Analyzing Employee Relations and Stakeholder Impact at Tesco: A Report

This report analyzes the importance of employee relations within Tesco, a major UK-based retailer. It explores the value of positive employee relations, the fundamentals of employment law, and suggestions for improving employee relations. The report also includes a stakeholder analysis, identifying both internal and external stakeholders and how their engagement can support the employment relationship. Furthermore, it examines how positive and negative employee relations influence conflict avoidance and resolution, providing insights into the impact of different approaches. The report highlights the significance of maintaining good relationships between employers and employees, including providing fair treatment, equal opportunities, and a positive work environment to achieve organizational goals and objectives. Finally, the report discusses how stakeholder engagement and contribution can support the employment relationship and how positive and negative employee relations can affect conflict avoidance and resolution.

How employee relations can
influence the behaviour of
different stakeholders

Table of Contents
INTRODUCTION...........................................................................................................................3
The value and importance of employee relation within Tesco...............................................3
Explain the fundamentals of employment law.......................................................................4
Suggestions for improving employee relation........................................................................4
Different types of rights, duties and obligations that an employer and employee has within
workplace...............................................................................................................................5
Stakeholder analysis...............................................................................................................5
How stakeholder engagement and contribution can support employment relationship.........6
How positive and negative employee relation can affect conflict avoidance and resolution.7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Employee relation is an important concept of the organisation that is helpful in maintaining
good as well as positive relation among workers and employers. To be successful in market, it is
duty of the management to provide positive culture for employees where they can work properly.
Conflict management is another aspect that can be achieved by building good relation among the
employees. For completing this project, company chosen is Tesco. This is a biggest retailer of
supermarket chain across UK. It serves in various countries (Caniëls, and Veld, 2019). This is
among the largest profit making companies around the world. The following report will explain
value and importance of the employee relation within Tesco. There is discussion on
fundamentals of employment law. There is also discussion on the different types of rights, duties
and obligations that an employer and employee has within workplace. At last, there is
Stakeholder analysis which is done for knowing whether these can help in developing employee
relation.
The value and importance of employee relation within Tesco
Employees are the most valuable assets in the organization. Employee relations means
maintain and manage relation between employers and employees. An organization maintain
positive and good relation with there employees. This help in employees participation,
engagement, retention, motivation. The company can maintain good relation by providing fair
remuneration, bonus, incentive, to employees. There are many other way through which an
employer or manager can create and maintain better relation with employees by communicate
freely with each other always show recognition of their work (Eliyana, and Ma’arif, 2019).
Good employee relations help in achieving objectives and goals of the organization. If company
maintain negative or bad relation with employees this creates conflicts and misunderstanding.
Maintaining good relation with employees help in achieving targets easily. When employer and
employees share positive relation with each other this bring more energy at work, employees feel
comfortable and enjoy their work. Employee relations refers to maintaining and creating good
relation between each and every employee in an organization. It is maintain by the manger of an
organization through evaluating employees, giving time to time feedback of their work,
introduce new policies in the favour of employees, taking care of the needs and wants of

employees and resolve conflicts all these things help in maintaining good and positive employee
relations. In context of Tesco, it is seen that all the employees are provided equal treatment and
they are not discriminated on any basis. It is very important for every Tesco manager that all the
employees are feeling connected towards the company and they are liking incentives, bonuses as
well as workplace environment that they are getting.
Explain the fundamentals of employment law
According to the employment law, it is concluded that this is law that is developed for
employer – employee relation (Gumilar, 2020). As per the law, if business is having more than
one individual working in the company, then there is need of development of employment law.
The employment law is developed for both federal as well as state which consists of subjects
with common objective for protecting and securing rights given by workers and employees. This
law is developed for preventing discrimination, promoting health and safety, establishing
minimum required for economic support and preventing work disruption because of the conflicts
and fights between management and labour. The main objective of the management for using
employment law is to prevent discrimination among the employees at workplace, promote health
and safety as well as establishing good relations among employees. This will contribute in
managing the business activities effectively and meeting organisational goals.
Suggestions for improving employee relation
Employee relation is defined as the bond that is shared among employee and employer or
employee with another employee.it is very important for the management of Tesco to ensure that
all employees are feeling engaged and involved within the company. They are having good time
at workplace (Kim, and Han, 2019). This means that they are provided positive environment at
workplace. Within Tesco, the management is taking following steps –
 Union is formed for employees so that if they are having any problem, they can talk
regarding the issues they are facing.
 Employees and employers are engaged in informal meetings and dinners too so that they
can increase their bond. This will help in increasing their understanding level and doing
work in proper manner.

 The Tesco managers are providing all rights and regulations given by government so that
employees feel involved within the company.
Different types of rights, duties and obligations that an employer and employee has within
workplace
The Tesco rules, regulations and obligations for employees is based on various factors such as
pay of the employees, working hours, leaves, job security, health and safety and workers and
union rights (Kulkarni, Aher, and Pawar, 2020). These are explained below –
Tesco is involved in paying a fair wage that reflects local markets and conditions. This
company offers attractive salaries that includes good package of pay and benefits to all
employees and staff. The employees of Tesco have complained about the sub standard wages.
The basic pay provided to employees is also good and along with this they are provided
incentives and bonuses. Pensions are provided to Tesco employees for increasing their
satisfaction level. Employees of Tesco are not given sick pay but they can take unpaid leave. The
employees can take some of the days as paid holidays if they are ill.
Stakeholder analysis
Stakeholder are defined as the group of people that are affected by the business operations and
activities (Kumar, 2019). There are external and internal stakeholders of Tesco which are
affected by the business activities and profits. Tesco is a British retailer that has headquarters in
England. The shareholders of the Tesco are mentioned below –
Internal stakeholders of Tesco
The internal stakeholders of the company include managers, employees, board and
executive directors and shareholders. As of any other company, it is concluded that employees
are the most important stakeholder group of Tesco. The stakeholders of Tesco are chairman,
chief financial officer and chief executive. This also includes a number of non - executive
director (Magnan, and Martin, 2019). These are strong and powerful and they take important
decisions of the company. The major shareholder of Tesco in the last year were Norges bank,
BlackRock, Schroders, etc.
External stakeholders of Tesco
The main stakeholders of Tesco are suppliers, customers, pressure groups, government,
local communities, creditors, etc. Tesco is working with thousands of people. The suppliers and
producers of raw material provide products to Tesco and they sell it to the customers. All the

stakeholders are important for Tesco. However, they are neither equally important nor equally
powerful (Saengchai, Siriattakul, and Jermsittiparsert, 2019). Some stakeholders are far more
powerful than the others. For instance, the chairman, directors, and other senior executives chart
the overall and strategic direction of the company. However, the shareholders must approve the
major decisions. For instance, many shareholders were against the decision of Tesco’s takeover
of Booker, a restaurant supplier. But they had to agree for this.
How stakeholder engagement and contribution can support employment relationship
Stakeholders are an important element of an organisation which can help in maintaining
good relation among the employees (Singh, 2019). The stakeholder engagement is the activities
and operations of business will lead to success of the company. Employee relation has to be
maintained for managing work and ensuring success of the company. The maintenance of
healthy relation among employee and employer will be key to the company’s success. There are
some ways by which stakeholders of the company can help in maintaining good employee
relation. Some of the ways are mentioned below –
Shareholders
These are the group which have share of the
companies. They are directly connected to the
profit of the company.
Employees
These are essential asset of the company, when
these are working effectively, then only
company will be able to meet objectives.
Customers
These are known as people who are provided
the products or services offered by the
company.
Communities
These are known as the local communities that
can be affected by managing the employee
relation.
Government
This is the least affected stakeholder but it is
provided great importance while managing the
decisions of the company.

From the above stakeholder analysis, it is concluded that employee relation among
employees will help in managing the working of company in effective manner. A good relation
among employees will help in achieving the targets and goals of the company in less time. The
stakeholders are affected by the profit of the company. Thus, they will focus on managing the
employee relation. This is directly proportional to the making of good money and earning profits.
How positive and negative employee relation can affect conflict avoidance and resolution
In order to avoid conflicts among employees and develop a healthy relationship, it is important
for the company to manage and do great work. There are various ways of avoiding conflicts
within an organisation and maintain healthy relationship among employees and employers. If
Tesco is maintaining good working relations among employees, it is helpful for it to achieve
business goals and objectives in specified time. Following are 4P’s of employee relation that are
followed within Tesco-
 Personable engagement with subordinates and employees is a leading trait that school
leaders can do to achieve their goals. The managers must not be too friendly and too strict
while managing their team. This will help in completion of organisational goals in given
time.
 Professionalism is regarding the achieving of milestones and delivering high quality
service and products to the customers. According to this factor it is essential for the
managers to build up a professionalism among the workplace so that all employees must
respected seniors and they do work given to them accordingly. On the other hand, work
place can be more fun if it is converted into some football stadium or unprofessional
place.
 Proactive is another employee relation factor which is related to the conflict management
and misbehaviour at workplace. when there is any professional conduct at workplace it is
ensured that employees are not contradicting with the perception of their lives. This
concepts of development of different type of queues as well as intimations that are related
with religion, race, culture etc.
 Positive is the last factor of employee relation and this is developing the positive
leadership among the management and executive positions in the organisation.
Leadership is known for building of steps that are related to achieving the organisational

goals. It is ensured that the team working for achieving the business goals is not diverted
and they are doing great work for achieving success.
 Conflicts among employees occurred due to the following factors and they can be
managed effectively if there is positive relation among the workers.
 There are some cases when there it is limited resources within the company so for
achieving the girls there is limited budget. So for achieving the targets are goals prime
labour or employees are involved in that project. This creates development of of
discrimination and conflict occurs. This problem can be solved by maintaining good
relation between employees by making the prime employees to give trainings to the the
less productive employees to do their best at work.
 Another reason for conflicts is position of the employees. The Tesco managers provide
position to managers and executive on the basis of their skills, abilities, etc. trainings are
provided to employees so that they can develop their skills and lead good positions within
company.
 Personality of different individuals is different and they have various social styles. The
way in which individuals communicate and respond to various situations is different. For
making all individuals to be successful and have a good personality, they are provided
social style training that will help in increasing employee awareness.
CONCLUSION
From the above discussion it has been concluded that conflict resolution is an important
factor that has to be considered by the companies while managing their work. Also employee
relation is also an aspect that can lead to company’s success. Employee relation is an important
concept of the organisation that is helpful in maintaining good as well as positive relation among
workers and employers. To be successful in market, it is duty of the management to provide
positive culture for employees where they can work properly. It is obvious that management of
organisations must ensure that there is presence of positive relation among employees as well as
employers. The school provides great advantage for it to be more competitive in market and
market its brand properly. Good relation among employees will lead to healthy bonds among
workers and this will increase their efficiency. Intercity productivity and profits of the company

can be maximized. Thus, it is ensured that management is having positive employee relation at
workplace.

REFERENCES
Books and Journals
Caniëls, M.C. and Veld, M., 2019. Employee ambidexterity, high performance work systems and
innovative work behaviour: How much balance do we need?. The international journal
of human resource management, 30(4), pp.565-585.
Eliyana, A. and Ma’arif, S., 2019. Job satisfaction and organizational commitment effect in the
transformational leadership towards employee performance. European Research on
Management and Business Economics, 25(3), pp.144-150.
Gumilar, S., 2020. Analysis The Effect of Servant Leadership on Performance of Employees
with Employee Relation as a Mediating Variable (Doctoral dissertation, Universitas
Andalas).
Kim, A. and Han, K., 2019. All for one and one for all: A mechanism through which broad‐based
employee stock ownership and employee‐perceived involvement practice create a
productive workforce. Human Resource Management, 58(6), pp.571-584.
Kulkarni, M.A., Aher, D.N. and Pawar, S., 2020. A Study Of Employee Engagement On Job
Satisfaction At Force Motors Limited, Pune. Studies in Indian Place Names, 40(3),
pp.5915-5925.
Kumar, A.A., 2019. Work Values, Organisational Commitment and Job Satisfaction in Relation
to Employee Career Stages in Information Technology Organisations. Ushus-Journal of
Business Management, 18(2), pp.66-79.
Magnan, M. and Martin, D., 2019. Executive Compensation and Employee Remuneration: The
Flexible Principles of Justice in Pay. Journal of Business Ethics, 160(1), pp.89-105.
Saengchai, S., Siriattakul, P. and Jermsittiparsert, K., 2019. The Mediating Role of Employee
Engagement between Team and Co-worker Relation, Work Environment, Training and
Development and Employee Performance. International Journal of Psychosocial
Rehabilitation, 23(4), pp.853-865.
Singh, J., 2019. Study of relation between CSR and employee engagement in hotel industry.
In Corporate Social Responsibility: Concepts, Methodologies, Tools, and
Applications (pp. 1243-1249). IGI Global.
Saengchai, S., Siriattakul, P. and Jermsittiparsert, K., 2019. The Mediating Role of Employee
Engagement between Team and Co-worker Relation, Work Environment, Training and
Development and Employee Performance. International Journal of Psychosocial
Rehabilitation, 23(4), pp.853-865.