Importance of Employee Relations and Recommendations to Improve Employee Relations

This report discusses the importance of employee relations and provides recommendations to improve employee relations. It also explores the rights, obligations, and duties of employers and employees. Additionally, it conducts a stakeholder analysis of Tesco and examines the impact of employee relations on stakeholders.

Work
and
Employee Relationship

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1...........................................................................................................................................3
Importance of Employee Relation and Recommendations to improve employee relations -.....3
Task 2...........................................................................................................................................5
Distinct Rights, obligations and duties of employers and employees.........................................5
Task 3...........................................................................................................................................6
Stakeholder Analysis of Tesco and stakeholder’s contribution in employment relationship -. . .6
Task 4...........................................................................................................................................8
Positive and Negative Impacts employee relation on Stakeholders -..........................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Employee Relations refers to relations between the employee and the employer at the workplace.
Companies today are trying hard to become more nimble, faster and translucent, and due to this
organisations have started focusing more on employee communication. The key objective of
employee relations concept is to refine relationships and cooperation at workplace.
Tesco is multinational company of UK having its operations in many countries. Company deals
in various product lines and is the market leader in UK for groceries.
This report elaborate about the value and importance of employee relations in Tesco, different
types of duties and obligations an employer and employees have in the company and conducts
the stakeholder analysis for Tesco. Further, this report examines the influence employee
relationships on different stakeholders.
MAIN BODY
Task 1.
Importance of Employee Relation and Recommendations to improve employee relations -
Employee Relations can be defined as practical and contractual relationship between the
employee and the employer which focuses on enhancing the relationship between the manager
and the team members (Curtin, 2019). It also highlights the efforts that the HR department makes
to maintain and manage this relationship. Employee relations play the key role in improving the
overall performance of Tesco.
Increased employee Loyalty – Employees generally don’t think much about changing their jobs
if they feel that the culture of the company is not workable. If the company ignore the chances of
enhancing the lost employee relations it may not only increase the monetary cost but also
sometimes impact the brand image. Tesco ensure that how their workforce (employees) feel and
provide them opportunities for advance career.
Heightened Motivation – Healthy relations at workplace boost the morale of employees and they
give their best to attain the objective of the company (Freedland and Dhorajiwala, 2019). Tesco
not only have to maintain the good relations just by good communication, company has to
enhance the relationship by recognising the efforts of its employees. For eg. Tesco after monthly
performance evaluation of its employees has to appreciate them for their efforts towards the
organisation.

Decrease in Conflicts in Workplace – One of the major reasons of unsuccessful business is
conflicts, it generally arise due to differences in manager and employee. If these issues are not
solved at initial stage may sometimes have serious consequences. Tesco’s Manager should be
unbiased in decision making as this reduces the chances of conflicts.
Enhance the work-life Balance – Managers due to the hectic work schedules do not have time
for rejuvenation and due to this the employee in the company also feel frustrated and
demotivated because of excess workload (Sharma, 2020). For eg. As Tesco is the market leader,
so have the work pressure but because of various reasons this situation could arise which may
lower the employee relations, so for that managers need to take actions regarding employee
issues so that his or employees work life balance is maintained.
It is extremely essential for the smooth working of Tesco to take care of fundamentals of
employments law and its applicability in the Company (Fahed-Sreih, 2020). As these laws,
regulate the relationship between employee and employer, employment laws such as employee
right, national minimum wage, maternity and paternity leave, employee relation, transfer of
undertaking etc few of them are discussed-
Employment Right Act, 1996 – This act covers the employment laws related to employment
contracts, wrong and unfair dismissal, redundancy etc that are to be practiced at workplace.
Employment Relation Act, 1999 – This act establish no. of rights at work for recognition of trade
union and industrial action, ensures that effective relations are maintained between the employee
and employer at workplace.
National Minimum Wage Act,1998 – This law is applicable for the all the companies and
business and the amount changes from time to time, this ensures that minimum compensation is
to be paid to the workers.
As the good employee relations in Tesco will lower its turnover and increase the productivity
here are few suggestion to effectively improve employee relations –
a) Company should focus on promoting dialogues and communications, as effective
communications can avoid the chances of confusions by providing clarity (Unsal and
Brodmann, 2020).
b) Tesco should inspire and motivate its employees by using performance management
through this employee will get clarity about the areas which need to be improved and
rewarding them will make them give their best.

c) Tesco by implementing the right systems and softwares now make big difference as it
helps in eliminating redundant task and employees to focus on their creativity.
Task 2.
Distinct Rights, obligations and duties of employers and employees
Rights, Duties and Obligation of Employer –
1. To provide work or task as mentioned in the contact of employment.
2. To provide all the necessary resources for the accomplishment of the task.
3. To provide the healthy and safe working environment with all the safety measure taken
and abide by the all the standard given by the authority related to these measures (Kataria
and et.al., 2020).
4. To provide all its employees medical insurance and cover the cost of medical
examination.
5. To provide employees with the adequate amount leaves necessary for the rest so that he
can work efficiently.
Rights, Responsibility and Obligation of Employees –
1. To carry out the task as specified in the terms in the contract of employment.
2. All the employees working in the company has the right to equal treatment with respect
to their colleagues.
3. Employees also have the Right to trade union membership and participate in their
activities.
4. Employees must carry out the work carefully, by obeying all the communicated
instructions (Muller, 2020).
5. Employees must ensure that his/her own safety while performing any work as well as the
safety of others.
6. Employees in the company must discuss any issues and gain the clarity with the employer
7. Information regarding the leave and cause of absenteeism must be given to the employer
by the employee.
The employer/employee relationship is based on the contract for any Company. Tesco or any
other corporate for the maintenance of a stable workforce has to focus on maintain the good
workplace relationship. It is advisable for the employers or managers to comply with the

obligation to pay an employee, take care of the employee’s health, safety and working
conditions, ensure that the relationship of trust and confidence is maintained and is not
destroyed, and also make sure that the employee is given appropriate skills and opportunities for
growth (Sahoo and Sahoo, 2018).
While considering the employees part, employees working in Tesco or any corporate must obey
lawful practice and reasonable orders of the employers, exercise rational skills and work
efficiently and treat the company or employer with fidelity and always act in good faith by
maintaining loyalty towards the company that they are working with.
Psychological Contract – In simple terms, psychological contracts are the unwritten set of terms
or agreements between the employer and employee. This contract allows the employee to see
his/her roles and value in the company or business and generally amendments can be easily done
through communication. Some of the examples of Psychological Contract are – In Tesco,
employees who produce outcomes will be rewarded. In this case, employee will be motivated
and employer will get the desired result from the employee (Poon, 2019). Employees working in
Tesco, who exceed the expectations will be promoted, employee loyalty will be rewarded by the
Tesco’s Loyalty by sharing any benefit, bonus etc. For Employer, psychological is important
because employer gets the benefit of efficiency and creativity in return and for employees this
contract is beneficial because it constantly motivates them and also helps in their development
process.
Work-life balance – Tesco should focus more building the work life balance among its
employees, because sometimes the employee due to overload of work does not make time for
another things in life which damages the result and the productivity of the employee. The impact
of imbalance on employees impacts the productivity of overall company. By focusing on the key
factor work-life balance, Tesco will face lower absenteeism, maximum productivity, creativity,
positive perception, wellbeing of employee and employer, commitment etc (Ahmed, Ahmad and
Jaaffar, 2017). This also helps in building more better employee relationship and makes the
workplace a better place.

Task 3.
Stakeholder Analysis of Tesco and stakeholder’s contribution in employment relationship -
Stakeholder Analysis is done to assess system and the possible changes to it as they link to
relevant and concerned parties. The detailed analysis of Tesco’s stakeholder aims to analyse both
internal and external stakeholder and the influence on company.
Internal Stakeholder –
The key stakeholders of the company are its Employees, Managers, Board of Directors, the
executive committee and its shareholders. For Tesco, its employee and mangers are very crucial
like any other company. Tesco BOD consist of Chairman, CEO, CFO and no. of non-executive
director, they are very influential and significant for the company (Jennings, McCarthy and
Undy, 2017). Shareholders are also prime stakeholder of the company, some of its key
shareholders are: Schroders plc, BlackRock Inc, and Norges Bank.
External Stakeholders –
The key external stakeholders of Tesco are its customers, suppliers, pressure groups, government
of UK, local communities and competitors. Tesco assist and serves millions of customers
regularly every week. Tesco provides the excellent quality healthy and sustainable products.
Company works with thousands of suppliers and manufacturers in UK itself. This producers and
suppliers not only help company with the required products but also help in reducing food
wastage (Sapapthai and et.al., 2020). Company faces the peer pressure from the pressure groups
and the local communities regarding corporate social responsibility and employees and suppliers
pay etc. And if the community is not happy from the company about anything may come out for
the protest and may cause hinder in the operations of the company.
Influence of Stakeholder –
All stakeholders, internal or external is important for Tesco. But some stakeholders are more
powerful than other such as - The Board of directors and senior executives which provides the
strategic direction to Tesco. Employees (Internal Stakeholder) impact the employment
relationship. When company provides the job security to its employees, which boost their morale
and increases their productivity. If the company through its product quality satisfy the customers
(external stakeholder) which benefits the company, as company do mouth of word for Tesco and
because of this Tesco is market leader because it focuses on satisfying its customers and focuses
on employee’s job security and satisfaction. When the company, contribute towards the society

by doing social responsibility for eg. Tesco has decided to take initiative of removing 1 billion
plastic across the country, through this company also gets appreciation and fame in the market,
which builds positive employment relation. Tesco also does charities for the local community
which also have positive impact on communities and develops the sense of pride among the
people, by doing so people gain faith in the company and this also attracts the talents to work
with company as company takes care of various stakeholders an values them.
Task 4.
Positive and Negative Impacts employee relation -
Positive Impacts
Greater Cooperation – Cooperation at workplace means where employees participate at decision
making, management and employee resolve any problem or issues which develops the good
employee relations. Tesco, emphasis on teamwork, and provide the necessary resources, train the
employees, encourage its workforce to socialize outside as well which develops the greater
cooperation due to good employee relations.
Increase in Commitment – Committed employees add value to the organisation. These
committed employees tend to be more determined and focused and brings more productivity for
the company (Brewster, 2019). It happens only when the company provides challenging work
environment, collect surveys, solves issues etc. Loyal and Committed employees will help Tesco
to grow more and will also come up with creative ideas to cater more customers.
Effective Communication – Effective Communication in the company means that there will be
less miscommunication, clarity of objectives and goals to the employees which will improve the
relations and increase the productivity will is beneficial or all the interested stakeholders and for
those who have invested in the company as they will get high revenue.
Negative Impact –
Increased Absenteeism – If there is increase in absenteeism of the employees shows that the
employees are not satisfied with their jobs or there is some serious issues which not only affect
the environment of the company but have impact on others.
Reduced Productivity – There are various reasons for the reduced productivity and one of the
key reason is that the employee of the company are dissatisfied or the resources are not available,
no effective communication is there but reduce productivity leads to less revenues which impacts

the stakeholders and sometimes because of stagnant performance or losses, investors,
shareholders sell their shares and company start losing its customers as well.
All the impacts are interlinked with each other (Brockman, Luo and Xu, 2020).
Conflicts always exist in companies due to various reasons, wherever people work together it is
unlikely that they will agree on each and every aspect. People in Tesco comes from the diverse
background, have different working styles, values and beliefs differences in all these factor may
lead to conflict in the company. For example, an outward argument between colleagues can be
easy to recognise than to an uneasy employee hiding his feeling. Conflicts can be identified
through few signs such as – Body Language, Behavioural Changes, Clique Formation, Slowed
productivity, anxiety, complaints, loss of trust etc.
Different Stakeholders perspective –
Board of Directors, Executives and Shareholders are interested in high revenues and growth of
the company for these things they with the help of management formulate such working
environment which helps in better working environment and increasing the productivity and
creativity so that they can influence more investors to invest in their company and attract talents
to come and contribute in their company (Abdullah, 2017).
While considering the communities, customers who are the external stakeholders always have
expectations that Tesco will come up with something amazing which will make their satisfied.
Throughout the growth of the company customers and competitors are the driving force for the
company, because of which company has always come up with such amazing quality product ,
offers and discounts and strategies and because of good work relation that is been possible as the
human resource (employees) of the company work for this things to be successful.
CONCLUSION
In the following report above, the concept of employee relationship and its significance and
value in Tesco, explains the fundamentals of employment law and give suggestions in order to
improve employee relation. This report elaborate about rights duties and obligations of employer
and the employees in the corporate, provides the evaluation of psychological contract and
determine the mechanism of managing employee relationship. Further, the report conducts the
complete stakeholder analysis of Tesco and analyse the stakeholder engagement and contribution
that can support to positive employment relationship in Tesco. Last but not least, it analyse the

impact positive and negative both on employee relations on different stakeholders who affect the
conflicts avoidance and resolutions.

REFERENCES
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CORPORATE WELFARE. Public Relations, Society and the Generative Power of
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Sapapthai, S., and et.al.,2020. A stakeholder analysis approach for area business continuity
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Sharma, D., 2020. Employer-employee relations: A judicial perspective. LBS Journal of
Management & Research, 18(1), pp.17-24.
Unsal, O. and Brodmann, J., 2020. The Impact of Employee Relations on the Reputation of the
Board of Directors and CEO. The Quarterly Review of Economics and Finance.
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