The Influence of Employee Relations on Stakeholders: A Tesco Report

This report analyzes the importance of employee relations and fundamental employment laws within the context of Tesco, a multinational grocery retailer. It explores employee rights, duties, and obligations for both employers and employees, highlighting the significance of fostering a positive and effective work environment. A key focus is on stakeholder analysis, including how Tesco engages stakeholders to support positive employment relationships. The report examines the impact of both positive and negative employee relations on various stakeholders, such as employees, customers, and investors. It covers topics like employee motivation, conflict resolution, and the importance of adhering to employment laws like the Equality Act 2010 and the Health and Safety at Work Act 1974. The report offers insights into how Tesco can maintain a healthy work environment and provides suggestions for improvement, emphasizing the role of communication, training, and career development in enhancing employee satisfaction and loyalty.

How employee relations can
influence the behaviour of
different stakeholders

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Explanation of importance of employee relation and fundamental employment laws...............3
Explanation of different type rights, duties and obligations of employer and employees in
organisation..................................................................................................................................6
Stakeholder analysis for organisation and stakeholder engagement and contribution can
support positive employment relationship...................................................................................7
Analysis of the impact of both positive and negative employee relation on different
stakeholders.................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Employee relation is defined as the relationship between organisation and employees. Basically,
it is the efforts of organisation to develop and maintain positive as well as effective relation with
its employees. Constructive and positive employee relation facilitates the organisation to engage
loyal employees for long period of time. Organisations should develop healthy relation with
employees through provide them motivation in order to enhance their confidence and morale
(Capano and Howlett, 2021). In this report the chose organisation is Tesco which is founded in
the 1919 by the Jack Cohen. It is British multinational groceries retailer, which headquarter is
situated in Welwyn Garden City, England, UK. 4,23,092 employees are working in the
organisation. In this report importance of employee relationship, employee legislations of
employment are defined. Various rights and duties of employees and employees covered.
Stakeholder analysis and positive as well as negative impact on stakeholder of employee relation
is covered in this project report.
TASK
Explanation of importance of employee relation and fundamental employment laws
Employee relationship: Employee relation is defined as the all process that develops effective
and positive relationship with employees. Effective employee relation motivated employees to
perform in defined manner and retain with respective organisation for long period of time. There
are various human resource strategies are implemented by the Tesco to maintain positive relation
as well as ensure that all organisational goals and objectives are achieved appropriately.
Respective organisation focuses on various issues that impacts on employee performance and
solve them in effective manner (Camilleri, 2018). Tesco develops strategies to build effective
relationship with its employees. It offers them benefits, improve their working life and develop
balance and provide positive working environment as well.
Importance and value of employee relationship in organisation: Strong relationship of
employees with employer as well as organisation helps organisation to attain all goals and
objective efficiently. Positive employee relation enhances their productivity, performance and
retain them with organisation. Tesco builds better relationship with its employees through
providing proper training and development opportunities. Some importance of employee
relationships is discussed below:

Retain loyal employee: Effective employee relation helps organisation to retain employees
form long period which is important for the growth and development of organisation. If
employees leave organisation because of some certain reasons than organisation again conduct
the long process of recruitment and provide them training that needs investment. On the other
hand, if employees are satisfied and feel comfortable than they will retain and be loyal towards
organisation that provides various competitive advantages to Tesco.
Fewer conflicts at work place: There are various conflicts and problems are raised within
organisation which is very common. Management of these conflicts is necessary to run business
in smooth manner. As conflicts affect the performance as well as productivity negatively of
employees. Through implementing effective employee relationship, conflicts are resolved
properly that enhance the satisfaction level of employees (De Stefano, Bagdadli and Camuffo,
2018). Tesco focuses on better employee relationship that help in enhancing employee
productivity and resolve all conflicts efficiently.
Growth and development: Positive relationship between employer and employees helps
organisation grow and develop even in competitive environment. If employees of organisation
are well-motivated then they are able to attain the high work performance. Tesco offers different
facilitates to its employees as well as motivates them to work in more efficient manner.
Enhance employee motivation and loyalty: Effective working environment facilitates
organisation to enhance employee loyalty as well as retain employees with organisation. As
employee are the valuable assets of organisation and help Tesco to attain all goals and objectives
in efficient manner (Donia, 2019). If employees of organisation are motivated then they help
Tesco to meet organisational expectations and goals. Tesco enhances positive relation with their
employees and inspire them to achieve all goals effectively.
Employment laws: Employment laws and legislations are formulated by the local
authorities to support the functioning as well as activities of organisation that provides various
rights to employees. For every organisation, it is compulsory to follow and implement all
employment laws in proper manner in order to run all business activities smoothly. If
organisation does not follow these laws than it has to face various negative implications such as
huge charges and fines and imprisonment that affect business. Some employment laws are
defined below:

Equality Act 2010: Equality law is the one of the essential legislations that helps organisation to
develop effective employment relationship. The Act ensures that there is no discrimination is
done within organisation to employees regarding their age, religion, gender and disability. The
act is passed by the government of UK to protect employees from any misconduct as well as
unfair actions (Eskerod and Larsen, 2018). Tesco offers equal opportunities to employees for
career development, so they can perform their defined activities in better manner and attain
determined goals and objectives efficiently.
Employment Right Act 1996: Employment law is passed by the conservative government
in order to maintain all interest and safety of employee within organisational environment. The
respective legislation deals with certain unfair treatments such as low wages and stretching
working hours. Tesco implement all these laws within organisation in order to build effective
relation with internal as well external stakeholders.
Health and Safety at Work Act 1974: As per the legislation, it is necessary for the every
organisation to provide healthy and safe working environment for employees and train them for
new technologies that are to be used in organisation. As Tesco in the multinational brand that
invest huge amount in designing stores and offices where employees are worked (Fernández‐
Gago Cabeza‐García and Nieto, 2018). Respective organisation also conducts proper training
programmes for employees to ensure their safety during work.
Suggestions to improve employee relation As Tesco provides fair treatment to its employees that elimination all chances of
favouritism. Respective organisation should avoid the monotony routine so employee
carry their functions effectively. Training is the perfect solution for enhancing the interest
of employees in job. Tesco implement the positive reinforcement method in organisation to apprise and
provide reward employees in seminars and meetings. Feedbacks also provided to
employees that motivate them to attain all organisational objectives. Tesco provides various career growth and development opportunities to employees that
motivates them and drive towards long-term satisfaction from job.

Explanation of different type rights, duties and obligations of employer and employees in
organisation
In an organisation number of employees are working at different divisions and designations who
have to perform various roles and responsibilities that are allotted according to their abilities and
experiences. In Tesco organisation employer as well as employees are proform various functions
in different department simultaneously for the purpose of attain all organisational goals and
objectives efficiently (King, 2017). Different right, duties and obligations of employees and
employer are defined below:
Rights and duties of employer:
 The main duty of employer in Tesco organisation is to provide safe working environment
which is free from any hazards. There are various colours, labels and codes are used that
help employees to use any organisation equipment in effective manner.
 Employer provide various information to employees regarding organisational changes
that help them to face all external environment factors efficiently as well as remain
competitive through acquiring innovation skills. It helps them to overcome all problems
and hurdles effectively.
 It is the duty of employer to make employees aware about their rights and responsibilities
so they can perform their determined task in proper manner.
 Conduct various training and development programme in order to motivate employees
for attaining all organisational as well as personal objectives.
Obligation of employer:
 According to legal laws, Tesco employers are responsible to provide equal growth and
development opportunities without discriminating them n the bases of their gender,
marital status and religion. This will facilitate them to use their skills and capabilities to
grow and develop.
 Employer maintain and prepare proper record of employees that includes their personal
details like salary details, contact and leaves. Manager od Tesco organisation ensure their
confidentiality and update on regular bases.
Right and duties of employees:

 It is duty of employees to follow all organisational guidelines and carry it in daily
performance effectively. Employees must use their skills and capability to attain goals
and objectives of Tesco.
 During the meeting and discussion, it the responsibility of employees to give
suggestions and opinions in order to contribute in organisational functioning
efficiently (Petrusel, Mendling and Reijers, 2017). As sales employees are directly
interact with employees so they can come up with various suggestions.
 It is the responsibility of employee to fulfil all guideline and conditions of contract
which is signed after mutual consignment of employee and employer.
Obligation of employer
 There are various policies and instructions are formulated by the organisation that must
be obliged by the employees in order to ensure smooth functioning. In organisation
various psychological contracts are prepared that are followed by the employees. Apart
from that employees abide all promises that are that are done at the time of joining in
order to maintain sustainable employment relation.
Advice related to right, duties and obligations of employment relationship:
Top executives of Tesco should distribute all role and responsibilities among employer
and employer in order to enhance transparency about all responsibilities and rights. Proper
delegation of roles and responsibilities maintain coordination among employees about they how
to deal with problems and clear that they are responsible for what. As the respective organisation
allocate work according to skills and capabilities of employees that help organisation to attain all
organisational goals and objectives in effective manner. Communication is the biggest factor that
must be maintained by the Tesco that boost the decision-making process (Pinzone, 2019).
Effective communication maintains the employee relation and ensures the smooth working of
business activities.
Stakeholder analysis for organisation and stakeholder engagement and contribution can support
positive employment relationship
Stakeholder analysis: Stakeholder analysis is implemented by the organisation to identify
the interested of stakeholders and group of them in order to allocate the activities according to
their skills and capabilities that influence their behaviour as well. It is the most effective
technique to determine best practice that can be used by the Tesco establish effective

communication and keep them engaged in business activities as well as motivates to perform in
efficient manner. Stakeholder analysis is divided in four categories that are defined below:
Keep satisfied: As stakeholders have the high power that affect the organisational
performance and profitability so, Tesco organisation tries to keep them satisfied. There are
various stakeholders are included in it like customers and suppliers who are less interested in
organisational issues.
Manage closely: All stakeholders who have high power and having interest in Tesco like
investor. As investors have right to take active part in management activities, so managers take
precaution in order to expand business functions to gain higher profitability objectives in
competitive market.
Monitor: These stakeholder holds high power and having less interest in regular
operations of the organisation such as government. As Tesco is the private organisation so there
is less interference of government in organisational activities and functions.
Keep informed: In this part of stakeholder employees are included who posses less power
to take organisational decisions. But being the part of organisation, employees are always
interested in working with highly reputed organisation such as Tesco.
Stakeholder engagement leads towards positive employment relation:
Stakeholder engagement: Stakeholder engagement is defined as the practice in which
respective organisation interact and influence the stakeholder to being part of organisation and
engage all organisational activities effectively. There are proper evaluation and analysation is
done by the Tesco to influence the decision making of stakeholders to carry all business
functions smoothly (Taoketao, 2018). It is related to situation such as manager hired a suitable
candidate and allocate him work according to his interest area. This engages both internal and
external stakeholders like government, customers, investors and employees in organisational
function in order to gain desirable outcomes. So, proper engagement of stakeholder leads the
organisation towards positive employment relation.
Associate the profitability of organisation of different stakeholder with objectives of firm:
As the main goals and objective of Tesco is to gain the dominance over retain industry as
well as deliver high quality products and services to customers at affordable prices in market.
Respective organisation analyses the requirement of customers and launching the new products

accordingly. Tesco prepares the financial statement regularly that shows the financial positioning
of organisation on specific time period. So, stakeholder such as customers, government and
investors get information organisational financial positioning.
Rewarding for performance:
Rewarding for performance is the most important aspect of stakeholder analysis that help
the organisation to maintain effective employee relation within organisation. Tesco adopts the
method of rewarding employees and other stakeholders on the bases of their performance. The
respective procedure facilitates the organisation through maintain effective employee relation to
enhance their satisfaction level as well as motivates them to keep engage with organisation for
long period of time (Zientara and Zamojska, 2018). There are various rewards are gives by the
Tesco to their customers such as loyalty card and discounts to retain customers with
organisation.
Analysis of the impact of both positive and negative employee relation on different stakeholders
As stakeholders are getting affected by the positive and negative employee relation that
impacts on their performance and profitability level that are discussed below:
Stakeholders Positive impacts of employee
relation
Negative impact of employee
relation
Employee Effective and positive
employee relation within
Tesco motivates employees to
accomplish all organisational
goals and objectives
efficiently. Employees are like
to fulfil all organisational
objectives over their personal
goals because they are aware
that their employer analyse
their efforts. Effective relation
retain employee with
If organisation have negative
relation with employees than it
leads employees towards
dissatisfaction from job as
well as impacts on their
performance and productivity.
As employees are effected by
the internal environment of
organisation that consists lack
of coordination among teas
and departments, negative
organisational policies and

organisation for long period of
time.
conflicts that leads employees
towards dissatisfaction.
Customer As customers are the most
important stakeholder of every
organisation who facilitates
the Tesco to generate higher
revenue by purchasing
organisational products and
services (Miles, 2017). If
organisation provides better
quality products and services
to customers as well as
fulfilling their changing
requirements leads them
towards being loyal and retain
with organisation for long
period of time.
As there are high competition
is exist in current environment
and various substitute
products are available in
market place, if customers are
found that the organisation do
not provide quality product
than they switch the company
from other company within
same industry. As effective
customer relation is required
to sustain in competitive
market environment.
CONCLUSION
From the above report, it can be concluded that effective employee relation plays
important role in organisational growth and development. It offers the high-quality values and
communication among all internal stakeholder of organisation in order to attain all organisational
goals and objectives in efficient manner. As employment relation is related to the sustainable
interrelation between employee and employer. There are various employment laws are imposed
by the government to ensure the effective relation within organisation. Employer as well as
employee have various duties, roles and responsibilities thar ensures the smooth working of
organisational activities. Stakeholder analysis impacts on the business performance and
productivity.

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