The Value and Importance of Employee Relations in House of Fraser

This document discusses the value and importance of employee relations in House of Fraser, a retail company. It covers topics such as the fundamentals of employment law, suggestions to improve employee relations, and the impact of positive and negative employee relations on stakeholders. The document also includes a stakeholder analysis of House of Fraser and the role of stakeholders in maintaining positive employment relationships.

Work and the Employment
Relationship
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Part-1................................................................................................................................................4
Value and importance of employee relations..............................................................................4
Fundamentals of employment law..............................................................................................4
Suggestions in order to improve employee relations..................................................................5
PART-2............................................................................................................................................5
Rights, duties and obligations of employer and employee.........................................................5
Suggestion regarding rights, duties and obligations of employees and employers.....................6
Psychological contract and support for employee work life balance..........................................7
Various mechanisms for managing the employment relationship..............................................7
PART 3............................................................................................................................................7
Stakeholder analysis of House of Fraser.....................................................................................7
Stakeholders engagement and contribution in maintaining positive employment relationship..8
PART 4............................................................................................................................................8
The impact of both positive and negative employee relations on different stakeholders...........8
Positive and negative employee relationships can affect conflict avoidance and resolution of
House of Fraser...........................................................................................................................9
Different stakeholders perspectives and interest in business environment to help in positive
employment relationship ............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11
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INTRODUCTION
Employment relationship is define as the relation with take place between employers and
the employees within the organisation (Griffin, Bryant and Koerber, 2015). The primary motive
of employee relationship is to focus on various strategies in order to improve the relations and
perform work in coordination with each other. Moreover employee relations focus on line
managers by helping them in connecting and establishing relations with the employees of
organisation. The company chosen for this report is House of Fraser. The company was
established in UK by Hugh Fraser and James Arthur and they are belonging to retail industry.
They are dealing in clothing, cosmetics, accessories and many more. The topics covered in the
report are critical understanding the employment relationship, external and internal factors
effecting the relation, roles and responsibilities of stakeholders that influences the employment
relationship.
MAIN BODY
Part-1
Value and importance of employee relations
The healthy and strong relationship among the staff members provide benefit to the entire
organisation. From the research it has been identified that employees who have good relations
with its employees experience high productivity and smooth functioning within the organisation.
The value and importance of employee relation in context of House of Fraser is explained below-
 Retain loyal Employees- The companies who are unable to build health relations with its
employees then in such cases the retention of hard working employees becomes difficult.
In context of House of Fraser, the company focus on maintaining healthy relations which
helps them in retaining the skilled and loyal employees (Karanges and et.al., 2015). Increased productivity- In context of House of Fraser, the healthy and strong relations
among the members and high authorities contributes in increasing the volume of
production and enhancing the level of productivity.
Fundamentals of employment law
The fundamentals of employment law need to be followed by every organisation and for
that they have separate team known as HR department to regulate the laws. In context of House
of Fraser, they focus more on following laws related to employees-
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 Employment Right Act 1996- According to this act employees have full right to take
their own decisions and to put their view points in the decisions of the company. House
of Fraser consider its employees as the part of company and take their suggestions and
involve them in all the decisions of the company (Jennings, McCarthy and Undy, 2017).
 Equal opportunities act 1972- The company provide equal opportunities to its
employees that is no discrimination is one on the bases of preferences, like, age and caste.
They offer equal salary to its employees. On the bases of skills and capabilities of
employees the role is assigned to them so that they can do much better and has more
opportunities for their growth and development. Health and safety act 1974- In context of House of Fraser, the company take proper
measures at its workplace in order to ensure the safety of its employees. Moreover
employees are provided with health insurance so that in case they face any health issue
they can get good treatment. For company the health and safety of its employee is
important so hygiene level is maintain so that no one get infected.
Suggestions in order to improve employee relations
 Motivate employees- Motivation is one of the most effective step which
company can take as it helps in building strong relations with employees at
workplace. Moreover it contributes in encouraging employees to perform better
and they become more responsible and loyal towards company (Koch and
Manzella, 2019).
 Determine proper goals- Setting proper goals helps in directing the employees
and contributes in building good and strong relations with employees at
workplace. The goals should be set according to the skills and abilities of
employees so that it become easy for them to accomplish set goals. Furthermore it
provide better growth options to employees and they work more effectively and
efficiently in attaining the goals and objectives of company.
PART-2
Rights, duties and obligations of employer and employee
In account of organization, both employees as well as employers have set of rights, duties
and obligations to perform. It is mandatory to have proper knowledge about these factors as they
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play major role at workplace. In context of House of Fraser, the rights and duties of employers
and employees are described below-
 Safe environment- In order to carry the operations of the business it is necessary to
provide safe and healthy working environment to the employees in the company. Its the
duty of the employers to provide safe environment to its employees. Whereas in return its
the duty of employees need to make sure that they perform operations in a way that is
safe for other members (Mazzei Butera and Quaratino, 2019).
 Basic necessities- Its the right of employees and employers that they get their basic needs
fulfilled. Basic needs cover clean toilets, hygienic workplace, availability of drinking
water and many more.
 Right to information- All the information regarding training, safety, etc need to be
updated to all the employees on timely bases son that they should not remain unaware.
Whereas employers should have proper information about various rules and conditions of
government which may effect the functioning of company.
 Contract and agreement- Employers are obliged to provide written account of the
working conditions and work to be performed by employees. Whereas employees are
obliged to function according to the terms and conditions of agreement. Equality- Both employees and employers in the organisation are under obligation to treat
each other equally regardless of their nature, religion, age and many other.
Suggestion regarding rights, duties and obligations of employees and employers
 Right to implement a work policy- In context of House of Fraser, the employers of the
company should formulate and implement work policies according to their requirements.
 Right to keep copies- The employees should be provided with additional right to keep
copies of the documents which they sign.
 Special program- Its the duty of employers to provide specialised training to its new
employees. House of Fraser should adopt this as it helps them in understanding the
environment.
 Heath and safety authority- The employees should be more concerned regarding their
heath and safety and should not take extreme risk at work place.
 Regulation regarding safety- The employers within the company should be more
obliged to observe and regulate the health and safety policies.
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 Mutual trust & Confidence- The employees should be obliged to own each other a
responsibility of Mutual Trust and Confidence. As this helps in building better relations
within the company.
Psychological contract and support for employee work life balance
The psychological contract is define as the establishment of relationship between
employees and employers within the organisation and more concern about mutual inputs and
outcomes. In this majorly two aspects are considered that is inputs of the employees in their job
roles and how employers treat the employees within the organisation. It includes respect, trust,
fairness and other related characteristics which is applied beyond the employment conditions that
is to human relations and to society (Ntalianis, Dyer and Vandenberghe, 2015). It helps in
establishing trust and togetherness among the employees and employers of the organisation
which is helpful in maintaining work life balance.
Various mechanisms for managing the employment relationship
Employee relations are effected by many factors and it has impact on the relationship of
employers and employees. The balance between them is effected by various factors. In context of
House of Fraser, here are few mechanisms for managing employment relationship-
 Conducive workplace culture- The management of House of Fraser should focus on
enhancing the cultural values that is team leaders along with team should decide what
values represent the company and accordingly should take steps. This helps in building
strong relationship among the members of the company.
 Team members involvement- The team members should be involved in the decisions
and strategies as it helps in taking effective decisions which provide desire results.
Moreover this contributes in formulating good relationship.
PART 3
Stakeholder analysis of House of Fraser
In context of House of Fraser, the company is taking steps to reshape its store portfolio
according to changes in consumer needs and the level of competition they are facing in the
marketplace. The stakeholders of the company has faced main issues due to reshaping. The
company has faced problem in shifting its business to online platform and in maintaining its
position. As company is dealing in retail sector so its strategy is to make its business viable as it
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is facing high level of competition. For the investors of the company the investment in retail
property is the sure-fire investment. The investors are mindful in the strategies of the property.
Moreover the company need to be located at biggest centres in order to maintain its brand image
hence, require investors for prime locations (Poon, 2019). The stakeholders analyse helps in
gaining alignment on the goals and plans. The investors helps in solving the issues or conflicts
earlier so that company does not face any difficulties in carrying its business operations.
Stakeholders engagement and contribution in maintaining positive employment relationship
Operating and functioning in this business environment is quite complex and difficult.
The role of stakeholders is very important as their actions may effect the business and make
situations more challenging. In context of House of Fraser, the role of stakeholders in
maintaining positive employment relationship are as follow-
 Issues related to compensation- The employees are concerned about their pay and the
decisions of management regarding compensation policies and amount are determined
with the help of stakeholders. In context of House of Fraser, the stakeholders helps in
maintaining positive relations with the employees by considering their viewpoints and
accordingly take decisions regarding compensation issues.
 Affordability and open transparent communication- In context of House of Fraser,
the stakeholder are opened and establish communication with the employees along with
the management in order to know their points and nature. This helps in building positive
relationship with the employees of the company (Sahoo and Sahoo, 2019).
PART 4
The impact of both positive and negative employee relations on different stakeholders
There are different stakeholders within an organization that possess different levels of
power as well as interest and can impact it to a significant level. The various stakeholders of the
respective company, House of Fraser include customers, shareholders, employees, investors etc.
Employee relations can be defined as the efforts of a company to manage the relationships
between employers as well as employees. Employee relations can be both positive as well as
negative. Positive employee relations can keep the staff members of the organization happy and
engaged to their respective jobs. The levels of stress among the employees is less and thus, the
overall productivity is high (Unsal, 2019). If a company will have positive and strong employee
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relations, there will be growth and the company will be able to gain customer satisfaction. On the
other hand, negative employee relations can lead to the company performing in a negative way.
As a result, the stakeholders start losing their interest in the activities of the business. Therefore,
it can be said that it is very important to ensure that there are positive employee relations within
the organization as this can help the company to grow and expand in the market.
Positive and negative employee relationships can affect conflict avoidance and resolution of
House of Fraser
The employees relations in House of Fraser is important as they impact the performance
of employees. The relationship between employer and employees in this organisation is
important as they will affect the decisions of employees in the stores and provide experience to
customers in their stores and they will carry the similar work culture to customers. The
customers will feel important in their stores when the employees will treat them well and help
them in making purchase decisions. The employees are the most important assets to the
organisation and they should have a good relations so that they help in achieving profits. The
employers should explain the goals of House of Fraser to employees so that they feel that the
organisation care for them and they are important to the success of the organisation.
The negative employees relations will affect the performance of employees of House of
Fraser and they will not contribute to the success of the organisation. The organisation should be
employee centric where they have the rights but House of Fraser do not explain the policies to its
lower level employees. They should take the recommendations from employees and helps them
in making strategies for the organisation. The negative relation of employees will impact the
decisions of the management and increases conflicts between the management and the
employees and makes it difficult for the management to measure their performance in the
organisation.
Different stakeholders perspectives and interest in business environment to help in positive
employment relationship
Stakeholders are known as individuals who are affected by business activities and tasks. There
are many individuals and groups present within internal as well as external business
environment. Some of the stakeholders includes clients, customers, communities, shareholders,
media, government, etc. for a business, stakeholders are very important as they help in managing
and controlling all the business activities. Different stakeholders are involved in making
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decisions on the basis of different interest level (Wiggenhorn, Pissaris and Gleason, 2016).
There are important role of stakeholders within achieving goals and objectives of the company.
They are involved in making decisions for increasing profits of the company. The main function
of any business is to maximise profits and sales and this is enhanced by keeping in mind all the
stakeholders. Business owners have to work effectively by managing all the factors related to
business. There are key stakeholders which are operating outside the organisation and these are
managed by planning and developing business work. Business are responsible for stakeholders.
The concept of each and every purchase is dependent upon the way stakeholders analyse and
evaluate profit and marketing. There are different type of stakeholders which are involved in
managing the work and achieving goals.
Primary stakeholders are the ones who are positively or negatively affected by the regulation of
new policy of the company. Secondary stakeholders are the ones who are indirectly affected by
the effort which are involved in business process. There are several programs developed for
managing the secondary calls within an organisation. There are several key stakeholders who
have to engage within business operations for managing different executives, funders and
communities. The interest of stakeholders within business processes will help to make clear and
productive outcomes. It is seen that protection of open space and conservation of resources for
stakeholder analysis.
CONCLUSION
From the above study, it has been concluded that there are several dimensions which
effect the operations of business and the employee relations. All organisations have separate
department which focuses on maintaining healthy and strong relations with the employees. The
strategies and effectiveness in the techniques need to be evaluated properly in order to obtain
effective results. Transparency in communication helps in building strong relationship among
employees and also minimize the chances of misunderstandings. The healthy relations with
employees reduce the chances of conflict and mistakes.
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REFERENCES
Books & Journals
Griffin, J.J., Bryant, A. and Koerber, C.P., 2015. Corporate responsibility and employee
relations: From external pressure to action. Group & Organization Management. 40(3). pp.378-
404.
Jennings, C., McCarthy, W.E.J. and Undy, R., 2017. Employee Relations Audits. Taylor &
Francis.
Karanges, E. and et.al., 2015. The influence of internal communication on employee
engagement: A pilot study. Public relations review. 41(1). pp.129-131.
Koch, K. and Manzella, P., 2019. Introduction: The Language and Culture Perspective in
Employee Relations. In International Comparative Employee Relations. Edward Elgar
Publishing.
Mazzei, A., Butera, A. and Quaratino, L., 2019. Employee communication for engaging
workplaces. Journal of Business Strategy.
Ntalianis, F., Dyer, L. and Vandenberghe, C., 2015. Owner-employee relations in small firms.
Journal of Managerial Psychology.
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Poon, T.S.C., 2019. Independent workers: Growth trends, categories, and employee relations
implications in the emerging gig economy. Employee Responsibilities and Rights
Journal. 31(1). pp.63-69.
Sahoo, R. and Sahoo, C.K., 2019. Organizational justice, conflict management and employee
relations. International Journal of Manpower.
Unsal, O., 2019. Employee relations and firm risk: Evidence from court rooms. Research in
International Business and Finance. 48. pp.1-16.
Wiggenhorn, J., Pissaris, S. and Gleason, K.C., 2016. Powerful CEOs and employee relations:
evidence from corporate social responsibility indicators. Journal of Economics and
Finance. 40(1). pp.85-104.
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