Employee Relations: Stakeholder Analysis and Impact Report

This report examines employee relations within Marks & Spencer, focusing on its value and importance in fostering a positive work environment. It outlines the rights and duties of both employees and employers, emphasizing the significance of fair labor practices, equal opportunities, and psychological contracts. The report includes a stakeholder analysis, identifying key groups like employees, management, and suppliers, and assesses the impact of positive and negative employee relations on each. It highlights strategies for improving communication, offering benefits, and valuing employees to enhance productivity and reduce conflicts. The analysis suggests that strong employee relations are vital for maintaining a healthy workplace culture, reducing employee turnover, and ultimately improving the company's financial performance and brand image.

Work and the Employment
Relationship

Table of Contents
INTRODUCTION......................................................................................................................2
1. Value and importance of employee relation......................................................................2
2. Rights and duties of an employee and employer...............................................................3
3. Stakeholder analysis...........................................................................................................5
4. Impact of positive and negative employee relation on different stakeholders...................6
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
Employee relationship is all about valuing the organization with an experience of
people and it also deliver the best practice through which working relationship is maintain in
positive manner. In the same way, current study is based upon Marks and Spencer which is
atop multinational company who deal at different location and have diverse range of
employees as well. The report will provide value and importance of employee relations and
then define types of right and duties which employee and employer possess, along with
employee work life balance. Moreover the study will conduct stakeholder analysis and then
examine the impact of both positive and negative employee relations on different
stakeholders.
1. Value and importance of employee relation
The employee relation are valued in the quoted firm because it helps to improve the
relationship and collaboration at workplace. Such that good leadership is ranked as most
important factor in order to attract the range of new candidate and keep retaining existing
one. Therefore, it is stated that when employees have a strong and healthy relationship with
employers then entire company got benefits (Lee and Kim, 2016). Also studies showed that
of an organization maintain strong employee relationship then it is more likely to be happy
and loyal for long run. Thus, another importance of maintaining good employee relations is to
reduce the workforce conflicts and boost the staff morale which in turn improve the overall
productivity.
Therefore, with the help of employee relation, employees get satisfied and improve
the performance level which directly increases the company performance. Also, by applying
Unitarist theory of employee relationship it is analyzed that employee and employers are co-
dependent. Hence, the healthy workplace will always promotes the healthy workplace culture
and this in turn improve the employee experience which in turn improve the way of
communication between the employees. Apart from this, it is analyzed that high employee
turnover is consider biggest problem which companies face and that is why, there is a need to
maintain employee relation by offering range of extra benefits to them that lead to sustain
long term relation with them as well.
In addition to this, employment law is the area which governs the relationship
between employer and employee (Hardiyanto, 2017). Therefore, the fundamentals of

employment law within Marks and Spencer is the employment right, in which an employee
of a firm have a right to present their views and involve within a decision making process in
order to maintain better relation with company. On the other side, equal opportunity is
another fundamental which is covered under the employment law. In this, company should
ensure that there is no discrimination within a premises on the basis of race, caste, gender.
Moreover, company should ensure that there is equal pay and equality and diversity in the
workplace is complied that helps to treat all the employees at better level.
It is to be suggested to the firm that they use varieties of ways through which
employee relation are improved and some of them are as mention below:
 Improve communication: Poor communication is consider one of the most common
employee relation and that is why, Marks and Spencer should make sure that there is
an open dialogue and clear communication that helps to avoid employee confusion
and unnecessary stress. During this time, Human resource of the company should
ensure that employees should able to ask questions and also clarify the ideas which in
turn improve the results (Bacong and Encio, 2017). Besides this, communication
should be transparent and employees who feel that their managers are open, honest
and trustworthy so that they are able to manage the work.
 Offer extra benefits: Quoted firm should provide range of incentives and non-
financial benefit to their customers so that it will help to improve the relation of
employees. Also, specified target needs to be set and once these are attain then
company should offer the extra benefits that help to improve the productivity level.
 Helps employees feel valued: HR of the firm should ensure that employees are pillar
of the company and this is the key to maintain employee relation (Strategies of
employee relation, 2020). Also, appreciate them for performing well and keep
motivate them in order to increase their productivity which directly affect the
financial performance of a firm.
2. Rights and duties of an employee and employer
Rights, duties and obligations of an employee
 Employee should make sure that they work safely that helps to ensure about own
safety and health. Also make sure that their action do not cause harm to anyone in
premises.

 Always follow the instruction of employer on health and safety, or may ask for an
assistance if did not understand the information.
 In Marks and Spencer, employee may also report any hazard, injuries to their
supervisor and always cooperate with employer when they require anything (Brhane
and Zewdie, 2018).
 They also have a right not to discriminate at workplace, even employer do not have a
right to discriminate people or fire employee without any appropriate reason.
Rights, duties and obligations of an employer
 Employers have a responsibility to provide a safe working condition which further
comply with Occupational Safety and Health Administration standards. Its aim is to
protect the employees and reduce death and injury by providing proper equipment.
 The rights and responsibilities are also describe under Fair Labor Standards Act in
which proper working condition for job is prescribe. Also, if any employers find
violation of such law or refusing to pay overtime, then they are fined (Larasati and
Martono, 2020).
 As per the Whistle Blower Protection Program, employers have a responsibility to
promptly correct unsafe working condition. Hence they cannot retaliate against the
policy without any proper proof.
 On the other side, employers must have to pay their employees the salary as well as
benefit which they agreed in the contract, along with safe working environment.
 They have to treat their employees with respect and do not harass or discriminate
against anything.
Therefore, with the help of proper relationship between employee and employer, the
relationship will sustain for long run. In addition to this it is also analyzed that there is a
psychological contract between the employee and employers in which employee’s
expectation, beliefs, ambition and obligations are perceived by employers. Apart from this,
company also offer flexibility working hours in order to maintain the work-life balance.
Hence, it is stated that with the help of psychological contracts, an employer tries to meet the
demand of employees and once they fulfill the target then they offer extra benefits which in
turn improve the work-life balance as well (Holland, Teicher and Donaghey, 2019). So it is
also included in the right and duties of employment relationship.

Hence, it is suggested that to have a strong employment relationship, Marks and
Spencer adopt conducive workplace culture which help to creates positive working
environment and promote them transparently. Moreover, company also involve the team
members in order to accept the challenges and encourage the employees to share their work
with each other in order to generate the best outcomes. Apart from this, most of the company
regularly conduct the team meetings in order to discuss the common platform and these
meetings are too formal and then end with a positive tone. Therefore, this is clearly reflected
that by ensuring the duties and responsibilities, a company should involve all the employees
in order to generate best profit and take a business at further level of success as well.
3. Stakeholder analysis
It is a process of identify the people before project begins and then grouping them
which in turn determine the level of participation, interest and influence in the project.
Through stakeholder, they encourage to participate in different stages of a project and also
reduce the negative impact as well. Hence, stakeholder matrix is used that helps to determine
the needs to develop and deliver the quality product in the first attempt. So by using the
Mandelow’s stakeholder matrix there are different stakeholders identified and their role is as
mention below:
Power
Keep satisfied Manage closely
 Employees
 Customers
 Board of Directors
 Management
Monitor Keep informed
 Suppliers  Government
Interest
Primary stakeholder: This type of stakeholder affected the most and either
positively and negatively affected the organization’s action. Hence, this type of stakeholder
also assist to promote the business at further level of success. Further, keep satisfied and
manage closely are fall under this category and this in turn helps to take a business at further

level of success as well (Lansbury and et.al., 2020). They are highly interested and have a
high power in order to make decision for the company and highly influence the decision as
well.
Secondary stakeholder: This type of stakeholders are intermediaries which means
the person who indirectly affected the organization’s action. Such that they manage closely
all he operations but involve themselves in the decision making process to increase the
performance of the company up to some level. These stakeholders are Board of directors and
management authority who make decision by considering all the other stakeholders in order
to make decision. These stakeholder are interested at medium level, but have a strong power
to change the decision and make new one.
Tertiary stakeholder: These stakeholders are those who will be impacted the least
but play an important role in the success of company. Such that government and suppliers are
the least affecting stakeholder who do not have interest but once the decision is taken then it
affect them as well. Therefore, under stakeholder matrix manage closely and keep informed
categories are fall under this in order to manage the organization’s success. Hence, they have
a least interest along with power because they only accept the decision made by the company.
By developing good relationship with stakeholder will help to take a business at
further level of success. Such that by strengthening the relationship with community,
company is able to maintain the positive relationship with stakeholder and this in turn
improve the potential customers as well. Hence, stakeholder engagement will help to generate
the long term and positive relationship with the prominent stakeholder through engagement
(Wilkinson and et.al., 2020). That is why, involving stakeholder within a decision making
process will help to creates positive working environment within a business and this in turn
improve the financial performance as well.
In addition to this it is also analyzed that through proper contribution of stakeholder,
employment relationship is generated in positive manner and this will turn to improve the
results of a company as well. Also, all the stakeholder i.e. employees and employers of the
Marks and Spencer involve themselves in the decision making process which in turn improve
the results and also generate the best outcome for future. Moreover, it is further examine that
with the support of all stakeholder, most of the employees will maintain the positive
relationship with company. Hence, it is examine that there is through effective stakeholder
analysis company generate the best results and also sustain the brand image at global level.

4. Impact of positive and negative employee relation on different stakeholders
In an organization, most of the stakeholders plays an important role in the company.
Such that managers always assign roles and duties to their employees and increase motivation
among them. Therefore it helps to maintain the employee relationship which in turn improves
good communication. Hence it is stated that it also involves recognizing the employees
efforts within the workplace (Mazzarol and Reboud, 2020). On the other side, all the internal
stakeholder also wants to minimize the workplace conflicts and this in turn increase the
productivity level of the firm as well. It is also analyzed that workplace conflicts are consider
one of the major reason behind unsuccessful business and due to difference between
employee and employers, the chances of conflict increases. This creates negative impact upon
the employee and hence leads to affect the employee relationship as well.
Moreover it is also analyzed that stakeholder also improve the trust and build
confidence such that board of directors also make strategies in order to maintain the positive
relationship with employees. For that they offer range of incentive and extra benefits that
assist to increase the confidence of the customers and also having good employee relationship
as well. In addition to this, it is also analyzed that managers are also entrusted with keeping
the organization’s effort for better employee relations on track and this in turn helps to
increase the communication between employees and employers as well. Apart from this
another positive impact of having shareholder is such that it helps to ensure a better
workplace culture. Such that employees always desire to work for those organization with a
thriving work culture.
Apart from this, it is also analyzed that there are negative impact of stakeholder such
that having negative employee relationship will lead to conflict and every employee have
different perspective and that is why, it is necessary for the company to manage all the
stakeholders so that it will not affect the results in opposite manner (Stoldt and et.al., 2020).
For example, employees and board of director have high interest to make decision and this in
turn leads a business towards positive manner. Further, company take action for the welfare
of a company and that is why, it is necessary for the firm to generate the best outcome which
in turn sustain the brand image at global level.
Hence, it is clearly examine that stakeholder have both positive and negative impact
upon the business and they also influence the employee relationship. Also, stakeholder have
different perspective and with the help of their views and contribution company is trying to

perform well. For example, in Marks and Spencer, managers and leaders are make sure that
the employees will be happy within a working premises and this in turn improve the results of
the company because it directly affect the productivity. Hence it is examine that that there is a
positive as well and negative impact upon the relationship. If stakeholder affected in negative
manner then it leads to creates conflicts and if manager avoid the same then employee
relation got affected. That is why, it is necessary for the firm to ensure that all the employees
are happy and perform well within a premises.
CONCLUSION
By summing up above report it has been concluded that employee relations are valued
and important for sustaining the brand image of the company such that Marks and Spencer
also uses range of laws that helps to keep their employee happy and safe. Moreover, the study
also concluded some strategies that help to sustain the employee relation for long run. Apart
from this, report further concluded that both employee and employer have their own rights
and duties which needs to be followed, otherwise it will lead to create negative working
environment within a business. Through Mandelow Stakeholder matrix, study also
summarized different stakeholders and their contribution to take a business at further level of
success. Lastly, study examine the impact of both positive and negative employee relations
on different stakeholders.

REFERENCES
Books and Journals
Bacong, C.I.M. and Encio, H.A., 2017. Effect of Employee Relation to Job Performance in
Engineering, Construction and Manufacturing Company. Asia Pacific Journal of
Education, Arts and Sciences. 4(2). pp.103-111.
Brhane, H. and Zewdie, S., 2018. A Literature Review on the Effects of Employee Relation
on Improving Employee Performance. International Journal in Management & Social
Science. 6(4). pp.66-76.
Hardiyanto, S., 2017. Pengaruh employee relation Terhadap kepuasan komunikasi karyawan
PDAM Tirtanadi cabang Sei Agul. Jurnal Interaksi: Jurnal Ilmu Komunikasi. 1(1).
pp.43-49.
Holland, P.J., Teicher, J. and Donaghey, J. eds., 2019. Employee Voice at Work. Springer.
Lansbury, R.D. and et.al., 2020. International and comparative employment relations:
National regulation, global changes. Routledge.
Larasati, A.P. and Martono, S., 2020. Increase Employee Morale Through Transformational
Leadership, Employee Relation, and Work Environment. Management Analysis
Journal. 9(1). pp.1-7.
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.
Mazzarol, T. and Reboud, S., 2020. Work Book: Small Firms and Human Resources.
In Workbook for Small Business Management (pp. 67-73). Springer, Singapore.
Stoldt, G.C. and et.al., 2020. Sport public relations. Human Kinetics Publishers.
Wilkinson, A. and et.al., 2020. Handbook of research on employee voice. Edward Elgar
Publishing.
Online
Strategies of employee relation. 2020. [Online]. Available through:
<https://hraffiliates.com/strategy-for-effective-employee-relations/>.