employees’ turnover within TESCO. Moreover, workers turnover enhancement
will have huge impact on government relations as respective entity contributes into UK GDP
through job development, tax contribution and spending with British based business.
So, TESCO have to focus to maintain appropriate and positive relation with its staff so that
their performance could be growing at marketplace and issues related with task may get
minimized (Akisik and Gal, 2017). This further supports entity for attaining higher profitability
and development at marketplace.
Respective firm work towards forming relations with its employees through rendering them
many rights like equal opportunity or pay and appropriate circumstances at entity. These will an
aid to minimize conflicts at workplace as positive relations brings job satisfaction which leads
towards performing together at workplace. Therefore, staff performs with full focused and peace
with any type of staff associated issues which guide for accomplishment of entity’s development.
CONCLUSION
On the basis of above given report, it has been analyzed that employee relations play a very
crucial role in influencing the behaviour of stakeholders in an organisation. Further there is
critical analysis of the roles & responsibility of different stakeholders that consist of trade
unions, employers and government that is affecting the level of employee relationship in the
organisation. Employee relations are very necessary to understand its impact on the way
organisation is managing their functions by using theory of stakeholder analysis. It leads to
understand the impact on relations between employer and employees & its value for achievement
of organisations objectives.

REFERENCE
Books and Journals
Maheshwari, M., Samal, A. and Bhamoriya, V., 2020. Role of employee relations and HRM in
driving commitment to sustainability in MSME firms. International Journal of
Productivity and Performance Management.
Samwel, J.O., 2018. Effect of Employee Relations on Employee Performance and
Organizational Performance-Study of Small Organizations in Tanzania. Global Journal of
Management And Business Research.
Wiggenhorn, J., Pissaris, S. and Gleason, K.C., 2016. Powerful CEOs and employee relations:
evidence from corporate social responsibility indicators. Journal of Economics and
Finance, 40(1), pp.85-104.
Bergh, C. and Hoobler, J.M., 2018. Implicit Racial Bias in South Africa: How Far Have
Manager-Employee Relations Come in ‘The Rainbow Nation’?. Africa Journal of
Management, 4(4), pp.447-468.
Heslinga, J., Groote, P. and Vanclay, F., 2019. Strengthening governance processes to improve
benefit-sharing from tourism in protected areas by using stakeholder analysis. Journal of
Sustainable Tourism, 27(6), pp.773-787.
Shen, J., Dumont, J. and Deng, X., 2018. Employees’ perceptions of green HRM and non-green
employee work outcomes: The social identity and stakeholder perspectives. Group &
Organization Management, 43(4), pp.594-622.
Yakovleva, N., 2017. Corporate social responsibility in the mining industries. Routledge.
Akisik, O. and Gal, G., 2017. The impact of corporate social responsibility and internal controls
on stakeholders’ view of the firm and financial performance. Sustainability Accounting,
Management and Policy Journal.