Employee Relations Report: Tesco PLC - Conflict and Negotiation

This report delves into the realm of employee relations, using Tesco PLC as a case study to explore various aspects of workforce management. It begins by examining the unitary and pluralistic frames of reference, shedding light on how different perspectives shape the dynamics between employers and employees. The report then analyzes the impact of trade unions on employee relations, highlighting their role in protecting worker rights and improving working conditions. Furthermore, it identifies the main players in employee relations, including government, employee associations, trade unions, employers, and employees, and outlines their respective roles. The report then proceeds to outline the procedures organizations can follow when dealing with different conflict situations, emphasizing the importance of identifying causes, finding solutions, implementing processes, and gathering feedback. It also discusses the main features of employee relations during conflicts and explores the effectiveness of conflict resolution procedures. The role of negotiation in collective bargaining is also examined, as is the impact of negotiation strategies. Finally, the report touches upon the influence of the EU on industrial democracy in the UK, compares methods for gaining employee participation, and discusses the impact of human resource management on employee relations, offering a comprehensive overview of the subject.

Employee
Relations

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Unitary and pluralistic frames of reference......................................................................1
1.2 Changes in trade unions affect employee relation............................................................2
1.3 Main players and their role in employee relations...........................................................3
TASK 2............................................................................................................................................4
2.1 Procedure which followed by organisation with dealing different situations of conflicts4
2.2 Main features of employee relation in a conflict situation...............................................5
2.3 Effectiveness of procedures used in a conflict situation..................................................6
TASK 3............................................................................................................................................7
3.1Role of negotiation in collective bargaining.....................................................................7
3.2 Impact of negotiation strategy..........................................................................................7
TASK 4............................................................................................................................................8
4.1 Influence of EU on industrial democracy in UK..............................................................8
4.2 Comparison of methods used for gaining employee participation in decision making
process....................................................................................................................................9
4.3 Impact of human resource management on employee relations....................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Employees of every enterprise play an important role in the whole process of production.
Without the support of them no enterprise can achieve success. So in today's business
environment it is very crucial for the employers and managers to maintain healthy relations with
workers (Meisler, 2014). Good relations with subordinates is necessary for maintaining the
reputation of firm and to increase the productivity of workers. Today, every employee wants fair
remuneration for his work and for goods produced by him. Government of every country also
make new rules and guide the organisation in resolving conflicts with the help of effective
legislation. Tesco PLC, a multinational grocery retailer is taken under this report for study.
Presently firm is operating in more than 15 countries and is generating large amount of revenues
every year. By maintain good relation with staff large number of profits can be achieved by the
firm. Various approaches which can be used by the employers for solving conflicts with
employees is given under this report. Role of main players who take part in the process of
employee relation is also mentioned in this. Further, effectiveness of various procedures which
can be used for solving a conflict and role of negotiation in collective bargaining is all detailed
under this report.
TASK 1
1.1 Unitary and pluralistic frames of reference
Today, employees contribute a lot in the success of business enterprise. Every company
want skilled and capable workers for executing their commercial activities. Today subordinates
are seem as one of the valuable assets of firm that's why various efforts are done by the employer
to develop and maintain good relations with them. Managers encourage the participation of
workers in the decision making process of company because this increase the productivity of
employees. Unitary perspective: As per this approach, whole enterprise is viewed as an integrated
system where all workers, managers and staff members share common objectives and
interests (Harvey, 2012). This helps in setting an image of enterprise as a team where all
employees from top to lower level work towards for achieving the common set target.
Conflicts are perceived as negative because this affect the working of firm. As per this
approach if an enterprise is approaching a trade union than the main purpose of this is to
ensure effective communication and also allow employees to take part in the decision
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making process. Both personal and professional development is the main purpose of
using this.
 Pluralistic perspective: According to this approach, whole organisation is view as an
element made of large number powerful sub groups, trade unions with their own
objectives and effective leaders (Hennekam and Herrbach, 2013). Mainly this approach
solve the disagreements and issues rising among workers and leaders on sharing of
profits and incentives. Collective bargaining approach is used in this for solving the
disputes and conflicts and are not seen as negative always. Sometimes conflicts are seen
as positive because it help in solving the issues and enhance the productivity of whole
enterprise. Managers does not play a persuading role under this. Trade unions play an
effective role in this approach. Large number of employees so work in an enterprise for
fulling their own specific objectives. . In this situation, it is the responsibility of a
manager to combine the efforts of all subordinates so that firm can achieve its set results
easily.
1.2 Changes in trade unions affect employee relation
Associations of workers which are formed with the aim of protecting the employees from
exploitation and to improve their working conditions is known as trade unions. Industrial
revolution in various countries and introduction of factories for production are the main reasons
behind the emergence of trade unions (Ibrahim and Al Falasi, 2014).Modern industrial
establishment hire employees in specific conditions in which they become helpless and fails to
do bargain for improving their working conditions. Employers target unorganized workers for
exploitation. This exploitation of workers was largely disliked by the workers. That's why they
form trade unions to protect themselves against the exploitation. Defending the rights of
subordinates, protect their interest is the main aim of trade union movement which have various
recruitment strategies. Main focus of occupation based unions is to hire skilled workers for
performing certain kind of job.
Labour relation is a broad term which describe the relationship between industrial
workers and management of enterprise (Svensson and Wolvén, 2010). This is also known as
employer-employee relations which shows the relationship between trade union and
management. in an enterprise and help in develop the special qualities in employees to make a
coordination in all the decisions taken by the employer. Main reason behind the design of labour
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relations is to protect the rights of workers and management through mutual understanding thus
increasing the quality of work, eliminate the grounds of rising industrial disputes and to create a
healthy working environment.
With the development and help of trade union managers Tesco can maintain a good
industrial relation with employees (Kazlauskaite, Buciuniene and Turauskas, 2011). One of the
main advantage of this is that it ensures the continuous production and at the same time reduce
the industrial disputes. It promotes cooperation among the activities carried out by employees
and managers. Managers of Tesco can enhance the morale and commitment of workers by
effectively using the trade unions
1.3 Main players and their role in employee relations
Government, employee association, trade unions, employer and employee are the main players
of employee relations. Main roles of these can be understood by the following points:
Trade unions: Main reason behind the development of trade unions was to protect the
interest of employees against exploitation. Today they not only save the interest of workers
against any hazard but also speak on behalf of them for achievement of some objectives. Trade
unions contribute a lot in making effective relation with workers. How trade unions increase the
effectiveness of industrial outcome can be understand by these points stated below:
 Trade unions highlight enterprise as a joint venture between employee and management
which create healthy working environment.
 Trade unions helps in maintaining the discipline at workplace.
 Communication with management is facilitated through taking their help.
 They assist in increasing the production in terms of both qualitative and quantitative .
Employers: Individuals who use various methods and process for hiring skilled candidate
in the enterprise for performing various kind of job is known as employers. Employers are liable
to ensure that employees are doing work as per the set standard to make quality products for
large number of customers (Gupta and Kumar, 2012). Employers of Tesco can increase the
productivity of workers by designing effective policies related to human resource management.
Bring coordination among the various activities done by the employees is one of the main role of
employer in a company.
Employee: Workers are the one who make final products for large number of customers.
Main responsibility of employee is to execute all the assign task effectively and contribute more
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in the production process so that set targets can be achieved by the firm. Principle of minimum
wastage should be adopted by the organisation so that efficiency can be achieved by the
company.
Employer associations: Association which take various efforts for maintaining good
relations among employer and employee is known as employer associations. These make sure
that all resources of firm are utilised at an optimum level (Syed and Ali, 2010). They provide
legislative support to employer during the formation of policies related to management of human
resource for safeguarding the interest of subordinates.
Government: Government of every nation set some rules related with the management of
employees and their activities at workplace. It become necessary for an employer to follow these
rules at workplace which affect the activities of business.
TASK 2
2.1 Procedure which followed by organisation with dealing different situations of conflicts
Conflicts take place at various level of an enterprise. It is very necessary for the manager
to solve the conflicts for achieving set targets. Process which can be followed by the managers of
Tesco for solving conflicts can be understood by the points stated below: Identify the main cause of the problem: Whenever a conflict take place then it is very
necessary to first identify the main reason behind that. In a firm main reason behind
conflict can be the ineffective communication system, lack of training to employees,
hazardous working condition, sexual harassment of workers and can be the leadership
problem (Al-Waqfi and Forstenlechner, 2010). So, it is responsibility of leader to
identify the issues and try to eliminate these factors to maintain a healthy work
environment at enterprise. Identification of ways for solving conflicts: After identification of main reason behind
the conflict the next step which included in the problem solving process is to identify the
ways and solution of the problems. For this managers of firm can conduct training and
development programme for the employees in order to enhance their skills and to make
them able to face the critical situation (D'Cruz and Noronha, 2010). Further effective
communication could be build for clearing the roles and responsibilities of every workers
and to clear the confusion. Further, by adopting no harassment policies at various level of
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firm and by encouraging the workers participation in the decision making process
conflicts can be resolved. Ways to implement the process: After identifying the solution it is very necessary to
identify the effective ways for implementing the conflict resolution process. For this
manager can collect data and ideas from subordinates (Devonish, 2013). For this
managers can conduct meeting with employees for getting effective ideas for
implementing the solution.
 Feedback: Collection of information from employees is very necessary after the
implementation of solution. Because it help the manager in knowing whether the solution
are working or not.
Manager of TESCO can use these steps for solving the issues rising at workplace. With
this, managers can create and maintain better relation with customers and can achieve its set
goals and objectives easily.
2.2 Main features of employee relation in a conflict situation
As workers are one of the most and important element of success of every firm. Without
them no enterprise can execute its activities and can not capture a larger market share. It is more
important in today's business environment to make and maintain effective relation with
employees. This can be achieve by the managers by providing fair remuneration to subordinates
and by providing them safe working conditions. For develop good relation with workers manager
of it is very necessary for the manager of Tesco to timely evaluate the performance of employees
(Luo, Wieseke and Homburg, 2012). Main benefit of doing this is that it provide information to
managers about how employees are doing at workplace and at the same time motivate workers to
give their best. All this create healthy work environment which automatically increase the
productivity of subordinates. In today fast changing business environment support and
commitment of employees is necessary for a firms for taking a big action or to successfully
implementing a strategy.
Adoption of effective communication system can remove the grounds for rising conflicts
at workplace. A written business plan can be used by the manger for deciding all the activities of
firm in advance. This ensure effective implementation of all activities and provide standards for
capturing the actual results. All parties called employer, employee, trade unions and employer
association should take in the process in decision making so that mutual gaols can be set them.
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Healthy work environment and helps in maintain the quality of firm's products and provide
competitive advantage to the company (McCarthy, Reeves and Turner, 2010). Main reason
behind the conflict take place in the enterprise is difference in thinking and culture of
subordinates. In this situation it is a responsibility of manager to make policies so that all
workers can do in a same direction for achieving set targets. Further, effective and standard
methods for making products can be decided by the managers for removing the number of
number of conflicts (Pate and Beaumont, 2010). So it is very necessary and important for the
employers to clear all roles and responsibilities of workers so that confusion can be eliminated
from the workplace. By maintain goo relations with subordinates managers of TESCO can easily
handle the conflict situations.
2.3 Effectiveness of procedures used in a conflict situation
Conflicts are inevitable in an enterprise because large number of workers interact with
each other belong from different cultures. Identify the main cause behind the problem and than
use effective strategies for solving the same is very necessary for the manager. Research revealed
the fact that poor communication system is one main reason behind rising conflict in an
organisation. For remove the grounds of rising conflicts and to produce quality products for
customers it is very necessary for the manager to make effective policies regarding the
functioning of business activities. Managers can first identify the situation in which a conflict
take place. After that strategy of negotiation can be used by the managers. In this both parties
communicate with each other and mangers influence the workers to change their habits at
workplace.
Conflicts negatively affect the process of enterprise and increase the cost of business
operations. That's why it is very necessary to eliminate conflicts from workplace. For this
manager can identify and evaluate all the process of solving issues. Before choosing any strategy
or method it is very necessary for the employers to consider following things in the mind:
 Time involve in solve the conflicts.
 Cost included
 Efficiency and effectiveness of the chosen strategy
 Quality of relationship after implementation of process.
So all these are the main elements which should be consider by the manager of Tesco while
choosing and evaluating strategy (Armstrong, Brown and Reilly, 2011). It is very necessary that
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chosen strategy must be cost effective so that firm can maintain efficiency in its operations.
Costly process should be avoided by the managers to make products at lower prices.
TASK 3
3.1 Role of negotiation in collective bargaining
When variety of workers work together in an enterprise for achieving the set targets than
it gave rise to conflicts because of their cultural and due to many other differences. Akin cause
behind the conflict take place at workplace is due to bargain which take place between employer
and employee (Clarke, 2011). This cause can be eliminated from the workplace by using the
concept collective bargaining. Under this both employee and employer come together to solve
the issue. Negotiation is one of the important factor during the process of collective bargaining.
This is used for discuss the problems and to increase the performance of workers in organisation.
Negotiations delete the unnecessary rules on the subordinates and increase their freedom to take
decisions. This help in create and maintain good relations with the employees. It I very necessary
that whole process of negotiation should be based on safeguard the rights of employees. Main
benefit of using this strategy is that it not only solve the problem but also remove the cause form
workplace.
Whenever a conflict rise or take place in the enterprise than it become very necessary to
solve it on because it create unnecessary delay in other operations of business. Adequate
negotiation must be there so enterprise can better satisfy the needs of its workers and employees
can contribute in success of company.
3.2 Impact of negotiation strategy
Two enterprise take part under the negotiation strategy for solving the critical issues. This
can be in the form of compromising, yielding,competing and problem solving. Different
strategies affect the outcome of conflict in different way. Main strategies which can be used by
the managers of Tesco for dealing with the conflicts are stated below: Yielding: Under this strategy of negotiation one party accept the offer of another party by
thinking what other party saying is truth. Basically it does not come under the strategy of
negotiation because one party think that other party is more powerful and accept the
offer. Compromising: Under this strategy all the parties included in the conflict do
compromise on their part to get fair treatment. Both parties play fairly in this and think
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that everyone does not get everything and do care and respect about others (Mathew and
Jones, 2012). No party feel superior in this strategy and see every one as equal to their.
This is very effective strategy as this produce satisfactorily results with mutual
conversation. This can be used by the manager of Tesco to satisfy their needs and to get
their commitment for the job. Competing: This is a negative approach from all the strategies of negotiation because in
this one party try to get the maximum benefit. Every party think him superior than the
other party and do all the efforts for getting more profits (Ruth Eikhof and Warhurst,
2013). This is a disturbing approach because this decrease the morale and mental
satisfaction of the employees. Further this decrease the performance and productivity of
workers so this can be avoided by the managers of Tesco.
 Problem solving: In this, a conversation take place among all the individuals to find
mutual solution of the problem. This is similar with the strategy of compromise. This is
very effective because this provide solution to the problem without hampering the morale
and productivity of employees. Same can be used by an enterprise to solve the conflict
take place at workplace.
All these strategies can be used by the managers of Tesco for find better solution to the
problem. Problem solving is one of the most powerful and effective strategy which must be
choose by employers of TESCO.
TASK 4
4.1 Influence of EU on industrial democracy in UK
Industrial democracy of United kingdom affected by the various policies of EU. For
example policy of anti harassment encourage the participation of women workers at workplace.
This policy assure the safe working environment to women without suffering from any kind of
health and mental disease (Torka, Schyns and Kees Looise, 2010). Further, trade policy of EU
also affect the execution of commercial activities of organisation which is operating on
international level. This policy focus on ensuring that safe working environment should be
provided to employees so that they can do their job effectively. Healthy working environment
create better employee employer relations. Further the impact of Eu on various business
activities of United Kingdom can be understand by the following points:
 This ensure the safety of employees during their working hours.
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 It increase the participation of workers in the decision making process and also increase
the freedom of workers to take decisions on their own.
 Safeguards the interest of both employers and employees.
 Largely affect the industrial democracy of firms based in UK.
Policies of EU not only affect the activities of a commercial entity but also indicate that what
working condition should be provided to workers from their employees. This give information to
subordinates about their rights and safe them from their exploitation. All these standards increase
the morale and satisfaction of employees related with their jobs and support firm to achieve its
set targets easily. New introduced policy affect almost every activity of organisation. Further
this support the enterprises to increase the efficiency of their business operations who are
operating on an international level (Guillot-Soulez and Soulez, 2014). Moreover this increase the
number of women working in firms sand also encourage the fair remuneration of workers for
their jobs. Basically various EU policies support and contribute a lot in increasing the efficiency
and effectiveness of business activities. So this must be consider by the managers of TESCO for
maintain good and better relations with employees.
4.2 Comparison of methods used for gaining employee participation in decision making process
In today's business environment participation of employees in the decision making
process is very necessary because it provide opportunity to both employers and workers to set
mutual goals. One of the main advantage of doing this is that it clear confusion and clear all
roles and responsibility of every individual working in the firm. For this various useful and
effective strategies can be used by the managers for making effective decisions and to achieve
the set targets easily. Further this create and develop a healthy relationship between employer
and employee. Not only this, this also increase the confidence and skills of subordinates. Several
methods can be used by the managers of Tesco for increasing the employee's participation in the
decision making process.
 In the initial stages a survey could be conducted by the managers at every level. This
provide accurate information to the managers about what is going on every level of firm
and about the actual roles and responsibilities of every worker. This guide the manager in
deciding the compensation packages of individuals.
 After that in the next step the various issues should be identify by the managers faced by
the employees during their work (Do Paco and Cláudia Nave, 2013). It is the
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responsibility of higher authority to do concert with the workers about how the issues can
be solved .
Apart from this various decision making process are defined which could be used by the
managers of Tesco for solving the issues and at the same time to maintain the morale. By this
better results can be achieved by the subordinates in minimum number of time. Main tools and
techniques which can be used by the managers of organisation to increase participation of
workers in the decision making process are stated below: Information method: This is one of the useful and effective method under this, top
managers deliver and provide relevant data to all the employees working in enterprise.
This make all the workers informed about what is going on every level of firms. Further
this provide guidance to all the subordinates to give direction to their activities and take
decisions accordingly.
 Delegation: In this top managers of the firm give opportunity to the employees, working
on a lower level to perform their roles and responsibilities (Robertson, Gockel and
Brauner, 2012). This not only enhance the skills of workers and about also provide them
opportunity to give their best to the enterprise.
By using these methods for increasing the employee's participation in the decision
making process managers of Tesco can set and achieve mutual results and targets.
4.3 Impact of human resource management on employee relations
Human resource management simply refers to all policies and strategies used by firms for
managing the workers and activities related with them. It is very necessary for every organisation
to maintain them in order to achieve set targets easily and for capturing a larger market share.
Tesco want to increase the performance level of its employees. For this it is very necessary to
first provide training to them to enhance their skills and performance in the firm. By doing this
firm can maintain the quality of its products and can better satisfy the needs and wants of its
customers. Further it is very necessary for the firm to create and maintain healthy working
relations with its subordinates. It is very necessary that managers should treat all the workers in a
friendly manner so that workers can feel frees and can easily share all the issues and problems
face by them. In this way, positive environment scan be created at workplace which
automatically increase the productivity of subordinates.
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Further HRM include the various tools for motivating the employees to give their best
and to achieve their both long and short term objectives (Meisler, 2014). Effective policies of
human resource build better relation with employer and employee because this include the
various process and methods for managing the subordinates and with their compensation. Fair
remuneration not only increase the performance of workers but also boost up their confidence.
So it is very essential for the managers of Tesco to formulate effective policies for managing the
employees at workplace so that set targets can be achieved by the firm. Various factors which
affect the behaviour of employees must be consider by the managers of TESCO while formulate
HRM policies.
CONCLUSION
From the above information it can be summarised that create and maintain better
relations with employees is very necessary for a organisation like Tesco for getting competitive
advantage. Various approaches are there like unitary and pluralistic are there which can be used
by the managers of firm for solving the issues related with subordinates. During the process of
formulating policies regarding the management of employees it is very necessary for the manger
to consider the needs and wants of worker in order to satisfy them in an effective way. It is very
necessary to encourage the employees for tasking part in the decision making process so for this
various tools are there which can be used by the managers of Tesco.
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