Employee Relations & Organizational Performance

This assignment delves into the crucial relationship between employee relations and organizational success. It examines various factors influencing employee behavior, including commitment, absenteeism, and turnover. The analysis draws upon academic literature and real-world examples, such as Sainsbury PLC, to illustrate how effective HR practices can positively impact organizational performance.

Employee Relations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Explaining the unitary and pluralistic frames of reference....................................................3
1.2 Assessing how changes in trade unionism have affected employee relations.......................4
1.3 Explaining the role of the main players in employee relations.............................................5
TASK 2............................................................................................................................................6
2.1 Explaining the procedures that Sainsbury should follow to deal with different conflict
situations......................................................................................................................................6
2.2 Explaining the key features of employee relations in a selected conflict situation..............7
2.3 Evaluating the effectiveness of procedures used in a selected conflict situation.................8
TASK 3............................................................................................................................................8
3.1 Explaining the role of negotiation in collective bargaining..................................................8
3.2 Assessing the impact of negotiation strategy ......................................................................10
TASK 4..........................................................................................................................................10
4.1 Assessing the influence of the EU on industrial democracy in the UK .............................10
4.2 Comparing the methods to be used to gain employee participation and involvement in the
decision making process ...........................................................................................................11
4.3 Assessing the impact of human resource management on employee relation....................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
2

INTRODUCTION
Employee relations are basically the efforts that a company makes to maintain the
relationship between employee and employer while working for organization. It helps in
providing fair and consistent treatment to employees so that they will be committed to job
(Kersley and et.al., 2013). This also helps in resolving various problems that arises at workplace
The main focus of employee relation program is on various issues affecting employees that are
pay, benefits, work life balance as well as safe working conditions. Sainsbury Plc is a grocery
retailing organization based in UK. Its headquarter is situated at London, UK. It is a second
largest chain of supermarkets in United Kingdom (About Sainsbury Plc, 2016). Further the report
will include brief explanation on role of main players in employee relation. Also will analyses
the key factors of employee relation that can be used under selective conflict situation. Also will
evaluate the effectiveness of the procedure used under such conflict situation. Later will asses the
impact of negotiation strategy to resolve the conflict situation in Salisbury organization. At last
the report will include a brief comparisons of the methods that ares to gain involvement as well
as employee participation under decision making process.
TASK 1
1.1 Explaining the unitary and pluralistic frames of reference
There are many stakeholders who are associated with the company like employees, owners,
shareholders, government, suppliers and customers. They either lose or gain because of the
employee relations in the organization (Larson, 2015). Good relations between the employees
and employer tends to bring the best from the employees. Furthermore, it leads to enhance the
efficiency, effectiveness as well as productivity. There are two major frames of references which
can be used by Sainsbury plc. Those are:
Unitary frame: Unitary perspective sees the entire organization as a team. There is high
level of mutual cooperation and dependency between employers and employees. They focus on
collective, integrated as well as harmonious activities that lead towards the foundation of
common goals (Fossum, 2014). Elements such as collective bargaining as well as trade unions
are considered as unnecessary for the organization. The employees those who are working in
Sainsbury Plc also share common goals and they work together to achieve the organizational
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goals. Following approach has also been point out because it deprives the employees from
unionism and it can be exploitative and manipulative.
Pluralistic frame: Pluralistic frame allows the employees to form competing interest
groups. There are many situations where the management is unable to take care of all the needs,
demands and requirements of the employees (Van Wanrooy and et.al., 2013). As a result of
which the employees are allowed to form groups so that their interest and rights can be protected.
This approach is found in companies where there are large number of employees. Sainsbury Plc
has 161,100 number of workers and it is impossible for them to meet the expectations of each
and every employee (Shields and et.al., 2015). Hence it will be beneficial for the employees to
use pluralistic approach as it will help them to identify the expectations and demand of the
employees.
1.2 Assessing how changes in trade unionism have affected employee relations
There has been some of the significant changes taken place in the trade unionism which
has affected employee relations in UK. The demand of trade union has increased with the
globalization and changing business perspective. Also many businesses in United Kingdom have
changed their strategies as well as policies to incorporate trade unionism (Armstrong and Taylor,
2014). But it has also created numerous difficulty due to the intense collective bargaining of
trade unions. In March 2000, GMB trade union started a campaign against Sainsbury
Organization. Because of which employees of Sainsbury claimed that the following policies are
not in support of workers. This incident forced the company to make changes in their policies. It
would not have been possible in the past but with the growth of trade unionism, employee
relations have improved. A trade union includes members of Sainsburry Plc.
The main aim of trade union is to protect the rights and interests of the members. It acts
as a mediator between the company and employees. The most common purpose for a union is to
improve the existing working conditions, wages, changes in labour safety contracts at workplace
etc. Trade unions became very popular in Britain after the Industrial Revolution. Apart from this,
it is also beneficial for the chose grocery retail organization (Poole, 2013). It gives an
opportunity to the management so that they can understand the needs to their employees. It helps
in the development of employee relations and promotes integrity in the organization. Sainsbury
has also changed its human resource planning as it has been beneficial for them. They have
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highly motivated and committed employees. It has allowed them to remain the same level of
quality throughout the year. Moreover, it has reflected on the customer services as well which
has improved from the past (Mowday, Porter and Steers, 2013).
1.3 Explaining the role of the main players in employee relations
There are various players who are involved in the activities of employee relations. Those are:
Human Resource- HR plays a important role in binding the employees together by
undertaking various activities that helps in strengthening the bond among employees to bring
them closer. HR manager plays a productive role in involving employees into something
productive that further gives employees opportunities to know each other well (Kelly, 2012). The
individual taking care of the HR activities plays a key role in involving all the employees into
something productive which would give them an opportunity to know each other well. Also it is
prime responsibility of HR to encourage its employees for participating in the extra curricular
activities . Also the HR is required to take care of various activities such as celebrating
employees birthday. Also HR is required to make sure that no one is seen working in the breaks
or lunch time.
Individual Employees- An individual is required to follow the direction given by the HR
and managers. He/she should not create unnecessary complications while working in the
company that further leads to the conflicts among employee and employer. Also the employees
are required to know about various rights that they have while working in the company. So that
employer will not be able to exploit individuals (Butts, Casper and Yang, 2013). Such rights are
health and safety, employment relation rights, etc. And in case if there is any kind of exploitation
than the individual has full right to claim or sue against its employer for such kind of
exploitation. On the other hand the individual is required to maintain good relations with
subordinates and employers while working as thees leads to good working environment. That
further helps in enhancing motivation level of employees.
Manager- Manager further helps the employees comfortable with other colleges so that
they can work in unison to achieve organizational goals. He/she are required to understand the
team members well. Also the manager is required to treat all individuals equally and should
avoid partiality within the organization (Kalleberg, 2013). Manager should be always there for
employees in any case if they required any kind of help. The manager is required to ensure that
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all important communication takes place on an open forum for everyone to get a common
picture. Also it is a prime responsibility of manager to encourage healthy competition among
employees while working at workplace.
Employee Associations or Trade Union- These are the group which comprises of
people with similar professions or interests. It helps in maintaining good employee relations
Their main aim to protect the rights of the members in such a way that both the parties are
benefited in a long run (Carter and et.al., 2013).
Government: UK Government has a huge role to play in the implementation of trade
unionism in the country. According to the Employment Relations Act 1999, an employer who
has more than 20 employees cannot refuse to recognize trade unions. It is essential for Sainsbury
to follow the rules and regulations of the government. These regulations have been developed to
protect the interest of the workforce in the company (Hancock and et.al., 2013).
TASK 2
2.1 Explaining the procedures that Sainsbury should follow to deal with different conflict
situations
Conflicts can directly affect the efficiency and productivity of the business. It can reduce the
confidence, morale and satisfaction level of employees. It is essential for Sainsbury to develop
conflict management policies (Purce, 2014). That will further help in resolving conflicts in a
better way. Some of the procedures which can be adopted by the following Company to deal
with different conflict situations are as follows:
Formulation of policies: Sainsbury has to frame various rules and policies which have to
followed by all the employees. Those employees who does not comply with it should be
penalized and strict actions should be taken against them (Benach and et.al., 2014). Apart form
this, there has to be a written plan for handling different conflict situations in the company.
Improving communication: Most of the problems and misunderstanding arises due to
lack of communication between the people. Sainsbury is required to improve their
communication channels because it can reduce the number of conflicts in the workplace.
Providing training: Sainsbury can train their employees so that they can work with other
people easily. They should adapt themselves according to the requirement of the situation and
6

team members. It will reduce the conflicts between the groups and individual employees
(Mishra, Boynton and Mishra, 2014).
Gather information: The management of the company can take help from the
employees to identify the causes of conflicts such as poor working conditions, ineffective
leadership etc. Apart from this, it is essential for Sainsbury to find out the reasons of the conflict.
Brainstorming: Brainstorming sessions can be useful in finding out the solutions of a
problem. It will also involve everyone in the process which makes it more effective.
Negotiation: It is an important stage in the process. Sainsbury has to understand the point
of view of each party involved in the conflict. It will help them to come out with a mutual
satisfying solution to a problem (Park and Shaw, 2013).
2.2 Explaining the key features of employee relations in a selected conflict situation
Companies such as Sainsburry are required to be conscious about employee relations as it
plays significant role in the success of organization. Features included in employee relations are
employers giving rewards as well as recognition in a group for increasing their performances
which leads to increase in the overall productivity. Also Sainsburry was providing flexible
working hour facility to their employees by giving them career breaks as well as work form
home facility (Fox and et.al., 2012). Increasing engagement of employees is another feature of
employee relation that helps the organization in involving all level of employees in a proposing
strategy. It also offers 10% discount and other schemes to its workers. Compensating is another
feature that helps in maintaining employee relations at the time of conflicts. Sainsbury had also
introduced the scheme of shares to make employees feel that they are the part of organization.
Sainsburry did not recognize any labor unions in its stores that, was the major conflicting
feature in this particular case and then strike was started in which Sainsburry depot workers and
drivers took part and the demand was for the union recognition. That now greatly depends on the
managers of Sainsbury what they do because they claim strike workers did not represent more
than 3rd of its employee and they were planning to replace labor agency with the strike workers
(Ferner, Edwards and Tempel, 2012). The features of employee relations are greatly
interdependent with the success of the business. Its employee contributions are directly linked
with the business success. So, a company must try to use key features in improving employee
relations with time to time, that mainly includes compensating them, taking care of health issues
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and other safety and security concerns and to involve them in different process of business in
which they can collaborate with the upper level in formulating a strategy Employee Relations.
All these were the strategies and policies that had been conducted by the Sainsbury to prevent
any kind of conflict within the workplace and also to maintain employees and employer
relationship within the organization (Welch, 2012).
2.3 Evaluating the effectiveness of procedures used in a selected conflict situation
The employees of Sainsbury Plc are not satisfied with the new pension scheme
introduced by the organization. Also the employees want the company to improve its working
conditions as well as environment. The procedure which can be used by Sainsbury to resolve this
conflict are as follows:
Trade unions can be useful for the employees as they can easily communicate the
problems to the company. The management of the company can use brainstorming sessions to
discuss the problems. It will allow all the employees to share their problems. Furthermore, them
management will get many alternatives to choose from. It will help the chosen organization to
understand the preferences and needs of the workers (Robbins, Ford and Tetrick, 2012). They
can change their pension scheme accordingly. Furthermore, they can gather information form the
employees. This will allow the company to to evaluate the problems in the workplace and the
changes that are needed by the workforce. This cannot be possible without using an appropriate
communication channel (Posthuma and et.al., 2013). They can either communicate with the trade
union which will give them the details of the common need of the employees or they can
communicate directly with the employees. Both the methods are effective to resolve this conflict.
The next step for Sainsbury is to start negotiating with the employees. They have to take into
consideration the opinions of the employees and arrive at a mutual solution to this issue. They
can discuss the various aspects of the pension scheme with the trade union and makes changes in
it accordingly. It is important that both the parties are benefited from the solution.
TASK 3
3.1 Explaining the role of negotiation in collective bargaining
Collective bargaining is a process of negotiation between employees and a group of
employers aimed at agreements to regulate working salaries. The interests of the employees are
commonly presented by representatives of a trade union to which the employees belong. The
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collective agreements reached by these negotiations usually set out wage scales, working hours,
training, health and safety, overtime, grievance mechanisms, and rights to participate in
workplace or company affairs (Appelbaum, 2013).
Negotiation plays an important role in the collective bargaining process. It helps the
management to to identify the needs of the workforce. Collective bargaining allows Sainsbury in
developing better relations with their workers. Trade unions have common objectives and they
discuss it with the company so as to implement it in the organization. The main aim of collective
bargaining include wages, working hours, overtime, health and safety, training and rights to
participate (Holman, 2013) . On the other hand, negotiation is a process which is used by the
management in order to resolve a conflict in the company. The chosen retail company takes into
account the views of both the parties before arriving at any decision. Collective bargaining
allows the trade union to discuss on various important issues like:
 Employees included in the bargaining unit
 Who will represent the trade union in front of the organization.
 Terms and conditions
 How to deal with the failure
 How meetings will take place
There can be many steps in the negotiation process and it should planned in order to
accomplish the objective. These steps include planning, defining terms and conditions, making
clarification and reaching an agreement. Collective bargaining and negotiation process helps in
the development of employee relations (Thompson, 2013). It will satisfy the needs of both
employer and employees. This will help it in maintaining good relation and encouraging working
environment within the workplace. Sainsbury plc can use it to reach at consensus which benefits
both the parties. It will ultimately help the company to grow and improve their customer
services. But collective bargaining and negotiation process can be very problematic if both the
parties are not ready to accept the terms and conditions of others. It is essential for them to
compromise and make changes in their conditions.
3.2 Assessing the impact of negotiation strategy
Negotiation will help the Sainsbury in solving various conflicts and issues occurring
within the organization. With the help of negotiation strategies such as collective bargaining the
9

company will be able to retain employees within the organization. As it will lead to increases in
the level of motivation and job satisfaction among employees. Also the negotiation method of
collective bargaining can be used to prevent conflicts within the workplace. The major problem
the employees are facing in the organization is of new pension policy (Storey and Sisson, 2014).
To prevent any kind of problem the company is required to make certain changes in the new
pension policy in order to prevent conflict within the organization. Negotiation is method with
the help of which employees working in Sainsburry can demand for changes in the pension
policies (Van De Voorde, Paauwe and Van Veldhoven, 2012). That will further result in
improving or enhancing the level of motivation, efficiency as well as in productivity of the firm.
That further lead to an positive environment within the workplace and also will improve the
employee and employer relations while working for Sainsbury. Negotiation will help the
organization in attaining the long run success.
TASK 4
4.1 Assessing the influence of the EU on industrial democracy in the UK
Industrial democracy is an arrangement that involves making decision, sharing authority
and responsibility within the organization. Some of the Europion countries such as UK the
structure of industrial democracy have been in the place for decades. However, the idea behind
the industrial democracy does not fitted well with the more aggressive relationships existed
between the managers and union members in UK companies. European Legislation encourages
more prominent role for workers in a firm decision making process (Cerasoli, Nicklin and Ford,
2014).
The new 'partner based relationships' where management and union members work
together to achieve some common goals, exist in British industry because of the present EU
influence. Now Unions are perceived as an institution existing to educate management and
employees the benefit of involving workers in decision making process. As a result, employee
involvement in decision making has become functional, by this means impacting positively on
workers performance and enhancing their contribution to the success of the organization. Now
works council is made up of representatives of all departments within a firm (Kersley and et.al.,
2013).
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The role of works councils is to discuss long term objectives of the business and to
suggest strategies for improving the future prospects of the business. There is also an option for
Worker Shareholders and Worker Partners, who have a stake in the ownership of the business.
Share holdings are often encouraged by the use of share option and saving schemes. These
schemes have seen some success in the UK, with some Industrial democracy is an arrangement
that involves making decision, sharing authority and responsibility within the organization
(Larson, 2015). Some of the Europion countries such as UK the structure of industrial democracy
have been in the place for decades. However, the idea behind the industrial democracy does not
fitted well with the more aggressive relationships existed between the managers and union
members in UK companies. European Legislation encourages more prominent role for workers
in a firm decision making process.
Company putting a great deal of emphasis on the importance of as many workers as
possible having a stake in the business. Although it is feared that the European Monetary Union
will increase wage dumping. It is the practice of paying workers less than the standard rate set by
the industry. company putting a great deal of emphasis on the importance of as many workers as
possible having a stake in the business (Fossum, 2014). Although it is feared that the European
Monetary Union will increase wage dumping. It is the practice of paying workers less than the
standard rate set by the industry.
4.2 Comparing the methods to be used to gain employee participation and involvement in the
decision making process
Increase in employee participation and involvement results in adding value to the organization.
Though the level to which employees should participate in decision making is still a matter of
debate. Some says that union should participate with management as equal partners while some
believe in restricted or bounded participation, that is, participation of workers to a limited extent.
There are a number of ways through which employees can participate in decision-making
process of Sainsburry.
1. Participation at Board Level- This is a feature of industrial democracy. Participation of
employees at board level can play a significant role to protect the interest of employees.
Under this the Representative of union has right to present all issues or problems that
they are facing within the organization in front of the top level authority or management.
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Ans also have right to suggest measures to improve or prevent such issues at workplace
(Armstrong and Taylor, 2014).
2. Participation through ownership- This is another way through which organization can
involve its employees in the decision making process. Under this management or top
level authority maker employees shareholders of the company by inducing them to buy
companies equity share, advancing loans as well as by giving financial assistance to make
them buy equity shares etc are some ways which helps in encouraging the level of
employee participation within the decision making of organization.
3. Participation through Collective Bargaining- It supports the participation of
employees with the help of collective bargaining method by decision certain rules and
regulations. Also the method of collective bargaining has been considered as a ideal way
to ensure the participation of employees in the managerial process or decision making
within the organization. Also the company has to take care of its as each party will try to
take advantage or benefits of other (Kelly, 2012).
4. Participation Through suggestion scheme- In order to encouraging your employees to
come up with new and unique ideas can work wonders especially on matters such as cost
cutting, waste management, safety measures, reward system, etc. Developing a full-
fledged procedure can add value to the organizational functions and create a healthy
environment and work culture.
5. Participation through complete control- This is a system of self management where
workers union acts as management. Through elected boards, they acquire full control of
the management. In this style, workers directly deal with all aspects of management or
industrial issues through their representatives (Shields and et.al., 2015).
6. Participation through Job Enrichment: Expanding the job content and adding
additional motivators and rewards to the existing job profile is a fine way to keep workers
involved in managerial decision-making. Job enrichment offers freedom to employees to
exploit their wisdom and use their judgment while handling day-to-day business
problems.
7. Participation through Quality Circles: A quality circle is a group of five to ten people
who are experts in a particular work area. They meet regularly to identify, analyze and
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solve the problems arising in their area of operation. Anyone, from the organization, who
is an expert of that particular field, can become its member. It is an ideal way to identify
the problem areas and work upon them to improve working conditions of the
organization (Butts, Casper and Yang, 2013).
4.3 Assessing the impact of human resource management on employee relation
It is the prime responsibility of human resource department to formulate policies which
can help in the development of employee relations. Human Resource Management department of
Sainsburry is required to carry out many activities such as employee training, recruitment,
selection, development, involvement, conflict management, workplace planning, motivation etc.
It plays significant role in changing the Behaviour and attitudes of the workers (Carter and et.al.,
2013). They gather the information from the employees and pass it to the managers. This helps
the company to formulate plans, policies and strategies according to the needs of the employees.
This ensures that positive environment is maintained which facilitates the growth of the
employees (Mishra, Boynton and Mishra, 2014). Human Resource Management departments
tries to reach a consensus in which both the employer and employees are benefited. Sainsbury
had changed its compensation system because the workers were dissatisfied with the existing
compensation system. HR manager of Sainsburry felt that the employees were not paid
according to their performance. This forced the organization to review their system and to make
required changes in it. It led to the rise of satisfaction level of the employees and their efficient
increased.
CONCLUSION
Human resource manager, individual employee, manager, employee union as well as
government are the key player involved in or are responsible to perform certain activities in
relation of employee. This further helps in maintaining good relation among employee as well as
good workings environment. Formulation of policies, improving communication, providing
training, gathering information, brainstorming and negotiation etc is the procedure that is being
followed by Sainsbury to deal with various conflict situations that arises at workplace.
Participation at board level, participation through ownership, suggestion scheme, complete
control, job enrichment as well as through quality circles etc are some of the ways pr methods
that the Sainsbury and other organizations use to increase the involvement and engagement of
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employees in decision making. Collective bargaining is the process or method used under
negotiation to improve the employee relations. It allows trade unions to discuss in various issues
those are employees included in the bargaining unit, terms and conditions, how to deal with
failures, how to conduct meetings etc.
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