Employee Relations Report: Analysis of ASDA's Practices

This report provides an in-depth analysis of employee relations within ASDA, a retail business. It explores the unitary and pluralistic frames of reference in the context of workplace dynamics, examining the impact of trade unionism and the duties of key personnel in fostering positive employee relations. The report delves into conflict resolution procedures, evaluating negotiation, neglecting, and accommodating strategies. It further assesses the influence of the European Union on industrial democracy and the role of Human Resource Management (HRM) in shaping employee participation and overall workplace harmony. The report highlights the importance of effective communication, fair remuneration, and the cooperation of all parties in maintaining a healthy and productive work environment, particularly in the context of the retail industry.

EMPLOYEE RELATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
1.1 The unitary and pluralistic frames of reference....................................................................1
1.2 Affect of changes in trade unionism on employee relations.................................................2
1.3 Duty of significant persons towards employee relations......................................................3
TASK 2 ...........................................................................................................................................4
2.1 Procedures to be followed for dealing with conflicts situations...........................................4
2.2 Main features of relationship in a conflict situation. ............................................................6
2.3 Analysis of effectiveness of procedure.................................................................................6
TASK 3............................................................................................................................................7
3.1 Role of negotiation in collective bargaining.........................................................................7
3.2 Evaluating impact of negotiation strategy. ..........................................................................8
TASK 4............................................................................................................................................9
4.1 Influence of European union on industrial democracy.........................................................9
4.2 Methods to gain participation of workers...........................................................................10
4.3 Analysis of impact of HRM................................................................................................11
CONCLUSION .............................................................................................................................12

INTRODUCTION
Employee relations in present context is considered as industrial relation which refers to
relationship between employees and managers within an industry or a business firm (What are
employee relations, 2017). It can be considered as prime target of managers to develop effective
relations at workplaces and resolve issues for continuous regulation of work and achievement of
growth in country. In this context, Analysis of ASDA is done to identify effective methods
which have to be taken by managers to influence and develop positive relationship at workplace.
Various conflicts are considered which provides an impact on relationship of employees and
should be resolved by managers by using appropriate methods. Legislations of European union
are also recognised to understand impact of policies on business activities and employees
relations.
TASK 1
1.1 The unitary and pluralistic frames of reference
Relationship between individuals at workplace is significant for completion and development of
health work environment. It has been recognised that managers have to develop a strong
relationship with employees by understanding the perception and behaviour of individual at
workplace (Turek and Perek-Bialas, 2013). Positive relationship between workforce can be
developed through understanding these two perspective such as:
 Unitary frame perspective: It is considered as a mindset of assumptions, thoughts,
perspective, behaviour related to membership in management and organization (). In this
scenario, analysis of ASDA has determined that there is requirement of coordination
among the workforce to achieve objectives and overall development. It is significant for
managers to ensure that workers must have an aim of achieving common goals,
objectives and targets which are developed by organization. It is very important that
every individual should be loyal and accept laws which are developed by firm at
workplace (Zheng and et.al., 2015). In this reference, issues between individuals at
workplace can be considered as negative for organization and those individuals who are
responsible for creating disputes will be considered as disloyal towards firm. Being an
HR assistant is responsibility to analyse the environment and also understand condition at
workplace. It is essential for managers to resolve dispute and maintaining the
organization structure at workplace. Thus, this perspective has defined that management
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in organization has authority and it helps in developing effective relationship between
employees. It is more concerned towards increasing loyalty of individuals towards
organization.
 Pluralistic reference: In this perspective, it has been recognised that the authority within
organization is distributed among two important groups such as trade unions and
management. It will determine relationship between both the parties and legal authorities
at place of work. It has been recognised that managers can develop an healthy work
environment through satisfying needs of trade unions and individuals. Voluntary
association of workers registered under trade union act which regulates in industry as
well as in organizations and work for protecting the rights of employees (Theriou and
Chatzoglou, 2014). In this scenario, analysis of this perspective is taken for ASDA to
understand working conditions and relationship of between employees at workplace.
Being an HR assistant it has been identified that firm is following unitary perspective at
workplace. There is only single authority in ASDA which considers employees as a
significant asset and focus on giving motivation to them. In this reference, It is difficult
for organization to avoid conflicts in organization. It concentrates on developing
coordination and influence on workers rather than controlling them. Therefore, pluralistic
perspective determines that effective relationship between employees can be maintain
through delegation of authority.
1.2 Affect of changes in trade unionism on employee relations.
Continuous amendments in laws have made several changes in labour movement and
environment in business firms. It has made an influence on registered trade unions which are
presently in existence in some industries. Analysis has determined multiple amendments in
trade unionism has changes behaviour of organization towards there employees (Meyer and
Maltin, 2010). For growth and development of workers, governments has made formulated laws
against various practices of trade unions like laws for membership, Political interference, rights
of workers, illegal strike or lockouts etc. It has been recognised that these changes have made
strong effect on employee relations as firms are more focused towards employees to reduce
conflicts and avoid situations of strike and lockouts. Trade unions are also influences towards
benefits of workers and neglects interference of political parties (Sanders and Frenkel, 2011). In
this scenario, workers in ASDA also have rights to join a trade union if they face any difficulty
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related to policies and practices of management. But this situation will not arise as they
management is more focused towards building relations and considers employees as stake
holders.
Steps must be taken by HR managers of ASDA to understand issues of employees and
resolve through application of grievance handling procedures. They will also make understand
relations by monitoring behaviour of employees in firm. Changes in laws in UK has provided an
opportunity to workers to negotiate on there issues like unfair labour practices, inequality,
inappropriate remuneration etc. Employees have rights to involve trade unions to negotiate with
firms and protect rights of employees. It is necessary for workers to take membership of union if
they want to involve them in there conflicts (Jafri, 2010). Unions have also made changes in
there structure and influenced towards laws which are amended by authorities. For development
of positive employee relations, trade have also changed their policies and contribute as a
significant partner in tripartite body which resolve conflicts of employees.
Investigation has determined that trade unions in retail industry of UK are considered as
partners in development of positive relations among workers and employers. ASDA is also retail
business firm which has a large workforce and are motivated towards organization. Thus, impact
of trade unionism has developed a positive employee relations in firms regulating in retail
industries.
1.3 Duty of significant persons towards employee relations
Development of healthy and positive environment at workplace is significant for making
focus of employees and employers towards achievement of common goals. There is a
requirement of coordination between employees at workplace which is developed by maintaining
positive relations (Boxall, 2012). In this scenario, as an HR assistant of ASDA it is responsibility
to analyse main players and there roles towards development of positive employee relations. It
has been recognised that there are three important players who roles will affect relationship in
ASDA such as: Top level Authorities: In ASDA, managers are top authorities which plays an important
role and control employees. Research has defined that an effective manager in
organization is responsible for developing mutual trust and coordination among
employees at workplace (Rigby and O'Brien-Smith, 2010). Employees should expect a
positive behaviour from managers towards themselves for achievement of motivation and
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guidance at workplace. It is a social need of employees there managers should recognise
them for there performance and build trust to make positive relationship. For fulfilment
of this need of workers in ASDA, managers have focused on providing important to
employees. They have accomplished responsibility of identifying needs of employees and
maintained an equality at workplace. By providing fair remuneration and recognition to
employees, they have made positive relations and provided motivation towards the work. Trade unions: It is a formal or informal association of workers in organization which has
a significant role in developing employees relations. Leaders of unions will have
responsibility of maintaining a trust an belief among workers who are members of unions
(Storey and et.al., 2010). Apart from t protecting rights of employees, unions also act as
member to resolve industrial disputes. They have responsibility to provide appropriate
solutions for problems between employees.
 Employees: Analysis of industries have determined that relationship cannot be developed
from a single side. It is a moral duty of workers to give cooperation if employers and top
level managers are making efforts on developing positive relations (Van Buren,
Greenwood and Sheehan, 2011). Managers in ASDA have provided all facilities and
services which are required for welfare of employees at workplace. This has made an
influence on employees and they have cooperated with managers to build positive
relationship. Thus, these three parties have played a significant role in developing
employee relations.
TASK 2
2.1 Procedures to be followed for dealing with conflicts situations.
Conflicts are issues between employees related to accomplishment of work while
working in organization. It is very common in every multinational firm that some employees will
not cooperate with other individuals at workplace which creates a negative atmosphere or
conflicts (Marchington and et.al., 2016). It has been recognised that these conflicts will affect
business and creates a feeling of dissatisfaction between employees. It is always significant for
firm to identify reasons of disputes to remove situations of damage or labour turnover. ASDA
has faced many conflicts situations which has affected its business and relationship between
employees. There many reasons which has created conflict between employees in ASDA like
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discrimination between workers, no proper communication, lack of transparency, unfair or
unequal remuneration, racism and burden of work (Pyman and et.al., 2010). Research of various
models has determined that managers must follow procedures of conflict management to resolve
problems such as:
 Negotiating: It is a most effective strategy and could be applied by managers to identify
and resolve through mutual discussion and compromise (Dastmalchian, Blyton and
Adamson, 2014). In this scenario, managers have realized that main reason for disputes
between employees was remuneration which was not similar at same level. Workers have
raised this issue of unequal consideration and it is responsibility of managers to resolve
this problem and make healthy work environment. Meeting was conducted with
employees and managers which arise at a mutual decision that ASDA will raise
remuneration of employees by 10% if they give up trade union membership because
managers didn't want interference of third party. Therefore, It was a win- win situation
for both the parties.
 Neglecting: It is also a conflict management strategy in which employers will pretend
that there is no conflict between workers to remove third party interference at workplace
such as trade unions (Taylor and Westover, 2011). In ASDA, managers have used this
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Illustration 1: Conflict resolution model
Source 1: (Taylor and Westover, 2011)

strategy and identified reason that third was influencing employees to make conflicts
which has affected relations. By following this strategy mangers will resolve this conflict.
 Accommodating: It is an effective step of procedure in which managers will listen the
need and demand of employees and put there interest after resolving conflicts (Shields
and et.al., 2015). For example: To resolve problem of communication and discrimination,
managers of ASDA will listen the reasons and will ensure that this will not be repeated in
organization.
 Developing coordination through team work: In this step, manager will make team of
employees to accomplish task through which employees will be able to communicate
with each other and problem of proper communication will get resolved. It will also help
manager of ASDA to resolve issue of coordination and helps in resolving disputes.
Therefore, if this procedure is followed by managers, then it will result in positive relations
between employees.
2.2 Main features of relationship in a conflict situation.
Companies are using various methods to resolve conflicts of employees at workplace. In
international firms like ASDA which have an umber of stores among in different have also faced
problem of not recognizing the trade union in their stores which has created a huge conflict
situation. In that case, strike was started by employees of ASDA with trade union and to resolve
that situation managers have terminated all employees who were creating conflicts. In this case,
Analysis has determined that this conflict situation also be resolved through many ways which
are determined below:
 Incentives and rewards: In this type of conflict situation, managers of ASDA will
provide some benefits to workers other than salary so that employees get satisfaction of
fair remuneration.
 Participation in decision making: In this scenario, study has determined that employees
of ASDA was not comfortable with policies of management and faced problem of
excessive burden of work. Therefore, they have raised a strike against management which
has affected work. For resolving this issues management should allow a representative of
workers to participate in the board which will represent problems of workers among
managers.
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 Providing flexible time: For removing the burden of work and stress, employers should
develop a schedule for workers, provide flexible timings for completion of work (Gollan
and Patmore, 2013). Proper work schedule will manage time of employees and they will
not feel stress while working.
 Proper communication: Other than business, Managers of ASDA should organise
various activities at workplace which requires communication and barriers through
proper interaction.
 Recognition of unions: This was main reason for strike as ASDA will not recognise any
union of labour in there stores and neither want interference of third party. But now
situation has changed due to changes in unionism and managers will take an initiative to
recognising union and maintain effective relationship.
2.3 Analysis of effectiveness of procedure.
For developing a confidence, analysis of procedure is done to understand possibility of resolving
situation of conflict (Igorevich, 2014). In above study, As an HR assistant of ASDA, it is
responsibility to analyse methods which are used for solving disputes. There are some methods
which have to be followed to identify effectiveness such as:
 Analysis of time: In this Method, manager will analyse time in which conflicts has to be
resolved. It will recognise that the process of negotiation which is followed will consume
time as there are number of workers who have problems. It will not be effective as
workers want recognition of trade union and managers didn't want interference of third
party.
 Recognizing the cost: Before following any procedure, managers will have to understand
cost which will increase if they provide any rewards and increase compensation of
employees. In this scenario, It has been recognised that methods of providing incentive
will increase cost of company but it will not affect much to profitability so this will be
effective for firm.
 Analysing the effects of participation: Before giving authority to participate in meeting,
managers will recognise that how it will affect company (Fossum , 2014). In this
scenario, participation of representative of workers will not affect decisions and it will
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provide a motivation to workers that they have been recognised by firm and accept
decisions.
 Evaluation of impact of trade Union: In ASDA, it was a situation that employees have
demanded for recognizing union. It is significant for managers to understand impact of
recognition of trade union and make proper interaction with employees. Analysis has
determined that it will be effective for mangers if they will create a contract that trade
union will not affect business decisions and helps in resolving disputes through mutual
discussion.Therefore, this process of resolving situation will be effective for managers of
ASDA.
TASK 3
3.1 Role of negotiation in collective bargaining
Negotiation is a voluntary process in which two party come together to reach a decision which
can benefit both. It helps in collective bargaining where employer and employee lay there issue
and terms and try to come to a collective decision which can benefit both.
Collective bargaining help employee to solve there problem, it gives recipient a chance to
keep there problem in front of there employee and discuss it. It ensures that no such decision are
made which ignores the comfort of workers (Alvesson and Sveningsson, 2015). It gives worker a
chance to negotiate and improve there working condition, wages, working hours etc.
In companies human resource department see to it that such problems are taken care of.
Any problem faced by employee are solved by this department.
HR manager is one who is expert in labour law, he sees to it that condition lay by
employee are fair enough. Later he arranges a meeting it with leader of worker union where they
both present their own idea and see that which idea could be accepted or if they can reach a
middle ground. If not another meeting is arranged to discuss further.Once they came to
agreement new contract is made to accept agreement.
The conflict for rise in wages were also solved by HR manager they listen to there term
and then discuss with company head the CEO and CFO and discuss with them that if there are
any chances that they can accept proposal of there employee, later he arranged a meeting with
union leader where they laid there terms, whether they can increase there wages or not or that
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they can't completely approve there demand but some increment can be possible if workers are
ready, then whole worker vote for decision if they agree then new agreement is made if not then
whole process start again
.During time of recruitment if employee is not satisfied with offer he can negotiate with
HR manager for better wages.Its not necessary to have conflict with employee on sometime
problem does occur between two employees also such as superior and subordinate
At such time HR calls for meeting both conflicting entity individually and listen to each
of there problem after listening to each of there problem he sees that which person is wrong or at
fault or is it just a misunderstanding, another meeting is arranged where HR tells who is at fault
how it can resolve and if its just a misunderstanding then its clear by HR for better and smother
working environment.
3.2 Evaluating impact of negotiation strategy.
Negotiation is most significant way of resolving disputes in which both parties will meet
each other and give reasons for raising issue. Negotiation can be considered as effective if
parties will arrive at mutual agreement which is beneficial for both parties (Kaufman, 2010). In
this reference, ASDA always work for benefit and welfare of employees by giving them
recognition and motivation. This conflict situation was faced by ASDA as managers have not
recognised trade union workers which has affected moral rights of employees. Outcome was that
employees have started doing strike against firm and neglected work. For resolving this issue,
managers have negotiated with employees that they will get 10% increment in salary if they
leave membership of trade union. This negotiation agreement was not accepted by employees as
they were influenced by members of trade union. Several attempts strategies were applied by
management in negotiation but it has not provided any result.
Analysis of situation has determined that managers will have to follow a strategy of
negotiation in which it will create a contract which specifies that recognition of trade union will
not affect business and relationship with employees (Dawson and Andriopoulos, 2014). It has
been mentioned that no extra benefits will be provided if employees will remain member of trade
union. Trade union will have work mutually with Organization to resolve conflicts situation and
should exercise there rights for welfare of workers. This negotiation agreement will provide
positive impact on employee relations and gives feeling of recognition to workers.
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TASK 4
4.1 Influence of European union on industrial democracy.
Regulation of European union are directly binding for all member countries without
asking for need to suggest any changes in laws. For achievement of objectives managers of
ASDA will recognise effects of legislation of European union and government of UK for
regulation of business (Reh and et.al.,, 2013). It has been recognised that there several rules
which will affect industrial democracy such as changes in policy of employment, policy of
taxation, international business policy and inflation strategies. For continuous regulation of
business in UK managers of ASDA will to analyse impact these policies of European union. It is
also analyzed that laws of European union have focused towards role of workers and employees
in the process of decision making in organization and has applied various strategies to educate
workers about their right in decision making. It will be impact positively on employees of
ASDA. In this, impact can be described as:
 Impact of Employment policy: By analysing reports, It has been recognised that
government have made several amendments in employment policies such as specification
of working hours, fair remuneration, fair labour practices, welfare facilities etc.
Employees will get benefit through regulation of this policy in ASDA and they will be
treated fairly by management. Implementation of this policy will be beneficial for firm to
maintain positive relations with employees and increase their performance to achieve
objectives.
 Impact of taxation policy: There are several amendments made by government of UK in
taxation policy by collaborating with members states of European union (Hix and
Høyland, 2011). It has provided a major influence on financial condition of firms.
Changes in rate of tax has provided a negative impact on ASDA as it has to pay more tax
for facilities which it provides to employees.
 Influence of training and education policy: Laws of European union has led more
emphasis on providing training and knowledge to workers. ASDA has to face cost of
providing training to employees but it would beneficial for company as it creates
efficiency among workers.
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