Managing Employees: Importance of Employee Relations and Stakeholder Role

This document discusses the importance of employee relations within an organization and the role of stakeholders in creating positive employment relationships. It explores the impact of positive and negative relationships on employee motivation and highlights the fundamental employment laws used by organizations. The document also covers the rights of employees and employers at Tesco and delves into the concept of the psychological contract. Additionally, it provides strategies for developing employee relations and emphasizes the role of stakeholders in fostering positive employment relationships.

Managing Employees
Relation.

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION 1......................................................................................................................................3
Importance of employee relation within an organisation............................................................3
Fundamental of employment law use by organisation:...............................................................4
Rights of the employees and Employer at Tesco:-......................................................................6
Section 2...........................................................................................................................................9
Role of stakeholder in positive employment relationship:..........................................................9
Conflicts and its identification...................................................................................................10
Impact of negative relationships on employee motivation:.......................................................11
Impact of positive relationships on employee motivation:........................................................11
CONCLUSION..............................................................................................................................12

INTRODUCTION
Employee relation refer to organisation's effort to create positive bond with the workers
of the company. Tesco is one of largest retailer industry in the UK and in the below report
describe its relation with employee as well as laws which support employee of this organisation.
For any developing organisation employee relation play significant relation in growth of
organisation like if the employee is loyal, motivated, concentrated and focused towards
organisation goal and it increase the growth of organisation so for achieving higher goals
employee relation must be strong. Stake holders healthy relation with employer again benefit
organisation by increasing its capital, productivity, quality and loyalty and it can only be possible
by employer's focus on expectation of stake holder and manage and full-fill it. Report also
describe positive and negative impact of employment relationship. The report highlight
employment relation in organisation growth as well the laws which are passed by government to
support workers of different organisation.
SECTION 1
Importance of employee relation within an organisation
Employee relation define as the relation between employee and employer towards
achieving organisation growth and it play significant role in the growth of Tesco Workers are
potential resource for organisation growth as they benefit the company if treated well on the
other hand giving award, reward and recognition of employee make them motivated and
concentrated towards organisation goals and hence increase the efficiency of work and remain
loyal and trustful towards organisation. Negative relation affect he growth of organisation for an
example if the worker is doing well but because of politics and biasing not getting recognition, it
will effect in his loyalty towards organisation and possibly talent will migrate to another
organisation. Power and politics in the organisation destroy connection between different
members conversely rather than focused towards organisation's goal, individual focus on self-
interest. Company gain potential advantage over competitors if it destroys politics and give
chance to the talent rather than flatterers and also create a bond between employee that they
remain loyal towards organisation (Ismail, 2020).
Effect of Positive and negative employee relation:

For the growth of organisation employee devotion play great role. Management and
leaders relation effect employee leaving the job because of lack of communication between both
it is possible to stop migration of workers in the organisation by treating respectfully, recognition
with award, reward and promotion which increase their loyalty and trust towards organisation.
Healthy workplace again motivated towards achieving higher goals for the organisation as lack
of motivation deviate employee from the goal of organisation. Providing participative training
and encourage employee towards giving task accomplishment again create a better bond between
worker force as well work owner. In the time of losses and depression employer sympathy and
helps in improving employee efficiency support in overcome from the problem and remain
charged for organisation goals. Politics in the organisation destroy relation between employee as
we as employer in such cases employee leave the workplace and hence brain drain effect the
growth of organisation on the other hand by using transformational leadership politics can be
removed and hence more and more talent will remain in the organisation (Shenoy and Uchil,
2018).
Power and Politics in the organisation:
Power and politics in the organisation is not new concept, every organisation suffer from
it. In organisation there are various function and each function has different department. In the
bad politics leaders of different organisation try to enforce their idea over other employee and
chances of recognition rewards, awards and promotion is in the hand of formal authority and
rather than achievement of employee, their flattering matter most to this people and because of it
large number of talent migrate to other organisation. Leaders enforce their power for more of self
interest rather than organisation goals. There are two types of power in the organisation namely
formal power and personal power. Formal power refer to individual position in the company and
it can come from coercive, reward and legitimate on the other hand personal power includes
exert and referent. Exert power comes with experience skill and knowledge on the other hand
referent power comes from being trusted and respected.
Fundamental of employment law use by organisation:
In United Kingdom there are many laws which support employee from terminate, equal
wages etc. For every organisation law of employment and other government laws has to follow
to protect employee of organisation. In Tesco employee relation can be maintained by giving

their rights like related to wages, working hour, discrimination etc. Employment Rights Act 1996
which covers laws regarding contract, unfair dismissal, family-friendly leave and redundancy
successful implementation help in gaining loyalty of employee as it protects from any illegal
actions by organisation on the other hand National Minimum Wage Act 1998 benefit employee
for competitive and equal wages which help in increasing their efficiency, quality and
productivity. Employment Relation act 1999 gives right form trade union and action, by
supporting their cause and taking action against problems help in gaining employee loyalty.
Giving leaves to employee by employer on the basis of Maternity and Paternity leave etc.
Regulation 1999 help in gaining their support for the growth of organisation.
By applying such laws provides safety to employee and before joining of any employee
organisation has to give contract, terms condition in written which support above laws and hence
secure employee right as well as increase goodwill of the organisation on the other hand secure
employee feel more motivated and concentrated towards achieving organisation goal and create
strong bond between employee as well as organisation (De Stefano and Aloisi, 2019).
Government laws support in development of human capital like people feel part of
organisation rather than self-centred and isolated. Discrimination Laws increase the chances of
more and more women motivated towards work hence increase the growth as well as goodwill of
the organisation. Personal growth is individual need but when company provides chances and
support right than it become growth of employee as well as organisation. Free trade again
supports new company’s growth as well development and helps in flexible business as
government passes law to help which decrease their barrier and increase their quality and
productivity (Jefferson, 2018).
Britain is one of the largest economy as well as developed country behind it success
industries play great role. In United Kingdom workers are more attracted and motivated because
of friendly relations in the company which encourage them to personal growth as well as
organisation on the other hand organisation focus on overall development of employee by
providing them different benefits like flexible working hours, insurance, health facilities, and
support all government laws which give them exclusive rights. Company also provide
entertaining and refreshing activities in the organisation so employee remain motivated and
concentrated towards achieving organisation goals.

Rights of the employees and Employer at Tesco:-
Rights refer to the legislation and agreement determines which includes the basic rights
of the employer and employee example holidays, sick pay, working hours and dismissal of the
person.
Safe environment and respect :-
Rights of employer is to provide the basic health and safety in the environment of the
organization, They need to provide the safety and health plants in the organization. Employees
need to make sure that working in the organization without harming others and make sure that
carrying out of their work in ways which is safe for others.
Weather it's an employer or an employee both need to respect the organization and their
workplace and need to be enhancing the relation among the employees, respecting each other
helps in improvement of working and it also increases the efficiency in the performance of every
person in Tesco. Employees and employer both have the right in Tesco and everyone need to feel
protected and prevent from harassment in the organization. The company and its unfair act and
discrimination should be averted against all the age, genders, etc.
Dismissal Rights:- The employer have right to dismiss any employee at any point in the Tesco
as it is important for the organization to maintain the best of the employees in the company and it
helps the organization in achieving the best of the result with the best of the employees in Tesco.
Basic Necessities for employer and employees:-
Employer need to make sure that the employees gets the basic necessity in the workplace,
and they get basic facilities like clean toilets, drinking water facilities, cafeterias and clean
environment surrounding in the organization.
Equalities:-
The work environment need to be equal for all the employees which can motivate
everyone in the organization to work better and hard and stays motivated. Inequalities at work
place can affect the moral of the employees and it can be dangerous to the employees and in their
performance which can directly affect the organization. Tesco work in providing the equalities in
the company which motivate their employees and their employee as well in working better and
improve performance.
Right to ask:-

Right to ask is something which is important in day to day life and even in the workplace
and it helps every person so that they get a right to ask for whatever they supposed to do and if
they have any queries they can ask for it. In Tesco every employee have right to ask in the
company regarding the issue facing in the company and in work place.
Right to hire:-
The right of employer include the hiring of people in the organization and it also gave the
power to the employer to hire the candidate for the Tesco and hire the best of the employees in
less cost and better skills.
Duties of employer:-
1. To provide the best of the atmosphere in the organization for the employees to work in and
maintain all the basic health and safety facilities to the employees so that they can work easily.
2. The employer need to provide the law in the best form to obtain the work by the employees in
a proper ways and law helps in maintaining the workplace safe and secure.
Duties of Employees:-
1. Employees need to obey the lawful acts in the organization and need to follow them and
maintain the decorum in the work place. Follow the orders within the employment terms and
match the performance in the organization.
2. Performing the duties with proper care and the diligence in the organization which is
important in workplace to follow.
3. Working in the organization with employer the employees get to know few confidential
information and it's the duty of the employee to not to disclose the confidential data with any
other person in the organization and even outside the company.
Psychological Contract:-
Psychological contract refers to the unwritten sets of the expectation of the employees
and the relationship distinct to the formal, employed contract. The psychological contract
involves constantly based on the lack or communication between the employer and employees. It
includes the informal arrangement and mutual and common belief between two parties.
Psychological contract implies in mutual obligation with person and between the another party, It
shows the perception to both parties and their employment relationship, organization and
individual promises and obligation.

It is important as communication as a key element as it is explained in the contract that it is not
formal and codified and development in the relation between the employer and employee and
their communication developing shows a positive impact in the psychological mind of the people
and its is important for them to stay calm. Lack of communication can impact negatively in the
organization and personal to the employee. It includes conversation, voice tones, body language,
and the implication between the two parties. Creates diversity psychological contract creates
diversity and it can make huge impact in the employee and employers as contract allow the
employees to see their values in the organization and their roles as well in business. It also
clarifies the unreality expectations of both the employer and employee.
Psychological contract in employer and employees content:-
Employer:-
The psychological mind of an employer shows as turning up in time in the office, and
they need to uphold the corporate image with themselves, and employer need to respect the
authorities and the senior staff which shows the mindset of the employer and its etiquette.
Employer need to be loyal and should not betray the trust and the position given by the Tesco
and maintain the harmonious relation with its workers and colleagues in the organization which
can make better result in Tesco performance,
Employees:-
Employees focus in working in a safe and hygienic working environment, and they focus
on job security and work according to it. They show their mind set by giving the satisfactory
work and wants to be treated fairly in the organization. Employee focus on the development and
advancement for personal opportunities and these factor helps in improvement of their work and
in end helps in success of the company.
Developing employee relations:- Developing the relation of employees in the workplace .
Involve team member:-
Employees in the company need to be involved and they are important to the company
and work in the first line for the company. The organization need to make sure that the working
they do they enjoy, they need to motivated and encouraged in their work.
Communication insist:-

Working with better communication make things easier for the people working the
environment and it helps in making the relation of the employee with the organization
developed.
Recognition: -
Make sure that the employees working in the organization gets suitable rewards for
whatever they do for the company it helps in encouraging the and improve their performance in
better ways for more rewards.
Ensuring the duties and obligation met:-
The working in the environment need to focus on providing the best of the rights and
duties which organization met with their employees and it is important to help in better ways in
doing their work and improve the performance for the company, it also helps employees to know
their duties and working in the premises and doesn't feel complexed in the organization.
Section 2
Role of stakeholder in positive employment relationship:
Stakeholders are the growth of people who support in development and making of the
organisation. The Managers and other Leaders within organisation helps in making strong
relationship with employee by supporting and encouraging in their work. On the other hand,
investors invest funds in the organisation and hence increase financial efficiency of the
organisation and lastly employees and their satisfaction with the management of senior leaders
and other fellow workers increase the efficiency, quality and productivity of the organisation.
In the organisation senior leaders concern is to earn and earn more profit but without
support of stakeholder they cannot achieve anything. According to employees their benefit is
gaining in personal growth but if they are supported and encouraged by employer for personal
growth as well as organisation, then it will benefit both and hence increase the output of the
organisation. If employees indulge in proper and participative trainings that have been done as
per the competitive market than it increase their efficiency. On the other hand award, reward and
recognition again motivated employee and increase their loyalty towards organisation. Managers
and Leaders help in improving structure of the organisation as well as by their decision making
and management’s efficiency, quality and productivity can be increased and it can only be
possible if employer allow them to take decision freely and trust them. Investors play important

role in organisation growth as they are source of funding by giving equal profit and sometimes
taking their opinion for the changes in organisation increase their loyalty for future investment as
well as create a strong between organisation and investors (Lim and Greenwood, 2017).
Different Stakeholder groups have various expectations from the organisation. For
instance, employees want promotion, recognition, award, reward and security to achieve
personal growth; investors wants more profit and sometimes their decision in consideration;
Management and leaders want more free hand in decision making and recognition. For
maintaining effective relationship employer has to do all needful changes which are possible and
try to gain loyalty of employee so that it increases the growth of organisation as well as increases
the goodwill among other competitors. Relationship can also be built by providing healthy and
friendly environment in organisation and involving employees in decision making of the
organisation. Transformational leadership is one of the most prominent way for increase
creativity and innovative of workforce and it also improves relations with organisation (Wang
and Sengupta).
Conflicts and its identification
Conflict simply refer to the disagreement and argument between two parties and its
identification can be done as:-
Individual & different objectives: -
The difference between two parties working in the same team with different objective
causes conflict and in Tesco they focus on communication so that two teams can easily
communicate to eliminate the conflict.
Unhealthy level of Competition: -
Competition motivates but on other hand it also creates the conflict between parties in
the Tesco and they also tends to argue over information in the company.
Competition and arguments tends to unproductive sometimes and causes negative to Tesco.
Disrupted workflows: -
It refers when some project and working depends on other projects and to start the project
they require to finish the first one and in these scenarios it causes delay in working of one team
and it leads to conflicts and increases the overall time in workflow.
Roles and clarity: -

If the roles and responsibility in the company is not clearly described to the employee and
that lack of clarity increase the conflicts in the working of the employee.
Impact of negative relationships on employee motivation:
Mental health concerns: -
Conflicts in organizations can cause the employees frustrated and it further turn into
health concerns. It can be dangerous to the health of a person and also affect the company
overall. If the efforts of a member in the company got unrealized and as the result the member
get stressed and it adversely affects professional and personal lives and employees get
demotivated and they don't want to do work.
Productivity: -
Conflicts decrease the productivity in the organization as conflicts between two people
can damage the working climate in the organization and it can affect the company goals and
decrease the productivity of the employee and conflict employee doesn't give their best in their
performance. Productivity decreases as the employees get so frustrated with the conflicts that
they get demotivated by it and they just want the work to end as soon as possible and employees
get demotivated very quickly.
Increase error state: -
Frustrated employees don’t work with full potential, and they increase the errors stated in
their work. The conflict makes the employees to work carelessly in the company which make
their work rate slow and decrease the perfection in work and increase the error state of it.
Motivation gets affected by it as frustration tends the employee to just end their work and they
don't want to give the best of their performance.
Impact of positive relationships on employee motivation:
Improved co-operation: -
The more the relation between two people are good; the more it improves their work.
Cooperation between the employees increase the productivity and motivate the employee in their
performance, the relation helps in making the work look easy and keep each other motivated to
their work.
Increase in commitment: -

Employees and their relation can increase the commitments in their work and keep
motivated. Working in a familiar atmosphere helps in increasing the values and work and it also
helps in making things easier for each other and allow them to make commitments to the
company and keep them motivated. Working with the partners helps in making each other more
efficient and effective in work.
Effective communication: -
Effective communication helps in motivating the employees to work more and better and
it keeps the employee happy and communication helps in identify the queries an employee facing
in the company and it makes them feel relaxed after communicating with one another and
communication also benefits in the relation building and motivation towards work.
Communication between employee and employer increase the relation between them and it
creates opportunities for both to understand the situation of the work.
CONCLUSION
The discussion in the above report conclude the importance of Employees relation.
Managing the employees' relation in the organization is important as they are the front line
people in the Tesco, and they are working hard for the company to make the objective and goal
achieved. The obligations and duties of the employees which can be beneficial and as well as
negative for both employer and employees. The power and politics in the organization can be so
affective to the organization. It helps in managing the workflow and it also converts the working
in motivation. In the report it is explained that the relation in the Tesco between their people is
important and it can help in motivation, Further in the report it is discussed the rights and the
duties of the employees in Tesco. The negative and positive effect of relation to the motivation
and its effect in the growth of the employees.

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