Value and Importance of Employee Relationship within Firm

WORK AND THE EMPLOYMENT
RELATIONSHIP
1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
1) Value and importance of employee relationship within firm..................................................3
2) Rights, duties and obligation of employer and employees......................................................5
3) Stakeholder Analysis...............................................................................................................6
4) Impact of both positive and negative employee’s relation on different stakeholders.............8
CONCLUSION................................................................................................................................9
2

INTRODUCTION
Strong employee’s relationship within firm helps in effective coordination and cooperation
of individual related to work as team for achievement of common objectives of company.
Employee relationship influence behaviour of different stakeholders such as customers,
government, employees and investors and helps in growth and success of company. This report
is about Tesco that is operating in UK having 450000 employees and 6800 shops across
worldwide to provide qualitative services and product to customers. The report explains about
importance of employee’s relationship and fundamental laws of employment that are followed
by HR while performing various function. It also discuss about various rights, duties,
responsibilities of both employer and employee for effective building of employment
relationship. Lastly it discuss about positive and negative impact of employees relationship on
different stakeholders of firm.
1) Value and importance of employee relationship within firm
Employee’s relationship is essential and pre-requisite for growth and success of firm as it
helps in effective coordination of different effort and motivates employees to work hard for
achievement of company goals. Tesco is large organisation with number of employees working
with firm so HR manager tries to build effective relationship among employees in order to
reduce conflict and coordination of various activities for company growth (Gilani and
Cunningham, 2017). It can be stated that strong relationship among employees is crucial and
important for expansion and growth of Tesco in the industry such as:
Employees Loyalty: HR manager of Tesco by providing creativity, productive and good working
condition to employees is able to satisfy needs of employees and motivate them to work hard.
Good and pleasant atmosphere helps in employee’s retention and loyalty at the same time reduce
labour turnover and absentees as they like to work with such a pleasant working environment.
Therefore strong relationship among employees helps in reducing cost, time and effort to recruit
new employees and helps in achievement of company goals.
Conflict Reduction: One of the benefits of strong relationship with firm is that it reduces chance
of conflict, confusion and contradiction of work as employees by easily communicating with
each other perform their specific activities (Nguyen, Kecskés and Mansi, 2017). Less conflict
helps in improving performance of employees as they put effort for enhance of production. It
3

also helps in meeting various challenges and problem of Tesco as team in order to resolve such
problem and work in coordinate manner for common goals.
Increase productivity and morale: Strong relationship is also important as it helps in increasing
productivity and morale of different employees because there are highly satisfied and happy with
the working environment of Tesco (Tantalo and Priem, 2016). It creates positive competition
among employees to put extra effort so that company profit and sales volume can be increased.
Therefore it can be stated that employee’s relationship helps in enhancing productivity,
performance and profit margin of Tesco.
Fundamental Employment Laws followed by Tesco
There are various employment laws that can be followed by Tesco to build strong and
effective employment relationship and achievement of company objectives. Such fundamental
laws help in motivating employees to enhance their performance and productivity. Therefore
different fundamental laws can be followed by HR while recruiting and selecting most
appropriate candidates within firm and performing its function are as follows:
Employment right Act 1996: This law of government state about various topics related to
employment contracts, family and friendly leave and unfair dismissal. HR manager should have
for employment contract so that such agreement can be used to resolve various issues that
happen between employer and employees of company (Lai, Saridakis and Johnstone, 2017). At
the same time family and friend leave should be offered to employees so that they can enjoy their
personal and professional life. Tesco HR manager cannot fire an employee on unfair basis as it is
against the law and ensure safety and security of employees.
National minimum Wage Act 1998: It refers to minimum wages to be paid by employer to
employees for their various work and activities performed for smooth operation of business.
Therefore HR manager of company by providing minimum wages is able to satisfy needs and
wants of customers and motivate them to work hard.
Employment relationship Act 1999: It state right of employees to trade union and industrial
action for safety and security of Individual. Tesco HR manager has to effectively build strong
relationship with trade union for achievement of goals.
Recommendation to improve employee’s relationship
HR manager can more strength employees relationship by using innovative and creative
method to motivate them to work as team for desired goals. Good working environment and
4