Importance and Value of Employee Relations in an Organisation

This report discusses the importance and value of employee relations in an organisation, using Tesco as an example. It covers the fundamentals of employment law applicable to organisations and provides suggestions on how to improve and respond to employee relations. The report also analyzes the impact of positive and negative employee relations on different stakeholders.

Unit 20-Employee
Relations

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Importance and value of employee relations in context with an organisation with examples.
.....................................................................................................................................................4
P2 Fundamentals of employment law that is applicable on organisation...................................5
M1 Suggestions on how an organisation can improve and respond appropriately to employee
relations.......................................................................................................................................7
P3 Explain different types of rights and duties as well as obligation of employees and
employer in the workplace..........................................................................................................8
M1 Make valid suggestions on how an organisation could improve and respond effectively to
employee relations....................................................................................................................10
P4 Advice related to rights, duties and obligations of employment relationship.....................10
P5 Analysis of stakeholders for Tesco in the detail manner.....................................................11
M3 Analyse how stakeholder engagement and contribution can support positive employment
relationships within an organisation..........................................................................................13
P6 Impact of positive and negative employee relations on different stakeholders...................13
M4 Evaluate how positive and negative employee relationships can affect conflict avoidance
and resolution............................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15

INTRODUCTION
The employees refer to the organisation efforts to develop and maintain the positive
relationship with employees (Aguenza and et., al., 2018). By assistance of positive and
constructive employees’ relations, organisation hope to keep the employees loyal and more
engaged in the work. Basically, the human resources department manages the employee’s
relations effort to increase the productivity for the betterment of the organisation. The present
report is based upon Tesco which is a groceries and general merchandise retailer and the
headquarter is located in Hertfordshire England. This is the third largest retailer by the gross
revenue. Along with this, they have operations in seven countries, and they are the market share
of Ireland, Hungary and Thailand. Further this report covers different aspect of value and
importance of employees as this will aid firm to make healthy relations with the customers. This
is essential for the organisation to follow all the employment laws in order to provide equal
opportunities for the employees. It is also important to analyse the positive and negative impact
of relation in the detail manner.
P1 Importance and value of employee relations in context with an organisation with examples.
Employee relation is the part of an organisation which generally develop and creates
positive relationship with its group and team members as well. In order to maintain positive
relationship with employees always influence firm in a proper way along with it helps them to
achieve their targeted goals peacefully. With the help of employees relations organisation can
have hope to keep employees more engaged and loyal in their entire work. Therefore, this is
necessary for firms to have effective employees by which they can achieve and attain its goals
within certain period of time. In context with Tesco, as it is one of the British multinational
groceries and general merchandise retailer which is also known as third largest retailer across the
globe. After few years this firm has been diversified into various sector like electronics,
clothings, books, software, petrol and so on. Therefore, it is the only one who sells their products
at low price through having so many social services along with financial services. In order to
maintain this productivity at marketplace they are needed to have so many employees by which
they can make their organisation more better. There are different types of employee relations by
which they can achieve their target in an effective manner, those are going to be discussed
below:

Beginning of employment: It generally comes under the three types of steps like
recruitment, induction and probation discussed below:
Recruitment: It is the process of short-listing, attracting, selecting suitable candidates for
jobs within the organisation. It is also known as the which process individual mainly involved
towards unpaid roles. In this HR manager of TESCO they have few public sector agencies of
employment by which they can give job opportunities to people who are interested in jobs.
Probation: It refers to the criminal law which is a period of supervision across an
offender, ordered through the court by serving time period. It is mainly followed by TESCO in
order to give helpful ways to employees in an effective manner.
Induction: It is the process of programmes which is mainly used within so many firms
and businesses in order to welcome of new employees and prepare them for new job role in
TESCO.
During employment: There are so many techniques which are followed by TESCO,
mentioned below:
Appraisal: It refers to the act of measuring value and nature of firm or something else.
With the help of this TESCO is able to give appraisal as per its employee’s performance at
workplace.
Discrimination: Within the social behaviour of human, this term always treated and
considered as distinction towards class, groups and category as well. In relation with TESCO
there are different types of categories of people but they generally treated each and every
employee in a equal way.
Training: It refers to the teaching and developing themselves and others about any skills,
knowledge or fitness as well. Herein, respective organisation is able to provide training sessions
to its employees so that they can easily understand what they can do and what will they do.
Ending employment: It is most important tool to know about ending process of
employment based on TESCO, discussed below:
Termination: It refers to the employee’s departure from the job and the end of an
employee's during the employer. It could be voluntary and may be employee's part. In Tesco it
can be evaluate by manager of an organisation.

Redundancy: It refers to the information which is used by firms in order to communicate
with employees so that they can express their feeling, emotions and concepts related to any
project or topic.
Fair or unfair dismissal: Unfair dismissal develop when employer does not have any
kind of valid aspect. Whereas, fair when employer terminates to the employment in order to grab
future opportunities within the respective organisation.
Within the respective organisation HR department always focus on their employees and
make unique efforts by which employees are able to give their best performance and make
unique relations with employers. Whereas, employee relation manager is responsible to act as a
intermediary and liaison between managers and employees in order to develop different types of
policies by which they can resolve various issues in workplace. Therefore, employee relations
and engagement is more beneficial for firm to achieve particular goals and objectives. Along
with any type of business and firm generally required to have best group of people as a workers
or employees to run their business smoothly and make them able to face any competition at
workplace. There are different types of marketing players who works as a valuable employee
within Tesco. Those are going to be discussed below:
Managers: These are always considered as an crucial aspect of business who play
significant role into the organisation. In relation with Tesco, manager can be also known as
employees as they work hard and guide or lead their overall team members in order to gain
positive outcomes within short period of time. Along with they are able to face any kind of
difficulties during work and encourage employees every time towards attaining several goals and
objectives.
Organisations: Firms always have responsibilities to select best candidate as an
employees within workplace to make their company productive and effective in front of others.
Herein, Tesco is able to hire knowledgable and skilled employees for which they conduct
training and developing such kind of programmes to increase their capability towards work.
Therefore, it helps employees to make good relation with their manager and team members in a
positive way.
Therefore, each and every business needs employees that are able to fulfil their job
responsibilities through considering all those factors by which they can give new and better

shape of their firms. So that business leaders are able to understand key benefits of employees so
that they can easily formulates so many methods in order to overcome organisational gap within
business (Al Mehrzi and et., al., 2016). So that employees are able to develop positive working
environment within firms in which several people doing their job effective within Tesco and
increase firm's profit. Therefore, employees always motivated by great work and good relations
with their senior authorities. If employees are giving their performance at high level then
manager of this firm is needed to provide incentives and such kind of thing which will make
employee more energetic and workable towards achieving common goals. So that it can be said
that employees relation always create positive environment within firm. Along with it also
evaluate overall performance and method of employees to achieve targeted goals in a perfect
way. For example: If employees are giving their better performance and able to build strong
relations with their subordinates than manager of firm is needed to give more facilities to their
employees so that they can easily achieve desired goals and objectives.
P2 Fundamentals of employment law that is applicable on organisation.
Employment laws can be apply on different types of organisational factors whether in
relationship of employees and employers as well. There are different types of laws and
legislations which is followed by Tesco in order to increase employees performance and working
capability in better mode. Some of the acts are given below:
Health and Safety at Work Act 1974
This act was given by the parliament of United Kingdom that describes the overall
fundamental structure and authority to encouragement, enforcements and regulations of
workplace in related with welfare & safety or health within UK. In reference with Tesco, this act
is followed by their manager in order to give better environment to their employees so that they
can achieve their desired goals at marketplace. Along with this act, employees always feel good
and able to manage and maintain each and every issue of firm and achieve better outcomes
within competitive scenario. Therefore, employee do not needed to take any kind of risk as
company is providing them health and safety act.
Employment Tribunals Act 1996
This act is related to labour law in UK that allows Secretary to make several provisions
for employment tribunals. Herein, Tesco applies this act within working place for their

employees by which they get so many training and developing programmes and able to get
effective pay from firm.
Trade union and labour relations (Consolidation) Act 1992
It is a act of UK that is applicable on England and Wales along with Scotland and so on.
It mainly based on legal rights and duties in which Tesco is able to apply this act on the workers
for protecting them and offer particular framework through this act for employees by which they
can make effective union and able to underneath their overall working standard in an appropriate
manner.
Employment Rights Act 1996
This act was passed by Conservative government to existing law on people rights within
UK. With the help of this act Tesco is able to give written statement of of particular to
employees. On the basis of this employees can have their own rights by which they can claim on
company if something is not according to them.
Data Protection Act 1998
In context with Tesco this is very helpful act for them which help to keep data safe and
protect from another system. Along with this data act has few principles that ensures information
is protected legally.
Public Interest Disclosure Act 1998
According to this act Tesco organisation give better treatment to their employer and
employees as well. Along with there are so many financial services or scandals which will be
keep safe through this act. Along with this, this act also helps firm to collect fund from the
financial schemes which is developed by them. By which they can give better salary to the
employees and able to make them happy.
Human Rights Act 1998
Main aim of this act was into UK law that European Convention on Human rights.
Within Tesco, this act prepare remedy for for breach of a convention right which is mainly
available within UK courts. It helps them to give employees rights in a proper way. This is an
essential act for those employees who are working in several organisations. With the help of this
act they can achieve their goals and able to work freely. It could be increase firm's value and
encourage them to reach high goals.
National Minimum Wage Act 1998

It develops minimum wages act across the UK. The main reason as it is followed by
Tesco, because it is based on workers or employees performance so that they can pay
accordingly. Wages always depends upon firm as well as working performance of employees
like how they are performing in firm. As it is based on working performance so that company is
needed to measure overall working quality of their employees and give them better salary which
maximise their confidence towards work.
Employment Relations Act 1999
It develops effective amendments within UK labour law which is generally develop for
implementation on various changes through following new structure to recognise collective trade
union. In reference with Tesco, this act helps them to make good relations with their overall
employees by following trade union and labour relations act to make new structure and
procedure of firm to achieve targeted goals and objectives in a perfect way.
Equality Act 2010
The main purpose of this act is to update, consolidate and supplement several prior acts
along with regulations on the behalf of anti- discrimination law within Great Britain. Therefore,
this act is the combination of several rules and legislations in order to protect employees from
negative factors within working environment. Therefore, Tesco always apply this act on their
business place to make their each and every employees happy and protect them through Sex
Discrimination act, Race Relations act Disability Discrimination act and so on. Therefore, all the
above specified acts are helpful for Tesco to build strong relationship with employees and make
them attract towards giving so many rights.
Suggestions on how an organisation can improve and respond appropriately to employee
relations
In order to give suggestions to organisation this can be said that they should apply more
unique and fundamental aspect by which they can give more satisfaction to employees so that
they can work accordingly (Bova and et., al., 2015). On the side critically it has been evaluated if
firm is able to give several kind of performance appraisals as per their employees than they can
increase their working capability and make organisation effective. Therefore, an organisation
should adopt few changes through which they can make good relations with employees
appropriately.

P3 Explain different types of rights and duties as well as obligation of employees and
employer in the workplace
Employees and employers have several right and duty as well as obligation in the
workplace. The rights and laws protect the employees from potential harmful event which
include unsafe working condition or discrimination. Working obligation holds employees
accountable for the actions and ensure workers to behave ethically and responsible towards there
operational activities done in the organisation. Here are some rights, duties and obligation are the
followed by the employees and employer in the detail manner:
Rights of employer:
Employees of Tesco must ensure about hiring the employees to manage overall work of
organisation so that there are different kinds of rules and regulation which should be followed for
the betterment of the organisation. Another employer rights to dismiss or fire the employees
when they do not follow the rules and regulation given by the Tesco. Along with this, it is
important to organisation the training and development programme which the individual to
improve the skills and performance.
Duties of employer:
Employer have the responsibility to provide better equipment and also allow them to give
all the provide all the facilities for the growth and development. There must be no discrimination
and bias in the organisation as this is the prime duty of the employer to create healthy
environment in the organisation. Further there must be equal pay as this help in maintaining the
balance within the workforce.
Obligations:
The employer has the responsibility to work to the employees on the basis of employment
contract. Hence the manager of Tesco must ensure about the wages should be paid on time.
Apart from this, the employer should manager the health and safety measure so that it reduces
risk and uncertainty present in the market.
Rights of employees:
There must be culture which is free from the harassment and discrimination and right to
safe the working conditions. There must be equal pay and right to act so that employees may not
get biased from any kind of decision. Along with this, restaurant must give gratuity benefits,

provident funds, and insurance. There must be effective services which is essential for making
effective decision which can be beneficial for the employees.
Duties:
Employees of Tesco must ensure about the purpose which help in improving the
environment so that there can be effective decision which will improve the productivity in the
detail manner. This is also important from the employees’ side to keep the information of
organisation confidential as this will loss for the company. However, this is important to have
work hard and give their maximum output as it will help in improving the relation for the
organisation.
Obligations:
The employees must ensure about the activities which is essential for the individual to
perform better. The employees must on the basis of contract and also follow all the rules and
instructions given by the employer. Further the Tesco employees should make sure that al the
resources are well maintained and allow them to avail services to the consumer in the detail
manner.
Make valid suggestions on how an organisation could improve and respond effectively to
employee relations
There must be open dialogue and clear communication which is the key method to
improve the employee’s relations. This also help in improving the environment as it leads
towards expansion and growth. The good communication help in avoiding the confusion and
unnecessary stress present in the organisation. Along with this, it helps in improving the
grievances so that effective outcomes can be developed. There must proper vision and mission
statement as this will help in improving organisation goals and objectives.
P4 Advice related to rights, duties and obligations of employment relationship
This is essential to build the employees relations for the expansion and growth in the
effective manner. This is essential for the organisation to consider different aspect like social
economical and sustainability of the firm. It has impact on employees, and it can create questions
related to job security within minds of workers which will directly impact their performance. For
the organisation like Tesco it is important role of employer to create a healthy environment
which is essential for the development of the company. All the rules and regulation must be

followed by the employer which comes under the law of UK. And this is important to abide all
the rules as they provide certain laws then it provides sense of satisfaction among employees.
In the context of Tesco there must be prior information to employees before they are
being terminated. This will provide employees with sufficient time to search for new job. As per
Unfair Dismissal Act, employer cannot terminate contract of employment without prior
notification to employees. There must be suggestions box and subordinates’ discussions should
take place in the organisation because it help to identify as well as discuss their problem and
grievances and issue with the management. There must be different relationship in the
organisation which leads towards success and growth. Beside this there must be proper flow of
communication should be held as this will help in improving in decision making effectively
(Chen, C. and et. al., 2016).
There have been some issues which occur in the Tesco here the employer plays an
important role and encourage the employees to minimize the conflict as this organisation culture
in the effectively manner. This also important to have empower the employees by providing
proper training and development programmes because it will aid in improving the efficiency so
that work could be done efficiently. Also, management should consider introducing TQM. This
will provide worker with feeling of commitment towards system as well as job and will also
increase satisfaction of employees. It is recommended that workers council should get on more
operational. Management will not have to deal with mass employees they will only have to deal
with representors and things will be sorted.
This is useful for the company to have better services with the help of ethical rules and
obligation. Employees of Tesco comes with the different backgrounds and culture this provide
competitive edge and also help in satisfying the requirements of the customers with the high
efficiency. Hence this help in improving the disputes along with different kinds of culture and
language barrier. The psychological contract work on basis of perception, beliefs and informal
obligation between the employer and employees. This is consider as the dynamic step for the
relationship which defines the detail work in the well define manner. For the organisation like
Tesco the management can use these kind of contract as this help in making effective decision
for expansion and growth.

P5 Analysis of stakeholders for Tesco in the detail manner
Stakeholder are the individual person or the organisation which have interest in the
organisation which effect the objectives and policies and the risk of action. Tesco is the private
company which have the major stake in the share of the company. The main objective of the
company is to provide high quality product and service which help in improving the brand image
in the minds of consumer. There are different kinds of product and service which help in
improving the sales of the company. Ownership can be defined as the employees or the executive
who have the responsibility for the business or the responsibility for making the effective
decision in the market. The public sector and these employees are the essential elements which
help in making effective decision which help in improving the demand as well as making
effective decision which is beneficial for the company. Here are some of the steps which are
explained briefly down below:
Identify stakeholder (Brainstorming): This is essential for the organisation to figure
out the stakeholder as this improve the image of the company. For the organisation like Tesco
this is important for the firm to improve the financial status of the organisation. In the
stakeholder they are divided into smaller groups or small units as this will help in identifying the
major and subgroup and make the major investment in the projects and insolvent as this will be
overlooked by the organisation. This is essential for the organisation to make changes prior to the
current involvement in the different activities in decision making. Stakeholders power and
interest help in ensuring to manage them properly. For example the if the project manager of the
organisation sign off the authority on the deliverables and the management comes under the
management quadrant does not need to manage the work closely. In this case manager can use
monitor quadrant to track the activities of stakeholder in the well define manner.
Prioritise your stakeholder: The next step is prioritising the stakeholder by assessing
their level of influence and the level of interest. There are different kind of interest grid is the
leading tool which is visually assigning the key stakeholder. For the organisation like Tesco this
is important for the employees to make sure that the prime importance must be given as with this
it may help in increasing the revenue and brand image. This is essential to engage these people
and also improve the image for the betterment and also provide satisfactory services. If this loss

it become the responsibility to talk to them and ensure that no major issue and help to improve
the alignment of the organisation.
Understand the key holders: Now that the stakeholder has been identified and
prioritized you need to understand how they feel about the project as this help in improving the
key functional areas or which is emotional and financial interest of work. This is essential for the
organisation like Tesco to improve the quality which will be helpful in making effective decision
in regards of stakeholders. This is important for the company to have better decision which help
in improving the decision which help in improving the decision which is essential for the
company. On order to keep the stakeholder happy organisation must ensure about the all the
legal activities and help in improving the range of stakeholder.
Figure out area of conflict: This is the step which plays an important role to measure the
interest and all this is important for the organisation to make sure about the all the decision
which help in improving the conflict as this will help aiding the requirements of the firm. This is
crucial for the company to make sure that there must be proper and ethical use should be done
which help in improving the sales and of the company. For the organisation like Tesco this is
important to identifying the area of conflict as this will help in improving the performance and
also improve the demand for the consumer.
Stakeholder mapping: This is the process which help in determining the major
stakeholder which is related to the project. Hence this is method which aid the firm to identify
the individual to have interest in the major outcomes. Stakeholder can be single or the multiple
individual. Hence this is important to have major dissatisfaction as this help in improving the
demand and the performance of the organisation. There are some of the shareholders which is
essential for the firm to have least importance they can be cleaning staff as this help in
improvement of the company. There are also some employees who show consideration and are
essential for the company to have effective decision for the company. In the Tesco the CEO is
the major stakeholder of the organisation and take all the decision which are useful in improving
the performance as well as help in capturing the larger market share. Major stakeholders must be
informed in respect to project plan as they must know in which project their money is invested.
Key players must be informed. Apart from these suggestions must be taken from them so that if
they need some changes then they can be applied effectively. While making new policies and

rules this will be important for the company to have effective decision which help in improving
the quality and quantity the major stakeholder shares.
Analyse how stakeholder engagement and contribution can support positive employment
relationships within an organisation
The stakeholder analysis help in improving the quality to support the employment
relations in the effectively manner. In the regardless of their actual quality of work, most
employees feel proud of their discipline and results. For this reason, appreciation for a well-done
job does more to motivate than critical appraisal. But it can be human nature to focus on the
negative aspects of employee performance. There are different kinds method which help in
improving the stakeholder share which include benefits and profits. Hence this is essential for the
organisation like Tesco as this help in improving production for the company as it will improve
the organisation turnover.
P6 Impact of positive and negative employee relations on different stakeholders
The employee’s relation can be positive or negative which may have larger impact on the
minds of consumer (Hanaysha, 2019). Positive and negative impact may directly affect the
relationship and also help in reduce the efficiency present in the market. So, in order to maintain
the effective relationship in the organisation the employer must ensure about to introduce the
new policy which will be helpful in making effective steps for expansion and growth. Here are
some positive and negative impact on the stakeholder are explained down below:
Positive impact of employee relations:
This will help in improving the productivity of the organisation and also help in creating
the major impact on the employees. Along with this, it also helps in developing better
relationship in the minds of customers. This also help in minimizing the insecurities
present in the workplace.
With the help of employees relations, the loyalty towards company can be increased and
they feel they are connected towards each other. Hence this will help in improving the
brand image which is effective for the organisation to make decision which is beneficial
for the company.
This will help in making effective decision and help in improving the performance and
also help in aiding the quality decision for the Tesco. Along with this, it also helps in

making improvement to work as the team because it helps in improving the working the
environment in the company.
There must be effective communication skills as this will help in improving the healthy
relationship of making commitment towards the work.
Impact of positive employee relations on stakeholders
This help in positive impact on the stakeholder and help in effecting the brand image of
the company in the minds of consumer. When effective relation is built among employees then
this will lead to enhanced output. Customers will be satisfied with services offered by employees
of Tesco must ensure to improve the quality of the product and services. Here are some of the
factor which are explained down below briefly in detail manner.
There are different kinds of conflict with the restaurant and will arise if the healthy
employees’ relations can be maintained. Along with this, it also impacts the individual
performance so that there can be more and more productivity.
Employees and help in improving the demand and the conflict which help the
organisation to make more effective decision as this will help in improving the quality of
the firm. As this also support the quality which will help in improving the quality in
offering product and services (Janssen, 2015). The positive impact of the employees
relations help in resolving the complaints quickly. Managers should be attempting to
anticipate their staff’s grievance by capturing the complaints or potential complaints so
that they can do something about it before they become problems. The negative impact
may create workplace conflict this is because the employees to do not receive the same
amount of motivation and encouragement.
This also effect the stakeholder such as financial impact however the financial
interest of the stakeholder can be tempered in order to create a greater balance with social
responsibilities. Showing a financial return on investment from socially and
environmentally accountable behaviours is ambitious. It costs money to manage waste
and recycling programs that are good for the situation.
There are different kinds of factors which effect the decision as this help in improving the
environment and employees can improve the quality decision for the main purpose to
motivate the employees to perform better.

The Error rare will be enhanced and the employee’s productivity as this will help to
improve quality of the product and offer betters service to the consumer. As this aid in
improving the decision for the betterment of the company.
Evaluate how positive and negative employee relationships can affect conflict avoidance
and resolution
There are positive and negative impact of employee’s relationship because it help in
improving the main there are different kinds of for the betterment of the organisation as this help
in improving the quality of the product. The organisation is focusing on the brand image as this
help in improving the quality as well as important elements which help in improving the quality
of the services to the consumer in the effective manner.
CONCLUSION
From the above analysis it has been analysed that the employee’s relations help in growth
and improve the productivity of the employees. This is crucial for the organisation to follow all
the rules and regulation for the smooth functioning. There are different right duties, rights and
obligations are present which each employee and employer has to follow as this improve the
quality of providing services to the consumer. The stakeholder are the essential elements to the
company as there are important aspect which help in improving image and working environment
for the company.

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