Employee Relations and Firm Value

This assignment delves into the crucial relationship between employee relations and its influence on both customer satisfaction and overall firm value. It examines various aspects of employee relations, including lean manufacturing implementation in India, employee share-ownership schemes, emotional intelligence, trust within teams, social inequalities in creative industries, temporary agency worker contracts, Islamic principles of employment relations, and direct participation quality in organizations. The assignment encourages analysis of academic literature and real-world case studies to understand the complexities and implications of effective employee relations for organizational success.

Employee Relations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Pluralistic and unitary frames of references....................................................................1
1.2 The way modifications in trade unionism impact the relationship among employees.....2
1.3 Role of main players in maintaining employee relations.................................................3
TASK 2............................................................................................................................................4
2.1 Process an enterprise should be follow at the time of dealing with various conditions of
dispute.....................................................................................................................................4
2.2 Key specification related to employee relation in conflict situation................................5
2.3 Effectiveness of conflict resolution procedure used in dispute condition........................6
TASK 3............................................................................................................................................7
3.1 Negotiation role in the collective bargaining...................................................................7
3.2 Affect of negotiation strategy...........................................................................................8
TASK 4............................................................................................................................................9
4.1 Impact of EU on the industrial democracy in United Kingdom......................................9
4.2 Compare the different methods used to gain participation of employees in decision
making process.....................................................................................................................10
4.3 Affect of management of human resource on employee relations.................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Employee relations is the main elements in an company for improving performance and
communication among employees. Both workers as well as employers should maintain healthy
and positive relations with each other in an enterprise to provide various benefits to business
(What is employee relations?, 2017). For this, effective communication system is essential in
every organisation to achieve effective execution of commercial activities. Good quality relation
between employer and employee provide large number of benefits to company. This helps in
maintaining a positive image of company and at the same time, decreases employee turnover
(Ruth Eikhof and Warhurst, 2013). Government of United Kingdom also formulates new
regulations and rules in order to resolve conflicts occurring in enterprise. ALDI, is a leading and
multinational grocery retailer in UK is selected under this given report. Different approaches or
frames of employee relations which can be used by the employers of firm to maintain
harmonious and better relations with the employees are mentions under this business report.
Further, in this report there is discussion about the role of some main players in maintaining
employees relations and variation arise in relation with employees due to changes take place in
trade unionism is all mentioned under this. Along with this, main procedures which can be used
by the managers of ALDI to solve conflicts and role of negotiation in collective bargaining are
all described here.
TASK 1
1.1 Pluralistic and unitary frames of references
Dispute are fateful in an organisation. It happens when both employers and employees
do work together (Svensson and Wolvén, 2010). Conflicts directly affect the relationship of
employer and employee as well as create imbalance in enterprise. Employee relations refers to a
study about the role of an employee in order to manage the employee relations of employers and
workers in enterprise and to achieve pre-determined goals and objective in an effective way.
Unitary Perspective of employee relations are like a team work and also know about the
organisation as a family to its staff members. Generally, this kind of perspective is the
understanding about all people common group and team in an enterprise and not as being
individual. All employees of company are understood as a big family under this frames of
reference. Under this, conflicts arise unnecessary and company can solve it through the effective
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interaction and also know about both the sides. Both managers and workers of company must
understand the whole enterprise as a team that works in unity. In case when both management
and employee have attitude of being single and they do not follow effective communication then
it will become difficult to maintain good relations with each other When both employer and
employee work together then it enhances performance of employees and maximises the output.
With the help of effective communication, enterprise can enhance its overall performance.
The other one, pluralistic frames of references is the understanding that both employees
and management have different interest, values and beliefs. Under this frame of employee
relation the enterprise is segmented between various people and also groups of people which do
not develop coordination and competition between them which brings difference between them
and affect operation of firm (Syed and Ali, 2010). In this, the main reason behind conflict in
among staff members and managers because of differences among their beliefs and values.
Dispute are solved through the of mechanism.
In order to achieve goals of enterprise in an effective way; both employees and employers
should maintain common purpose in enterprise. If ALDI adopts the unitary frame of references
then it can achieve its goals and objective in an effective way.
1.2 The way modifications in trade unionism impact the relationship among employees
Trade unions have modified conditions of an organisation and workers more. Generally,
these are generated to improve labour situations in an enterprise and to make trading system
better all around the world (Effect of employee relatins, 2017). Emergence of trade unions is the
main reason why more employees are seen in enterprises today. Trade union is the one which
provided increased wages to workers and fought for their rights and interest and so, attracted
large number of employees towards enterprise.
In 1831, the trade union was adopted on international level. Employees employed in
international companies start protest against the low wages provided to them. This was the
reason which gave trade union chance to exercise their operations on international level. The
main motive behind formulation of Trade unions to protect the rights of labours employees
against their utilization and also make improvement in working conditions of an organisation
(Torka, Schyns, and Kees Looise, 2010). These were formed to assist employees who have in
bad working conditions at workplace. Industrial revolution of various countries bring the trade
unions up. After that, new policies of organisation started giving importance to employees to
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work in better and healthy organisational conditions. All this gave rise to individual growth of
employees and increased job security of workers. Before the establishment of trade unions,
employees in industries were not organised and have been exploited (Al-Waqfi and
Forstenlechner, 2010). People of higher class have tactic to exploit the workers and this was the
main reason organisation decided to form trade union for betterment of employees. This was the
purpose for which trade unions were formed to provide better living conditions to workers.
Basically, trade union is formed with small number of people with large objectives.
These are the one who recruit individuals from enterprise (Armstrong, Brown and Reilly, 2011).
Trade unions adopt two recruiting strategies. Some recruit workers to perform a particular task
and objective while others hire individuals without having any kind of specification. Main aim of
trade unions is to maintain better relations in between employer and employee and maintain a
healthy relationship between management and workers of industry.
1.3 Role of main players in maintaining employee relations
Employee relation simply means the management of relationship among employer and
employees of enterprise. Two main groups which play a main roles in employee relations include
the following: Manager- employee: The relationship among the manager and also staff members is one
of main and most necessary component in a company. Good relationship between
employer and employee leads to create healthy working environment at workplace. This
make the execution of business operations better and provide number of advantages to
company (Clarke, 2011). Employees of enterprise must follow the policies and rules
made by employer in an enterprise and to remain loyal and responsible towards their jobs
and work assign to them. Employer expects than an employee is always ready for a
challenge and some effective opportunities that present in an organisation and he must be
totally bound up towards his work. Further, manager is that person who provides risk free
and healthy working environment to employees in order to increase their productivity
(Employee relations, 2017). To achieve end results in a better and effective way
employer of ALDI should consider different strategies of motivation to motivate
employees and to increase their morale with the aim to increase their performance and
productivity. Both employer and employee should create positive and healthy working
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environment to achieve business goals and this can be achieve by their effective
behaviour and communication. Trade union and representatives: Trade unions are the small group of different
individual whose main aim is to rights and good working conditions to all employees and
workers. These are the one who play a big and effective role in employee relations
(D'Cruz and Noronha, 2010). All efforts of these are aimed to make the better and
harmonious relation among the staff members and also managers in order to give the
many advantages to company. The main rights of workers at workplace are to interact
with the help of trade union:
Collective bargaining: Basic right of employee communicate that all employees working in
enterprise have equal right of bargaining. Employees have a right which is related to bargain
with employer of conditions and terms regarding their pay (Devonish, 2013). Trade unions
encourage or assessed employees to put their terms and condition and enhance their potential to
deal effectively.
Unfair practices: Trade unions are the one who help workers of enterprise by continuously
checking the activities of employers. Unfair practices of employers are punishable as per the
legislations of trade unions.
TASK 2
2.1 Process an enterprise should be follow at the time of dealing with various conditions of
dispute
Relationship among the manager and workers and quality of that relationship is one of
the essential factor of every company. Quality of this relationship not only show the managerial
relation but also indicate the marketing relationship between them. The major specification of it
that employee relationship is that everyone has regular pressure on each other. Employee as well
as employer willing to modify as per the price and work offered.
Conflicts between the parties of employment is generally seen as arguments which make
it difficult to solve. Employee and employer include in conflicts have option to resolve the
conflicts by enter third party. Conflicts among the workers at workplace can be generated
between employer and employee, between the co workers and between other parties. Conflict
can be the outcome of any situation rise at workplace regarding the operations, working
conditions, and decisions of employees (Do Paco and Cláudia Nave, 2013). To create and
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maintain a positive work climate in enterprise it is necessary for the workers and also manager is
to take some of the effective or necessary and better steps following can be done by the employer
and employees of ALDI to solve the conflicts: Formal step: On the basis of formal step of dispute resolution, conflicts which arise in an
organisation that should be solved by the third party from outside the boundaries of
enterprise. This is one of the effective method as third party decide the solution or take
step without taking side of any person or party (Guillot-Soulez and Soulez, 2014). Under
this both the parties include in the conflicts that are conjugate for doing the business
related activities or action which are asked by third party.
 Informal step: As per this step dispute is solved without including third party.
General procedure to solve a conflicts rise at workplace include the following:
 Realise the pattern of problem
 Understand the problem
 Develop strategies to solve conflict
Main strategies to solve the conflicts include the following:
 First one is neglect the issues and also move forward. This is one of the effective way to
make the solution of dispute but basically this strategy does not provide any kind of
solution to conflict.
 Compromise is the next strategy used to solve the conflict. Under this the one party
determine to step back and ready to compromise issues.
 Third strategy is by create string communication between the parties involved in
conflicts. This help in enhance the understanding of both parties related with the problem.
2.2 Key specification related to employee relation in conflict situation
Employers and managers of enterprise do different efforts to maintain good relations with
employees as this provide number of advantages to enterprise and help in achieve end results in
an effective way. Good quality employee relations is very essential to increase the productivity
of organisation and to create healthy and positive work environment. This can be maintain with
less number of conflict and with no conflicts at workplace (Gupta and Kumar, 2012). Number of
conflicts can be decreased or removed from workplace by improve employment conditions,
incentive and benefits to workers, appropriate working hours and loyalty of workers towards
their jobs.
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Main aim of trade unions was to provide good working conditions to employees and save
them from any kind of exploitation. In order to decrease the number of disputes managers of
ALDI must try to neglect the conditions which gave rise to disputes. Key feature related to
employee relations consists the following: Negotiation: It is a situation under which both employer and employee present their
conditions and terms which are related with pay and work in order to solve the conflict. Collective bargaining: Under this employees working in enterprise raised their voice for
their basic rights. They show their terms and condition of work before the employer. Ineffective communication: Lack of communication is one of the main reason which
give rise to number of conflicts among employer and employee.
 Grievances: Under this, the Interpersonal relationship of worker with the issue concerned
as grievances.
2.3 Effectiveness of conflict resolution procedure used in dispute condition
Negotiation is the strategy which is used to solve the conflicts rise between employer and
employee but this strategy is not more efficient as this do not give effective solution satisfaction
to employees of company. Number of points are included under this which should be noxious to
employees and does not provide satisfaction to employees. Formal process of solving conflicts is
more effective to solve the conflicts arise between employer and employee on issues related with
low wages or salary (Harvey, 2012). Trade unions are the one which are formed to provide
maximum satisfaction to employee at workplace and at the same time protect their rights.
Every organisation use different approaches to solve conflicts and problems take place in
enterprise. To solve conflicts managers of ALDI can use win-win approach, this is one of the
beneficial and good approach to make the solution of dispute among employers as well as
employees. The major specification of this approach is that it gives a beneficial opportunity to
both parties include in the conflict to gain some kind of benefit. At the end, all parties get
satisfaction as all parties win something and loose something in same ratio.
Another approach to solve
conflict is lose-lose approach under which no party get anything and lose the argument. This give
rise to dissatisfaction among both the parties involve in conflict. Concept of conflict management
is known as the process of use different strategies to solve the conflict. This is one of the
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effective concept as this help in remove the conflicts and increase productivity of employees and
create a positive work climate. Huge number of conflicts create a negative environment at
workplace and decrease profits of company (Hennekam and Herrbach, 2013). Further this
increase unnecessary delays in execution of business activities. For this it is necessary for the
employer is select right and efficient and beneficial strategy. Before finalise the strategy to make
the solution of conflicts following are main factors which that should be included through
employers:
 Time included the strategy to resolving dispute.
 Resources as well as cost need to solve the conflict.
 Effectiveness of the strategy and its impact on business operations.
 Quality of workers relations after solving of dispute.
BY consider these factors managers of ALDI can formulate and choose best strategy to solve
problems.
TASK 3
3.1 Negotiation role in the collective bargaining
Collective bargaining is known as the process which is used to negotiating the amount of
wages and salary between employer and employee. Main aim of collective bargaining is to
provide benefits to both the parties include in the employment contract regard with working
conditions, salary of employees and working hours (Ibrahim and Al Falasi, 2014). Collective
bargaining provide and opportunity to employer and employees to done or agree upon mutual
agreement and this helps in reduce number of conflicts and and improve working environment
and quality of employee relations.
Main feature of collective bargain is that it help employer in gain satisfaction of
employees and ensure or improve the relation of employee and employer in an enterprise which
provide various long term benefits to company. It involves all staff members in decision making
process and this help in creating mutual understanding among all people of company.
It is not essential that negotiation also affect the business operations in a positive way.
Negotiation can be negative as well as positive impact on conditions of problems as it is not
favour only one single party. Negotiation among conflict parties may have the wants which
cannot be satisfied through he organisational policies.
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3.2 Affect of negotiation strategy
Negotiation strategy is adopted through an organisation to find better solutions to the
problems or conflicts arise at workplace. Adoption of this provide various various benefits to
enterprise as this help in improve relations between employer and employee and remove the
conflicts from workplace. Main strategies of negotiation can be in the form of competing,
problem solving, compromising and yielding (Kazlauskaite, Buciuniene and Turauskas, 2011).
Every strategy has its own feature and results in different outcome. Before choose the strategy
every aspect of dispute that should be determine and better analyse through the employer. Every
strategy is not effective or useful under every situation so first, all aspects of conflict situation
must be analysed by manager. Some of the major strategies that can be used through the
employers of ALDI can understand better through the following given points: Yielding: Under this kind of strategy, one party involve in dispute accept the offer of
other party through believe that what other conflict party is saying is right. Conflict
parties who accepts the offer that think that another party is very powerful than him that's
why he accepts the offer. Compromising: As the name implies, under this, every party include in the conflict
compromise something on their part to find best solution of fight (Luo, Wieseke and
Homburg, 2012). Both parties know that everyone does not get everything ad see other
as equal to them and do care about them. It is one of the necessary strategy related to the
negotiation with the help of this manager can fulfil the needs and wants of both conflict
parties. Competing: Under this, one party think itself superior from the other party and do all
efforts to get maximum advantages. This is one of the negative strategy as this lower the
productivity of employees by disturb them mentally.
 Problem solving: Under this all conflict parties involves in the dispute communicate with
each other in order to search the common solution of issues. It will be helpful in satisfy
the needs of workers and also develop the positive working environment at the
workplace.
All these are the main strategies which can be used to find solution to the conflict. Every strategy
affect the quality of employee relation in different way. For example: at one hand strategies such
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as problem solving help in enhance the the quality of relationship among employees than on the
other hand strategy of compromising reduce quality of employee relations.
TASK 4
4.1 Impact of EU on the industrial democracy in United Kingdom
Democracy is the element which play an effective role in an enterprise and increase
productivity of employees and effectiveness of commercial operations. Under this, enterprise
provide an opportunity to all its workers to take part in decision making process. EU (European
authority) decide this with the aim of execute business activity in an effective way and to
achieve objectives of enterprise in particulate period of time (Mathew and Jones, 2012). Conduct
all business activities in right and ethical way different laws get imposed by European union on
enterprise to follow to ensure execution of business activities in an effective and ethically
manner with all certainties. From large number of regulations few are given below which largely
affect the business activities and operations of enterprise.
In order to get control over business activities commission imposed different laws which
must be followed by the all European unions in order to secure the basic rights of employees. In
1971, EU obligate different rules and regulation on labour which have to follow by company.
Main reason behind formation of European union is to save right of different individuals and
organisations.
Equal opportunities: Different number of equal effective opportunities are determine at
the market places which need to capture by authorities in an adequate manner. Every worker
working in enterprise has to understand various laws related with equal opportunities and rights.
There is a need to ALDI to work in this context and provide equal opportunities to all its
workers.
Employment protection: Other important factor which take place in enterprise is
protection of workers at workplace. This is one of the major element as every employee want
protection at workplace from any kind of risk (McCarthy, Reeves and Turner, 2010). This thing
must be consider by the managers of ALDI and for this they can conduct training programs for
employees so they can handle all the equipments during their work.
Employee relations: Create and maintain good relations with employees is one of the
main responsibility of manager. In this EU play an effective role in manage all business activities
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in to increase profits of firm. For this manager of ALDI need to play an effective role so they can
maintain properly relations with employees and can increase their productivity.
4.2 Compare the different methods used to gain participation of employees in decision making
process
Main method which can be used by the managers of ALDI to involve employees in
decision making process can be understood by following points: Participation of staff: In this all employees and staff members of organisation exchange
their thoughts and views with each other in decision making process. This is the best
method which can be used by managers of LADI to increase satisfaction of employees at
workplace. Basically this is apply by management to enhance productivity and profits of
company. Representative participation: This is another method which can be used by managers to
gain participation of employees decision making process (Robertson, Gockel and
Brauner, 2012). Under this, representative of trade union, managers and employees do
discussion on particular issues. In this, every individual give their opinions and views to
form cooperation and find solution. Attitude survey: Under this, manager use different tools and techniques in order to collect
information what employees feel about their jobs and work and also execute the
performance evaluation of workers. Broad level participation: With increase democracy in enterprises, participation of
employees in decision making process has increase (Meisler, 2014). This provide an
opportunity to enterprise to manage all activities in an effective way. Participating via collective bargaining: Opinions and interest of all employees taken
account by employer before taking any decision. This is known as collective bargaining
under this, contribute some value to the final project. Same can be used by the managers
of ALDI to enhance participation of employees.
 Participation via innovative suggestions: Employees are the one with whom managers
interact on continuous basis. It is very essential that they must be aware about the new
technologies so they can increase the output from production process.
All these are the main methods which can be used by the managers of ALDI to encourage
participation of employees in the process of decision making.
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4.3 Affect of management of human resource on employee relations
Human resource department of enterprise ins one of the essential component of every
organisation. This is the only department which manage all employees and activities related with
them. Managers of HR department formulate policies so employees can contribute more in
success of company (Pate and Beaumont, 2010). Impact of HRM on company and employee
relations can be positive and can be negative as well. Main function of this department is to fire,
select and motivate employees to perform well in enterprise. For formulate effective policies it is
very essential that manager of firm must have all information related with skills and capabilities
of workers. Positive and negative impact of HRM on employee relations can be better
understood by following points:
 Positive impact:
1. Managers conduct different training and development programs for employees which
enhance their skills and capabilities. All this increase morale of workers and enhance
productivity of enterprise.
2. Timely appraisal of employee's performance motivate them to perform in an effective
way.
3. HRM practices ensure that safe and positive working environment must be offered to all
workers so they can contribute more in success of company.
4. This encourage participation of workers in decision making process and help in set
mutual goals and objectives for company.
 Negative impact:
1. This increase time and cost of business operations and if manager do not listen employees
carefully than this increase employee turnover.
2. If manager so not involve the employees in decision making process than this increase
the ground of rise conflicts at workplace and demotivate workers. All this decrease
productivity of company.
CONCLUSION
From the above information it can be summarised that in employee relations largely
affect the performance of business. Good relations with employees help managers in get their
commitment and loyalty and increase their productivity. Manager of ALDI is responsible to
build and maintain good relations with employees and for this different approaches are there
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which can be used by him. Trade unions play a big role in employee relations. Further, managers
of ALDI can formulate effective policies related with HRM to enhance positive impact of this on
enterprise.
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REFERENCES
Books and journals
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Ruth Eikhof, D. and Warhurst, C., 2013. The promised land? Why social inequalities are
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