Employee Relations Report: Influence of Stakeholders in Tesco

This report provides a comprehensive analysis of employee relations, focusing on the case study of Tesco, a British multinational groceries company. The report explores the importance and value of employee relations, emphasizing how effective management fosters productivity, removes conflicts, achieves targets, promotes a positive work culture, and motivates employees. It also delves into the fundamentals of employment law, highlighting the rights, obligations, and duties of both employers and employees, including issues like discrimination, safe workplaces, and ethical considerations. The report further examines stakeholder analysis and the impact of employee relations on various stakeholders, offering appropriate advice for maintaining healthy workplace relationships. The study underscores the significance of communication, legal compliance, and ethical behavior in fostering successful employee relations within an organization.

EMPLOYEE RELATIONS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1: Importance and Value of Employee Relations......................................................................3
P2: Fundamentals of Employment Law......................................................................................5
LO2..................................................................................................................................................6
P3: Rights, Obligations and Duties..............................................................................................6
P4: Appropriate Advice...............................................................................................................8
LO3..................................................................................................................................................9
P5: Stakeholder Analysis.............................................................................................................9
LO4................................................................................................................................................11
P6: Impact Employee Relations.................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Employee relation can be defined as the organization efforts for managing relationship
between employees and employers. The main purpose of employee relation establishes strong
relationship between organization and staff by determine and resolves workplace issues related
to salary, workload and others. HR management plays essential role to improve employee’s
satisfaction and morals within company by observing their needs and expectation from company.
There are several benefits of good employee relations such as economic growth and
development, high turnover of employees within workplace. It supports company to raise their
good will within industrial market. To understand role of employee’s relation has an example of
Tesco company. It is a British multinational groceries company which is headquartered in
Welwyn garden city, England, UK. Organization famous as general merchandise retailer in UK’s
retail industry. The brief study of the report helps to understand the value and importance of
employee relation.
LO1
P1: Importance and Value of Employee Relations
Employee relations plays great role in any company or business, because these promotes
effective relationship between employees and employer. Top-level management within each
organisation should take various steps towards building effective employee relations, otherwise
that organisation can’t achieve its target on time (Mitchell, 2016). Employer is responsible to
take various prime decisions, but employees are the main people who implements those
decisions in daily operations. That’s why employer always need to maintain effective
relationship with their employees. There are communications and interaction values are too
productive for an organisation to build extra-ordinary relations between employees and
employer. Currently relationship between existing employees and management within Tesco is
too strong, because Top-level management of company completely understands actual value of
employee relations. Some major importance of employee relations has been discussed below;
Improves Productivity of Employees: Effective employee relations are too helpful to the Tesco
for increasing or improving productivity of employees. When top-level management of company

has treated well to their employees, then employees feel valued by management. After this, they
try to increase their productivity in the workplace (Tyskbo, 2020). That’s why each company or
business should build excellent employee relations to improve their productivity.
Removes Conflicts: Strong relationship between employer and employees always removes
various barriers or conflict from workplace. Many times there are various conflicts raises
between existing employees and upper management, so effective employee relations help to
company for removing such barriers or conflicts. This type of relations always run all
organisational activities on progressive path.
Important in Achieving Targets: Each business or company always has some targets or
objectives which it really wants to complete on time. There are employee relations plays very
great role in achieving all organisational targets on time. Top-level management Tesco specially
focuses on maintaining excellent relations, because currently employees are one of the main
resources to this company. Basically, human resource manager of company is mainly responsible
to build extra-ordinary relationship between employer and employees (Gallardo Gallardo and
Thunnissen, 2016). It is necessary task to the HR manager to run company’s all business
operations in proper manner
Promotes Positive Work Culture: Employee relations always promotes positive work culture
within company. If any organisation has an effective relationship between employees and
employer, then it can easily develop a happy and healthy work culture. Employee relations plays
excellent role in removing negative elements from workplace as well. There is positive work
culture is too necessary for increasing trust aspect within daily operations. Without positive
workplace or work culture, a business or company is not able to achieve its decided objectives on
time.
Motivates People: Effective relationship between employees and employer always motivates
both to put their great efforts in daily business activities. There is motivation aspect is too
necessary to improve all over performance of an organisation. A motivated employee is always
more capable to work hard within workplace in comparison of other employees. That’s why
strong relationship is too necessary. In effective relationship, a manager appreciates their
employees for giving their extra-ordinary input within daily operations. This appreciation of

manager always highly encourages and motivates to employees for working more effectively in
upcoming time (Moon, 2018). That’s HR manager within a company or business should promote
effective relationship within workplace.
P2: Fundamentals of Employment Law
Top-level management of Tesco is always responsible to follow all legal and ethical
considerations in their business environment. It is necessary task to management for running
their all business operations in ethical manner. There is employment law is also a part of these
legal and ethical considerations which existing management of company already has applied in
their workplace. The management within each company or business highly need to adhere
employment law in their business environment, because this law gives some freedom to
employees. Currently most people or employees are always like to work in those organisations
which completely adhere this law in their respective workplace. Currently Tesco provides those
all facilities to their employees which has mentioned in under this law. For example; company is
paying salary to their all employees on the basis of employment law. According to government
of the United Kingdom, each business or company within country is highly required to adhere
employment law within their business environment. if any business not adhere this law, then it
will need to face various legal issues, like; court hearing, penalty and fine etc.
Employment law plays very great role removing discrimination from workplace.
Currently this is very big issue within different organisations. Many times top-level management
of discriminates their employees on the basis of caste, gender, ethnicity and religion (Rasheed
and et.al., 2017). This type of actions of management is completely unethical. That’s why each
business need to employ this law in their workplace, because this law helps to remove such
issues from workplace. On the other side, when existing management within a company follow
employment law, then it will able to provide safe and healthy workplace to their employees.
According to this law, each employee has right to work in safe and secure workplace. In this
case, if any business not provide safe and secure workplace to their employees, then this thing of
that business is indirectly violating legal and ethical considerations.
Many times organisations take over time work from their existing employees and labours. In
some cases, this thing also comes under unethical attempt. That’s why each organisation need to
avoid taking overtime work from employees. If any organisation is highly required to take over

time work from their employees, in this situation management of that organisation is responsible
to pay additional salary to those employees for overtime work. Each business or company should
completely follow all concepts of this law, because it is necessary maintain effective relationship
between employees and employers. On the basis of employment law, top-level management of
Tesco need to remove politics aspect from workplace, because many times organisational
politics harm an employee’s rights. It is too necessary to run all business operation in ethical
manner (Opatha and Mithani, 2016). On the other side, the management of Tesco should always
consider equality and diversity aspects in their daily operations, because these aspects are also a
part of employment law. Management has highly required to promote equality and diversity
within workplace, these aspects always gives equal growth opportunity to each employee.
Currently each employee has equal right to grow in the company, so management should
consider this small thing as well. Fundamentals of employment are really helpful in building
effective relationship between employees and employer.
Suggestions
Top-level management within Tesco should take various steps towards effective
relationship with their employees. Effective relationship is too necessary for gaining effective
return in the market. Company can easily develop productive employee relations by interacting
and communicating with their employees.
LO2
P3: Rights, Obligations and Duties
There are employees and employer always has various obligations, rights and duties in
the business environment of Tesco. People within an organisation are responsible to properly
done their own duties. Each person has their own task in daily operations of company. For
example; employees who works in marketing department of company are responsible to
completely each task relating to marketing. On the other side, employees who works in human
resource management of company are responsible to complete various HR practices (Eldor and
Harpaz, 2016). That’s why each person has their own role and duty within organisation. There
are some major rights, duties and obligations of people has been discussed below;

Employer’s rights, duties and obligations
Employer is also known as upper management or owner within an organisation. An
employer always has many rights, duties and obligations. For example; employer has right to
take the final decisions within company. It has right to make or develop different policies in the
workplace. On the other side, employer always has full right make change something in daily
operations. It gives promotion opportunity to different employees. It has right to hire new
employees in the workplace. It is the only responsible to body within company who takes various
steps towards improving skills and talent of their employees. Employer always need to direct,
guide, suggest and control employees within workplace. It has right to give specific orders to
different employees in business operations.
On the other side, an employer has duty or obligation of maintaining an ethical
environment in their workplace. It always need to take responsibility to remove such elements
from business operations which can negatively affect it. Many times some conflicts raise
between employees and management, so has duty and obligation to build effective employee
relations to remove such conflicts. It is highly responsible to carefully listen problems of their
employees, so it need to listen their employees. Basically, listening is the best tool for an
employer to build extra-ordinary relationship with existing employees (Jayswal, Karani and
Jhala, 2017). When employer carefully listen their employees, communicate and interact with
their employees, then employees feel values by employer. In this case, employer has highly
required to properly fulfil their rights, duties and obligations.
Employee’s rights, duties and obligations
An employee also has different rights, duties and obligations which it need to complete in
systematic way. For example; an employee has right to work in a safe and secure workplace.
Safe and secure workplace is one the prime need to an employee in an organisation, because it
can effectively work in this type of workplaces. On the other side, employee has right to raise
voice against discrimination, abuse and harassment. These are some major issues within different
organisations, because many times employer harass, abuse and discriminate employees. There
are employees has right to get equal growth opportunity in the workplace. These are some major
rights of employees in business environment of Tesco.

Employees need to fulfil various duties and obligations also in workplace. An employee
always responsible to be loyal with their employer. An employee has highly required to perform
its role in proper diligence and care (Gkorezis and Kastritsi, 2017). Currently an employee plays
very great role in daily operations of Tesco. Employees always need to follow orders of their
managers and employer. They need to avoid such activities within their job role which
negatively affect business environment of company.
P4: Appropriate Advice
Employer and employees, both need to maintain better interaction values to interact with
each other. It is too necessary for removing various conflicts between employees and
management. Employer within Tesco should take steps towards providing happy and healthy
workplace to their employees, because this type of work cultures always positively influences
people or employee behaviour. When a company has effective relationship between employees
and employer, in this situation that company is able to gain huge competitive advantages in
market. There are psychological contract also plays very excellent role in Tesco, because
currently company is using it to maintain healthy relations between employees and employer.
Currently existing management within each business or company should consider psychological
contract in their business environment to improve employee relations (De Clercq, Mohammad
Rahman and Belausteguigoitia, 2017). On the other side, contract law helpful in improving
productivity of employees as well.
Top-level management of should always support for employee work life balance,
because this step of management is too necessary for taking extra-ordinary work from existing
employees. Work life balance is basically a business terms which gives opportunity to an
employee to choose working hours according to their own choice. By choosing working hours on
own choice, an employee is able to give proper time to their family and work. It means,
employees enable to maintain a specific balance between their work and family. There is expend
quality time with family is also a prime need of employees, so management of company should
give opportunity to their employees for choosing working hours according to their own choice.
In other words, top-level management of Tesco should offer flexible working hours to their
employees. Through flexible working hours, an employee can easily make balance between its
professional life and personal life.

Each person within company has required to properly play its role to gain organisational
targets on time (Pillay, 2019). Employees and employee need to deeply understand their duties,
rights and obligations within organisation. Otherwise, Tesco can’t achieve its targets in decided
time period. All people has their own duties, rights which they need to systematically fulfil in
daily operations. Employees and employees need to follow and adhere each legal and ethical
consideration in their workplace to run each and every business activity in ethical manner. On
other side, employer should always interact with employees to understand their problem within
workplace. Then it need to take some productive decisions towards solving such problems of
workplace. When an employer solves various problems of employees, in this situations
employees feel valued by employer. At the end, employees get motivated to put their great
efforts in the workplace.
Evaluation
Support for employee work life balance and psychological contract are very important
business terms which gives opportunity to the Tesco to maintain effective employee relations.
There is psychological contract helps to employee and employer for removing various conflicts
in daily operations (Aktar and Pangil, 2018). On the other hand, work life balance term supports
to an employee for maintaining a specific balance between work and family. These terms are
basically help to company for developing productivity and relations of employees.
LO3
P5: Stakeholder Analysis
There is stakeholder analysis helps to Tesco for identifying their major stakeholders.
Currently employees, customers, suppliers, government etc. are some major stakeholders of this
company. Without these stakeholders, the company can’t survive in retail industry. There are
employees on the major stakeholders of the company, because they put their great efforts in
different stores and supermarkets of company. Stakeholder engagement and contribution always
supports to company for building positive employment relationship. Top-level management of
company should always build an ethical workplace, because an ethical workplace always
positively influences behaviour of employees. In this case, when behaviour of employees gets

positively influenced, then employee relations also become improved (Williams, 2019).
Workplace satisfaction is very necessary term within employee relation, because when a
company provides satisfied workplace to their employees, then it can automatically maintain
excellent relationship between employees and employer.
The management of company has required to maintain good relationship with their all
stakeholders including employees. If company not maintain effective relations with their
stakeholders, then it will not able to gain positive return in respective industry or sector.
Currently each business or company in the market is trying to maintain excellent relations with
their stakeholder, because they are only main sources to different businesses for gaining high
profit in the market. After employees, customers also a major stakeholder of company who give
opportunity to business for increasing its performance in the market. Top-level management
should improve communications skills for their employees, because employees always need to
deal with different customers in company’s supermarkets and stores (Mulvaney, 2019). If
employees effectively communicate with customers, then Tesco will able to build extra-ordinary
relationship with their customers through existing employees.
On the other side, Tesco should take some productive steps towards gaining engagement
and contribution from different stakeholders, because it is necessary for maintain positive
employment relationship. When top-level management maintains effective relationship with all
stakeholders, then it will able to gain high competitive advantage in retail industry. Effective
relationship with stakeholder is always contributing in achieving all organisational targets on
time. There is stakeholder analysis is important to the company for deeply understanding actual
value of different stakeholders. Each business or company has required to innovate and develop
some effective strategies or tactics to maintain positive employee relations.
Power, interest, engagement and contribution of various stakeholders
Employees: Currently employees play very great role to the Tesco, because they are day or night
putting their huge efforts to achieve company’s final goals.
Customers: Tesco has large customer base in the UK’s retail industry. Currently customer has
other retail companies also for buying products and services, but they always give high priority
only to the Tesco.

Suppliers: Suppliers always provides raw-material to company. This factors always contributes
in boosting all over growth of the Tesco.
Government: Top-level management of company always fulfils those all formalities which has
imposed by local government on different businesses. Currently government of the UK
maintains excellent environment within existing retail industry, so this factor helps to company
for extending its brand.
LO4
P6: Impact Employee Relations
Tesco always try to maintain positive employee relations, because negative employee
relations can decrease productivity of company (Otoo, 2019). This is a basic learning for each
business that, existing management of a business always need to maintain positive employee
relations, otherwise it will not achieve positive results in respective market. However, currently
each business and company is taking many steps for building effective and positive relationship
with their employees. These steps of different companies are necessary for positively impact
their other stakeholders like; customers, suppliers and investors etc. some major impacts of
positive and negative employee relations on various stakeholders has been discussed below;
Positive Employee Relations
Positive employee relations within Tesco can positively influence their stakeholders in
market. For example; currently company has positive employee relations, in this situation
company can easily take effective work from their employees. When employees effectively work
in workplace, then Tesco will capable to provide quality products to their customers. At the end,
when customer use those quality products, then will become positively influenced by this brand.
This is the process for influencing different stakeholders through positive employee relations.
That’s why each business should maintain effective employee relations (Meylemans and De
Spiegelaere, 2019). Currently most investors are interested in investing in such firms or
businesses which has effective or positive employee relations. In this situation, this is another
positive influence of positive employee relations. Top-level management of Tesco need to

continuously maintain positive employee relations in their workplace, because it is necessary for
positively influencing all stakeholders in market.
Negative Employee Relations
The management of Tesco should avoid negative employee relations within business
environment, because negative employee relations always negatively influence to different
stakeholders. A company or business can’t achieve an effective workforce with negative
employee relations. For example; a business has negative employee relations, in which their
employees are not taking interest on workplace. Then that business not capable to take effective
work from their employees. At the end, business will not able to provide quality products to their
customers. Then this thing of business can negatively influence their customers. Currently
customers are very major stakeholder of company. This is the process which shows how poor
and negative employee relations can negatively influence stakeholders. On the other side,
employees never like to put their huge efforts in workplace of such businesses which has
negative employee relations. Many times investors are also not showing their interest to invest in
such businesses which has poor and negative employee relations. According to these all factors,
each existing management of Tesco always need to maintain effective relationship between
employer and employees.
Evaluation
Positive and negative employee relationship highly affects conflicts avoidance and
resolution in both ways positively and negatively. If company maintains positive employee
relationship, then it can easily positively influence or affect resolution and conflicts avoidance
(Franca and Doherty, 2020). Reason is, positive employee relationship always gives opportunity
to company for avoiding various conflicts within the workplace. On the other side, if company
has negative employee relationship, then it can’t avoid various conflicts within the workplace.
That’s why negative relationship negatively influences or affects resolution and conflicts
avoidance.
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