Marks & Spencer: Evaluating Employee Relations and Stakeholder Impact

This report examines the employee relations practices at Marks & Spencer, a multinational retail company. It delves into the values and importance of employee relations, focusing on how employee retention strategies impact business performance. The report analyzes various employment laws, including those preventing discrimination, minimum wage laws, and workplace safety regulations. It also discusses employee and employer rights, duties, and obligations, along with an evaluation of the psychological contract. Furthermore, the report includes a stakeholder analysis, assessing the impact of both positive and negative employee relations on different stakeholders such as managers, employees, and stockholders. The analysis highlights the importance of stakeholder engagement in improving company performance and employee development. Desklib provides access to similar solved assignments and past papers for students.

Work and Employment
Relationship

Table of Contents
INTRODUCTION...........................................................................................................................7
MAIN BODY - ...............................................................................................................................7
Values and importance of employee relation - ..........................................................................7
Different types of rights, duties and obligations of an employer and employee -......................9
Stakeholder Analysis - .............................................................................................................12
Impact of both positive and negative employee relations on different stakeholders - ............14
CONCLUSION .............................................................................................................................16
REFERENCES .............................................................................................................................17

INTRODUCTION
Marks and Spencer is multinational retail based company and is headquartered in
England. The company was established in 1884 and their major products in store are clothes,
home products and food products. This report is prepared on the basis of values and importance
of employee relationship. This report is also based on employment laws and psychological
contract which was used by top level management . The main purpose of preparing this report is
to analyse rights, duties and obligation of employees and employer.
MAIN BODY -
Values and importance of employee relation -
Employee relation is an organization ability which is used by them to reduce the
employee turnover. It also refers to reduction of number of people who leaving their job in a
certain period whether it is a voluntary or involuntary (Bahn, K., Cohen, J. and van der Meulen
Rodgers, Y., 2020). Increasing employee retention by organization generate direct impact on
business performance and their success. The main purpose of organization by applying employee
retention are to increase the productivity of employees. It also helps to facilitate best quality
products and services to consumers. Various values and importance provided by organization to
employees as a retention are -
 Increased productivity – It refers to the amount of work or output received by an
employee in a specific period of time. With out good productivity of employees company
are not able to achieve their objectives, vision and mission. In context to Marks and
Spencer, management applied this method to improve and use their internal skills which
leads to increase the organization productivity. For increasing productivity authority also
providing good financial support to employees in form bonus, increments and so on.
 Increased revenue – It refers to increasing revenue growth over a period of time.
Increasing revenue also important for organization in the aspect of reducing hiring cost,
increasing productivity, delivery of better customer experience and so on. In context to
Marks and Spencer, management applied this method to manage the over all expense of
operational activities and employees in organization.

 Improved employee engagement – It refers to level of enthusiasm and dedication of a
employee in their job. It is important for organization because without employee
engagement responsibilities are not done properly. In context to Marks and Spencer,
management applied this method to employees to create their feel internally that their
efforts are beneficial for company's performance. They also feels that their efforts are
also helped consumers to choose right product.
 Employee satisfaction - It refers to the particular employee are satisfied or not in their
work (Mendonça, P., 2020). The factors which are considered in employee satisfaction
are work load, perceptions of management, flexibility, teamwork and so on. In context to
Marks and Spencer, management must applying flexible rules, regulations and policies
for employees which leads to employee satisfaction. It includes proper time management,
flexibility in achieving targets and so on.
Employment Laws -
It refers to those laws which which act as a mediator to maintain the relationship between
workers, trade union and government (Nwoko, V. O. and Chijindu, S. J., 2021). The main
function of the employment law is to protect workers from illegal activities. There are various
laws which was used by Marks and Spencer which are described below -
 Laws preventing discrimination – It refers to providing job, roles and responsibilities
and other facilities to employees equally without any discrimination. It also refers to
reduce discrimination of employees by company in behalf of race, colour, nationality,
religion, disability and so on. In context to Marks and Spencer, management applied this
law to provide equal opportunity to all aged employees in form of appreciation, rewards
and career growth.
 Laws and minimum wages – Minimum wage is basically refers to in hand salary which
was provided by organization. This minimum wage is very essential for employees to
take care of family and also for fulfilling the basic needs of family. In context to Marks
and Spencer, management must fixed the good amount to employees in form of in hand
salary for living their decent life.
 Work safety and health – It refers to the safety standards and structures in workplace
which was designed by organization. Without safety standard and equipments employees

are not feel secure in organization. In context to Marks and Spencer, management
established safety standards for secure workers in any time. It includes proper ventilation,
reduces noise levels, use of high tech machine and so on.
Recommendations for employee retention -
 Firstly, organization must initiate some social activities which helped to motivate the
employees for decreasing stress.
 Secondly, organization must provide accurate and proper information to employees
regarding their job and job responsibilities at the time of training.
 Thirdly, organization must provide top priority to employee safety standards in company
for increase their productivity.
Different types of rights, duties and obligations of an employer and employee -
Employee Employer
Rights  Employee has the right
to take commitment
from organization that
they provide all
facilities which is
essential to do the work
(Chung, H. and Van der
Horst, M., 2018).
 Employee has right to
participate in trade
union membership and
activities. If he face any
type of discrimination
by top level
management.
 Provide healthy and
safe working
environment to the
employees. It
includes install safe
and healthy plants,
system and
machinery (Casey, C.
and Delaney, H.,
2021).
 Provide basic
necessities which is
necessary for them
such as healthy
eating areas, clean
workplace and good
drinking water.

Duties  Collecting accurate
information and
instructions for doing
any type of work.
 In duty employee must
do the work with good
faith. It means he or she
must do the task with
loyalty, trustworthy and
commitment.
 Paying proper and
good wages to
employees timely is
the main role for
employer. Because
employer is senior
from employee and
he is like a leader for
them. Employer are
responsible to
manage whole junior
level employees
properly.
 The other duty of
employees provide
work time to time
and properly to
employees according
to company's target
Obligations  Employees do their
work properly and
systematically with
analysing all
instructions carefully
which was provided by
employer.
 It is necessary for
employees that they
apply all available
 Employer must
register salaries and
other type of
information in
database for
maintaining the
records. Because it is
the most important
responsibility for
employer.

resources for ensuring
own safety and safety of
other employees also.
 Employees must
remember their working
hours in organization at
the time of performing
duties which was
assigned by employer.
 Promote good work
culture to employees
to increase their
confidence and
morale. It leads to
increase employee
performance.
Evaluation of psychological contract -
It refers to mutual belief, understanding, perceptions and obligations between employee
and employer (Griffith, K. L., 201Griffith, K. L., 2019). It also allows employee to analyse their
values and role in organization. The psychological contract are created by organization in various
aspects -
 Psychological contract is essential for maintaining good communication between
employees and employer in aspect of rights, duties and obligation. It includes
conversation, voice tone, body language and so on. Without proper communication the
contract become unbalanced between employer and employee. A well balanced contract
between employees and employer helped to manage the rights, duties, and obligations
properly. It also leads to increase productivity and positive impact on organization.
 Psychological contract also helped to maintain employee discipline in organization.
Because without maintaining employee discipline employee are not able to complete the
work in time. Contract is also essential to manage the employees properly.
Mechanism for managing employees relationship -
The best mechanism for managing employee relation ship are
 Working of the way - Establishing proper and flexible way of working for employees.
Because when working are flexible then only employees are able to fulfil the

responsibilities properly. It also helped to organization to achieve their vision, mission
and objectives.
 Challenges - Here challenges refers to task, targets or responsibilities which was given
by top level management in a challenging way (Lei, D. and Lin, H., 2019). In context
Marks and Spencer, management providing the challenging task to employees to increase
competition and work efficiency of employees.
 Expectations settings – In aspect of expectation organization have high expectations
from employees to run the organization smoothly (Levine, B. S. and La Manque, W .M.,
2018). For fulfilling those expectations company take the signature of candidate in
agreement. It includes duties, rights and obligations. It also helped to maintain good
relation with top level management.
Stakeholder Analysis -
Stakeholder is a method to evaluate a system and potential changes which relate to
relevant and interested parties. The information of interested parties are assessed to use in a
project plan, policy, programmes and so on. This method used by Marks and Spencer to gather
accurate information to run the projects smoothly are -

 Keep satisfied – Keeping the stakeholders satisfied by organization is very important.
For maintaining stakeholder satisfaction high productivity are important from
organization side. In context to Marks and Spencer, management applied these elements
to give good result to stakeholder. Best result also helped to reduce the interest people.
 Manage closely – It refers to engage the stakeholder closely with the help of providing
good service to them. In context to Marks and Spencer, management must maintain good
relation and coordination with employees to use their internal skills effectively. Because
these internal skills are highly important to manage stakeholder and also helped to
increase the numbering of interested people.
 Monitor – It refers to track the stakeholders properly that they are receiving proper
facilities or services in time or not. In context to Marks and Spencer, management are
monitoring their employees to increase their effective communication with stakeholders.
When stakeholders are happy then only organization profits are easily increased.
 Keep informed – It refers to communicate the information in proper way with
stakeholders. When information are communicated properly then power are reduced. It
also leads to increase numbering of interested people. In context to Marks and Spencer,
management must providing the correct information to employees and other stake holders
to execute projects properly.
Analysis of stakeholders engagement and contribution towards organization
 Increasing company performance – Stakeholders has played a major role for improving
company's performance. When relations are good with stake holders then they are ready
to invest money in organization for various purposes. It includes purchasing of products,
availing various online services and so on (Pater, R. and Cywiński, Ł., 2019).
Stockholders are also helped to innovate new products in organization. Because creativity
and idea are the very important pert of organization for developing total different product
from other competitors.
 Development of employees – In organization employees are very important stake holder.
For increasing employee productivity , efficiency in organization it is necessary the they

proper training to employees. Because with the help of proper training and development
their skills are highly developed. It leads to increase the smart work of employees.
Without the skills of employees organization are not able to achieve their vision, mission
and objectives. It is very essential for company to run successfully.
Impact of both positive and negative employee relations on different stakeholders -
Manager – A manager is a individual in organization who are responsible to handle
whole organization and employees (Wilmers, N., 2018). Managers do their work at different
levels and also are responsible to maintain good relations with all type of employees -
 Positive impact – Manager must provide all type of equipments and facilities to them. In
context to Marks and Spencer, management appointed the most capable candidate as a
manager in all departments for increase confidence of employees with providing proper
training.
 Negative impact – In context to Marks and Spencer, relations are become negative when
employees are facing challenges at the time of work, not receiving proper resources and
equipments and so on. All these elements are responsible to decrease reputation of
manager in long run.
CEO (Chef Executive Officer) – It is the top position in organization and he is
responsible for initiating new and old plans and policies. These policies and plans helped
business to get success and also helped to set future strategy.
 Positive impact – In context to Marks and Spencer, authority appointed perfect candidate
in organization as a CEO for better understanding of employee problems. It leads to
proving the proper solution to employees in any critical situation.
 Negative impact - Negative impact created for CEO when organization are not able to
deliver quality products and services to consumers in time. It leads to pressure on CEO
because he has the higher in organization and needs to give positive feedback to other top
level officers.

Evaluate the positive and negative impact on employee relationships -
 Positive relations -
After analysing above information the most important thing for employee is to do the work
smartly in organization which is mostly liked by senior employees. For doing work smartly
employee must use various skills. It includes communication skills, problem solving ability skills
presentation skills and so on. In context Marks and Spencer, management have exceptions from
employees about this skills to run the organization smoothly.
 Negative relations -
After evaluation it is understood that negative relations are occurred when functions of the
organization are working properly. Due to unbalanced working condition productivity of the
organization are decreased. It leads to reduction in organization profit and and also creates the
image of non reliable company in minds of consumers. In context to Marks and Spencer, due to
his big size company listen stakeholders problem carefully and then providing proper solution to
them in right time. For that purpose they established good enquiry system.
Different types of stakeholder are - Employee – Employee is a direct stakeholder in organization because when employee
pays the main role for organization success. They do their job in organization with this
belief that company provide good salary for their financial support. Employee also
believe that the organization is safe and secure for their job. Company also give special
facilities such as transportation facility and so on. Because without coordination of
employees organization are not to able to increase their profit. In context to Marks and
Spencer, management must provide all types of facilities to them. It leads to increase
employee loyalty, honesty towards organization for a long term.
 Customers – Customer also played an important role in the form of stakeholders. When
organization providing best services and products to consumer then they are connected
with organization for a long time. Without the support of consumers they are not able to
sell the product easily and profits are also not increased. This created negative impact on
organization such as food products are expired if they are not sold in time. In context to
Marks and Spencer, management are responsible to provide best quality product to users
of various brands. Because consumers have different taste and preferences. They also try
to facilitate the products at affordable price.

CONCLUSION
After analysing above information it is understood that good understanding between
employee and employer are essential to run the organization properly. Without good relation
between employee and employer various operational activities and departmental functions are
not work properly. For surviving in market between competitors also good relation is important.
For achieving organizational goals, vision and mission and for fulfilling stake holders desires and
wants good relation is important. This better understanding and relation are necessary for all
types employees and employer.