Employee Relations: Employment Law, Stakeholder Engagement Analysis

This report analyzes employee relations and employment law within the context of the multinational company Harrods. It explores the importance of strong employee relations, detailing the fundamentals of employment law, including equality, health and safety, and data protection. The report examines the rights, duties, and obligations of both employers and employees, offering advice on fostering positive employment relationships and evaluating the role of the psychological contract. A stakeholder analysis is conducted, outlining the steps involved and how stakeholder engagement contributes to positive employment relationships. The report further discusses the impact of employee relations on various stakeholders, including increased motivation, trust, and work-life balance, ultimately enhancing employee loyalty. The report provides suggestions for improvements to employee relations, such as giving positive feedback, improving communication, and offering career development.

Work and the Employment
Relationship

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.Importance of employee relations with the organization and explaining the fundamentals of
employment law...........................................................................................................................3
2. Rights, duties and obligations of employer and employee and advice related to employment
relationship. Evaluation of psychological contract in respect to employment relations..............5
3. Stakeholder analysis for the organization and how stakeholders engagement bring positive
employment relationships............................................................................................................6
4. Impact of employee relations on stakeholders.........................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Employment relationship means the relationship between the employee and employer.
The relationship is followed by legal regulation, employees have the right for equal treatment in
the organization. Along with this employees are entitled to get security and training from the
company. Harrods is a multinational company which was founded in 1849. Company is famous
for bags, shoes, perfumes, crockery etc. this report will discuss the importance of employee
relationship and fundamentals of employment law in application with organization. It will
explain rights, duties and obligations of the employer and employee at workplace. Further it will
conduct stakeholder analysis and will also show stakeholder engagement in employment
relationship. Final part of report will discuss the impact of positive-negative employee relations
on different stakeholders.
MAIN BODY
1.Importance of employee relations with the organization and explaining the fundamentals of
employment law
Importance of employee relations:
If the employer and employee relations are strong then it will be helpful in retaining the
loyal and high performer employees because loosing good employees is the big loss to the
company. Harrods make sure that they provide good working environment which will bring
comfort level amongst employees so that they remain loyal to the organization (Duggan and
et.al., 2020). Company which have healthy relations between employer and employee are tended
to be more successful. It is also helpful in reducing the workplace conflicts. When a person will
get peaceful workplace then they will enjoy working which will likely to have less conflicts.
When company will value their employees then they will motivate and that will increase their
productivity. Improved productivity will help the company in generating more revenue. If the
relationship will good then it will build trust between employee and employee and in that case
employee will listen more to the employer and employee will follow what employer say rather
arguing every time. It will also enhance work life balance. Nowadays work culture is becoming
hectic as due to workload and bad employee relations generally results in hiding the problems.
Fundamentals of employment law:

Employment law is the law which handle the employer and employee relationship and it
is mandatory for every company to use employment law. The main aim of this law is to protect
the rights of the workers (Greer and Doellgast, 2017).
Right of equality:
It is one of the most important employment law. It means that each and every employee has the
right to get equality. Companies have no right to discriminate employees on the basis of age,
gender, religion, colour, caste etc. Harrods make sure that work is divided equally among the
workers, and they are getting salary on the basis of work done. There should be no biased on the
workplace.
Health and safety:
Health and safety is the another right of the workers. Safe working environment must be
provided by the organization so that they can work comfortably without any fear. In this
pandemic time proper hygiene should be maintained at the workplace. Sanitization should be
done on regular basis and also following social distancing. In order to ensure safety and health,
company provides health insurance to the workforce (Kaufman and et.al., 2021).
Data protection right:
Data protection means that personal information of the employees should be protected by the
organization. As company is not allowed to share the data of their employees without their
permission and if the company does then it will consider as crime. If in the case personal
information is very important to be shared then company have to take permission from the
worker before sharing the personal data.
Suggestions to organization to improve employee relations:
giving positive feedbacks:
Employee relations will become stronger if the superior will give positive feedbacks. If the
employee is performing good then he or she should be appreciated from their superior publically.
Harrods should make their employees feel that they are valuable to them (Lansbury and et.al.,
2020). By this employee will feel that they are the asset for company and that will motivate them
to work hard.
Improving communication:
Communication through emails are not sufficient. Workers are the important resource to the
company so here personal communication is important. Managers should be approachable every

time. So if workers face any problem they can easily contact to the superior. Flexible
communication will help in reducing the conflicts and which will help the organization in
attaining success.
Career development:
Company should help the workers with career development which will increase motivation and
company will also get well-equipped workforce (Carnevale, Jennings and Eisenmann, 2019).
Managers should provide training to the workforce so that will be helpful in developing skills
which are required to do the work effectively.
2. Rights, duties and obligations of employer and employee and advice related to employment
relationship. Evaluation of psychological contract in respect to employment relations.
Rights and obligations of employer:
Employer has the right to hire the workers. They are having the duty to manage the work
at the workplace and also regulating the employees. Have the right to dissolve the contract of
employment within the limit given by the law (Aylott, 2018). Harrods say that employer has
obligations to treat employees equally regardless of their gender, caste and colour.
Rights and obligations of employee:
It is duty of the employee to do the work for which they are hired by the company.
Workers have the right to demand for healthy and safe workplace. Employees have obligations
to work seriously and listen to what their managers are saying.
Advice related to rights and duties of employment relationship:
Company should not discriminate on the basis of gender or religion etc. they should treat
the workers equally. Employee should also listen to what their superior say because it is the duty
of employee to work according to the instructions given by the employer. Company should
focus on giving flexible working hours to their workforce. Along with salary company should
come up with reward programs, this will motivate workforce because they will think that
company is providing other benefits to them. Managers should also involve employees in
decision-making process (Schwartz and et.al., 2019). If the employee will be included while
taking decisions then they will feel that company value them and that will boost employee
morale. Company should ensure proper safety and security amongst the workplace which will
build trust within employees.

Psychological contract and support for employee work life balance in relation to
employment relationship.
Psychological contract:
Psychological contract means the expectations related to employment relations which are
not written and is different from the employment contract. It evolves with the communication
between the employment relations.
Support for work life balance:
Positive employment relations will support work life balance. Harrods provide flexible
working hours to their employees because company feels that apart from professional life
workers also have their personal life (Krishnan, Loon and Tan, 2018). If employee will spend
quality time with their friends and family then they will come with good energy at office. When
employee is happy and positive then he or she will work with more concentration and can
contribute more in the growth of company.
Mechanisms for managing the employment relationship:
conduct regular team meeting:
Collect all employees via meeting and the leader should start the meeting with positive pitch. So
that employee will also feel that the meeting is not only for formality but the meeting is
conducted because company care about them.
Recognition:
when good work is done by worker then manager should appraise them for good performance as
this will help in boosting employee morale.
Communication:
Effective communication help in building healthy employment relationship. Poor communication
will lead to misunderstanding and conflicts (Sexton and et.al., 2017).
3. Stakeholder analysis for the organization and how stakeholders engagement bring positive
employment relationships
Stakeholder analysis:
Stakeholder analysis identify people who will participate in the project, grouping them in
order of the participation level and interest and knowledge in the project. Determining the best
strategy and communication within stakeholder groups.

Steps involve in stakeholder analysis:
determining the stakeholders:
List down all stakeholders who will participate in the project (Stakeholder Analysis., 2021).
After listing down all in the end can reduce unwanted stakeholder but in the initial stage listing
all is must so does not miss out any potential stakeholder. Potential stakeholders can be staffs,
consultant, marketing, finance, operations etc.
prioritizing the stakeholders:
After the stakeholder list has been made and determined the people who will take participation,
then harrods have to category it on the basis of interest, knowledge, participation level into the
task etc.
Power interest grid:
high power high interest:
The stakeholders which comes under this are very important to the company. Harrods should
make efforts to make these stakeholders happy. As they have more interest into the business and
their influence is also more.
High power low interest:
These stakeholders have influence on the company so harrods should make sure that they
satisfied such stakeholders. But they don't have major interest in the project. So always having
communication with them is not essential. These stakeholders have more power to take decisions
but their interest in business operations is low.
Low power high interest:
These stakeholders have to be informed on regular basis, so that can be found out that they are
facing any issues or not. The stakeholders do not have more power or cannot influence business
but have interest in business.
Low power low interest:
These stakeholders have to be informed on periodically. And not on regular basis. Employees
can be included in this category because they have less power and less interest in business
operations. All they care about is the salary (Leonidou and et.al., 2018).
Stakeholder engagement and contribution supporting positive employment relationships:
Stakeholder engagement:

It is the method through which company does communication with their stakeholders so to know
them better. If company knows then they will understand that what stakeholder actually want and
how they will engage. Moreover, companies actions will influence them or not.
Stakeholder support positive employment relationships:
Stakeholder contributes a lot and through their contribution company can get healthy
employment relationships. Stakeholder engagement helps harrods in getting good reputation in
front of public. Further, help the company in analysing market trends and to grab opportunities
so to gain competitive advantage. If stakeholder contribute then it will make company's and
stakeholder relationship more better. Stakeholder which involve employees, if they contribute in
the company by working hard then it will build positive employment relationship.
4. Impact of employee relations on stakeholders.
Increase motivation:
If workforce will get healthy working environment then they will motivate to work hard. Having
good relations with the workforce does not mean that only have good communication with them.
Employer should also appreciate efforts of their employees. Appreciation motivate employees
and this will increase the productivity.
Increase trust and confidence:
Building trust is not easy. Harrods believes that it is the two-way efforts by employer and
employee (Jones, Harrison and Felps, 2018). Trust and confidence at workplace fa ciliate
positive employee relations. Trust also build through communication that how the employer is
communication with their employees.
Enhancing work life balance:
Nowadays due to excess work pressure, job has became hectic. Workload has made the
employee demotivated. In this case negative employee relations can result in hiding problems by
employees (Coetzee and et.al., 2018). Workers will feel that they are not having good relations
with their superiors so there is no sense if they will share their issues with the employer.
Increase employee loyalty:
employees will not think more regrading leaving job if they feel that they are not getting good
working environment. Negative employee relations will cost company financial loss because if
the hired employee will leave organization, then cost related to hiring or cost incurred in training
and development will go waste.

Positive and negative employee relationships can affect conflict avoidance and resolution:
Workplace conflicts is the main of unsuccessful business. The major reason of arising the
conflicts can be the difference between employer and employee relations. If conflicts are not
solved on time then it can grow further. Harrods manager conduct meeting weekly so that they
can communicate with their employees. In that meeting employees are asked about the problems
and manager help them in solving the issues if they have any. If there is good employment
relations then employer will not take biased decisions and that will eliminate conflicts from the
workplace.
Negative employee relations are very harmful because it can cause even misunderstanding with
the employer and employees. Sometimes conflicts is also the reason of employees leaving the
job. Conflicts facilitate unhealthy working environment and bad work culture will decrease the
morale of workforce. Negative employment relationship will not let resolution of small issue
also. Negative relation will always arise conflicts. If employer have bad relations with the
employee, and he or she will never satisfied with the work done by the employee.
Interest of different stakeholders on business environment which support positive
relations:
owners:
They have high interest into business because they influence business decisions and are directly
entitled with business profits. So they want that positive employment relations should prevail so
that organization can reach towards success.
Employees:
Employees have moderate interest in business. They care about business profits but are not
worried always about loss incur by business because at the end employees are getting their
salary. Whether business will gain profit or incur loss, employees will get their salary.
Shareholders:
They are highly interested in business. If business will make good profit then shareholders will
get high dividend. Positive employment relations will help the business to generate good
revenue.
Government:

Government is also interested in business because they regulate business (Boaz and et.al., 2018).
Government strictly regulate business activities so that business does not perform such activity
which will damage the environment.
Consumers:
They are having high interest in business because company fulfil customer's demand. To receive
good customer service company must have positive employment relations.
CONCLUSION
Through this report it can be concluded that healthy employee relations are very
important for the success of the company. Harrods also have good working environment which is
the biggest reason for the success of the company. Report has also evaluated employment law
under which employee has given rights. Further explaining rights, duties and obligations of
employer and employee at workplace. Analysis of stakeholder is done in the respect of company
and how stakeholder contribute in the positive employment relationship. The report has showed
that what impact will have on stakeholders due to positive and negative employee relations. Also
how positive employee relations can void conflicts. In the end different stakeholders interest are
evaluated over business environment.

REFERENCES
Books and journals
Aylott, E., 2018. Employment Law: A Practical Introduction. Kogan Page Publishers.
Boaz, A. and et.al., 2018. How to engage stakeholders in research: design principles to support
improvement. Health Research Policy and Systems. 16(1). pp.1-9.
Carnevale, A.P., Jennings, L.A. and Eisenmann, J.M., 2019. Contingent workers and
employment law. In Contingent Work(pp. 281-305). Cornell University Press.
Coetzee, S. and et.al., 2018. Stakeholder analysis of the governance framework of a national SDI
dataset–whose needs are met in the buildings and address register of the
Netherlands?. International Journal of Digital Earth.
Duggan, J. and et.al., 2020. Algorithmic management and app‐work in the gig economy: A
research agenda for employment relations and HRM. Human Resource Management
Journal. 30(1). pp.114-132.
Greer, I. and Doellgast, V., 2017. Marketization, inequality, and institutional change: Toward a
new framework for comparative employment relations. Journal of industrial
relations. 59(2). pp.192-208.
Jones, T.M., Harrison, J.S. and Felps, W., 2018. How applying instrumental stakeholder theory
can provide sustainable competitive advantage. Academy of Management Review. 43(3).
pp.371-391.
Kaufman, B.E. and et.al., 2021. Alternative balanced scorecards built from paradigm models in
strategic HRM and employment/industrial relations and used to measure the state of
employment relations and HR system performance across US workplaces. Human
Resource Management Journal. 31(1). pp.65-92.
Krishnan, R., Loon, K.W. and Tan, N.Z., 2018. The effects of job satisfaction and work-life
balance on employee task performance. International Journal of Academic Research in
Business and Social Sciences. 8(3). pp.652-662.
Lansbury, R.D. and et.al., 2020. International and comparative employment relations: National
regulation, global changes. Routledge.
Leonidou, E. and et.al., 2018. An integrative framework of stakeholder engagement for
innovation management and entrepreneurship development. Journal of Business
Research.
Schwartz, S.P. and et.al., 2019. Work-life balance behaviours cluster in work settings and relate
to burnout and safety culture: a cross-sectional survey analysis. BMJ Quality &
Safety, 28(2), pp.142-150.
Sexton, J.B. and et.al., 2017. The associations between work–life balance behaviours, teamwork
climate and safety climate: cross-sectional survey introducing the work–life climate
scale, psychometric properties, benchmarking data and future directions. BMJ quality &
safety. 26(8). pp.632-640.
Online
Stakeholder Analysis., 2021., [Online]. Available through:
<https://www.productplan.com/glossary/stakeholder-analysis/>
1

2