Impact of Employee Relations on Stakeholders

This report discusses the importance of employee relations and the fundamentals of employment law. It explains the various rights and duties of employers and employees in the workplace. The report also conducts a stakeholder analysis for Tesco and explores how employee relations impact different stakeholders. It evaluates the effects of positive and negative employee relations on customers, government, suppliers, and management.

Work and the Employment
Relationship
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Importance and value of employee relation and fundamentals of employment law...............3
2. Explain various types of rights and duties an employer and employee has at workplace.....5
3. Produce and conduct stakeholder analysis for chosen firm and explain how stakeholder
contribution unpin employment relationships.............................................................................6
4. Impact of positive and negative employee relations on different stakeholders. Evaluation of
positive and negative employee relationships.............................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Employee relation is defined as an organisation efforts to develop as well as maintain
positive relationship with all the staff members prevailing at workplace. By building employee
relations and maintain it positively help companies to retain staff members loyal & engaged in
work (Brewster, 2019). It is important for an organisation to maintain effective relationship with
employees as it directly effect on the performance as well as productivity of an organisation. For
the present report, Tesco is taken into consideration. The company was established in the year
1993 and its head office is situated at London, United Kingdom. It is a multinational retailer that
offer high quality groceries within the market. The company has around 7,000 shops worldwide
that is operated by its effective more than 12,000 employees. The present report covers the
importance of employee relation along with the fundamental laws that is applied to chosen
organisation. In addition to this, types of duties and right an employee and employer have within
the organisation is discuss in the report. Moreover, stakeholder analysis and positive as well as
negative effect of employee relation on stakeholders is cover in the report in a proper manner.
MAIN BODY
1. Importance and value of employee relation and fundamentals of employment law
It is determined that when employees gave good and healthy relationship with other employees
and higher authorities, the whole organisation is in benefit that has a positive effect on its
performance level. Nowadays, companies develop effective strategies and emphasise on
marinating good relationship in order to retain them for longer time frame at workplace and save
the cost of hiring new candidate for the company (Petit, 2019). It is determined that providing
positive environment assist in reducing absenteeism rate and impact positively on productivity of
the organisation. The value and importance of employee relation is given below:
Less conflicts at workplace: Development of employee relation at workplace is important
as it occurs less problems and conflicts within the organisation. In addition to this, it build
positive environment at workplace due to which employee enjoy their working and put their
mind efforts in implementing activities in proper manner. The managers and leaders of Tesco
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ensure that an effective relation is always maintain among employees and for this they conduct
informal meetings so that they get to know about each other that leads to development of positive
relation among staff members prevailing at workplace.
Increased productivity: By the assistance of employee relation, an organisation is able to
improve its efficiency level and earn higher profits. In relation to Tesco, it focuses on satisfying
employee requirements that leads to decline in absenteeism rate of staff members. In addition to
this, it help company to motivate employees which has a direct and positive impact on
productivity as well as profitability of Tesco.
Increase loyalty between employees: It is important for an entity to develop strong
employee relation and to communicate with them in continuous manner. It develop a sense of
belongingness among employees that directly leads to employee loyalty and also help higher
authorities if Tesco to retain staff members for longer time frame.
Fundamentals of employment law: Employment law is defined as an area which governs the
employee-employer relationship. This area is develop of both state and federal laws & involves
various subject on order to protect employee’s right (McCarthy, 2018). Tesco follow all the
fundamental of employee law such as promote healthy and safety, prevent discrimination, reduce
work disruption, develop a minimum require level for economic support and many more.
Acquisition of all this fundamental laws assist Tesco to make employees feel secure at workplace
and develop a positive mind-set that further help in retaining staff members for longer time
period. In addition to this, it is important for companies to follow and adopt all employment laws
in order to protect worker’s right in a proper manner.
Improving employee relations: The employee relation can be maintained by adopting several
ways which is given below in relation to Tesco:
 It is recommended to higher authorities to keep continuously interact with customers as it
help in identifying employee requirement or needs that can be fulfilled and leads to
employee satisfaction and retention.
 Employee relation can be maintained, if Tesco provided rewards and appreciate
employees by recognition in front of all the members for their performance. In addition to
this, it maintain a good relation among employees if they get output and benefits
according to the inputs they put towards attainment of objectives.
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 Encourage employee feedback can also assist companies to improve employee relations
as it enhance confidence level that has a positive effect on the overall productivity and
profitability of Tesco.
2. Explain various types of rights and duties an employer and employee has at workplace.
In organisation, every individual have roles and responsibilities and which is managed
and maintained by everyone in the firm. Rights and duties are heterogeneous from each other and
accordingly tasks are assigned to everyone. It is essentials that individual in organisation should
be aware about rights such as health and safety, equal rights, provisions of terms and conditions
etc. These are helpful for both employees as well as employer so that any unfair decision or un-
justice done by superiors or entities are identified in appropriate manner. Duties in corporation
are assigned by managers or leaders to members according to their skills and knowledge. In
relation with TESCO, duties and rights are being considered as first priority by management and
this leads to coordination, corporation and objectives are achieved in proper manner (Wellin,
2016).
Rights of employees
 Right to equality- At workplace, employee have right to be treated equally which no
discrimination is to be done regarding gender, religion, culture etc. In context to TESCO,
members in the organisation work with mutual understanding, coordination and
cooperation.
 Right to safe- Another one is right to safe that employee should be aware because at
workplace, anything could happen and safety is required to work without fear in the
organisation. In relevance with TRSCO, firm provide free medical insurance bonus and
incentives to employees so that high morale takes place (Karagonlar, 2016).
Rights of Employers
 Payments- In organisation, employer has right to access payments and incentives which
are fixed and should be paid accordingly. In context to TESCO, at every end of the month
or at every first week of starting of month, employers receive their payments as well as
incentives with full amount and if not HR manager of the company solve the problems or
issues faced by them.
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 Credentials- In firm, employers has right to be updated about every information
regarding the management as well as employees. In relation with TESCO, employers get
time to time update and this helps employers in preparing strategies and tactics.
 Duties of employees and employers- Employers main duty is to make ensure that every
employee is safe and secure in the entity. Whereas employee main duty is to work under
rules and regulations. Further, it also the responsibility of employers to ensure that every
employee is receiving basic needs such as clean workplace, quality of food etc.
Employee’s main duty is to maintain discipline within firm.
 Employee relation- It refers to managing relationship with employees under rules and
regulations. In context to TESCO, manager of firm make ensures that mutual relationship
is developed between both the parties. Through this, enterprise is able to achieve mission
and objectives in appropriate manner.
 Evaluation of psychological contract- It is defined as virtual contract between
employee and employer. This is a form of agreement but without involvement of
government of any legal consideration. This covers several assumptions such as
subordinates will be treated equally and fairly, effort made by employee towards will be
recognized by employer etc. Such contract establishes morale and ethics at workplace. In
context to TESCO, this contract helps the entity to develop trust amongst the members.
 Employee relationship management- This is a process through which relationship
between entity and employee is managed. In this, conflicts arise at wider level because of
difference in perception, attitude and behaviour. So, to manage and maintain such
problems employee relationship management is adopted ad required. In context to
TESCO, various mechanism is adopted by firm such as conducting co-curricular
activities, appraisal etc. It is duty of HR manager of the company to make ensure that all
high morale is present amongst the subordinates (Brewster, 2019)
3. Produce and conduct stakeholder analysis for chosen firm and explain how stakeholder
contribution unpin employment relationships
Stakeholder is defined as those person or individual who has interest in organisation.
Without these people, firm cannot carry out their activities, functions and operations. In every
entity, stake-holders are present because they are the source through which profit is generated.
In relation with TESCO, they have various stake- holder which is are mentioned below-
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Customers- People have perception that business is not carry out for serving customers. But it is
not true because, customers have stake in business such as in TESCO, end users wish for quality
of products, goods and services then only they are ready to make the payment (Ramus 2017).
Employee- In firm, employees are also stakeholders because they do have stake regarding
income and safety. In context to TESCO, enterprise give fixed income and provide safety to
employees by giving medical insurance and free health check-up.
Suppliers- Further comes the suppliers also known as vendors. They are the people through
which entity is able to gathered raw materials for their product and vendors has stake in income
and revenue. In context to TESCO, they maintain good relationship with suppliers so that profit
is earned by both the parties.
Government- No business can run their activities without involving are going through rules
and regulations. In relation with chosen firm, tax as well as GDP is collected by government at
larger level. So, there also considered as stakeholders in organisation.
Communities- One of the major stakeholder in corporate worlds is communities. This is
because; these are affected by several things such as economic development, health & safety etc.
In relevance with TESCO, they focus on such communities so that all the mutual relationship is
maintained amongst the people (Theiss, 2016)
Investor- Another stakeholder is investor who invest in business with stake of rate of return.
Such type stakeholders are basically concerned with shareholder value and amount. In relation
with TESCO, company is providing good and positive value or say return amount to their
investors. This assist in fund raising and generation of more capital revenue (McCarthy, 2018).
After a brief analysis of above matter it is stated that stakeholder analysis is necessary so that
those people are examined and identified who affect the business at deeper level. This helps in
maintaining and developing relationship amongst people accordingly who affect the most at what
level. Thus, analysis update firm and provide relevant information regarding the stakeholders.
Firm should keep positive relationship so that profit and revenue is generated amongst both
sources.
4. Impact of positive and negative employee relations on different stakeholders. Evaluation of
positive and negative employee relationships
There are various different types of employee relationships that are created in a
organisation with all the stakeholders that are present internally and externally and are impacting
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the way in which organisation is functioning Cuppen, 2016). In present scenario, there is a
discussion of these relationships of stakeholders getting impacted by employee relations.
Stakeholders in Tesco Positive employee relations Negative employee relations
Customers When there are positive
relations among employees
then it leads to catering to the
customers of Tesco in best
possible way which leads to
creation of a loyal base of
customers Khan, Skibniewski,
and Cable, 2019).
Negative employee relations
may lead to frustration and
internal conflicts that leads to
poor employee performance in
catering to their customers and
increase dissatisfaction of
customers (Kent, . and
Zunker, 2017).
Government Government forms various
policies that have to be
adhered by employees, when
there are positive employee
relationships then it leads to
proper implementation of such
policies in the organisation
(Petit, 2019).
Government also gets
impacted from the negative or
conflicting relations present
among employees as it
becomes more difficult to
manage the staff workforce
and implement various labour
laws practises within the
organisation.
Suppliers when there are positive
employee relations it leads to
long term satisfaction of
suppliers as they have to be
dealt in best possible way by
the employees
In case of negative employee
relationships then it leads to
negative impact on the long
terms association of a brand
that has been formed with
such suppliers. It is very
necessary for organisations
such as Tecso to form long
terms of relationships with
such suppliers so that they can
benefit them in long run in
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establishment of cost
leaderships as there are many
competitors of Tesco such as
Aldi. So, to get a competitive
advantage it is important for
Tesco to develop positive
employee relationships.
Management In case of positive employee
relationships between
employees the out becomes
very easy for the top
management to manage their
overall workforce in Tesco. In
case of any change that has to
be adopted then there will be
minimum resistance that will
be faced on part of employees
as there will be mutual
understanding among the
workforce and one positive
view point leads to change in
views of all employees in the
best possible manner (Rai,
Verlinde,. and Macharis,
2018).
When there are presences of
negative relationship among
employees then it leads to
creation of more conflicts and
then it again becomes very
difficult to manage such
amount of conflicts by the
mangers or leaders of Tesco.
Such negative relations also
lead to impact on the
productivity of employees and
their functioning.
Director Director of every organisation
and in case of Tesco is
responsible for the whole
management of staff and the
functioning of organisation.
So if there are better
Director is the top most
authority in case of Tesco, so
if there are presence of
negative relationships among
employees then it creates a
situation of rigidity on part of
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relationship that are present
among employees working at
various levels the in such case
it is very easy for Board of
Directors in formation of all
different policies and
procedures that have to be
developed and implied in the
course of achievement of laid
down goals and objectives.
employees as they are not
flexible enough to react to
positive contribution from
their side towards the
responsibilities assigned to
them in the course of
functioning and their
performance of assigned job
roles.
CONCLUSION
From the above study, it has been analysed that it is important for an organisation to
maintain good relation with employees so that they can work with full potential towards
attainment of company’s objective within stipulated time frame. In addition to this, there are
various rights of employers and employees which is not be acquired to be adopted in order to
maintain positive environment at workplace. The employee relation have both negative as well
as positive effect on stakeholders and in order to maintain positive effect , it is essential for
companies to emphasise on employee requirement as it help them to retain them for longer time
frame.
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REFERENCES
Books&Journal
Brewster, 2019. Comparative Employee Relations: An Overview of Contemporary
Developments and Scholarship. In International Comparative Employee Relations.
Edward Elgar Publishing.
Cuppen, E., 2016. 15 Stakeholder Analysis. Foresight in Organizations: Methods
Jennings., 2017. Employee Relations Audits. Taylor & Francis.
Karagonlar, 2016. Reciprocation wary employees discount psychological contract
fulfillment. Journal of Organizational Behavior, 37(1), pp.23-40.
Kent, P. and Zunker, T., 2017. A stakeholder analysis of employee disclosures in annual
reports. Accounting & Finance, 57(2), pp.533-563.
Khan, A.Z., Skibniewski, M. and Cable, J.H., 2019. The Project Stakeholder Analysis Process1,
2.
McCarthy, 2018. Engaging fringe stakeholders in business and society research: Applying visual
participatory research methods. Business & Society, 57(1), pp.131-173.
Petit, J., 2019. Automated Vehicles Cybersecurity: Summary AVS’17 and Stakeholder Analysis.
In Road Vehicle Automation 5 (pp. 171-181). Springer, Cham.
Petrin, 2016. A Balancing Approach to Corporate Rights and Duties. Understanding the
Company: Corporate Governance and Theory,(Cambridge University Press),
Forthcoming.
Rai, H.B., Verlinde, S. and Macharis, C., 2018. Shipping outside the box. Environmental impact
and stakeholder analysis of a crowd logistics platform in Belgium. Journal of cleaner
production, 202, pp.806-816.
Ramus 2017. Stakeholders matter: How social enterprises address mission drift. Journal of
Business Ethics, 143(2), pp.307-322.
Theiss,., 2016. Whose Rights, Which Duties? Political Claims in the Sphere of Labor Policy in
the Times of Crisis: The Social Citizenship Perspective. Politics & Policy, 44(3),
pp.473-498.
Wellin, 2016. Managing the psychological contract: Using the personal deal to increase
business performance. CRC Press.
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