Value and Importance of Employee Relations in the Workplace

This document discusses the value and importance of employee relations in the workplace and its impact on stakeholders. It explores the rights, duties, and obligations of employers and employees, as well as the impact of positive and negative employee relations on stakeholders. The document also includes a stakeholder analysis and strategies for managing employee relations.

Work and the Employment
Relationship

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Employment relationship refer to workers relation with company and it impacts on
growth of the firm too. Tesco is one of rising retail company In UK and sells product such as
grocery, electronics etc. Employee's relationship with the organization increase efficiency,
quality and productivity of work. There are multiple law that protect and help workers in the
firm. There are many Rights, duty and obligation of employees and employers which they have
to follow in the procedure of work. Stakeholder analysis help firm to understand way in which
workers relation impact stakeholder and firm. Report discuss value and importance of
employee's relationship and micro and macro level context and it also discuss impact of
employment relationship on stakeholder.
MAIN BODY
ASSESSMENT
Value and Importance of Employee relations
Employees relations plays important role in organization growth and it increases quality,
efficiency and productivity of work and workforce. For this company use various method such as
giving award, reward, promotion, incentives etc. and it increases personal growth and in return
increase their loyalty and quality of work (Alam and Raut-Roy, 2019). Tesco HRM use various
practices to build strong employees relationship and able to gain support of them in achieving
higher goals.
Growth and development
Organisation growth and development depend on strong employees' relation for example
Tesco emphasize on personal growth of the employees and in return workers support firm in
achieving higher goals timely. For this they motivate worker in different form such as giving
opportunity, promotion etc. Harmonious relationships at workplace help firm in gaining
competitive advantage and also it increases productivity of work.
Reduction in Turnover
Strong relations between workers and bosses decrease employee turnover. If the
organization give good salary with lots of benefits then they will not think to opt to another firm
in any condition as they feel this is the right place to grow and develop skills (Nguyen and et.al.,
2017). Good environment at workplace improve morale and motivation of the workers and hence

Tesco focus in gaining loyalty of employees by providing wages with good environment and also
reward their skill and talent.
Employees Have Extensive Knowledge of Company Practices
As turnover reduce in the firm then workers stay and their knowledge increases with time
and helps in understanding policies, practices, and processes of the work. Trained and skilled
workforce are important resource for the Tesco as they help in gaining higher goals on time and
taking competitive advantage in the market. This workforce help in training new employees and
also it reduces expenditure of the firm to give training to new workers.
Enhanced Motivation
Demotivated employees effect on efficiency, quality and productivity of work and hence
company lost image and market control in the country. Tesco motivate workers by giving
increment, incentives, opportunities, premotion, recognition, reward and award hence company
able to take higher output and gain their loyalty.
Increase in Revenue
Employees relation has multi level benefits for example it increases quality of work and
product and which positively impact on increasing customer satisfaction level. Engage and
motivate employees are important resource for the Tesco and it increases customer satisfaction
level and productivity which ultimately improve financial condition of the firm.
Conflict Reduction
Workplace Conflicts are one of the factor that affect growth of the firm and there are
multiple reason behind it for example discrimination between workers in giving opportunities at
firm. Tesco HRM and Seniors emphasize in building friendly atmosphere at the workplace for
example promotion and opportunity is based on performance that are analysed and evaluate by
HRM and hence all will get equal chances for growth. Feedback and suggestion at workplace is
another game changer that increase in building strong employee relation and decrease difference
between workers and management.
Key employee legislation at workplace
Employment laws are important as it helps protect workers in the firm. These laws are
framed by governments to help workers and also monitor & control the firm. Tesco use different
employment law as given below.
Employment Rights Act 1996

This law state that organization has to give contract and related terms in written and also
follow the governments guidelines act to it and it also covers topic such as unfair dismissal,
family-friendly leave, and redundancy. Tesco implemented this law at workstation and all details
regarding contract is properly addressed in the contract.
National Minimum Wage Act 1998
This law guarantee to all workers in the company that minimum wages that are decided
by government cannot be overlooked by any firm. Tesco use this law and provide minimum
wages which to all workers so that no one rights can be overlooked and increase good-will of the
firm.
Employment Relations Act 1999
This law consist of explain rights of trade union, de recognition, and industrial actions.
Tesco is able to understand large numbers of workers problems by the help of trade union. This
union build strong employee relation which are necessary for company's growth.
Company can improve relation by understanding workers problems and quickly solve.
All growth aspect is based on performance rather than favouritism so that they feel part of the
firm and give higher output to the firm. Also laws related to employment should be properly
implemented in the firm so that workers feel firm as a best place to work.
Rights, duties and obligations an employer and employee
In the firm employers give various kind of resource that are necessary for workers to
work and in return expect that quality, efficiency and productivity of the workers increases. Also
there are various rules and regulations that are set by owner which workers have to follow.
Safe Working Conditions
It is duty of higher authority that working condition of place should be good so that
workers feel comfortable and follow standard of Occupational Safety and Health Administration.
Tesco give proper working environment at workstation and hence able to gain proper output
from workers on time.
In return workers responsibilities to help trainee with working condition and environment
at workplace. Help them new workforce with use of masks, goggles, gloves and harnesses in
Tesco and helps able to build a friendly atmosphere for all, They also follow safety protocol at
workstation and not participate in wrong activity which is not acceptable by the firm.
Respectful, Non-Discriminatory Treatment

Employer has to stick and strict with implement government rules and regulation at
workplace and for the employees for example any discrimination on religion, gender etc. must be
stopped in the firm so that it will become a better place to work for employees. Also in contract
gives complete details about it so that no one mistkaen.
Employee at workplace do not involve any activity that are linked with harassment,
intimidation, assault or bullying as prohibited by Workplace Violence and try to give equal
respect to one and all in the firm. Following norms of the company is foremost task for the
worker.
Fair Labour Provisions
Owner provide wages as per the quality and quantity of work, but they also have to
follow minimum wages policy so that no one can remain out from it. Also, if worker unable to
meet standard then provides proper training and development program.
Worker must follow time regulation establish by the firm and hence productivity of work
can be increase so that company can achieve higher goals on time (Guest, 2017).
Whistle-blower Protection
Owner must protect employees who expose wrong work by management or any
associated crimes and it helps owners in understanding where the company fails or who are
behind.
Employees must be give right information to seniors about wrong procedure or anything
that can destroy company image. Any problem associated with the firm must be given in
feedback or suggestion and do not hesitate in it as it protect themselves as well as the firm.
Tesco management and Board of director must provide proper working condition and
environment so that employee can work efficiently and increase output with quality. Employee
in the firm must follow the guidelines, rules and regulation associated and provided in contract.
Psychological Contract:
It is uncodified contract that address employees expectation at workplace. It establishes
strong relationship between workers and workforce and it includes informal arrangements,
mutual beliefs, common ground and perceptions between the two parties. Tesco gives this
contract to employees for example in time of COVID, company gives 80% of salary whether
they are working or not and hence able to gain loyalty (.Tomlinson and et.al., 2018.). All workers
want to grow and develop their skills in the employer and hence it provides various resources

and support that can help in gaining height of profession and become financial stable in changing
world.
Mechanism of Managing employees relationship
Company can manage and build employee relationship by focusing on personal growth of
the workers and also promote them according to their achievement.
 Employee discipline: this is one of the important mechanism to check if the worker is
committed to organization or not for example check present, punctuality, disciple etc and
according to it evaluate satisfaction faction level because sometimes workers are
productive but because of some factors they lack interest in work and hence by analysing
it companies can help them (Rainnie, 2016). For example: Mark and Spencer in UK
notify discipline level and according to promote it and hence able to increase output of
the firm with good quality.
 Employee grievance: Safe working environment, fair treatment, proper incentives,
participation in decisions, and needs satisfaction must be given by employer in order to
take higher output with quality from the employees. Company has to analyse if any of are
not properly done and fix it quickly (Shin and Konrad, 2017). For example: Google UK
headquarter provide best working condition at work and workers feel like home hence
gives higher productivity and increase revenue of the firm.
 Employee stress: It becomes necessary for the firm to check workers stress level because
high pressure decrease performance and hence company has to provide refreshing
activities an all at workplace so that work pressure can be minimized. For example:
Facebook has gym, yoga station at workplace which decrease pressure of workers and
hence they able to achieve high target timely.
Stakeholder analysis and its Impact on employment relationship
Stakeholders play important role in growth of the firm and their analysis helps firm to
understand the way in which they can target. Tesco use stakeholder analyses and understand
impact of it on employees relationship.
Stakeholder analysis
Tesco has various kind of stockholder such as supplier, customer, investor, labour,
government etc.

Step1. Identification Stakeholder:- In the first stage stakeholder identify by the firm for analysis
such as customers, suppliers, buyers, employees & managers, community, government and
media.
Step 2: Prioritise stakeholder: In next stage of analysis stake holder prioritize for example
consumer one of the priority for the firm and hence they have to tackle and develop their
involvement.
Step 3: Development an engagement strategy: In this company try to develop interest of
stakeholder by meeting, presentation, group facilitation, delegating, develop and share a change
plan.
Step 4: Map their profile: According to interest and influence profile of stakeholder in this stage
so it can help firm in next stage to target specific.
Step 5: Optimise their support: In this support of stakeholder or involvement optimize by the
firm for example company show profit gain by project to investor and hence in return gain
investment by them ( Crawford, 2020).
Step 6 : Monitor changes: In the end organization monitor changes and make change in the
procedure if needed.

Latent:
In this stakeholder which have high power but low interest come such as customers.
Tesco's consumer is one of the important resource which can impact on growth of the firm.
Company manage relation with them by providing discounts, offers etc. and hence able to gain
large number of customers. Conducting survey, review etc. helps firm in understanding
customer's satisfaction, level, opinion and suggestion.
Promoters:
High power with high interest category stakeholder falls in this category such as
employees and management. They are the one who actually work hard to provide and satisfy
needs of others associated with organization such as customers, investors etc. Tesco's employees
and management plays important role in providing the best product, services and increase profit
that can satisfy all.
Monitor:
Stakeholder with less interest and less power come under this category such as
Government, suppliers, labours etc. They have very less role but remain a part of the firm and
influence company in indirectly way. Suppliers and daily wage labour of the company help firm
to manufacture the best product at low price while government rules and regulation company has
to follow in order to run the business.
Keep informed:
This type of stakeholder has low power but high interest such as shareholder, investor.
Tesco's investor and stakeholder keep informed by the marketing team and management about
progress and growth so that they can invest whenever they feel right (Owusu, 2020). It improves
financial capacity of the firm to meet future challenges.
Stakeholder plays important role in growth of the firm, but they also impact on building
positive employment relationship. Government rules and regulation give protection to employees
at workplace and hence they remain motivate and secure about employment. Investment and
shareholder increase financial capacity of the firm and hence company able to increase salary,
gives incentives etc. which make employees financial strong. Proper supply of resources help
employees in achieving higher target on time and also increase their productivity which in the
end contribute in growth. Management and HRM policy in favour of employees and motivation

them through award, reward, recognition, promotion etc. can help in gaining loyalty and trust
towards firm and also increase, efficiency, quality& productivity.
Positive and Negative employee relation impact on Stakeholder
Positive: If the employees' relation is good then it fosters the performance of work and also
increase efficiency, quality and productivity of work and company is able to achieve higher goals
on time. Management will be impressed by work and also support and promote building strong
relation with worker or maintain it. Investor and shareholder are impressed by the outcomes and
hence will be more keen interested in investing. Supplier supply increase because employer's
productivity rise and hence they can also earn more. Government also benefited by it as increase
revenue means more tax by company to Govt. In the end customer's satisfaction level increase as
better quality of goods and services delivered by company and hence increase their purchasing
capacity or attract them for firm's goods.
If the relationship with employee's strong then there will fewer chances of conflict and
firm is able to achieve higher goals on the time and it also motivates all workforce to do well and
earn well. Friendly atmosphere in the firm will foster and hence all employees feel part of the
firm. Team work will improve and increase innovation and creativity of workers.
Negative: If employees relation in the firm are not good and maintain then all associate are
affected directly or indirectly. Workers will give less output & productivity and hence low
quality of product and extent process of work. Management will not able achieve target and
company can finance losses because of it (Lee and Ha-Brookshire, 2017). Investor and
shareholder will take less interest company not performing well or it becomes barrier for future
investment. Supplier has to look for other option as less resources are consumed by the company
and indirectly less profit generated. In the end customer will not take interest in company's
product and services as it not able to meet needs and requirements of them.
It increases conflict between workers and management and company will not able
achieve target and full fill customer's satisfaction level (Alam and Raut-Roy, 2019. ). All will
focus on individual growth and different direction create confusion and decrease productivity,
quality & efficiency. There will no resolution can be taken or achieve in such conditions.
All stakeholder directly or indirectly believes that strong employee's can only the solution
for achieving higher target and increase profit of the firm. If the revenue of the firm increase then
all associate will be benefited for example investor and shareholder gain higher percentage of

profit while government gets higher taxes. It also increases supply of the suppliers and hence
they believe strong relationship can only be solution.
CONCLUSION
It can be analysed from the report that employment relationship is necessary for growth
of the firm. Tesco strong promote and support building strong worker relation which increase its
productivity, quality and efficiency. It is important in gaining higher output from the workers
with quality so company maintain and build by various method including proper implementation
of employee's law. There are multiple right, duty and obligations of employee's and employer for
example providing workplace safety instructions and follow it. Stakeholder analysis help to
understand the way in which it can be tackle by the firm and it also builds strong relationship
with workers and enhance quality, efficiency and productivity of work.

REFERENCES
Books and journals
Alam, S. and Raut-Roy, U., 2019. Evaluating the Effectiveness of Reward Strategy at Tesco:
Evidence from Selected Stores in UK. Indian Journal of Industrial Relations, 55(1).
Alam, S. and Raut-Roy, U., 2019. Evaluating the Effectiveness of Reward Strategy at Tesco:
Evidence from Selected Stores in UK. Indian Journal of Industrial Relations.55.(1).
Crawford, Y.N., 2020. Strategies Leaders in the Retail Industry Use to Increase Employee
Engagement.
Guest, D.E., 2017. Human resource management and employee well‐being: Towards a new
analytic framework. Human resource management journal.27.1).pp.22-38.
Lee, S.H. and Ha-Brookshire, J., 2017. Ethical climate and job attitude in fashion retail
employees’ turnover intention, and perceived organizational sustainability performance:
A cross-sectional study. Sustainability.9.(3).p.465.
Nguyen, L.T.T., and et.al., 2017. The effect of click & collect service in the context of retail
atmospherics on consumer buying behaviour in terms of repurchase intention: an
empirical study of Tesco UK. In 4th International Conference on Innovation in
Economics and Business (Vol. 87 .pp. 43-51).
Owusu, M.A., 2020. Strategies to Improve Employee Retention in the Small Retail Industry.
Rainnie, A., 2016. Industrial relations in small firms: Small isn't beautiful. Routledge.
Shin, D. and Konrad, A.M., 2017. Causality between high-performance work systems and
organizational performance. Journal of management.43.(4).pp.973-997.
Tomlinson, J., and et.al., 2018. Flexible careers across the life course: Advancing theory,
research and practice. Human Relations.71.(1).pp.4-22.

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