Value and Importance of Employee Relations in an Organization

This document discusses the value and importance of employee relations in an organization, including the fundamentals of employment law. It explores the impact of positive and negative employee relations and the role of stakeholders in supporting employment relationships. The case study focuses on Tesco Plc, a multinational organization in the grocery and general trading goods industry.

Work and the
Employment
Relationship

Table of Contents
INTRODUCTION...........................................................................................................................3
1) Value and importance of employee relation as well as fundamentals of employment law in
the context of the organisation....................................................................................................3
2) Different types of rights, duties and obligations of an employer and employee...................5
3) Stakeholder Analysis, their engagement and contribution to support employment
relationships................................................................................................................................7
4) Impact of positive and negative employee relation ...............................................................9
REFERENCES................................................................................................................................1
.........................................................................................................................................................1

INTRODUCTION
The human resources of the organisation is one of the crucial resource that an
organisation posses and it becomes important for the organisation to manage them. This can be
done by building and managing relations with the employees. The HR managers need to wok on
this with the help of three pillars such as communication, recognition, feedbacks and by
investing in the employees by providing them the trainings. They have to adopt various
techniques which helps them in managing the relations and this can be done by making the
vision of the organisation clear. Employees relations has the influence on the behaviour of the
stakeholders and to understand such influence this report is prepared. The organisation which is
taken into consideration is Tesco Plc which is a multinational organisation offering a wide range
of groceries and general trading goods. In this report the value and importance of employee
relations, fundamental of employees law, stakeholder engagement and their contribution are
included which will help the to create an understanding of the concepts. Along with this the
rights, duties, obligations of the employees and employers are also taken into consideration.
1) Value and importance of employee relation as well as fundamentals of employment law in the
context of the organisation
Employees relations are the ways in which an organisation interacts with the employees
working in their organisation. By managing the relations among the employee ad the employer
the organisation can reduce the chances of conflicts, motivate them to achieve the goals of the
organisation. Tesco Plc is an multinational company which has employed a large number of
people so it is important for them to manage the relations. The importance of employee relation
for Tesco Plc are :
 Increased productivity : Healthy relations among the employees and the employer
makes employees feel satisfied as they can easily communicate the issues that they faces.
This increases their productivity and this ultimately increase the productivity of the
organisation (Sigala and Chalkiti, 2015).
 Collective decision making : The individual cannot take decisions on his own in that
case they need guidance and advice. As the employees relations in Tesco are better it
helps them to take creative ideas from the employees to resolve the issues faced by them.

This is possible because they provide a platform to their employees to put their ideas
before the management.
 Discourage conflicts and fights : Better relations develop the ability in the employees to
adjust and avoids faults in each other. In Tesco Plc, the employees share understanding
due to which the management do not face any conflict. Even the employees and
management have healthy relations which is why they easily resolve all the issue as they
have understanding for each other.
 Reduces absenteeism : When organisation becomes a happy place to work it motivates
the employees to work with concentration and reduces their stress which ultimately
improves their performance. In Tesco, the happy environment of the organisation
reduces the employees absenteeism as they get motivated to work from their
surroundings.
Along with the employees relation the organisations also have to focus on various employment
laws whose terms are to be fulfilled by them as it is important for the organisation to avoid the
legal proceedings.
The employment law of UK regulates the relations between employers and the workers.
Various acts are applicable on the organisations operating in UK to safeguard the interest of the
employees. They provides various rights to the employees at the workplace such as safe system
of work, equality among all in regards to wages, opportunities etc. Various employment laws
which Tesco has to complied with are :
 Equality act, 2010 : This act embodies various principles which suggests that each and
every individual in the organisation should be treated equal and fair. This law explicitly
prohibits discrimination on ten grounds which are provided under the law such as race,
disability, marital status etc. The act has to be complied by Tesco that ensures that all the
employees in the organisation are treated equal and fair (Sankar 2015).
 Job security : The employees of the Tesco has the right to make their job secure for
which the government of UK has imposed various act with which the company has to
complied with. Contracts of Employment Act 1963, Redundancy Payments Act 1965 and
the Industrial Relation Act 1971 are the principle act that ensures job security. These acts
compel the organisation to follow various regulations such as at least one week notice

before dismissal, dismissal must be fair. Also if they dismissal any employee because
there is no requirement in that case they have to make redundancy payments.
On the basis of above identified points it is identified that they can undertake various suggested
steps to improve to employees relations effectively :
 they should comply with all the legal terms and conditions which will help them to
make their employees feel treated equal and fair
 efficient training programs for all the employees as per their roles will motivates them
to work
 conduct various seminars which will develop an understanding of various issues and
situation faced by the organisation
2) Different types of rights, duties and obligations of an employer and employee
The employee and employer both have some rights, duties and obligations towards the
job and role they have in the organisation. Various such rights, duties and obligations are given
below :
Basis Rights Duties Obligations
Employer  The employer has
right to
confidentiality
according to which
they need not to
disclose any
information which
is crucial for the
organisation.
 They have right to
implement various
policies in the
organisation.
 It is the duty of the
employers to treat
all the employees
equal and fair
without any
discrimination at
the workplace.
 The employer is
responsible for
providing
information,
instruction and
supervising the
employees.
 The employer is
obliged to observe
various laws, acts
and contracts.
 It is the obligation
of the employers to
provides a written
account of
conditions of work.
Employees  The employees has  It is the duty of the  The employees are

the right to have a
safe workplace free
from toxic
substances,
dangerous
conditions etc.
 They have right to
get fair wages for
the worked done
by them.
employee to obey
the employer and
to comply with all
the rules
implemented by
them.
 The employees
need to perform
their job faithfully
and with care and
diligence.
obliged to follow
the instruction that
are provided to
them by the
management.
 They have to be
target focussed and
need to consider
the interest of the
employer.
The employers and employees of Tesco Plc also have the same rights, duties and
obligations which helps them to carry out their jobs. But the supervisor of the Tesco need to
provide clear instructions to the employees which will keep them target focussed and to
effectively perform their job.
Psychological contracts are the promises that defines the relations between the employer
and the employees which are not on any written document but are expected from both side.
These contracts helps the organisation in improving their human resources by increasing their
productivity and focussing on the skills and performance of the workforce (Panchanatham and
Jayalakshmi, 2016). Tesco plc helps and support the employees in their work life balance and
this can be illustrated by the following :
 it helps to keep the employees engaged in the business by letting people know what they
expect from the organisation which will help the employer to motivate them accordingly
 it helps the employees to use their skills and talent to contribute to the organisational
goals as they have understanding of the environment in which they operate, that helps
the employees to meet with their obligations
 it also help the employer to understand the behaviour of the employee with the help of
which they can employer can better align the customer with the employee
Mechanism for managing employment relationship

Employment Relationship establishes the links between the employee and the employer
on the basis of which the rights, duties and the obligations are created. Various mechanism for
managing the employment relationship are :
 the employees of the organisation expects just and fair treatment by the management
 the job of the employees has to be interesting that it must not be monotonous, this can be
done by offering them various tasks which can make them attentive
 employees of the organisation must be awarded and need to be appreciated for the work
done in a better way
 the employees should be provided with competitive salary which should be fair and
enough
The Tesco plc offers various such employment relationship mechanism to their
employees which will help the to make the employees relations strong and healthy that creates
understanding among them.
3) Stakeholder Analysis, their engagement and contribution to support employment relationships
Stakeholders analysis is a process which is associated with identifying the stakeholders
before any project and grouping them on the basis of their level of participation, influence and
interest in the project. The analysis help to enlist all the key players of the organisation, to align
all the stakeholders with the goals and plans of the organisation. Stakeholders analysis is an
important part of the stakeholder management. It can undertaken by the organisation once or on
regular basis as it helps them to identify the changes in the attitude of the stakeholders.
Tesco has various stakeholders such as shareholders, employees, government, local
community, customers etc. for which they have to undertake stakeholders analysis that will help
them to manage their stakeholders for the changes in them and the changes in the organisation.
To conduct the stakeholders analysis the power/interest matrix can be used by them. This is one
of the most common matrix which is used by the organisation for analysing the stakeholders
(Lee and Kim, 2016). The dimension which are used in this model are power and interest which
can vary from stakeholders to stakeholders. Tesco applies in matrix in their organisation as :
 Context Setters : The government and society fall in this category as they have least
interest in the projects of the Tesco but they influence them by implying various laws,
acts and policies. Due to this it becomes important for the company to keep them
satisfied.

 Key players : The shareholders of Tesco are considered to be the key players as they are
interest in the project in the company is inventing and they have powers which can
influence the organisation. So it becomes important for the organisation to engage and
consult them in the organisation (John, Knyazeva and Knyazeva, 2015).
 The Crowd : The customers of the organisation fall in this category where they have no
interest in the projects of the company along with that they cannot directly influence the
business which is why it becomes important to just monitor them to identify the changes.
 Subjects : The employees of Tesco are subjects as they are highly interested in the
projects of the company but they have less powers to influence them. The Tesco has to
keep their employees informed as they are directly related to them.
Illustration 1: Power/ Interest Grid
(Source : Analysing and Classifying Project Stakeholders, 2019)
Stakeholders engagement and contribution : Effective employee relations tries to get
the commitments of the stakeholders. They promote the communication in the organisation as
the stakeholders can be internal and external which has to be informed. The stakeholders of the
Tesco helps them to take decisions by understanding the various factors that can affect the
organisation. The employees relations are supported as they focus on effective communication
and make the organisation consider all the factors (Henisz, 2017).

4) Impact of positive and negative employee relation
Employee relation in the organisation makes the environment comfortable for the
employees and the employers to achieve the goals of the organisation. It helps the employers to
treat all the employees fair and equal. The stakeholders of the organisation contributes to the
organisation and in the employee relations also. The stakeholders of the Tesco such as
shareholders, employees, customers, government etc. helps the organisation in achieving their
goals and by contributing in their operations. The stakeholders of the organisation facilitates
effective communication due to which the communication among the employees and the
employer is also improved. The positive impact of employee relations which can help in conflict
avoidance are :
 The better and healthy employee relations helps the Tesco to avoid the conflicts as it
develops the understanding among the employees and the employer.
 The employees of the organisation can easily be motivated which helps them the
employees to improve their performance and the stakeholders such as shareholders are
benefited out of it as improved performance of the employee increases the profitability of
the company.
 The healthy employees relations helps the Tesco to retain the employees for a longer run
which is why they can easily implement their projects as they do not have to waste time
on the training of the employees again and again.
The negative employee relations has adverse impact on the organisation as it can leads to more
of conflicts in the organisation and it becomes difficult for them to retain the employees. Various
such negative impact ultimately affect the performance of the company(Heckscher, 2018)
.
All the stakeholders have their perspective in regards to the business on the basis of
which they analyse various factors in the environment. The analysis so made by them are further
used by the Tesco in their decision making. This helps the company to avoids the conflicts and
the adverse impact on the organisation and thus on the stakeholders themselves.

CONCLUSION
It is concluded from the above report that the organisation need to understand the
importance of employee relation as effectiveness in the relations helps the organisation to
achieve their goals. Also it is identified that the management of the organisation identifies
various obligations for the employers and the employees on the basis of which they have to
perform their roles. The stakeholders of the transnational also influence the organisation as they
have powers to do so.

REFERENCES
Books and Journals
Heckscher, C.C., 2018. The New Unionism: Employee Involvement in the Changing Corporation
with a New Introduction. Cornell University Press.
Henisz, W.J., 2017. Corporate diplomacy: Building reputations and relationships with external
stakeholders. Routledge.
John, K., Knyazeva, A. and Knyazeva, D., 2015. Employee rights and acquisitions. Journal of
Financial Economics. 118(1). pp.49-69.
Lee, J. and Kim, H., 2016. Do employee relation responsibility and culture matter for firm
value? International evidence. Pacific-Basin Finance Journal. 40. pp.191-209.
Panchanatham, N. and Jayalakshmi, V., 2016. A study on employee safety and workplace
hazards in relation to performance of jewellery manufacturing industries. Journal of
Contemporary Research in Management.11(3). p.1.
Sankar, M., 2015. Impact of hygiene factors on employee retention: Experimental study on
paper industry. Indian Journal of Management Science. 5(1). pp.58-61.
Sigala, M. and Chalkiti, K., 2015. Knowledge management, social media and employee
creativity. International Journal of Hospitality Management. 45. pp.44-58.
Online
Analysing and Classifying Project Stakeholders, 2019. [online] Available through : <
https://sites.google.com/site/hctm375newbusinessventure/progress-report-1/power-interest-grid>
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