Managing Employee Relations

This document discusses the importance of employee relationship and the fundamentals of employment laws in managing employee relations at Tesco. It explores the rights, duties, and obligations of employers and employees, as well as the impact of employee relations on different stakeholders. The document also includes a stakeholder analysis.

MANAGING EMPLOYEE
RELATION

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Importance of employee relationship....................................................................................3
P 2 -Fundamentals of employment laws .....................................................................................4
LO 2.................................................................................................................................................5
P 3 Different types of rights, duties and obligations of employer and employee.......................5
P4 Advice given to Tesco relating to rights, duties and obligations of the employment
relationship...................................................................................................................................6
LO 3.................................................................................................................................................7
P5. Stakeholder analysis..............................................................................................................7
LO 4.................................................................................................................................................9
P6. Positive and negative impact of employee relations on different stakeholders .................9
CONCLUSION .............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Employee relation refer to the efforts of the company to manage relationship between
employees and employers . It is multidisciplinary academic field that studies the employment
relationship which is the complex interrelation between employees and employers which is
being also termed as efforts to creating and maintaing positive relationship with the employees
on the side of employer. Tesco is the leading multinational chain of supermarket which is being
based out of United Kingdom and has the majority of market share as compared with its
competitors and provide wide range of products such as food, clothing, electricals, home-wares,
beauty and various other and provide after sale services and services related with online
shopping, home deliveries and various others. Present report will assess to principle of
employees relationship, determine appropriate advice relating to rights an duties of same.
Analysis the role of different stakeholders and evaluate the impact of positive and negative of
employee relationship.
MAIN BODY
LO 1
P 1 Importance of employee relationship
Employee relationship at TESCO is the term that encompasses relationship between
employer and employees and which can make or break the workplace environment or climate.
Employee relationship is important as it focus around both on individual and collective
relationship in the workplace with an increasing emphasis on relationship between manager and
team members at Tesco.
This is being termed as crucial factor when it come to the combined and overall
performance of the TESCO as by effective relationship it translate into increased employees well
being which helps the company to achieve desired goals of the company as employees for any
company are being considered as foundation which thrive company in winning in the
marketplace (ADDIS,2018).
Good employee relationship at TESCO helps in increasing productivity of employees
and helps in deriving high focus, level of commitment and dedication towards completion of the
task as a result leads employer to achieve target goals easily. Employee relation account with
effectiveness and efficiency to employees as good relations employees are under no stress to do

there work which account to getting there work done with ease and helps in deriving for
employees satisfaction and accounts to building trust and loyalty for the company.
Good employee relationship accounts to increased morale and motivation at the
workplace in TESCO which helps employees to learn and develop new skills and talents and as
a result leads to improved performance and helps the company to get to achievement of targets
easily.
It accounts to retention of skilled and talented employees and don't account to high rate of
employees turnover as a result helps the company in saving lot of cost and efforts in terms of
recruiting and hiring new employee. It helps employees boost up productivity as it leads to
creating a fun loving environment where employees feel happy to work and are highly satisfied
as a result leads to accomplishment of there goals in effective manner (Muthoka, 2017).
Good relationship between employer and employee of TESCO accounts to creative and
innovative solution which helps in supporting various business dynamic and as a result leads to
facing various complex challenges and helps in winning over the competition and be at the
position where it is hard for other to reach at the same (Jha,Varkkey,2017). It also helps in
effective decision making where it opens the minds for employees whereby it invites fresh idea,
thought, opinion and various other which contributes in the success of the company. It accounts
with lowering down conflicts at the workplace and don't accounts to any type of
misunderstanding as a result leads to non politics at the workplace and gives chance for
employees to get praise, recognition which helps in boosting up there confidence to perform
better.
For example company accounts to various fun loving activities such as organising various
programs which helps in deriving satisfaction of employees and helps in building good
relationship with the employer that accounts with increased productivity to achieve their desired
goals.
P 2 -Fundamentals of employment laws
Employment laws or labours laws mediates the relationship between employees,
employing entities, trade unions and government of that regions where the company operates and
which company is abide to follow the same and non – fulfilment of such may lead to various
imposed restriction and discontinuation of the business. Various laws are

Health and safety at workplaces act- this is the act which came into force in 1974 which is one
of the key component of employment law as it provide the opportunity to the employees of
Tesco to working in safe and secure workplace, which accounts to employer accounting to
follow various hygiene factor which promotes healthy workplace for the employees and accounts
employees safety in relation to various hazardous situation and accidents that can take place in
the company (Zero, Haji, Odil,2019). This elements highly influences decision making process
of human resource management whereby managers at Tesco concerns on developing and making
environment which derives high safety and security for employees at Tesco. By this it helps in
ensuring employees performance and productivity as it develops sense of understanding whereby
employees derive that they are working under safe conditions.
Equality act- this act came into force in the year 2010 which states that employees at the
workplace needs to be paid equally and fairly on the basis of there job role and no discrimination
not be made and accounts to no partiality at the workplace which also states on the part of
employers to evaluate the performance of various employees and accounts to compensation that
supports the same which helps in ensuring that company operation are on fair grounds and with
the means of laws being led down in the act (Palagashvili, 2017).
Employment contract- this lays down contract at which employees in Tesco are being hired
such as employees on the basis on full time employment which are being subject to various
working hours and accounts to various benefits, also accounts to whether the employees are
being hired on the basis of part time employment which accounts to getting there other
commitment meet and accounts to less working hours than that of permanent employees (Gao,
Huang,2019). It could also be when the company employees on the basis of Zero hours or casual
contracts as a result of free lancer and others and lastly account to employment on the basis of
fixed term or temporary contracts which is being hiring for a limited durations.
LO 2
P 3 Different types of rights, duties and obligations of employer and employee
Roles and duties of employees:
Employees are answerable to their employers. They are liable for completion of the work for
which they had given that job. They should always give respect to their employer. Work should
be done carefully and should not take lightly rather they should take their work seriously.
Employer can even take strict actions against employee if they are not punctual for the office

timings. Employer will give instructions which employee have to follow. If they will loyal
towards their work then that will help them to achieve the trust of their employer. Employee
should do all the activities by maintaining proper discipline. Tesco employees are motivated
which increases their productivity so that they can achieve the objective of the company. They
can even get suspended if they do not follow guidelines of the company properly. Feedbacks will
be given to them for their improvement and which they have to make. If they do not make then
actions can be taken against them by the management. Employees should use the resources of the
company wisely. Do not misuse it. If they have any problems regarding the working environment
then they have the rights to discuss this with the management.
Rights and duties of employers:
Employer has the duty to select that employee which is right for the organization and which will
be the best fit for the vacant position (Jansson and Gunnarsson, 2018). To hire the employee is
the right of the employer. Employers should take care of the employees and should provide
resources to them which include tools and equipments which is necessary for completing the
work assigned. Employer should give their employees salary on time and also provide other
promised benefits which are the rewards, health insurance, incentives. Etc. it is the duty of the
employer to carry the task effectively. If employee have any problem in the task then employer
should solve their problem. Success of the task is in the hands of employer.
Success only shows that how employees are managed by the employer. Proper security should be
provided to the employees and employer should check that it is provided or not. No
discrimination should be done by the employer on the basis of caste, religion. Colour. Race,
gender etc. They should ensure that there is equality in the company and proper division of work
should be undertaken. Employer should motivate employees by appreciating them so that
employee will deliver their best. Employer should maintain the better attendance of the
employees so that it can be calculated that how much salary have to be provided to them.
Health and safety law: company is provided guideline by the government for maintaining proper
safety and provide healthy working environment to the employees. Hygienic environment should
be there.
Data protection act: company have no right to share the private information of the employees
without their permission.

Equality act: every employee should be treated equally. There should be no discrimination on the
basis of caste, religion, sex, colour etc.
P4 Advice given to Tesco relating to rights, duties and obligations of the employment
relationship
Tesco should ensure that proper hygiene in their workplace is maintained because in this
pandemic hygiene plays an important role. If hygiene is maintained then employee will not fell
sick easily. Tesco should maintain clean environment they should keep sanitizers in their
workplace (Cortina, Cortina and Cortina, 2019). Resources which they are using should clean on
regular basis. Tesco should come up with the motivation programs. In which they should give
advice to their employees that how they can be self-motivated because motivation help
employees to increase their productivity as a result objectives of the company is achieved.
Motivation will enhance the creativity and innovative skills of the employees. Tesco should
ensure that there should no lack of communication because lack of communication will increase
confusion and delay in completion of the task. Company should start rewards and incentive
scheme for their employees because it gives extra benefit to the employees to earn more and
management should also appreciate employees for the good performance, so that employee will
feel that they are valued by the company.
Psychological contract and support for employee work life balance
Psychological contract will give the employer and employee expectations in the employment
relationship which can be the obligations, values, expectations etc. organization should
understand that what employer and employees expect from them which can be the work life
balance, flexibility, salary, rewards, incentives, promotion etc. (Bodie, 2016). Company should
take all the aspects while in consideration while making any policies for the employees. Proper
balance is required between work and life. Lack of work life balance will affect the efficiency of
the workforce. Discrimination should not be their in between males and females. It should be not
like that women receive less salary as compare to males while they are doing same work as male,
or they are getting late promotions as compare to males. When doing work life research this
theory is being used. this theory is of dynamic nature it changes with the nature of organization
and with their employees expectations. Working hours of the employees should be flexible.
Employees should not be overburdened because it will disturb their personal life and also they

will not be able to concentrate on their work. There is a direct link between the psychological
contract and work life balance. Tesco should also add their employees in the decision-making
process because young employees will give creative ideas and innovative and creative ideas will
help the company to achieve its objectives. Management should have friendly relationship with
their employees so that employees can share their problems without hesitation (Nazir and Islam,
2017).
Salary increase: Tesco should timely appraise the salary of the employees as salary is the biggest
method of motivation.
Promotions and rewards: company do promotion of the existing employees. Company had also
launched rewards scheme under which employee get the benefit to earn the reward.
David McClelland’s three needs theory: it is the motivational theory which explain the needs for
achievement, power and affiliation which can influence the actions of the people.
LO 3
P5. Stakeholder analysis
Business operations of Tesco Company is influenced with the following stakeholders that
can be projected in the following manner.
Customers: Customers are the sole entity behind the business operations channelised by the
management of the Tesco Company. All strategies and policies company form are based on the
potential customers of the company. They carry the huge involvement over sustainability and
growth of company which make them more significant in respect to company's business
operations. On the basis of the stakeholder mapping customers carry huge power and less interest
in the business operations of company.
Management: Management is among the key internal stakeholders part of company's business
functions. All decisions company take are supported by the management authority part of the
Tesco Company. They carry involvement in all types of business decision-making. Management
also play a crucial role in dealing with all different internal and external issues part of the
company's business functions (Clausen and et.al., 2020). Management carries the responsibility
to operate the business functions of Tesco in such a way that it can meet the business objectives.
Stakeholder mapping denote that management carry huge power and huge interest in business
operations.

Employees: Employees are among the crucial internal stakeholders associated with the business
operations of Tesco Company. Employee play role in managing and controlling all different
functional area part of the company. They hold different designated position in the organisation
hierarchy of the Tesco Company which allow the senior authority of company to meet the
requirements related to the various functional areas part of the company. Employee play huge
role in achieving the objectives behind the business operations of company. Employee carry
huige interest but lesser power in business functions on the basis of the stakeholder matrix.
Government: Government is among the external stakeholder group part of the company. They
carry a huge interest over the business growth of company. Government make policies
and ;legislation that can support companies in channelising business functions in effective
manner (Carhart and et.al., 2018). ON the basis of the policies and legislation government form
would reflect in the decision-making process of Tesco Company. IN United Kingdom
government has driven its operations in such a way that it has supported the companies like
Tesco in running business functions in the best way possible. Government is the stakeholder that
carry huge interest but less power in business of Tesco Company.
Investors: Investors are also a part of the crucial stakeholder list of Tesco Company. They invest
in the business operations of Tesco Company which support the organisation in generating
resources to operate business functions. Investors are highly interest in profitability of company
which motivate them to take initiate towards investing in business operations of company. This
stakeholder group contain huge interest but less power in business based on the concept of power
grid matrix of stakeholder analysis.
Shareholders: Shareholders are also among the key external stakeholder part of the company.
They invest in the business operations of company by buying shares of Tesco Company. They
also considered as the owner of the company. Management at the company try to satisfy the
expectations of the shareholder group of company as they are the owner of the company.
Company also allocate dividend to its stakeholders ion order to provide suitable returns to satisfy
the shareholder of company. Shareholders contain less power and huge interest based on the
stakeholder matrix model.
The above mentioned stakeholders are the key internal and external stakeholder part of
the business operations of Tesco Company.

LO 4
P6. Positive and negative impact of employee relations on different stakeholders
Employee relations in an organization is defined as the process in which the employees
maintain relations with other employees along with the management to increase the effectiveness
and achieve organizational goals (Sahoo and Sahoo, 2019).
Positive impact of employee relations on stakeholders of TESCO company are -
Increase in productivity and performance – When there are cordial relations with the
stakeholders of TESCO company it will lead them to perform more efficiently and this will
increase productivity resulting in the growth of the organization as whole. Employer as a
stakeholder can provide flexible working hours to increase the productivity and performance of
the employees.
Inflated motivation – Good employee relations with the stakeholders will result in increase in
motivation which will help the company reach higher goals also increase in employee
engagement factor will flourish along with the opportunities in trend. Employer as a stakeholder
can increase motivation of the employees by offering them with rewards so that they remain
enthusiastic towards their work.
Lower absenteeism – There is lower absenteeism as employees are more engaged in
maintaining the cordial relations with the stakeholders which increases the interactivity of the
company strong enough to achieve the desired goals. Employer as stakeholder can arrange
training and development programmes so that the organization does not face absenteeism of the
employees.
Increase in revenue – There is increase in the revenue of TESCO company due to good
employee relations with the stakeholders. Employees perform better when they achieve the
desired results hence there is greater satisfaction and increase in sales. Employer as stakeholder
can increase revenue by assuring that the performance of the employees is good and valued.
High employee loyalty – There will be high employee loyalty factor as the employees of the
company are motivated to work more which will increase the loyalty of the employees on the
company and will develop brighter and futuristic ideas in the formation of goals. Employer as
stakeholders can give away decisions that are in favourable for both employer and employee so
that the loyalty factor of the employees does not vanish away.

No conflicts – There are no conflicts due to good employee relations which are maintained by
the company in accordance to achieve higher goals and to make the company reach heights in the
market structure by creating more uniformed and processed work environment. Employer as a
stakeholder can ensure that there are no conflicts by providing interpersonal and intra personal
communication channels within and outside the organizations for benefit of the employees.
Negative impact of employee relations on stakeholders of TESCO company are -
Increase in conflicts – Employee relations in the company also leads to conflicts which affects
the stakeholders and this being the negative aspects decreases the performance of the employees
and will be less engaged in the activities which are being processed in the company (Jakšić,
2016).
Decrease in motivation – There will be decrease in motivation and will impact the stakeholders
as the employee relations results in the poor work performance due to the poor work
environment of the company.
Higher Absenteeism or employee turnover – The conflicts between the employees of the
company affects the employee relations and this leads to higher absenteeism or higher rate of
turnover of employee who feel incapable of proving their best at a position or find the company's
environment demotivating to work.
Decrease in performance – Employee relations affect the employees and leads the company
towards decrease in their performance. Performance factor creates negative impact on
stakeholders and the downfall of the company affects the whole organization creating difficulties
in the financial structure and the management structure .
Revenue Downfall – Negative impact of employee relations creates revenue downfall which
affects the sales and cost structure of the company leading to no growth aspect due to bad
employee relations and the development of the company is affected.
CONCLUSION
From this report it can be concluded that Tesco give importance to their employees.
Employment laws are discussed in the report. Providing suggestions on how can the company
improve their employee relations. Rights, roles and obligations of the employer and employee

are explained and advice given to Tesco to maintaining their employment relationship.
Psychological contract and work life balance are evaluated. Stakeholder analysis is done,
explaining how the stakeholder contribution support positive relationship in the company. In the
end positive and negative impact on employee relations on stakeholder. Stakeholders interests
are discussed in relation to the business environment.

REFERENCES
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JKUAT).
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performance through employee engagement.South Asian Journal of Business Studies.
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Zero, F., Haji, S. and Odil, Z., 2019. Employee rights and guarantees in Iraqi civil service laws
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